Good Is Bad - That Is All

Tyler Durden's picture

It's been quite a morning. Beats across the board at the macro headline level. Housing (prices and sales), check; Durable Goods, check; Confidence, check; Richmond Fed, check. So why are stocks not surging?



The problem is that bad is also not good anymore (as we noted yesterday).

Though, of course, it's early yet - and it is a Tuesday...

Please bear in mind the implicit message from the Fed:


Charts: Bloomberg

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buzzsaw99's picture

So why are stocks not surging?

feral hogs mostly [/sarc.]

SheepDog-One's picture

Starter motor broke on Bernanks hot rod.

monopoly's picture

And take a look at interest rates. "Puzzling".

razorthin's picture

Because its all lagging and bullshit, and the ink cartridge is about empty - also bullshit.  Algos have recognized the former but not yet the latter.

Skateboarder's picture

Benny and the Jets got DIY cartridge refill kits to last another couple of years.

Petrus Romanus's picture

Bernanke is enjoying an extended prostate exam, DRY! Just imagining the smile on his face warms the heart. :-)

SheepDog-One's picture

LOL I was up last nite its been a 12 hour total clownshow with China plunging on confirmed financial collapse....only to have that immediately reversed on a China statement 'Nah....we're OK!' which also led to the miraculous futures reversal of course. 

Thanks Maniacal Monetizers, we now live in a Salvador Dali painting.

gjp's picture

Well stocks are still up a half percent or so, oil is under control, everyone loves the dollar, and gold as usual is in the tank.  Except for bonds, everything is going according to the Mariner Eccles plan so far ...

Jake88's picture

Simple. The market looks ahead. Last months activity often points ahead. And sometimes it's just a head fake. The market knows this is just a head fake.

Dr. Engali's picture

Don't tell me after all these years you still believe in the market. The market has been eviscerated by the Bernank.

fonzannoon's picture

It looks like a lot of people still believe in it doc. We are busy figuring out where the next 15 points in the S&P are on this thread, haven't you seen?

Gene Parmesan's picture

The stench is becoming too unbearable. It's just not worth hanging around to find out what's making it.

slaughterer's picture

GOLD BITCHEZ!  Oops.  Nevermind.  Bernanke has it taken care of.  

robertocarlos's picture

As long as you are not short  the US dollar, "All is well". At least today. 

SheepDog-One's picture

If you can figure out Salvador Dali's 'Stairs', then this daily market activity should be peaches and cake to you.

NoDebt's picture

I'm going fishing later today.  (Literally fishing, not a metaphor.)  I need to clear my head.

I guaratee I will be happier this afternoon than the market could ever make me, even if today's 3:30 ramp takes the Dow up 1000 points.

I think we could all stand to go fishing every now and then.  This shit will turn your brain to Jello if you live in it every minute of the day.


Jayda1850's picture

As a fellow fisherman, wish you good luck. I'll take a day of fishing over pretty much anything else.

SheepDog-One's picture

I go fishing off the jetty almost every evening.

SmallerGovNow2's picture

Which jetty?  I live on the south texas coast and fish jetties often...

ceilidh_trail's picture

I'm going up the Clingman's Dome trail today. Gonna breathe in some cool mountain air and ignore the algos for a while. I agree with you this will turn a brain to mush. Spent the day yesterday strolling Gatlinburg with my girls even as my stops were picking up cheap materials stocks. Just waiting to outlast the current placeholder in the WH. Did the same with drug stocks back in the Clinton days and that worked pretty well...

SmallerGovNow2's picture

Some facts absent from the President's global warming speech..

- greenhouses pump CO2 into their hot houses to increase plant production!

- CO2 is less that 0.0005% of the atmosphere!

- Outside air contains less than 400 parts of CO2 per million (PPM) while the inside of your house can contain as much as 3,000 PPM!

- man made climate change is a HOAX for globalist taxation and control!!!  Wake up Amerika!!!

- when you exhale your breath has approximately 40,000 PPM CO2!!!  Yes, you read that right FOURTY THOUSAND! 

Money 4 Nothing's picture

Also.. clean coal technology is the cleanest it has ever been.

Emmitting co2 and h2o steam only. Particulates and polutants have been thoroughly scrubbed or dampened. The carbon monoxide has been chemically altered to h20 and 02 by inducing a plasma discharge ionization step in the many stages of catalyzing this clean coal exhaust. 

This post is written by me off the top of my head because I worked on 2 related projects in the mid 90's for major power companies and believe it or not.. I rolled this technology into NASCAR to scrub in car carbon monoxide treatment down to safe-er levels.

That was my baby in 1998, along with developing the worlds smallest freon compressor for stand alone in car air conditioners for race cars subsequently combining the two.

That "smoke" they always show on TV as their polution argument displays "BILLOWING SMOKE" and try to make it scary looking, but they never explain what's being emmitted is the final stage of the process. Scarry looking STEAM. Is their Fear card.

Off topic, but do you remember the wildly successfully trash to steam project taken on by local municipalities? Basically the same process, just a different furnace. All shuttered now.

It was so successful, that State nuclear power companies.. cough cough.. GE were losing profit and lobbied to have them shut down. They couldn't compete with free trash / natural gas byproduct being used for energy production into electricity.

Water rings are  mounted atop the stacks spraying the exhsust for dust control. Looks like polutants but is actually steam .

The process for clean coal is a real winner IMHO. they grind the coal into a fine dust, treat it, then inject it at high pressure into the blast furnace boiling water into steam in turn, spinning a turbine generator in a very efficient electric production process.

Trees breath in C02 and in return release oxygen, C02 is not a green house gas, but is now listed as such, kinda like ketchup is now listed as a vegetable. Just re writing the rules,  Yea... really.

Last but not least.. The EPA has a hand in crippling these clean coal plants, bankrupting them then selling them off to Chinese energy companies akin to the Solandra scandal. 

cloudybrain's picture

US stronger after good data and gold slaughtered

Bay of Pigs's picture

Who is upvoting this douchebag? GTFO.

cloudybrain's picture

that the fact, dont get blindfolded, look at the data and market

Bay of Pigs's picture

I know when someone can't form a sentence correctly, and speak coherently, they are full of shit.

cloudybrain's picture

yea and you can enjoy your loss from the market, eat that shit

Bay of Pigs's picture

What loss? I'm not in the market. Maybe clear that cloudy brain of yours. Nobody give s a fuck if you believe the "good data".

Levadiakos's picture

Not in market cause you lost all yer munney on gold. Pigs get slaughtered. HAHAHAhaahaa

cloudybrain's picture

who said i believe the data, I only follow the data, i dont care if the data being manipulated or not, i just follow it and analyze the data and its impact to the market. if market going up i will buy and if market going down i will sell. its simple

Croesus's picture

@ Bay of Pigs:

It's irrelevant if the PoG goes's all smoke and mirrors. "Follow the Yellow Brick Road", and "Pay No Attention to That Man Behind the Curtain".

When the smoke clears, it's all going to come down to has it, and who doesn't. Since the trolls know better, let them continue to buy their overpriced shares that they probably don't even actually own.


Levadiakos's picture

Gold CRUSHED HAHAHahahhaahhahaa

Croesus's picture

"Gold CRUSHED" .......




 At least that's the thinking of 2,570,386,197 people, not counting those in Europe, Canada, America, South America, Russia, Japan, Vietnam....etc.

P.S.- I even upvoted you, because us goldbugs are a little screwy. We're the only investors out there, who buy something, and actually hope its price falls......




Judge Crater's picture

If the real truth comes out about how bad the U.S. economy is and how much of Bernake's parachute drops of taxpayers' money has gone directly into the bank accounts of billionaires, then the remaining good will the U.S. economy has will evaporate faster than Paula Deen's reputation after everyone found out she likes using the "n" word to describe certain non-white persons.

Spastica Rex's picture

Maybe a slight stock market beat down can convince the Fed to alter their language a bit.

Al Huxley's picture

It's cause and effect - a virtuous cycle, if you will.  Rising bond yields are puzzling, but must be an indicator of a strengthening economy (or so I've heard).  Then here's the news supporting the case, which just causes those bond yields to rise even higher, which just keeps adding fuel to the 'strengthening fire' that's been started.  Hints that there may soon be a virtual inferno of strengthening in the economy as leveraged players unload their USTs and the price continues to fall off a cliff.

fonzannoon's picture

here comes the anti zh market rally in stocks and bonds.


gjp's picture

like clockwork Fonz ... within 20 minutes of a ZH post on weak markets it turns around, seems like every time.  I think the algos trade on it.

For gold the reverse is true (market falls shortly after posts on rising gold futures if memory serves since those moments have not been that frequent of late)

gatorengineer's picture

I sure got the call wrong yesterday... thought they stop the bond bleed, but nope.... stopped out of my longs today (actually whipsawed), but ok..... take ten and re-group...

fonzannoon's picture

You have the overshoot crowd fighting the good data crowd. Good luck it's rough to find direction right here. I think China dictates things in the short term, but who knows.

Bay of Pigs's picture

That 600 point ramp in the Hang Seng last night pretty much set the stage for the "good data" BTFD mentality here in the US this morning. Absurdity reigns fonz.


fonzannoon's picture

Kito said it best yesterday. The fed hit the lights and yelled fire and everyone started rinning around bangin into each other. Then they yelled "just kidding".  Now everyone will just keep banging into each other until someone gets hit by a falling piano.

Al Huxley's picture

Not sure about that Fonz.  Looks more like

the FED said 'we might be stepping out pf the theater now, mainly because we don't like the show, not because of any FIRE'. 

Then equities AND bonds both said 'WTF, FIRE?' and ran like hell. 

Which then caused the FED to come back and say 'no, no, there's no fire, enjoy the show'. 

At which point, the equities all went back to their seats with a sigh of relief and said 'great! we can continue to enjoy the show',

while the bonds said 'wait a second, if there's no fire, then where's all that smoke coming from?' and continued to head to the exits.  10 year and 30 year looking a long way from happy right now...

fonzannoon's picture

You know what got me Al. Yesterday I spoke to someone I know who trades fixed income. A real sharp egg. When the 10yr hit 2.66% I spoke to them and said "wow this is getting out of control!" He/she said "Yup, I just went long". They were making a killing shorting up till then. A while later at 2.52% this person hit me back and said "I just covered and went short again".

This just shows me that what looks like a spiral is just a group of people playing around. Granted they may end up getting decapitated. But I doubt it.

The banks are stuffed to the gills with treasuries. So are insurance companies. So is the fed. So is Bill Gross. They ain't selling. So who...other than China? Is going to cause a disaster?

Al Huxley's picture

Yeah, the way the whole system works, it's going to continue to shuffle along and shuffle along until the ONE time when it really breaks and can't be put back together, but as we've been seeing since 2007, that final ONE time can be put off for a long time, and there's lots of these cases where it looks like 'this is it' but everything holds together and things bounce back.  I'm really not sure how many people who trade within the system see the mathematical inevitability of the eventual breakdown, how many see it but either know or believe that its still years away, and how many either just buy the financial news propaganda, or pick up pennies in front of steam rollers (long at 2.66, short at 2.52) not because they're not smart, but because they've been successful at it for a long time and are conditioned to think the fundamental circumstances that make those strategies successful won't break.


Anyway, odds favor this being just another correction with the corresponding snap-back, but the steepness of the selloff in the treasuries leaves open the possibility that this time might ACTUALLY be different.  I won't play the intraday bounces on this one, even though I'd say the odds of a solid rally at this point are pretty good, I just see a lot more conviction in the selling right now than in the recovery bounces.

JJ McApe's picture

correction is over, buy buy buy =D

Panafrican Funktron Robot's picture

Retired dads are going to be redeeming shares of bond funds and going to cash next month.  Yields are going to go much, much higher.

Smuckers's picture

A farting corpse stuffed with potpourri is not in recovery....
Just means you can tolerate it a little bit longer.