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Late Ramp Pushes S&P To Close At Now Standard All Time High

Tyler Durden's picture




 

Thanks to POMO (and the simple explanation of what everyone already knows from David Tepper), the 18th Tuesday in a row has closed with a bright green shade across the screen. Trannies gained 2% but the 25 point gain off overnight lows for the S&P 500 is the most impressive... with gains sustained by more short covering.

As predicted first thing today, when we said the S&P 500 EPS multiple will increase by at least 0.15x on the back of POMO, we were not surprised to see the closing print result in precisely this amount of multiple expansion:

A QE-unwind theme was modestly evident in other asset-classes: Treasuries (snapping higher after EU Close); Oil, gold, and silver all down; and credit spreads notably rolled over. But of course, equities don't care; why would they?

 

A good day for stocks...

 

not a good day for shorts once again...

 

as the US Open to EU Close was the trading period of choice...

 

The worst 8-day run for Treasury yields since Oct 2011

 

Credit markets remain notably underperforming here and today's move was even more dramatic...

 

Something 'not good' is occurring in credit land that is well worth paying attention to - Citi adds some color:

Monday’s selling included both hedge funds and ETFs. Our HY ETF desk says  HYG recorded almost $200 million in outflows yesterday, the fourth largest single day of outflows since early 2012.  “No signs that it will cease today, as HYG is now at nearly a 40bps discount to NAV – only 10 times since the start of 2012 has it closed the day at a deeper discount, and every time it has closed at a 30bps+ discount the fund recorded redemptions (outflow – selling HY paper) the next day,”

and while VIX did recover from its early surge, it remains notably out of kilter with stocks once again...

 

So equities ramp on 2013 high average trade size...

 

...but VIX (protection) bid, and credit (protection) bid, and the rest of the growth-oriented OR QE-sensitive assets all signaling less liquidity... makes perfect sense...

Charts: Bloomberg and Capital Context

 

 

Bonus Charts: AAPL and TSLA did not have their normal fun... 

 

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Tue, 05/14/2013 - 16:19 | 3562039 jubber
jubber's picture

FTSE breaks 6700 AH even though Copper down 2% and commodities lower...insane

Tue, 05/14/2013 - 16:21 | 3562047 JumpinJonnyK
JumpinJonnyK's picture

Thought I would share this article about physical gold and silver sales.  It's an interesting read: http://www.coinvalues.com/blog/8-the-achilles-heel-for-bankers-is-physic...

Tue, 05/14/2013 - 16:26 | 3562070 rajat_bhatia
rajat_bhatia's picture

I bet physical gold is touching all time high too, no? 

 

Hey, gold bugs! How you doing?

Tue, 05/14/2013 - 16:33 | 3562100 camaro68ss
camaro68ss's picture

bought in 1998, doing great!

Tue, 05/14/2013 - 16:41 | 3562123 NewThor
NewThor's picture

I made a video FOR Zerohedge about everything I've learned at Zerohedge.

But y'all won't watch it. You guys are weird.

http://youtu.be/qSPnipe3reU

...and i dare say i am the best Video Maker @ ZEROHEDGE

Tue, 05/14/2013 - 16:53 | 3562169 Precious
Precious's picture

Colorado and Washington residents are hitting all time highs too.

Tue, 05/14/2013 - 19:06 | 3562597 12ToothAssassin
12ToothAssassin's picture

Beware when the shorts capitulate and shrink, then the big crash can go all in.

Tue, 05/14/2013 - 17:09 | 3562213 Killer the Buzzard
Killer the Buzzard's picture

Great vid... thanks Thor.

Tue, 05/14/2013 - 17:15 | 3562237 flacon
flacon's picture

Nice video man. Thanks!

Tue, 05/14/2013 - 17:21 | 3562254 prains
prains's picture

Thor

you don't live next to a fertilizer plant by chance?

Tue, 05/14/2013 - 17:39 | 3562257 fuu
fuu's picture

Needs music.

I'm still proud of this one: http://www.youtube.com/watch?v=QWMCWAqPnoQ

Tue, 05/14/2013 - 17:32 | 3562278 1C3-N1N3
1C3-N1N3's picture

Good job, NewThor.

Tue, 05/14/2013 - 18:07 | 3562378 gratefultraveller
gratefultraveller's picture

Awesome vid :)

Tue, 05/14/2013 - 19:52 | 3562733 lotsoffun
lotsoffun's picture

that was lots of fun.  thanks.

Tue, 05/14/2013 - 16:53 | 3562168 SamAdams
SamAdams's picture

Gold is unbeatable over the long haul.  However, as I mentioned a week or so ago, the FOMC hinted at the next great fleecing.  That is why the gold dump and why gold will continue down.  Don't bother trolling me, I am a scholar of history.  That said, I own gold, gold is real.

Market is overbought, get out by COB wed.  BTD, back in.  Not sure how much longer after the market will remain up.  Eventually everyone will figure out what they should have already known.

 

Tue, 05/14/2013 - 18:40 | 3562505 Panafrican Funk...
Panafrican Funktron Robot's picture

5.5 billion in POMO on Friday going into opex.  

Tue, 05/14/2013 - 16:33 | 3562101 Ness.
Ness.'s picture

The price isn't, which is fine by me, but the demand is.

BTW - go fuck yourself if you think these market's are reflective of any reality.

Tue, 05/14/2013 - 16:33 | 3562102 Bay of Pigs
Bay of Pigs's picture

And right on cue here comes the gold troll. Funny how that happens.

Tue, 05/14/2013 - 16:39 | 3562119 SheepDog-One
SheepDog-One's picture

One of the Tyler's no doubt.

Tue, 05/14/2013 - 16:45 | 3562143 Stoploss
Stoploss's picture

Freeport Mcmoran just had an Indonesian mine tunnel collapse.

Fixin' ta suck for the gold shorts..

Tue, 05/14/2013 - 17:16 | 3562216 LawsofPhysics
LawsofPhysics's picture

"Hey, gold bugs! How you doing?" - With a dollar cost average of $300 an ounce on my physical holdings, still great, thanks for asking.  If you are curious about my silver, an once still fills the tank.  So nice, having people care about you an all.

Tue, 05/14/2013 - 19:42 | 3562710 lotsoffun
lotsoffun's picture

so tell me dear rajat_bhatia - what do you invest in?  tata motors?  curry in a hurry?

hey - i have a great IDEA!  i want to start a company that sells cheap 'technology' experts to american corporations,

bills them a bit under current citizens, has an h1b approval connection, spends a bit of money doing kick-backs.

it's a goldmine!  (oops, you don't like gold).  it a cash cow (oops.  sorry about that).  i guess it's a regular pork-barrel.

 

Tue, 05/14/2013 - 16:26 | 3562071 Stoploss
Stoploss's picture

BANG DAT CLOSE!!!

Tue, 05/14/2013 - 16:31 | 3562092 Bay of Pigs
Bay of Pigs's picture

Whats interesting is that article has no author and the website itself looks kind of cheesy.

Who is running it?

Tue, 05/14/2013 - 16:50 | 3562155 Ham-bone
Ham-bone's picture

-Treasury today downgraded 2013 deficit to $650B from $850B

-Fed will have far fewer new T's to buy up

-Rates are moving up to near 2%...slowing re-fi's and potentially slowing housing?

-Fed will have less MBS to purchase

-Fed saying they will scale back QE3...pretty obvious they must unless they plan to (openly) buy ulterior assets like ETF's, etc.

-Dollar strengthening on this slowdown of debasement while Japan open destroys the yen and Japanese run for S&P, T safety.  JGB's bordering on crisis levels as they approach 1% 10yr.

-US S&P corps about to face strong dollar and global slow sales...how bout those forward earnings?

And apparently none of this is anything but bullish?

Tue, 05/14/2013 - 16:20 | 3562040 Hippocratic Oaf
Hippocratic Oaf's picture

I wish I was at an all-time-high all the time

Tue, 05/14/2013 - 16:59 | 3562186 McMolotov
McMolotov's picture

Hopium is a hell of a drug.

Tue, 05/14/2013 - 17:47 | 3562313 Pure Evil
Pure Evil's picture

Just let Obama blow smoke up yer ass and you'll be on cloud nine.

Tue, 05/14/2013 - 16:20 | 3562042 Cursive
Cursive's picture

All the shorts should just step aside.  Who's left anyway?  The unintended consequence is that there'll be no buying to stop the selling panic when it starts.

Tue, 05/14/2013 - 16:24 | 3562056 prains
prains's picture

when this one goes over the top the only thing worth buying;

 

time

TGTFO

Tue, 05/14/2013 - 16:24 | 3562065 FL_Conservative
FL_Conservative's picture

That would be like taxi-ing up the first hill of the rollercoaster and then getting off because you thought that's all there was to see.  Sorry, but I'm waiting until I can throw my hands into the air and enjoy the fucking ride.

Tue, 05/14/2013 - 16:28 | 3562078 Divided States ...
Divided States of America's picture

Cursive, thats what I said last week....if you want to witness the inevitable sooner...stop shorting the markets...you just prolonging this gong show because they need the shortcovering to keep providing a bid on this algo driven market...step aside and dont add anymore shorts if you want to see your already placed short bets come to fruition....

Tue, 05/14/2013 - 19:35 | 3562693 lotsoffun
lotsoffun's picture

to some silly degree - if you are short when the 'thing' that isn't supposed to happen, but someday will, if there is nobody on the other side with $$,

you can't collect anyway.  i.e.  180 billion dollars pumped into AIG so that (GS the lions share at 80 billion) could collect.  remember?

if you have bets on at CME or COMEX - it's really no different.  you think small investors will be whole?

what i'm trying to say is - the message is clear.  anybody doing shorts is almost the equivalent of a terrorist.  better to just stay liquid.

 

Tue, 05/14/2013 - 20:18 | 3562807 luna_man
luna_man's picture

 

 

Glad you asked, "Who's left anyway?" I AM!...

 

because i'm patient

Tue, 05/14/2013 - 16:21 | 3562045 fonzannoon
fonzannoon's picture

Nikkei should be up 700 points tonight while their 5yr yield jumps to a half a percent or something retarded.

Wow we are so fucked.

Tue, 05/14/2013 - 16:29 | 3562086 PontifexMaximus
PontifexMaximus's picture

1%

Tue, 05/14/2013 - 16:23 | 3562054 ArmyofOne
ArmyofOne's picture

Candy from clowns until the circus closes.

 

Tue, 05/14/2013 - 16:24 | 3562061 PontifexMaximus
PontifexMaximus's picture

Even negative POMO would make new highs.....

Tue, 05/14/2013 - 16:25 | 3562066 Kaiser Sousa
Kaiser Sousa's picture

quote from that weisel looking mother fucker on CNBC with Maria - "who cares why its going up....its going up..."

from that jerk off on Fox Biz - "dont fight the momentum, domt fight the tape and dont the fight the fed...just enjoy the ride."

and the phony price of Gold and Silver?????

what a complete fucking joke.............

 

Tue, 05/14/2013 - 16:30 | 3562088 rajat_bhatia
rajat_bhatia's picture

Lol, you rage and your idiocy is too funny!

Tue, 05/14/2013 - 16:59 | 3562190 Citxmech
Citxmech's picture

You attribute too much rage to the goldbugs.  This has never been about quick profit or speculation.  We're a patient lot - who happen to be much more interested in the long-term war, than any given battle on any given day.

 

Tue, 05/14/2013 - 16:31 | 3562090 Cursive
Cursive's picture

@Kaiser Sousa

Thanks for the quotes.  Laughable.  I'm sure the average American "inwestor" has enjoyed the ride since late March 2000 to today.  Fun-as-a-shitstorm 13 years of "inwesting."  Well, I hope Bob Pisani enjoys the elevator down that is coming and I hope he enjoys finding other gainful employment.

Tue, 05/14/2013 - 16:25 | 3562068 ThunderingTurd
ThunderingTurd's picture

Today felt like an all in retail capitulation day.  Market correlations give the sense that the capitulation has begun.  This pig is going to go a bit higher and then the dump is coming.  The market has surpassed over 90% of all sell-side analysts' YE SPX price targets...and in case you didn't know...its May 14th.  I am beginning to move the cash to the short-side.  Good luck to all. 

Tue, 05/14/2013 - 16:27 | 3562076 spastic_colon
spastic_colon's picture

good thing the economy changed so much in the last 5 minutes today, otherwise I would have no justification to believe these equity markets.

Tue, 05/14/2013 - 16:28 | 3562081 Hubbs
Hubbs's picture

OK Tylers Durden, please tabulate/graph these Tues Ramps based on availability of left over POMO slush money to project the future climb of the S&P with the assumption that the debt is doubled from 16 to 32 trillion.

And, are these 401ks/IRAs from government created jobs responsible for these lofty levels (bubble) continuing to inflate, or is the private retail investor, in all of his Johnny come lately ignorance, required as well?

Tue, 05/14/2013 - 16:29 | 3562083 lolmao500
lolmao500's picture

Of course gold and silver are getting rammed once again...

Tue, 05/14/2013 - 16:48 | 3562154 SmallerGovNow2
SmallerGovNow2's picture

BRING IT ON.  THE FASTER THE BETTER.  LET'S GET THIS SHIT OVER WITH ALREADY...

Tue, 05/14/2013 - 16:29 | 3562085 FreeMktFisherMN
FreeMktFisherMN's picture

when to get into UVXY...

Tue, 05/14/2013 - 16:30 | 3562087 gjp
gjp's picture

Another day, another punch in the face for short-sellers, commodity investers, and more generally mankind.

The bankers and the daytraders may not realize it, but this isn't doing them any long-term good either.

Tue, 05/14/2013 - 16:34 | 3562107 Hippocratic Oaf
Hippocratic Oaf's picture

Long-term?

That doesn't matter to the banksters and day traders.

Theft usually occurs much sooner.

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