This page has been archived and commenting is disabled.
Mission Accomplished 3.0: Dow 15,000 Close
We made new all-time highs in stocks (easy); corporate and sovereign credit risk has been crushed to pre-crisis levels (passe); but the big kahuna was signalled today as we 'closed' above Dow 15,000 giving the red light to millions of the investing public that the water's warm (and asset-gatherers hungry). It seems no news is the best news (better than bad news and way better than good news) as for the 18th Tuesday in a row, we close green. The Dow Industrials may grab the headlines but the Dow Transports is up a mind-numbing 5.1% from Friday's NFP print (with the rest of the majors up a mere 1.7% or so). But... volume was below average; the 'most-shorted' names actually underperformed; VIX closed notably green; on-balance-volume was not supportive; credit markets pulled back notably today; JPY carry was not at all supportive today; and Treasury yields stalled their rise in the last hour.
Trannies are ridonculous...
but the security-to-slap-happy rotation is clear...
But - it was hedged hard this afternoon...
and credit wasn't buying this ramp...
and Treasuries didn't follow through this afternoon...
ands the shorts actually had an up-day - 'most shorted' names actually closed in the red and weren't forced to another squeeze/cover...
as it seems the forced cover has 'normalized' for now...
Charts: Bloomberg and Capital Context
Bonus Chart: Reminder from last night - the credit bubble...
»
- 12222 reads
- Printer-friendly version
- Send to friend
- advertisements -
Yes but in nominal terms that's...oh wait...90% of the folks don't know what nominal means. Never mind.
;-)
in nominal terms gold is now a thousand bucks off it's inflation adjusted high. But that makes sense, unlike stocks, since there is no inflation.
STAWKS are the only asset class left for the +5% to preserve their perceived pseudo wealth..
DOW is going to 20K.. There is no other way to preserve the wealth / power for the elite.
Bullshit, plenty of island tax-havens left holding onto "the elites" wealth.
Like Cyprus?
http://business.financialpost.com/2013/04/29/billionaires-flee-tax-haven...
There are $32 trillion dollars looking for a new home... looks like Mitt got out (back) just in time!
If there is any truth to this, hyperinflation is not far off. I won't hold my breath. I'll see your 32 trillion and raise it to 800 trillion in CDS/derivatives.
Personal experience here: dot-com era was so exciting! People were talking about investments, 401k, retirement plans, hot stocks, stock market buzz, etc. Fast forward to 2006-09: People were talking about how bad things were, retirement plans/investments were put on hold, stocks were decimated: people were talking!
Today? Nobody around me talks about the stock market. I do not remember the last conversation I had or overheard about stocks/401k/investments. Honestly, a couple years??? (besides what I read/type on ZH).
I believe everybody knows it's a joke, a fake, a broken/manipulated market.... Didn't I see that CNBC viewership was at all time lows (a month ago)?
Ever been to a child's birthday party and seen the birthday child "win" some contest. All the adults know it's a rigged game and so when the child enthusiastically runs around the room looking for praise and is met with a muted response or no eye contact or silence the child realizes something wasn't quite right. Bad analogy, maybe, but I see a lot of no eye-contact and hear a lot of deafening silence about this market. My guess is a birthday child tantrum (like a child high on sugar and disappointment) is coming.
I have an aquaintance at JPMorganChase who works as a Wealth Management Advisor. He is very candid re. his opinion that this ongoing episode is a rigged event. He expresses no confidence re. the US markets aside from massive Fed pumping.
Thank you Fiscal Cliff.
Ha! Over 90% of those derivatives net out over the world's top dozen financial institution.
The $32T shuffle is basically due to the stripping of ownership privacy and the finacial hardships of the cash/asset hosting nations. Seems a little forthcoming asset stripping in the form of new taxation thats gotten the money a little nervous these days and warm water destinations are thus becoming a little too warm for comfort...
$30+trillion in orbit will descend pretty quickly when it has no refuge but the wall safe, and it will descend upon real goods of real value or be cast into the fire.
Long wine, women, and song. And, gold.
http://bullmarketthinking.com/world-bank-whistle-blower-precious-metals-...
Thanks for the link...by going down this rabbit hole, she explains the potential for WWIII to me via 'begger thy neighbor' policy and the impetus to have a gold standard global bank (BRICS)....you helped w/my education. Leaves me w/ the image of inflating ES as a huge Hoover sucking up all hard assets via paper proxy.
http://www.nbcnews.com/business/bad-news-grill-beef-prices-hit-all-time-...
If only George Carlin was alive to comment.
Feel like Bill Murray on Feb 2nd.
I know exactly what you mean
Ben can create a bid, but he can't create value.
Shit's getting real.
It's working ....they're herding into the showers....let the muppet holocaust begin !
Make money from home using your own fractional reserve account to invest in the stock market from home. I earned $583 an hour going long NFLX and HLF. Find out more at F E D E R A L R E S E R V E . G O V
Called up Uncle BSB today, and he said I should seriously consider going all in, as this is a once in a lifetime oppotunity.
Go ahead, let the treasuries go bidless, please, I want to watch heads explode in CONgress.
Trannies are ridonculous. The now illiquid IYT serves only to convince the laziest fund managers and crapiest code writers that the DOW is going higher, higher, higher.
I have been trying to short iyt But it unavailable
Short FDX tomorrow on an up open instead.
Sometimes I feel this will never end. They buy NFLX AMZN and sell gold and silver. By the time this correction is over the only ones left will be us here at Zero Hedge and a few others who understand what is actually going on. But most will be left out in the cold. Sad but true.
Oh, by the way. One recent post mentioned he is down 50% on shorting this broken market..... Well I am down just as much being long miners. Not giving in. At some point the turn will be quite noticeable. Never touch my physical.
That was me short since Oct 3rd 2011, the exact day the rally started. I think I spent 5k on some spxu and its worth $1400 now? I'll take the loss next tax year if this miracle market keeps going. I haven't made a trade since that day, I save my money in the Bank of China RMB denominated savings account and have made a nice 3.57% increase on arbitrage along with the whooping .1% they are paying in interest. I cash the checks I get from my rental property and stash it in case there is a 2 week bank holiday here like in Cyprus.
It has been wierd. Lehman went down fast, as planned, , but all this other shit moves in slow motion. This rally was great for people that didn't freak and pull their money out of their 401k accounts. They are probably even again.
We will never get our housing equity back again which means no collateral to borrow money. If I could just pull a nice move and pay off my student loan I might actually be able to retire someday. That loan is killing me. I throw $1000 a month at it slowly moves down.
I am hoping the market will crash like 1932 all over again and spxu would go to $120/share.
Contrary to conventional wisdom, miners will not be spared, but will be royalty tax/nationalized to death. Well, at least the ones not mortgaged to the hilt via Wall St.
Which isn't to say that a junior or two won't make the classic meteoric jump into the big time. Other than that though, it seems the monetary geniuses running the world are destroying any productive avenue they don't already control. Especially while the Crimex still exists. One can only deal with rising costs and lowered revenues for so long before it takes its toll.
Then again, what do I know? My untouchable IRA is likely holding tungsten in the form of CEF (but at least it's still up more than the QQQQs I traded for it).
+100. I am with you brother I feel your pain. Down 55% on the miners. I will never touch the physical I just keep stackin.
Ha. I'm long miners, metals and short the rus/naz/s&p for over a year now. Talk about pain! But been long physical and miners since 2003.
And tomorrow, the Dow will close over 15,100 for the first time.
Uncle Ben is providing somewhere between $3 and $4 billion to the heroin addicts during Wednesday's daily POMO.
By week's end, I don't think S&P 1650 is out of the question.
Tomorrow we'll hear something new about Benghazi... if it is bad expect Dow 16k.
Not sure that I agree with either of you fellows. At this point, QE cash can be destroyed on any given day by quants that know...things don't go up forever. So as new QE money goes in, I would expect high volume reversals.
What's the DOW/foodstamp ratio? And where do the congresmen flee when shtf? Fukushima?
Responsability can mislead, but it can't fly.
Anybody got any idea what the Great Benghazi Hearings will do for the market? I doubt it amounts to a hill of frijoles, but just curious what all you deep thinkers have to contribute.
Who knows...the last big crash was caused by a couple overseas phone calls one night, so it doesn't take much....they pull the rug out when it suits them. But 'Benghazi'? I'm not expecting much....show hearing where all will be excused I'm sure.
We are now set up perfectly for an '87 style overnight crash...no doubt.
From what I just went and read on the subject, it appears to be another white-wash witch-hunt.
I don't believe for a second that Hitlery was "asleep at the switch," as put forth by Lindsey Graham. Instead, it looks like he's rolling out the ole "bureaucratic incompetence" line to cover for what she was really pulling off (in service of their masters).
It's funny how much more all of this stuff makes sense once I stopped watching all of the propaganda channels they pass off as news.
Money printer's delight. Let them dance down at the Federal Reserve, the fucker's are killing the real economy, the worker, the saver, and the small business man. Oh, fuck me, I am sorry for that rant, we all know America is built on the price of S&P. We can all cash in our wealth effect bonanza and live the good life.
Many have said it, and the many are right. This is nothing but a deliberate transfer of wealth from 90% up to the 10%. And if you think that this is the way it should be according to free market laws? Well, you're off your fucking head!
And don't think they care one iota about you if you are a saver, worker, or small businessman who is getting killed. News flash: if you're not in that top 10%, then they don't give two shits about you. If you crawled out in the gutter tromorrow and died, they'd probaby thank you for taking yourself off the unemployment rolls, then send your family a bill for the cleanup.
Its such a set-up.
People are going to move thier 401k into stocks then bloodbath.
I know its net zero, but for middle class retail it is very grimm.
Its so perfect, older people can't get hired, inflation looming, us bankrupt and then a crash. Were looking at perfect storm meets grapes of wrath.
Its going to hurt.
Perhaps the ever-rising stock markets will be the way that TPTB get people to finally agree with tossing Social Security money into said markets.
Perhaps.
what "social security money"? There is no "lock box".
no shit! wasn't it that dirtbag clinton that "balanced"our budget with the SSI-I.O.U's?
Well, it was either that or take it off of the books completely.
Obfuscation is a government economist's friend.
Al Gore lied
Retirees cried....
When will this great crash come? Why would it come with the bernanke printing 85 billion indefinitely, what happens when the 85 billion becomes 300 billion? plenty of liquidity to keep equities climbing while keeping a bid on treasuries...
Please elaborate so we can all trade it...
At exactly the point you think. "Fuck it, it's going on for ever and ever and ever, I have to put my pension fund in or inflation is going to make it worthless".
That's when it's going to crash.
So, short all the major indices and retire. riiiiggghhhht.
I'm sure the insiders will do that and just at the right time. Lucky bastards. Then they will blame the free markets for everyones losses.
I've noticed a recurring theme with you is 'this just goes on forever and ever now'....you can go bank on that, I think it's absolute baseless bullshit.
As I think you know, it is generally not possible to predict when the market will make a sudden move up or down and yet as you know it always happens. But as you point-out bernanky is inflating the market it seems partly to give the genral public the impression that things are on the mend (or better yet are better than ever right). This in an effort to stimulate spending when I believe the savings rate is already pretty low and to draw or even force idividuals and money managers into a market at a time when a large percentage of skilled investers are making it know that the divergence of the market from macro reality is increasing the probabilty of a correction - I don't recall any time predictions and any prediction of magnitude would really only be a guess because what starts out as a 5% downward correction could well snoball unpredictably into a 25% correction.
My point was that as you know stocks are inherently risky - while some may rebound yet again some will likely also get wiped-out so why would a responsibly person create a situation which draws or forces money into the market while simultaneously increasing the risk of a correction. Ben is injection funds at a steady rate but if/when a correction happens it will be anything but steady. Ben will try to compensate but 1st he cannot possibly respond quickly enough to halt a correct and 2nd a sudden over-reaction my have counterprductive affects.
This seems pretty obvious and yet I am not a knowledgeable invester. Perhaps you could help me with why I am mistaken?
Charlton Heston says Its a madhouse
http://www.youtube.com/watch?v=VFCM6TZgTMI
Straight line up and to the right. That's what it looks like on my medium term charts. Someone said that markets don't move in a straight line.
I wish I trusted my instincts more. Should have bought some higly leveraged product from the paper peddlers in January and forgot all about it... This will go on and on until Ben shuts the tap.
USA! USA! USA! .... YYEEEEAAAHHH!!!!
NYSE is bought to you by Derbanke Printery (EST 1913)
Chairsatan may indeed keep his foot on the gas pedal until the market bubble implodes. A rising stock market is applauded by many Wall Street power brokers, stockholders, and incumbent crony politicians etc. It seems Chairsatan is meeting very little (if any) public resistance from TPTB. It is very scary that people of his ken are acting this way with little (or no) restraint at all.
FedFUBAR
"and credit wasn't buying this ramp..." Will we EVER hear "and stocks weren't buying this ramp?" I swear it is the same recycled shit every damn day in this market. It's like Groundhog Day.
With Bernanke's head:
http://roguejew.files.wordpress.com/2009/01/mission-accomplished.jpg
Call me paranoid, but this all feels like reverse Freudenshade to me!
Just about time for the next collapse
This Shitcastle is getting AWFULLY top-heavy!
top-heavy? what you mean like Christina Hendricks tits?
'Mind numbing'? Pffft....we're well beyond that by this point. What day ISN'T mind numbing over the last few years??
Oddly enough, I suspect it might be going something like this:
JPM: "Who just did that? Must be Goldman ... "
Big Shot Hedge Fund Dude: "Gotta be the Japanese and European bankers coming in -- our equities are their only shot."
Goldman: "Did you see that shit? Must be Morgan, the 10:30 ramp was SO obvious -- they have no sense of style. I hear their traders wear corderoy."
Bank of America: "Let's buy at 1:45, as you know what the JPM dorks are gonna do."
Japanese minister: "These Americans have interesting markets. Did you see that? Perhaps we should buy a bit after 11:30 US each day."
Credit Suisse: "Fuckin' Goldman squid-snake hybrids! Their 10:30 shit is such BS! Let's slam it down at 10:00 to a lower pivot then buy heavy at 10:25."
Garden Variety Mutual Fund Trader: "The Japanese have no finesse! We'd better anticipate our fund flows and buy some early, say at 1:25, before those idiots slam it up to the next pivot. Tired of getting reamed on the close."
JPM: "Well, it's 3:25, any bets Goldman will ram it to screw the mutual funds putting 401(k) cash to work?"
Small-time trader: "Aha, I'll buy at 3:18 before the fucking moron Europeans come in par usual."
I continue to be amazed at the success of stock investors vs PM speculators. There's a reason the age-old saying says (a) DIVERSIFY and (b) Don't fight The Fed.
Had I not started reading ZH last year, I'd have been in stocks and not in PM. ZH may have made its owners richer, but it has not made me richer. But I keep consoling myself with a drink, night after night, that I/we ZH bloggers are soooooo much smarter than the Market or The Fed.
BTW, just spent the afternoon talking with various bullion dealers and bullion storers, and... the overall picture is: Suppliers are catching up to the initial retail buying wave, which has subsided. Even at these 'low' prices people are buying but no longer panicking like they did the first 3 weeks. There are a lot of "fence sitters", waiting to see this Sideways market move up or down. So, the sideways market has slowed (frozen) the bullion market.
Only the ppl at the Fed, JPM and GS know if they should buy/sell ETF or buy/sell bullion, since they are the ones to make the rules and set the price. So... back to Hedge & Diversify!
Wow, but the ECB and Fed are going all out on USD devaluation. So it's a no brainer.
This is gonna hurt real fucking bad.
Ha ha, it's 9,000 in 2007 dollars, still way below 2007 high. They managed to build it back up 2,500 points in 5 yrs with trillions of printed (devalued) dollars pumped into it, but there's been no economic recovery in that 5 yrs except those benefiting from much higher govt spending, like illegal immigrants, defense contractors, security companies, ammo makers, and of course D.C. home pricies as fed govt hires boatloads more people since 2007.
Bottom line, only real growth areas are Wall Street and Wasington D.C, and it's from printed dollars. Rest of the nation languishes in economic depression.
Yes the market will eventually correct, it always does. But let's ride the lift up while we can. Anyway, people aren't irrationally exuberant (yet), according to Citi.
http://www.businessinsider.com/citi-may-panic-euphoria-model-2013-5?nr_email_referer=1&utm_source=Triggermail&utm_medium=email&utm_term=Money%20Game%20Chart%20Of%20The%20Day&utm_campaign=Moneygame_COTD_050713
I take it from all the people retiring from my company that this is a good thing?