Dow Surges Despite Weak Data, European Crisis, And Military Coup

Tyler Durden's picture

Uncertainty over global oil supply chain amid a 'tanks on the street' and a coup in Egypt, no worries. Portugal increasingly prone to testing Draghi's OMT 'promise' as Cabinet collapses, don't sweat it. US growth implications terrible given trade balance and ISM services, all good. It appears to us like US equity market algos were not told that today is a half-day as they progressed with the BTFD ramp in the first half after some serious declines early on.

While the S&P 500 only made it back to unchanged (+1), the Dow gained over 50 points and never looked back from the open of the day-session as bad (ISM) is clearly good (and jobs were mediocre enough not to make a difference). The NASDAQ remains the outperformer post-FOMC (-0.9%) while the rest are -2.25% or so -


even as QE-darlings Materials and Homebuilders remain -5.6% post-FOMC. Discretionary names once again got back to unchanged.


Credit markets tracked stocks in general today amid illiquidity but Treasury yields continued their JGB-like high-volatility swings with a 8.5bps range to close at the high-yields of the day at 2.5% (for 10Y).


Oh, and it seems military coups are great for stocks - EGPT +4.2% today (+10% in last 2 days).


Charts: Bloomberg


Bonus Chart: The big question is, will Shinzo Abe launch a new 4th arrow in his strategic plan - The Military Coup - given its seemingkly excellent results in creating a wealth effect...

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ParkAveFlasher's picture

To hell with Dow Jones!  $hit!!

Chuck Norris's picture

Wow just imagine how the Dow will soar when there is a coup in the U.S.S.A

CPL's picture

And the FRN's are introduced after the bail in and the bank implosion.

Colonel Klink's picture

Which is what this sounds like:

Wonder what this "upcoming" disaster is:



"Important to note, this report says, is that FEMA Region III, the area Russian troops are being requested for, includes Washington D.C. and the surrounding States of Maryland, Pennsylvania, Virginia and West Virginia, “strongly suggesting” that the Obama regime has lost confidence in its own military being able to secure its survival should it be called upon to do so."


PS - Spread the story/link around!!  Yes I found it important enough to post in several threads.

CPL's picture

Go look up Operation Blackjack.

YuropeanImbecille's picture

look at the 10 year, people are rolling out at incredible rates. Biggest outflow from bond funds in modern history.

Are we looking at 3+ in coming weeks?

CPL's picture

They could offer 80% on bonds.


80% of nothing is still nothing.  That's the situation.  Would you loan someone money if you knew you would never get the loaned money back and they only paid interest?  Who would want that offer?  Nobody.

Praetorian Guard's picture

Saxo Bank informing customers that Portugese govt will fall within 48 hours...

Its Only Rock N Roll's picture

2 important questions...

1) did they announce that over race radio?

2) will this help Alberto Contador wear the yellow jersey in Paris?



e m m's picture

Already preparing the short squeeze in those CFDs?

ebworthen's picture

The Perception Indexes ( do not allow reality to intrude upon perception.

The patient is on dialysis, a morphine drip, and intravenous fluids - but their temperature is normal, and look at that 65 beats per minute! 

"This patient is healthy as a horse!  Please pay at the desk on your way out."

101 years and counting's picture

the algos got the report from ICI which showed a massive $28B withdrawal out of bond funds in the latest week.  meaning, ben has to print MOARESTER to maintain the illusion, OR ELSE THE WORLD WILL END IN A FIERY DISASTER!!!

Mongo's picture


ebworthen's picture

Liesman:  "This has been a strange recovery."


Story about Siemens bringing their apprenticeship program from Germany to Charlotte N.C.

They connected with the local Community College and are actually paying for employee training!

The four year Ivy League Higher Affirmation Intelligentsia can't stand this kind of competition!

And of course the blowhard crony capitalist management of American Companies say:  "We can't find people with the right skills." 

No you jackasses, you want them to go $100,000 into debt on their own then show up on your doorstep to kiss your Wingtips. 


Itch's picture

Its a disgrace. All day people yakking about global deleveraging, Euro woes, taper, all means jack shit. What matters is that a few fat fingered greedy fuckbags are phoning around each other and ramping the sweet bejasus out of everything when it suits them. I seen it coming, I tried to short eur/jpy at the ADP report and the spreads of 2 brokers I look at blew out to 15 pips and stayed there for around 4 minutes, weasely bastards cant win without cheating.  

EclecticParrot's picture

As I suggested in another thread, I think today's pre-4th sparkler was less a classic squeeze and more a selling vacuum, with those wanting an Egyptian risk dial-down finding their chosen wait-it-out levels in yesterday's bungee plunge, so with neither net new buyers nor sellers in today's expected low volume session, and world news that wasn't a logarithmic plunge from overnight events, the algos chose a ramp-point that was, purely by chance, roughly the half-way point between the recent mid-June high and the recent lows, for them I imagine a good positioning point for Friday's NFP, their favorite playground.  I hate to enter their hexidecimal heads, but for them that's the safest place to rest for now (the smug, cheeky little bastards).

gjp's picture

materials are QE darlings?  Hardly, the've been down annual rate of 8% over the past 5 years.

what's doing best under QE is what continues to do best under the 'taper' nonsense:  discretionary.  I guess the message is that we can consume to our hearts' content without bothering to acquire the raw materials to support the consumption, or something like that.

Or it's just the latest in a long string of ridiculous bubbles (look at the valuation on names like LULU, BNNY, WFM, AMZN) from the American ponzi machine.

tawse57's picture

Military coup in Egypt good for US markets on eve of July 4th independence day - irony is lost on the Yanks.

EclecticParrot's picture

And all 3 major US cable news networks now showing the Zimmerman trial live, probably because they know a lot of reality TV viewers took a 1/2 day vacation today -- sad.  Algo-controlled markets, marketing-controlled news.  EDIT:  in fairness from about 3:30 on CNN has been full-on covering Egypt, and the others have pretty much followed suit.  (I hope it's not because the trial was adjourned for the day.)

Everybodys All American's picture

Makes prefect sense. Buy the f-ing coup de ta. Obama's boy looks like he's going down with the ship and I could not be happier to see both jackasses exposed.

Never One Roach's picture
Schiff: 2/3 of America to Lose
Everything Because of This Crisis




A record breaking stock market is distorting a frightening reality:  The U.S. is being eaten alive by a horrific cancer that will ultimately destroy the economy and impoverish the vast majority of its citizens.

That's according to Peter Schiff, the best-selling author and CEO of Euro Pacific Capital, who delivered his harsh warning to investors in a recent interview on Fox Business.

"I think we are heading for a worse economic crisis than we had in 2007," Schiff said.  "You're going to have a collapse in the dollar...a huge spike in interest rates... and our whole economy, which is built on the foundation of cheap money, is going to topple when you pull the rug out from under it."

assistedliving's picture

USD?  GOLD? hasnt he been wrong since '07? 

i mean right on fundamentals but we all know what they count for nowadays.....SQUAT

FreedomGuy's picture

Dow loses all contact with rationality, market fundamentals and gravity itself. Buy! Everyone else is!