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Closing Ramp Sends S&P To Fresh Record Amid Cross Asset Chaos

Tyler Durden's picture





 

No news is the best news. Quite a week across every asset class dominated by the last two days as USDJPY broke 100 and seemingly all hell broke loose (apart from in stocks). Spikes in Treasury yields (10Y and 30Y +15bps on the week); a surging USD (+1.3%) driven by major JPY and AUD weakness (-2.75%) and the biggest drop in EUR in 6 weeks; Gold and Silver sold off hard (-3.5%) before bouncing back this afternoon ending -1.5% on the week; crude oil plunged but the Brent Vigilantes were not so easily beaten and ripped back above $96 and higher to close the week. Bond-like stocks (Utes) were hammered as high-beta cyclicals (homebuilders) ripped and while stock indices rolled over a little they remain near highs. It's not all sunshine and ponies though... credit markets drastically underperformed (playing catch down from an exuberant few days but sending a clear message to stocks) and the VIX curve steepened rather significantly around the Labor Day horizon - a date that represents desk chatter for "tapering" and debt ceiling drama to re-appear). S&P futures exhibited a spooky 15-min cycle zig-zag pattern this afternoon - in a totally human way... and average trade size was very low (algos) - right before the late-day ramp.

 

and right on time...S&P futures jumped 5 points on absolutely nothing into the close

 

 

 

 

Equity index gains from NFP remain strong and beta is starting to show separation...

 

As bond-like stocks have suffered while high-beta momo bets are all-in...

 

S&P Futures were dominated by algos all afternoon (h/t @SellPuts) which provided just enough ammunition to spark the momentum jerk higher to run for highs of the day soon after 330... (just as a side note this ramp happened right as AAPL was starting to accelerate to the downside)

 

Treasuries legged higher in yield notably after the break of JPY100 and again at today's open after being relatively flat for the week post NFP...

 

FX markets were nuts this week. AUD slumping and JPY crashing almost 3% against the USD are extraordinary moves...

 

Despite the USD surge, Commodities actually fared relatively well. Gold and Silver recovered losses on the day to close pretty much mirroring the USD gains on the week. Oil prices plunged but the vigilantes were not putting up with that... and copper pushed higher...

 

 

Credit's over-exuberant spike in recent weeks has been unwound...

 

and on the week, credit has been a significant underperformer...

 

VIX saw major steepening in the last few days around the Labor Day period - an horizon that many suspect will see debt ceiling debates and 'tapering' come back to the front page...

 

Charts: Bloomberg and Capital Context

 

Bonus Chart: There is a reason why Copper is mythologized as an economist... because it tracks reality.. we have seen the macro and copper moves like this before (especially relative to world stocks)...

 


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Fri, 05/10/2013 - 16:15 | Link to Comment fuu
fuu's picture

Is bankster a race, religion, or affiliation?

I really hate those fuckers.

Fri, 05/10/2013 - 16:16 | Link to Comment flacon
flacon's picture

We sill have more than half the month left for a "Sell in May" meme.... 14 trading days left. 

Fri, 05/10/2013 - 16:51 | Link to Comment ACP
ACP's picture

Watching this BS market, it'll be a one day correction down to 1580, then two days later, fresh new highs at 1660.

Fri, 05/10/2013 - 17:10 | Link to Comment Stoploss
Stoploss's picture

I think they do that in minutes now instead of day's.

One minute, 1580, two minutes later 1660.  Gives you plenty of time to BTFD!

AAaaaaaandd, it's gone...

Fri, 05/10/2013 - 17:14 | Link to Comment Meat Hammer
Meat Hammer's picture

Party like it's 2008

Fri, 05/10/2013 - 18:03 | Link to Comment MichiganMilitiaMan
MichiganMilitiaMan's picture

It won't happen!  but can still wish/dream.  This June, the MSM will be bragging about how the markets are sooo strong, there was no "sell in May" this year (while labor force participation continues to plumment).

Fri, 05/10/2013 - 16:25 | Link to Comment RopeADope
RopeADope's picture

In order to survive in these markets you have to become a sociopath like the rest of them. It is so blatant now that it is increasingly difficult to reconcile one's morality with what is being done. Thus the extreme hatred from old school asset managers toward Bernanke and his kind.

Fri, 05/10/2013 - 16:47 | Link to Comment Urban Roman
Urban Roman's picture

An affliction, like sociopathy. 

In fact those two afflictions may be the same thing. 

Fri, 05/10/2013 - 16:15 | Link to Comment derek_vineyard
derek_vineyard's picture

this is getting really boring

Fri, 05/10/2013 - 16:16 | Link to Comment Manthong
Manthong's picture

Crack cocaine

the breakfast of champions

Fri, 05/10/2013 - 16:29 | Link to Comment mayhem_korner
mayhem_korner's picture

 

 

Good news for hookers, too.  Friday should be a blow out.

Fri, 05/10/2013 - 16:17 | Link to Comment W T F II
W T F II's picture

B T Fn D, BITCHEZ...!!

Fri, 05/10/2013 - 16:17 | Link to Comment W T F II
W T F II's picture

"Sell Puts In May"

Fri, 05/10/2013 - 16:24 | Link to Comment Downtoolong
Downtoolong's picture

It's a shame to see this bastardization of a market that was once a decent place to invest in America.

I'm in it, so why don't I feel like I'm winning it?

 

Fri, 05/10/2013 - 16:21 | Link to Comment adr
adr's picture

Well, there went my dream of filling up for under $3.50 a gallon this weekend.

WTFH

Fri, 05/10/2013 - 16:23 | Link to Comment slaughterer
slaughterer's picture

Ah, don't let the close fool you.  Next Monday will suck for bulls.  Bad shit happening over weekend.

Fri, 05/10/2013 - 16:23 | Link to Comment Lost Wages
Lost Wages's picture

What kind of bad shit?

Fri, 05/10/2013 - 16:28 | Link to Comment W T F II
W T F II's picture

I've had that eery feeling for 47 consecutive Fridays...good thing I rolled my VIX

Fri, 05/10/2013 - 16:37 | Link to Comment spastic_colon
spastic_colon's picture

doncha feel like rising VIX is just a giant set up so it doesn't look as obvious as a ramp job?....even though it is.

 

The massive and incredible short ban that is in play does not even have the decency to give back 2 ES points anymore......smells like desperation but is probably a giant planned reckoning by TPTB.  All shorts or attempts to short are being systematically crushed, and I mean hard, no prisoners type crushing, and they have plenty of bennie ammo left and are making it known.

 

It is a planned and organized genocide on dissenters, "markets" be damned!  They are dropping napalm buy orders, stop runs, etc and jamming up the ass of any sellers.

Fri, 05/10/2013 - 16:45 | Link to Comment Randall Cabot
Randall Cabot's picture

But bad shit is just as bullish as good shit

Fri, 05/10/2013 - 17:21 | Link to Comment auric1234
auric1234's picture

Not on a POMO-less day. You'll have to wait till Tueday for the weekend's major catastrophic event to bring SPX to new highs.

 

Fri, 05/10/2013 - 17:12 | Link to Comment PersonalRespons...
PersonalResponsibility's picture

"This is the big one!"

then the Bernank knocks on the door...

http://www.youtube.com/watch?v=stdi-1tIUhM

 

Sat, 05/11/2013 - 22:52 | Link to Comment MythicalFish
MythicalFish's picture

CBOE VIX calls outnumbered puts 9:1 despite the cash/frontmonth smash, on biggest call volume since Boston. Given the kind of day we had on other assets maybe not surprising but it sure is a big flashing red light for the market going forward.

Fri, 05/10/2013 - 16:30 | Link to Comment paint it red ca...
paint it red call it hell's picture

TOOO, T HE MOOOOOOONNNNNNN!!!!!!!!!!!!!!!

until this WhoooPeee cushion rips off the BIG 1

Fri, 05/10/2013 - 16:30 | Link to Comment Yen Cross
Yen Cross's picture

       "and right on time...S&P futures jumped 5 points on absolutely nothing into the close" 

  Joke of the week: "It was short covering Tyler"...

Fri, 05/10/2013 - 16:41 | Link to Comment MFLTucson
MFLTucson's picture

This is disgraceful!

Fri, 05/10/2013 - 16:46 | Link to Comment W T F II
W T F II's picture

this is excellent for efficient and well-allocated capital formation

Fri, 05/10/2013 - 16:55 | Link to Comment Awakened Sheeple
Awakened Sheeple's picture

This is starting to remind me of gold's parabolic rise into the summer of 2011. Late buyers started pouring in to buy PMs and the momentum carried over far past May.

2 weeks ago my brother who is new to investing mentioned his "buddy" said he should be all in on stocks. This week my mechanic asked me to give him advice about his 401k. He has a co-worker who day trades and that piqued his interest. Said co-worker's strategy for trading is "I buy stocks that are going up." I didn't know whether to laugh or cry, lol.

These are younger guys obviously. I think anyone with a brain, aged 40-65 took money out of the markets these past few years as it was rising. But now a younger generation of suckers are lining up to get scalped.

One older, libertarian minded man I know bought gold this week for a 15% premium.

Fri, 05/10/2013 - 16:58 | Link to Comment SheepDog-One
SheepDog-One's picture

It will all work fine till one moment it suddenly doesn't. I get the feeling one of these morning will be a barn burner.

Fri, 05/10/2013 - 17:14 | Link to Comment John Law Lives
John Law Lives's picture

Let the fraudsters keep banging the market higher.  Sooner or later, big $$$ will scramble to lock in profits during this artificial ramp, and the masses will rush for the exits.  Woe unto those who came late to this party...

FUBAR.

Fri, 05/10/2013 - 17:29 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Japanese investors have been saying that for years.

Fri, 05/10/2013 - 18:18 | Link to Comment John Law Lives
John Law Lives's picture

The Nikkei 225 is currently a fraction of its nominal highs in 1989.

Fri, 05/10/2013 - 17:18 | Link to Comment auric1234
auric1234's picture

So predictable. There's no POMO next monday.

 

Fri, 05/10/2013 - 17:20 | Link to Comment Awakened Sheeple
Awakened Sheeple's picture

That doesn't mean much anymore. Frontrunners are being front run by PPT.

Fri, 05/10/2013 - 17:18 | Link to Comment Meat Hammer
Meat Hammer's picture

Fridays are beginning to make me look forward to Mondays.

Fri, 05/10/2013 - 17:33 | Link to Comment thismarketisrigged
thismarketisrigged's picture

how long can this go on for?

 

i used to love investing in the market, back in the day when the market was somewhat real. Now, its become such a fucking joke, i can not invest. all i can do is watch, hope that 1 day these stocks just crash and the fed has to leave and the market reverts back to normal.

 

u cant justify buying at these levels because they are so inflated, and at the same time u would think after this up and up trend, eventually it would have to collapse. however, we have been saying this for months, and nothing has happened, it just continues to go up on terrible news, and its nauseating.so i cant even short this market, because even though its going to collapse ''eventually'', i just dont know when.

 

this market has become boring, no volume, up and up on anything, no matter how poor the news is.

 

best way to go about it is , i guess to buy tons of gold and be patient. any major dip in gold, just keep adding. gold is the place to be

Fri, 05/10/2013 - 17:40 | Link to Comment Devotional
Devotional's picture

Did anyone see the 5/10 COT report? There seems to be a NET short of 72 million ounces of silver. Rigged market? Nah ... it's a jedi mind trick I tell ya :)

Sat, 05/11/2013 - 08:08 | Link to Comment huggy_in_london
huggy_in_london's picture

Well I guess the 5 point ramp is going to hurt those boys that bought come the open Sunday night given this hilsenrath article. Awwwww shame

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