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Bonds & Stocks Ignore FX, Commodity, And Credit Volatility
With a 180 point high to low plunge during the day, the Dow underperformed the rest of the major US equity indices which ended practically unchanged on the day. The market appears to be replaying the same opening POMO/EU pump to afternoon dump mode - with today's late-day ramp attempt to scramble back to VWAP. Treasury yields also oscillated but closed +/-1bps. But elsewhere, markets were turmoiling. The USD is up 0.5% on the week with 1.5% drop in JPY today which entirely disconnected from US equities after Europe closed. Credit markets were the voice of reason and equities (once again) ripped and dipped back to their sanity. WTI crude surged up near $100 (+3% on the week) as the USD weighed on gold and silver which are -0.6% and 1.6% on the week. Another day, another failure for the S&P's 50DMA.
Quite a roller-coaster of a day in the S&P... with the mandatory 330 ramp scramble back to VWAP... (and a try for green at the cash close)...
as stocks once again ripped and dipped back to credit's reality...
The nasdaq is outperforming its peers post-FOMC (for now)...
and oddly - Discretionary once again tagged perfectly unchanged from FOMC and then sold off... also notice the pattern of day trading in homebuilders...
Once oil started moving this morning (and the USD was bid on safety concerns from Egyot headlines) then gold and silver slid almost linearly lower...
Charts: Bloomberg and Capital Context
Bonus Chart: Brazil's BOVESPA had its worst day in 2 years... to 4 year lows
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Tylers....just between you and me....It's all Bullshit!!!!
No it is not when you have to layoff good souls to survive.
Bitchez. Gold. Bernake. Chart. Plunge. FED. Credit. Silver. Surge.
I did, indeed, experience "buy on the dip mentality" in the late afternoon of today's session...and increased my silver position.
And low and behold...the compromise between Morsi and the Egyptian military, rumored by The BlowHorn [CNBC], turns out to be nada. Whocouldanodeit?
Rolling Stones - 19th Nervous Breakdown (Stereo)
http://www.youtube.com/watch?v=KFhbNpk641s (3:57)
CNBC was hyping the fact that hedgies will let you into their little rip off club for as little as $1G( no coke and whores for the muppets though) so you too can massively underperform the S&P but still get the perk of sounding like a massive douchebag when you say you are invested in a hedge fund.
At 2 and 20?
Brahahahahahahahaha
otto: stop watching the idiot channel on the idiot box.....save yourself...your brain will turn into mush.....
The USA Locomotive is pulling the train again, YAAAAAHHHOOOOOOOOOO, I gave notice to 15 workers at my metal fabrication plant yesterday to get under 30 for ObamaCare....Sad day folks......
Fuck Obama and Bernanke....(Note: Bernanke's manipulation elected Obama!)
Ohhh shit, Brother.
With the new liberal castrati contingent on ZH, you just marked yourself as an evil capitalist pig who is only concerned with your own profits.
Expect to be on permajunk status until something shiny and blinky comes along to distract them.
Under 50 employess = you're exempt from the employer responsibility portion. You've either received bad advice, are stupid, or a liar. Mind you, I think ACA is a steaming pile of shit, but it's the retarded disinfo that actually strengthens the argument for it.
Stocks and bonds are ignoring everything except QE Infintiy...
There’s a Fed chief who’s sure
all that craters is gold
And he’s printing a stairway to Hell
When he gets there he knows
if our stocks have been sold
with a word he can get us to buy more
Oooh, ooh-ooh, and he’s printing a stairway to Hell
There are signs in the market
but he wants to be sure
‘Cause he knows all Fed words have two meanings
In a tree by the brook there’s a goldbug who screams
Sometimes all of our plans are misgiven
And it makes me wonder
And it’s whispered that soon if we all call his bluff
then the markets will lead us to reason
And a new day will dawn for those who are long
and Wall Street will echo with laughter
If there’s a downdraft in your bond fund,
don’t be alarmed now
It’s just Ben tinkering with his ‘legacy’
Yes there are two paths we could go by
But in the long run
it’s too late to change the road we’re on
And it makes me wonder
{guitar solo, etc., etc.)
And he’s printing a stairway to Hell
Outstanding rendition!
+100 brilliant! "And Wall Street will echo with laughter."
The hard question on Fridays Jobs report is good news good or bad? Is bad news only good? I think bad news can only be good, but good news may or may not be good.... Need more drugs, is it obvious?
It will be a big beat to the upside followed by a big am rip and then a gradual selloff to finish up 125 on the Dow.
Whatever the market does that day will determine what the spin will be on whether the news will be considered good or bad.
420....'ere.................
Just as we think we've got it all straight
Everything seems to be moving forward
But instead we just sit around and wait
Seems things are in a lockdown
Nervous looks all around
Everyone is speaking in whispers
No one wants to make a sound
I'm losing my touch, yeah
Losing my touch
Losing my touch baby, way too much
Baby, get me out of here
It should be clear
Keep an eye on on your front door, baby
I'll be slipping in round the back
I just need a little, a little cab fare
And then I'll let you hit the sack
'Cause I'm losing my touch
Losing my touch
Yes I'm losing my touch way too much
Baby, get me out of here
It should be clear, yes
I ain't going to keep it long, baby
But just long, long enough
I've got to pick up my passports
And I've got to get my stuff
'Cause I'm losing my touch
Just losing my touch, baby, baby, baby
I'm losing my touch way, way too much
Baby, get me out of here
Well it must be clear
Losing my touch
Yes I'm losing my touch
Yes I'm losing my touch way too much
Baby get me out of here
180 point day in the 1970's would have been considered 'armageddon'.
Of course, with the DOW under 1000 in the 70s the % whiplash would've been much greater, but even so your point is spot on, Sheep. TV blathering hosts will suggest "uncertainty" or "mixed Fed signals" as the reason, but we all know the true cause: algorithmic control of much of the modern trading day, particularly the first and last few hours. No question today the algos wanted to flirt with the 50 DMA to hit some stops and load up on shorts, but I'm convinced that, even without Egypt or other factors,we'd have headed down after noon. None of the intraday technicals supported the low-volume ramp, and most every early 15-min candle had big upper wicks, evidence the shorts planned their beatdown quite early.
The good/bad news good or bad is pure BS as it is always discovered post fact. Never ex-ante. The reality is they reflect fractal bifurcations in the system and can't be predicted ex-ante. Since the reasoning or mental model that drives the prediction is pure BS