US Stocks Have Best Day In Six Months Following Japanese Collapse

In an almost perfect mirror-image of last week the dump in stocks into Thursday was caught and ramped back to new highs. Today is the best day for the S&P 500 futures market since the first day of the year. Volume was well below average which is exemplified by the fact that the VWAP (or market balance point for the day) closed down 4 points despite ES up over 20. The bounce was already on a roll before Hilsenrath sparked some last minute momentum surges above yesterday's highs.

S&P Futures best day since Jan 3rd - of course...

But despite the 40-point plus surge in the S&P and higher close, the average price accounting for today's volumeless rally was 4 points lower than yesterday's - so not a major conviction buying ramp into the close, more an unwind of shorts by the look of it...

Homebuilders went from worst of the week to first of the week...

Hilsenrath sent us a little higher with his Fed-whispering into the close...

as USDJPY saved the day... can you tell the 2 charts apart?

Charts: Bloomberg and Capital Context

Comments

[slaughterer]

Re-short.  Confusion to ensue shortly.

[fonzannoon]

what about massive pomo monday?

[Randall Cabot]

Could spark a Friday frontrun.

[davinci7_gis]

This is what you get when the BIG BANKS put all their bets on the table (in the Market)!!!!

[flacon]

These gyrations are actually bearish for the market. They confirm that this IS the top. George Soros said something just a couple weeks ago to the effect that tops are volatile. 

Perhaps today is a front-run of Friday's front-run of Monday's huge porno. 

[El Viejo]

Minsky said too much money in the market makes it volatile.

[RockyRacoon]

Today's action is called whistling past the graveyard (of Japan).  A flashy show but no substance.

[Go Tribe]

Remember to remind me the next time ZH writes about the Hasenpfeffer Omen to BUY THE FUCKING DIP.

[Phat Stax]

yep, and last gaps north were just about closed today.

[disabledvet]

just cuz the market is going down doesn't mean short selling is the way to go. "classic short squeeze" even in...i would argue BECAUSE OF..."slow growth, low volume, lack of news flow out of the USA." one interesting aspect to all this NSA crap is "just how much the longs really do know about what the short sellers are up to." sure...the market can...and WILL...fall. "but you can get stopped out of position mighty quick if the Banker knows who you're fooling around on." given all the "public displays of shorting" these days it's obvious not just the who...but the HOW as well. oh, and "the United States is an oil, natural gas, technology, utility, railroad and media super state" right now. i say this not only to point out "good luck finding any else of that on planet earth right now" but because "that's called TRILLIONS in liquidity ready to be put to work."

[SAT 800]

I squeezed in a contract sold short @1636.50 basis June; just for fun. The theory being that it's the top of a newly formed down channel.

[fonzannoon]

good move. It is. It won't be a straight line down but it will chop down.

Good luck to cnbc with their taper = great rotation bullshit.

Now what are they sellin?

[stormsailor]

i went long when the /es failed to bust through 1600, thought i was gonna lose my ass when it broke below a while later. but it was already back up when i saw it.   sold at 1636,  thank you 1600 line pump and the bernanke blow.  i fucked you with your own money, hahahahaahhahahahhahahahhahahahahahaahhah

[The Master]

They literally have no fucking clue what they're doing.  This reeks of desperation.  Stay vigilant.

[NotApplicable]

Yeah, but they've been desperate for over twenty years now, or hell, forty if you wanna go back to Nixon's Keynesian experiment.

[Midasking]

its a complete joke... i wish it would end so I could get on with my life... http://tinyurl.com/mem7o7x

[JJ McApe]

dis' shit is CRAY

[syntaxterror]

I called it last night. Dow up 200!

Nobody fucks with Bernank! Nobody!

[ghandi]

RBS CEO resigns.

RBS getting out of derivatives.

The rats begin to jump ship.

http://www.bloomberg.com/news/2013-06-13/rbs-joins-rabobank-exiting-stru...

[NotApplicable]

Yep, it's a sad day when it's too costly to structure products to scam others.

Another win for the algo-bots that suck the life out of everything.

[Yen Cross]

      I saw this coming last night when usd/jpy stalled out in late Asia trade,  short squeeze was setting up. I wouldn't be surprised to see it squeeze the life out of the shorts in Asia. Long usd/jpy and aud /jpy from this morning. Rinse/Repeat.

[HaroldWang]

So Nikkei will rally tonight since US did and US will get all excited tomorrow and rally cuz Nikkei did and so on....

[Yen Cross]

  Nikkei CFDs currently.

    Japan NI225    12,975.00    12,445.38    12,977.00    12,395.00    [529.62    4.26%]    20:23:39

[Bay of Pigs]

Batshit crazy...

[lolmao500]

Riiiiiiiiiiiiiiidiculous.

[Stoploss]

Is the trend a friend, or fo?

http://finviz.com/futures_charts.ashx?t=ZB&p=w1

[NotApplicable]

Well, in this case, the trend is a lie.

[thismarketisrigged]

raise your hand if you would not have laughed ur ass off if i had told u lastnight while asia was selling off massivley, thatr not only would we not sell off at all the following day (today) but we would finish higher than we did the previous day after the 127 pt dow loss?

ya didnt think so.

i was not even pissed about todays rally, i just laughed because there was absolutely no volume whatsoever.

i also got some humor when santelli put some asshole in his place on closing bell who was saying stocks are cheap, and also listening to maria say fundementals are getting better.

what we learned from today? the nikkei means shit to the u.s markets, only when its up does it matter.

fuck u ben and barry, die u bastards

[Lady Heather...UNCLE]

Helmsman, hit that iceberg just ahead at full speed

Aye, Aye Cap'n Bernanke

[OMG]

Throw as much shit on the wall as possible hope it sticks and no one notices

[traditionalfunds]

Fed does NOT seem to backing away from tapering.

Instead they are saying: "Remember that monetary policy will still be very loose even after the taper is complete."

[Chaffinch]

Where's the daily Nymex 'gold stocks' report? Is it just my browser playing games? I can find the update for silver, platinum and palladium, but the only gold report showing is 24 hours old : (

http://www.cmegroup.com/delivery_reports/Gold_Stocks.xls

OK - I was being paranoid - it's there now. Another 24 bars left the warehouses; no change at JPM.

[bdub2]

My wedding, the birth of my child, and today's market: The three best days of my life. 

Front page of the newspaper tomorrow: boldest headline proclaiming: Record Book Returns for 1984 as Nation Healed. Subhead= Obama Leads Us To Safety and Wealth!--- More Than A Bird - A Plane. He's ObamaMan!

Then, one big full color picture of him, benanke, schumer, holder, clapper, geitner -cropped in, bloomberg, hilsenrath, krugman, and maybe a couple of Sandy Hook families, all smiling and holding each other so tightly and proud looking together, like a big family portrait!

A Beautiful Nation. Look at it. So proud of what we've become!

On pages A-2 to A-24 = Fuck You Bernanke!

[rubearish10]

Good for you but no one here really gives a shit.

[dognamedabu]

Completely. Ok I now know you both exist so wish the best! But the other half is like why even care? I do care other half, these people are part of my existance. Here is what happenend to me other people as if you care... I was complete conservative. In Canada that means you embrace universal health care but hate gov owning the phone lines.. ha ha. Seems it didnt matter. Now I watch many get all worked up over who will rule us the best.. Im now at the point, why do I require ruling? Outside the paradigm. I think those whose life is dependent on this paradigm are getting a bit scared.  Sort of like I did as a CD DVD store owner. Your days are numbered. Humanity will progress. 

[ebworthen]

Jawboned POMO Ponzi rally!

Weeeeh!

[EclecticParrot]

When I come home baby

And I've been working all night long

I put my daughter on my knee

and she says: Daddy what's wrong?

She whispers in my ear so sweet

You know what she says?  She says:

Oooooo, Daddy you're a fool to short

You're a fool to short

And it makes me wonder why

Cue falsetto backing vocals:

(Oooooo, Daddy you're a fool to short

 Oooooo-hoooooooo, Daddy you're a fool to short)

[dognamedabu]

The logic is clear.. You Japanese retiree.. Market go down.. Sake!! Where put money? Under bed disappear. Hey honey, USA is the way. Ok I go there Maria. 

[icanhasbailout]

What a wonderfully uniform rise in the market over the course of the day today

[EclecticParrot]

It seemed clear to me that volatility was fueling the rally (i.e., sell VOL, buy stocks), as it made a slow, inexorable slog down all day, and each time it made a little spurt lower, we'd get another big green candle out of nowhere.

[max2205]

Been an amazing 4 years folks.....

[nomorebuyins]

Nikkei rally will fail, hedgies going to get crushed by Godzirra tonight!

[IridiumRebel]

I bought the dip and then jacked off to Drury. Life is swell.

[NotApplicable]

Is that anything like chart porn?

[Yen Cross]

    You will be richly rewarded. ;-)

[otto skorzeny]

You do know she has a penis - right?

[Jannn]

https://twitter.com/KoosJansen/status/342015157700001792/photo/1

[Jannn]

https://twitter.com/KoosJansen/status/344382970276225024/photo/1

[Jannn]

https://twitter.com/KoosJansen/status/343077612014407682/photo/1

[DowTheorist]

In spite of today's action, stocks are still flirting with a primary bear market signal as explained here:

http://www.dowtheoryinvestment.com/2013/06/dow-theory-update-for-june-12...

However, today's action has given a short term technical breather to stocks.

[Smiddywesson]

I feel bad for anybody that held their short position all day. 

It's be fiendishly evil of the Bernak to drive the market up at the open and panic all the shorts into covering, but he'd never do that, right?

[Flakmeister]

Off topic, but could it be that FORBES is finally gettting it?

Why America's Shale Oil Boom Could End Sooner Than You Think

America’s oil producers are nervous. They’ve had a great run the past few years. Domestic oil production is up 43% since 2008 to 6.5 million barrels per day, the highest level in decades. The majority of that 2 million bpd jump comes out of the two most successful new oil fields, the Bakken and the Eagle Ford. To develop these and all the other fields nationwide, the top 50 operators invested $186 billion in 2012, according to Ernst & Young. That was a record level of spending, up 20% over 2011.

You’d think that with drillers getting better, honing techniques and driving down costs, that a 20% increase in investment would bring about a more than commensurate increase in oil and gas production volumes, right? And yet according to Ernst & Young, total U.S. oil and gas production was up “just” 13% on the year.

It’s bad enough to be spending more and more to generate ever less growth. It’s worse when that growth doesn’t even translate into profits. Oil and gas companies have spent hundreds of billions acquiring acreage, drilling wells, booking reserves, boosting supplies, but in 2012 they proved too good at their job, found too much gas, cratering the gas price, which made vast shale fields uneconomic to drill at all. In 2012 those 50 biggest companies recorded $26 billion in asset impairment charges — basically natural gas reserves that were worth $26 billion the previous year became worthless because it cost too much to drill them. This led to a 58% decline in after-tax profits in 2012 over 2011.

And you’d better believe the same thing could happen to oil reserves.

[StarTedStackin']

Best day in 6 months, AND Silver SURGED.....0.06%.......to boot!!!!!

[dobermangang]

Good news afterhours for SWHC.  Great preliminary earnings numbers and announcing 100 million dollar buyback plan.  Guns sales are booming.  Got Guns???

http://finance.yahoo.com/news/smith-wesson-holding-corporation-announces...

[Rehab Willie]

Friday afternoon smack-down.

[LooseLee]

I hope that these communist POS who rig this market daily have a full understanding that they will be hanging from lamp posts when this is over. Bank on it!

[pragmatic hobo]

apparently it's all the fault of bottom 90% slave population that we are still in recession;

http://www.dailymail.co.uk/news/article-2341314/Goldman-Sachs-CEO-blames...

[knicks3005]

Bernake is a glorified drug dealer. 

[Handful of Dust]

Viva Max!

[luna_man]

Listen kiddies...The "short" position is the new "buy & hold"!

CRIMINALS, have nowhere to run

[orangegeek]

And the US Dollar tanks while the Euro, Yen and GBP rocket.

http://bullandbearmash.com/chart/dollar-daily-falls-support-zone-wave-2-...

While the US Dollar continues to fall, (the other three rise), these markets are heading to new highs - of course based lousy macros and 48M Americans on food stamps.