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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.

Tue, 05/14/2013 - 16:32 | 3562093 yogibear
yogibear's picture

Goldman, JPM, PNC, BOA,.....

Anyone with access to the Fed's QE money should:

1.) Board members and CEO's purchase millions of shares of your company.

2.) Use the Fed QE money to buy your shares. Keep doing this until your stock prices are at insane levels.

3.) Board members and CEO's sell out your interest and make tons of money.

4.) Pull the QE money out before any possibility of market selling.

5.) Remember what Eric Holder said, Too big to fail means too big to proscecute.

Tue, 05/14/2013 - 16:47 | 3562149 Everybodys All ...
Everybodys All American's picture

5.) What happens when he gets prosecuted or resigns?

Tue, 05/14/2013 - 16:35 | 3562109 MFLTucson
MFLTucson's picture

Nothing new in the land of fraud and lying bankers and politicians!

Tue, 05/14/2013 - 16:36 | 3562112 SheepDog-One
SheepDog-One's picture

25 S&P points per day now....we've gone full-Zimbabwe!

Tue, 05/14/2013 - 16:41 | 3562124 gatorengineer
gatorengineer's picture

THis was a news driven ramps surprised ZH missed it, deficit falls to 64x billion.......  Would like to see the Tylers take.

Tue, 05/14/2013 - 18:51 | 3562553 Panafrican Funk...
Panafrican Funktron Robot's picture

The question is whether you find their statement credible.  You appear to find it credible.  Which is fucking hilarious.  

Tue, 05/14/2013 - 16:43 | 3562136 Devotional
Devotional's picture

So today the Eurozone ministers announced to the public that bail-ins will occur if banks are to fail. Anything above 100k is to be stolen. Then I look at this S&P500 and look at my gold stack ... i get depressed. Is this even reality? What nonsense these markets have turned into?

Am I foolish to invest in Gold? This is what happens ... doubts ...

So, CRASH & BURN S&P500 ... CRASH CRASH CRASH!!! Yeeeehaaaaa!

GOLD bitchez!!!

Tue, 05/14/2013 - 17:03 | 3562200 Citxmech
Citxmech's picture

Wow.  When I look at my stack, and then the S&P - I thank God I don't have one fucking dime tied-up in that sham casino.

Different strokes I guess. . .

Tue, 05/14/2013 - 16:44 | 3562138 orangegeek
orangegeek's picture

S&P500 hourly keeps showing consolidation-push higher.

 

http://bullandbearmash.com/chart/sp500-hourly-shows-continued-consolidat...

 

It's a joke - no question, but the trend is your friend.

Tue, 05/14/2013 - 17:02 | 3562196 razorthin
razorthin's picture

Said no trader ever.

Tue, 05/14/2013 - 17:07 | 3562210 yogibear
yogibear's picture

The key is for banksters to buy millions of shares with shares with the Fed's QE to boost up stocks.  Load up their personal accounts first by front running the QE purchases.

Even  if the Fed's never paid back they will hide the losses. Fraud is encouraged, Steal from the Federal Reserve if your a big member bank, it won't even be booked. It's printed money anyway.

No worry GS, JPM, Citi, PNC, BOA, US bank.

Steal from the Fed all you want. It's all a game.

 

Tue, 05/14/2013 - 17:29 | 3562270 Village Smithy
Village Smithy's picture

You got it! The market won't collapse because the Fed and the banksters own most of it and won't sell. They have been majority buyers since Jackson Hole, 2009. That's OK though because it's in our nations' best interest, just like spying on news gathering agencies.

Tue, 05/14/2013 - 17:16 | 3562240 VictoryOrDeath
VictoryOrDeath's picture

Any of you ass-clowns that actually think the current market has a backbone and resembles a twinkle of reality needs to get back to true fundamentally sound scientifically and empirically derived economics.  Otherwise you'll have so much spew on your face from multiple bubble bursts that you may suffocate in your own denial.  *SPLOOSH* Listen to the cheerleaders and comforters if it makes you feel better.  Ride your 'cycles' with hope.  Optimism is so much easier especially when you have no other out nor investment in something that will retain value.  You HAVE to be optimistic at this point.  Me?  I don't care how much makeup you put on that 400lb woman.  She's still 400lbs and I'm not interested in touching her, even with your hands. 

Tue, 05/14/2013 - 17:17 | 3562243 thismarketisrigged
thismarketisrigged's picture

this jackass on cnbc said '' things are great''. i wanted to punch his fucking face in.

 

how can these people keep lying to the public?

 

santeli had the best line on closing bell. i forgot what his exact words were, but he basically was saying that when fucking TSLA is making battery cars that can only go 250 miles a day and that stock is up like it is with a 115 plus price target, u know that end is coming.

 

at least someone gets it on that fucking clown station.

 

i am going to wait until the s&p hits 1700 to short it ( should be tomm, lol) and if it never does, ill be fine waiting for a bottom to re enter stocks.

 

also, when people say we are due for a 10 percent correction, no that was when s&p was at 1450 and dow was at 13000. 

 

now with these levels, we are fucking due for a 70 percent correction to bring index back to fair value. what a fucking bubble this is,i feel bad for people who are invested in this market now, because they are probably so happy they are making a fortune, only to soon lose it all. cant say i will feel bad for them though.

Tue, 05/14/2013 - 17:28 | 3562267 JR
JR's picture

The stock market soon is going to have to do down because the Fed has to put an exit strategy into play. In order to keep everything from collapsing right now Bernanke is going to have to back off and let interest rates rise.

The size and desperation of the quantitative easing is historical; there’s never been a time when sound money, savers, and retirees have been completely sacrificed in order that one thing could be achieved – namely, a high stock market index. They are not being sacrificed for the economy; that wouldn’t work. They are being sacrificed in order that the S&P, the Dow, the NASDAQ and all the other indexes can be used to protect this classic failure of the Fed policy.

The Fed is deeply entrenched in an economic crisis. It is consciously on days of very low volume trying to convince investors that the economy is strong enough to withstand a correction. I think the Fed’s strategy is wrong; I think the correction is going to be huge.

Many of the largest corporations are showing huge increases in profits without a corresponding increase in market share or sales. Reducing payroll (laying off thousands of employees and switching operations to foreign shores) and closing production sites, cost cutting even on essential manufacturing quality, and shedding some of their product lines all help show an increase in profit and a higher P/E ratio to keep the stock price high. This translates to considerably greater CEO remuneration and bonuses, of course, but there’s an end to that. It does not translate to better transitioning of a company in the market place or to better prospects for longer term growth. IOW, investors are being misled as to the health and future of many American corporations because of their stock price.

The stock market shows the high water mark of the QE philosophy. Once the market gets wind of a QE exit, it will not be talked down gradually by the Fed. It will very shortly seek a true bottom to reflect true earnings and the conditions of the global economy.

Tue, 05/14/2013 - 18:17 | 3562419 Devotional
Devotional's picture

count me in for some punching! I do not have your back, I am at your side on this one!

On 4 April 2013, Mario Draghi from the ECB said that "Cyprus is not a template". What happened today??? Cyprus is, in fact, a f-ing template!

This whole thing is a sham indeed!

Tue, 05/14/2013 - 17:47 | 3562312 the grateful un...
the grateful unemployed's picture

the real question is why are they doing this? they're not idiots, they're already up 15% on the year, and they keep pounding this tired whores ass, throwing more pomo at her. any rational man, who just wants to screw someone other than his wife, knows the difference. its not cocaine bernanke its pussy. you can't fuck it all the time...

Tue, 05/14/2013 - 17:48 | 3562314 hannah
hannah's picture

this 'all time high' bullshit is tiresome when THE MARKET REACHES ITS ALL TIME HIGH...EVERY DAY HIGHER WILL ALWAYS BE AN ALL TIME HIGH...!

 

SEND THE FUCKING MEMO TO CNBC......!

Tue, 05/14/2013 - 18:07 | 3562381 q99x2
q99x2's picture

Guess Hamy Wanger entered hog heaven by now. Thought I saw his ghost but that was divided states.

Tue, 05/14/2013 - 18:11 | 3562397 Element
Element's picture

If the FED wanted to stop bubble-fevah it didn't work, no one believed it.

"... we're gonna need a bigger jawbone ..."

Tue, 05/14/2013 - 18:17 | 3562418 SlowMoney
SlowMoney's picture

Every one talks about the exit strategy for the FED.

I would like to ask Mr. MARKET a question:

WHAT IS YOUR EXIT STRATEGY??

Tue, 05/14/2013 - 18:21 | 3562443 Element
Element's picture

mr market:  <whisper> contagion </sccchhh!>

Tue, 05/14/2013 - 18:43 | 3562517 yogibear
yogibear's picture

Everyone knows there is no exit strategy.

Bank management just dump you millions into your banks stocks,.....

Then take the Fed's QE and buy the crap out of your stock with their free money.

Once you get the bank stock up 30 to 40% or more, pull out your personal money, short it, let your stock drop to insanely low levels. Throw millions of your money in again, use the Fed's QE money to bid it up again.

All, the Fed is throwing money at you. Front-run before you trash the Fed's QE money. Bubble Bernanke and the Fed know the QE money will be lost. Fraud is encouraged with this bunch of fed banksters,

 

 

 

Tue, 05/14/2013 - 18:32 | 3562480 Devotional
Devotional's picture

thumbs up if anybody would like to rape Bernanke with a 24k rotating GOLD Dildo???

Tue, 05/14/2013 - 19:20 | 3562647 lotsoffun
lotsoffun's picture

i have a 30 day holding period, but if not - i would be hugging bernake.  it's shooting ducks in a barrel - as it is meant to be.

his friends get rich and richer and the muppets are getting happier and happier.  until.....

 lloyd and jamie are NOT going to go without leaving bernake like a sheet in the wind when they are ready

to pull the rug out.  if bennie was 'really' the class they want - he would have been at goldmine already.

the poor sucker ain't no gensler or corzine or mozilla.... etc.

 

 

Tue, 05/14/2013 - 21:09 | 3562957 Petrus Romanus
Petrus Romanus's picture

Serious question: How far are they going to push this thing? The economic numbers don't even come close to justifying record highs for any markets. This thing can't go up for ever! What goes up eventually has to come down doesn't it? Infinite growth is not possible, especially when there is no growth, except for the digital numbers these organizations are adding to their balance sheets. Pure manipulation of the economy through high speed access to the market systems and extreme omission of the actual economic state by government/media/corporations can't be hidden forever. So again I ask, how far are they going to push this?

Tue, 05/14/2013 - 21:44 | 3563076 electricgorilla
electricgorilla's picture

So every central bank in the world is printing money and Gold is still not going up. Also, can't the government just revalue or confiscate your Gold. Not sure how holding Gold is a good idea even in bad times. Go Long! and hedge. Insurance on a market collapse is cheap. The government just tied student loan debt to the 10-year treasury bond so this market has a long way to run.

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