How To Manufacture A Record High Stock Market Close On A Friday Afternoon

Tyler Durden's picture

Presented with little comment aside to note, amid a quiet day with non-equity markets showing extremely volatile movements, it was decided by a great majority that (following 90 minutes of momentum ignition efforts) all protection should be lifted and VIX was smashed to its lowest level in a month...

 

this was going on right before... algos running the show to try and build the momentum... just keep pushing and reversing to take out stops...

then this...

'Normal'

 

'Natural'

 

'Nothing unusual here at all'

 

Charts: Bloomberg

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W T F II's picture

"Cheap Jam"....My new album

Manthong's picture

when reality meets the model, it will be an awesome epic fail

(insipid meme inferences intended)

James_Cole's picture

Was a pleasant surprise to see such a discount on the Dow this morning. 

Pure Evil's picture

Its Orwellian double speak for HFT Rigged Wall Street Casino.

Manthong's picture

wow.. I just realized that I am only human and that the inhuman PTB control the universe..

I still cannot help but fear the invisible fister.

MillionDollarBonus_'s picture

Zerohedge is a culture of doom and pessimism. It's depressing to watch Zerohedgers lose money month after month while the stock market is making new highs. It's even more depressing to hear about the living hell that ZHers foresee for humanity, and to imagine the nightmare that doomer preppers live day and night. Sadly, I doubt that nerdy ZHers will ever admit that the economy is growing, no matter how obvious the green shoots become.

OS2010's picture

How fortunate for you that you don't have to live in the real world, where we do, and watch more and more friends and family have to ask the All-Powerful Government for a handout in order to eat.

fockewulf190's picture

Two things....

1) MDB got 15 upticks (+1 self pat on the back), so the CNBS lovers must have a secret fetish with ZH with all the lurking going on.

2) The bankers had yet another positive trading day. Must....bat....1.000!!

jbvtme's picture

of what green shoots do you speak?  are you referring to the confidence the people are exuding because no one went to jail for the greatest train robbery in history? the 50 million on food stamps? the ex students in debt for a trillion dollars living in the basement of their parent's houses?  the 3d printers, robots and drones waiting to consume what's left of our pathetic souls?  the fake acting at sandy hook and boston?  the buffed out psycho cops and homeland security zombies terrorizing our neighborhoods?  the zionist lizards running our government and mass media?  what about the  thousands of foreclosed houses being held off the market and the 60% of mortages underwater in, say, las vegas as permits fly off the shelves of the building department and house price appreciate by 30% in the last year?   if housing prices are appreciating, why is that called a growing economy as opposed to the inflation it obviously is?  and the people being forced to rent because they are being outbid by the free cash "borrowed" from that casino called wallstreet?  read mike whitney's work at counterpunch.  the only green i see in this economy is the mold and fungus growing on this rotting carcass called america.

xtop23's picture

Perfectly normal price action.

If ZH is going to keep beating the drum, that this is anything other than completely understandable movement in a financial apparatus of indisputable honesty and fairness, I may have to go back to Fox to get the real inside track on the true path to financial security.

Sigh. None of this crap is the least bit surprising anymore. Pass the port it's Friday.

 

Ham-bone's picture

Good one MDB - like throwing red meat to the angry bearish ZH'ers...luckily you n I know that debt is wealth and we are awash in wealth.  Poor ZH'ers don't get that economic growth of 2% based on wealth* creation of 50% annually of GDP on unfunded liabilities is good.**  In this way we liquify the worlds economy with our gift of the dollar global reserve.  What a gift to be the reserve currency and the worlds reserve police force all in one.***  Fuck yeah Merica!!!****

*wealth =debt

**debt=wealth

***power=wealth=debt

****power=reality is what we say it is=money is what we say it is

Yen Cross's picture

     "Million Dollar limp dic" A 'Yellen' away, needs moar hidden inflation, disguised as QE.

NotApplicable's picture

Here I thought you'd up and left us for doomier pastures!

It'd be cool if you could expand your repertoire, though, as you're getting kinda stale.

kthxbye

nmewn's picture

"It's depressing to watch Zerohedgers lose money month after month while the stock market is making new highs."

I haven't lost a dime...never went into the casino.

DizzySailor's picture

Basic, plain and simple:  FUCK YOU MDB

WhiteNight123129's picture

Mr Half empty half full,

You are correct in many respects, the economy will grow but the inflation will grow faster.

As for higher prices of commodities, mining is in trouble but not soft. The reason they have been moving up is partly because of the yardstick to measure those (dollar) and a lot more about the emerging world accessing technology. This will not reverse, it si great news for them and that is why they will consumer more food, shelter, energy. It was great for the West to be the only small group to consume (have high standard of living), now thanks to technology and literacy rate booming, people in the West are not the only one to compete for high living of standards (i.e. high consumption of energy, and of resources in general).

If you go in the Philippines or Burma or Africa or Laos and ask them : "What do you think about the crisis" They will answer "What crisis, we are so much better off than 20 years ago, before we could not afford meat, now we have chicken or pork 3 times a week and once a week we can even afford beef or fish! Those are wonderful times."

The West has misdiagnosed the situation as 1930s copy-cat and they have it completely wrong.

And btw the stock market and the economy are two different things, and there is nothing wrong about this.

 

MrBoompi's picture

Doom and gloom? You were advised to buy stocks yesterday!

bunnyswanson's picture

It is making you sad?  It makes me sad as well.  Sad because everyone who I talk with says:  "But my 401K is up."  If they have a job they've managed to hold onto, they are completely oblivious to the signs and symptoms of a failing economy.  Even in spite of the numerous unemployment, the closed businesses, the desperation of city council members to find the cash to replace stolen cooper wire from street lights (one street has been dark for 6 months).

But, it's a segmentational anomaly.  They have been chosen to be the last to be screwed.  We'll watch this bubble burst and never hear from people like you again.  They, those who said "you read too much on the internet." will suddenly take a look around and realize they are backed up into a corner.  The 7 stages of grief will leave them useless until it is too late to make a fuss. 

Deflate and buy - The way to conquer a nation.

BlackMagician's picture

New world this that we live in...where up is down...down is up...right is wrong...wrong is right...freedom is slavery...slavery is freedom...we as humans have to be forward thinking...and looking forward we ARE headed to massive problems without correcting our trajectory...every action has a reaction...most ZH'ers feel the actions thus far will have a negative reaction...based on critical thinking...QUESTION EVERYTHING!...

Brokenarrow's picture

I recently read a novel about the Ca. gold rush. San Francisco had casino/brothels that specialized in cheating their suckers. What I found interesting was many of the "players" knew it was a crooked game. But, they were so desperate for action, they still played, trying to bet with the house that controlled the game.

This is new the new us equity market. "Smart guys," like you, are always right. Right up until the moment that the "game" comes crashing down.

Your "culture" is one of lying, cheating, and bitches that deserve the same as bernanke. I would give a year of my life to see that little thief drop dead. You, too.

Lets Buy The Dip's picture

I just looked up 2013 meaning of the "stock market". says : a place or environment where the bears keep shorting, but it keeps NOT working. LOL. => SPX CHART ON WEEKLY IS ON FIRE. 

t0mmyBerg's picture

They will lose control at some point.  Or their ineluctible PhD logic will cause them to make some kind of mistake.  Just look at what happened in 2008.  They knew or should have known the shit was hitting the fan and yet money supply was allowed to fall precipitously.  They are not infallible.  But they do have gigantic capabilities due to that printing press.

I was surprised when I heard my trade confirmation sound at 315 exactly that my order at 15.00 on June VIX futures had been filled.  Refilling that which I had bought aT 14.90 and sold north of 15 earlier.  I will buy it all day long below 15 as long as there are at least 4 weeks left and when the boom is eventually lowered I will be there.

NotApplicable's picture

I see 2008 as more of a controlled collapse, as it was a takedown event in order to give them some more breathing room (kinda like now).

 

t0mmyBerg's picture

Frankly nothing would surprise me any more.

nabi's picture

I see 2008 as more of a controlled collapse, as it was a takedown event in order to give them some more breathing room (kinda like now).

Exactly.  There is no free market.  The coming collapse has been planned for a long time, and it will arrive when "the elite" want it to, not a moment before.

 

spastic_colon's picture

sorry for the repeat post...........

 

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.

 

PS - no POMO Monday

W T F II's picture

to clear out everyone before "The Collaborators" drop the BOMB...that WILL happen...

Common_Cents22's picture

I could do wonders with unlimited taxpayer money.

 

They have proven they CAN defy gravity!!!

Doubleguns's picture

I have been evixorated.

FreeMktFisherMN's picture

'VIX is for kids' used to post here

sunaJ's picture

When the burning, itching and soreness of markets flare up, VIX - Medicated Pads

give you soothing, cooling relief....on contact.  For market flare-ups, get VIX Medicated Pads.  From Parke-Davis*

 

*Use as directed.  For temporary relief.

Manthong's picture

lol.. and he probably got killed in the scam

but serioulsy.. if you have any irritated topical soft tissue..

oral, nasal, anal.. whatever..

I might suggest you man up and douse it with rubbing alcohol.

gasoline might work, too..  a bernz-o-matic wii enhace the effect

Ham-bone's picture

I bought some vix for a lot...I sold it for a little.  No rhyme or smart catchy name, but obviously I'm not real bright since I bought the fucking thing in the first place.  I don't buy it anymore and feel smarter.

BTW - do think it may be helpful if ZH would open the "Tyler Durden school for ZH'ers who don't invest good"...

GoinFawr's picture

That's Yen Cross' dept.

WhiteNight123129's picture

Can not remember if I said that before. SHORT TREASURIES BITCHEZ!

 

kito's picture

you do realize that if japan were to starting melting down fukushima style in the next 6 months.....the world would be running back to the arms of uncle sam and his amazing technidollar dreamcoat....................

Yen Cross's picture

  I realize the 'serial junker', (not to be confused with that european ECB technocrat) has no fucking clue what Fukishima is.

kito's picture

.................should read" to start melting down"...i SWEAR I IS A ENGLISH TALKING PERSON!!...............

Yen Cross's picture

   lol         Shoot me a copy>  " Friday Humor".  Have a good W/E :)

W T F II's picture

you DO have a minor point there....!!

Common_Cents22's picture

It is GOOD to be least worst!!!   The last domino!!!

 

Was in canadian boonies fishing with Dad and he said you know there are bears around.  I said yeah, I'll run if I see one in camp.  Dad said, silly boy, bears can run up to 35mph through the woods, you can't outrun the bear.   

Yes Dad, but I can outrun you.

 

 

WhiteNight123129's picture

I never said to short the dollar!!! And I have short JGBs to hedge my short TSYs

Well, I am going to repeat myself. Money printing as properly described by Fullarton has the following effects.

1. Repress interest rates (that would work even if we had a bullion system with a huge gold meteorite falling in greeland in 1973.

2. Move the land price up

3. Move the price of all securities up

4. Finally it moves in the real economy.

So, the first country which sees rates going up really disorderly is the first who sees

a. End of printing AND/OR seeing inflation starting first.

For Japan to see inflation it either have to fall into hyperinflation (but then all sovereing debt become dubious very quickly).

Note that on April 5th when JGBs were limit down, the USTs were going higher in yield not lower, it is only on the 12th when Gold was down so much when JGBs were again limit down that TSYs rallied.

So I think that the reason the TSYs yield move higher is because the US printed first and stop printing first. As for JGBs they will crack later when the accumulated printing really start its effects. But anyway if I am wrong, at least I am hedged.

If we have a conflict I am screwed, because all countries in conflict will not want anymore a smooth transition to inflate away and let the inflation and long bond yield rise in an orderly way (that is interset rates rise nominally slowly but still lag nominal inflation).

If we have a conflict history shows that in the 40s US was very efficient at repressing yield despite inflation and same thing for China in late 30s.

BUt in that case precious metals and commodities are going to go to the moon not because of demand but supply shock and people moving to inflation asset "en masse".