Bond And Stock Futures Open Red - Buying Opportunity?

Tyler Durden's picture

Erasing Friday's gains (and the well-documented VIX-driven melt-up into the close), S&P 500 futures have opened down 4.5 points (against JPY-carry for now), Treasuries are indicated 4-5bps higher in yield, and Gold is opening down 0.4%. Not in itself a large move but perhaps indicative of some concerns that Hilsenrath is on to something and the punchbowl is being ever so gradually pulled away (though, we suspect it is only a matter of time before this article is spun in a bullish light, suggesting that the Fed still does not have a firm timeline in mind, which by implication is bullish - no news is good news - and much more jawboning has to come before the real tapering talk begins). In the meantime, we are sure the clarion call to Buy-The-Feding-Dip will be heard and in the interest of balance, we offer some insight into 'valuations'.


S&P 500 futures open -4.5pts... erasing the closing ramp and Friday gains...


and Bonds are being sold too...


long way to go for both from when the disconnect began...


Which one are you going to believe? US Macro vs SPX and 10Y from the 'disconnect' above


But stocks are cheap I tell you...


(h/t @Not_Jim_Cramer)

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ar01's picture

The tone of ZH seems to have changed very recently.. as if they learned to stop worrying and love the bomb.

DeadFred's picture

Hilsenrath was meant to move the markets but it isn't clear how the move will go. Make another BTFD opportunty? Prepping for the overdue dump now that they got something like a blow off top? Just testing the waters so Bernanke, et al. have more info about the real move? It will be a week before we know but if the market doesn't do the normal "V" bottom and just moves flat after dropping to support it will be a bad omen for the bulls. I will weep for them. Not.

cdntrader's picture

The move is clear... Ben must continue the buying, he just needs better entry points.

Richard Chesler's picture

Shove it up your ass control-print man!


TeamDepends's picture

It was our Dr. Strangelove thread-jack a few weeks ago.  People forget what a genius work of art it is. 

MythicalFish's picture

Dr Copper also says "buy". Some decent knife catching on the JGB opening. Love the bomb.

WhiteNight123129's picture

Short treasuries Bitchez!!!


kito's picture

Ok white night I'm buying $1000 bucks of an ETF that shorts treasuries........I hope you are right.....

DeadFred's picture

Keep your fingers crossed. Decent trend support lies just below these levels. Bet it bounces.

icanhasbailout's picture

It's "already crossed the threshold" fatalism. There's no turning back from here - the CBs of the world have made clear they will print until all paper currencies are utterly destroyed.

Buck Johnson's picture

This CNBC article essentially is saying that it won't be bad and if so it won't last etc. etc..  They blew up another bubble and they want to deflate it slowly (won't happen) before it pops.

LetThemEatRand's picture

Betting on this market is like... betting.  Fundamentals are completely irrelevant and the red or green status is determined entirely by the secret decisions of one man.  

knukles's picture

A "firm timeline in mind" for the Fed to pull the punchbowl away?

I'll take the bet that there is no economic ignition, liftoff and they become once again scared to death of the economic downturn taking on additional momentum, their fear of deflationary spiral reasserts itself (real or not matters none) and the printing continues under a "New and Improved" label.

The absence of reformation on the regulatory/financial/political interstices doesn't happen, no recovery.
There is a Liquidity Trap caused by a Credibility Trap and that ain't going away without reforms... which ain't gonna happen

Spitzer's picture

As real deflation occures, it takes the currency with it.

All of the countries involved in the Asian finanical  crisis seen their currencies waterfall  in value by 40 to 50% in the face of high interest rates and deflation.

akak's picture

Deflation implies an APPRECIATING currency --- the nations you mention all saw just the opposite.

I wonder if you are not (mis)using the word "deflation" in a manner radically different from its usual meaning, that of a decreasing money supply and/or generally falling prices.

WhiteNight123129's picture

Do you know the difference between money and currency?

And please do not confuse high nominal interest rates yet negative in real terms with high real interest rates.


kito's picture

Whitenight what is the endgame??? What are you bracing for?

gatorengineer's picture

They have no say in when the bowl is pulled at this point, The bond market will decide.

fonzannoon's picture

Knucks and Lter did you guys see my links about the planes yesterday? I was on to something.

knukles's picture

FONZ  no, what links to planes.
You mean them Quincy jobs?
Did you ever get on to FlightAware and find out the stuff around your home?

fonzannoon's picture

Yeah the Quincy stuff. You see that? By me it was like that x 10. The Quincy thing was interesting because unlike by me, their residents actually look up. They called the FAA and the response was scary.

knukles's picture

Yeah, saw that and did a buncha searching for the registration, company, etc., and didn't find anything different than anybody else.
Is kinda creepy that the FAA won't "comment" other than "no comment or I'll have to corn hole you" .... Doesn't leave much room for anything other than a bunch of questions, idle or not....

We've had experiences similar through time, even a few leaving massive trails, etc.....  which I'll not bother to go into as too many people think I'm already in need of tin, barium and aluminum foil hats and respirators, and....

Aggh... you get the pic.
Yes, there's odd shit "not suppose to" be and easily explained, Mylar balloons, reflections, silent and persistent craft, whatever in them thar skies, my friend.

kito's picture

My aunt in Oceanside says not to worry...just domestic collapse civil war games.......all is well......

WhiteNight123129's picture

look, there are tons of debt which are not debt anymore because it is held on the Fed´s balance sheet. Next there are tons of new base money dollars.

So the real market debt to base money ratio has plunged. The more it plunges the less you can have a credit crunch BY DEFINITION. Ok, that leaves the big question mark on the derivatives.



kito's picture

Well then, if not to help the balance sheet of Ben's favored sons....I guess the fed must be printing all of this money to help unemployment......not

random shots's picture

Yawn...more jawboning from the Fed.  Have to threaten to take away QE to keep inflation in check and then bring it back when things slow down.

ekm's picture

Stocks and bonds will drop only when Barack Obama orders the Fed to call the margin on primary dealers.


That will happen only if it has been decided who is going to be the 4th sacrificial lamb after Bear Stearns, Lehman, MF Global.


I think voting is done and we are about to find out who is the lucky lamb and what altar will it be burned on, JPM's altar or GS's altar?

Dr. Engali's picture

Delete triple post.... And I haven't started drinking yet.

fonzannoon's picture

LOL I can't wait till you have a few in you.

I still think POMO FOMO gooses this market until further notice.

Dr. Engali's picture

Ms is the ugliest turd in that group. I still think the chaos will start with the insurance companies.

ekm's picture

Notice that Hilsenrath article, IRS scandal and Benghazi scandal are all occuring simultaneously.


Old trick. Never let the attention focus on one event only.

Dr. Engali's picture

I've been saying for a while that they need a distraction to tank this thing. It gives them a convenient excuse to cover their asses for their sorry corrupt asses.

fonzannoon's picture

you guys and this whole distraction thing. i think u are overthinkin it. they ask Obama a difficult question and he can just whip out a yoyo and roll it up and down and say "hey look at this". that should be sufficient.

ekm's picture

lol  i can't freaking stop laughing

Dealyer Turdin's picture

Obama's got so many yoyo's I wonder how he picks the one to use.  Watch this, "Around the World with Hillary." "Dead Cat Bounce Holder." Friggin Bonanza of glow in the dark one drop and their broke back up yoyo's too.

WhiteNight123129's picture

+1 Excellent sense of humor.


seek's picture

Or more specifically, when you don't want them to be looking at one specific event, divide their attention.

My gut feeling is that the Benghazi thing leads straight to the top, with something (presidential order preventing a rescue?) that if it got out would be so damaging it'd either require a resignation or wipe out Dems in the next set of house elections. Them being willing to throw what is likely to be multiple layers of IRS management that were assisting the president under the bus speaks volumes.

I still suspect as others here do that it's an even bigger distraction from the start of the avalanche of economic news that ends with the implosion of the current system.

fonzannoon's picture

avalanche of economic news that ends with the S&P topping out around 1700 before it takes a rest and heads higher.

Fixed it for you.

Listen, you guys are going to be right about the economy falling under the weight of this. But they don't need a distraction. They have Eric Dickholder in there to hide everything and the media happily looking the other way anyway. Who is actually applying any heat?

ekm's picture

Benghazi is a different story.

Military is mad. Since bob woodward who is military man attacked obama, it hasn't stopped.


Former special forces member have been telling to Breitbart that all final command would come from the very top. They think obama gave the order to stand down because neither hillary nor panetta nor the commander in africa wanted to take the decision and they deferred higher.

fonzannoon's picture

If the military was so upset why did Petreus fall on the sword?

He could have went down swinging.

ekm's picture

Oh no. Incorrect.

Obama appointed a military man to run CIA. That's like appointing a dog to run the cats.

Nobody liked petraeus at cia, nobody.

fonzannoon's picture

Okay, fair enough, I clearly defer to your knowledge here. But Breitbart is going to bring this whole thing down?

ekm's picture

No, military industrial complex very very powerful people are serving the secrets.

Breitbart is the tool.

fonzannoon's picture

They may be mad, but when this country is finally acknowledged for being completely bankrupt, they will long for what they have today.

What a pussy this guy is....

"Sen. John McCain (R-Ariz.) refused to sign on to calls to possibly impeach President Barack Obama over Benghazi.

WASHINGTON -- As Republicans are increasingly calling the Obama administration's response to the Benghazi attacks a cover-up worse than Watergate and even floating impeachment, Sen. John McCain (R-Ariz.) urged a note of caution on Sunday, saying he wasn't yet willing to go that far.

"With all due respect, I think this is a serious issue," said McCain on ABC's "This Week." "I will even give the president the benefit of the doubt on some of these things. We need a select committee."