The Market's Schizophrenic Reaction To Payrolls

Tyler Durden's picture

UPDATE: S&P futures collapsing quickly - now down from Payrolls

The initial kneejerk reaction in stocks was oddly 'good-is-good' higher after the better-than-expected headline data on payrolls - which perhaps signalled that Taper is nearer - but FX, bond, and precious metals markets were clearly in Taper-On mode. Treasury yields cracked 13bps higher, Gold and Silver dropped 1-2%, outdates for Eurodollar futures dropped notably, and the USD jumped around 0.5% almost uniformly. As an illiquid equity market soaks in the reality, some of that initial surge is fading...

Stocks jump...


but everything else cracks in a distinctly Taper-Off mode...

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slaughterer's picture

Does not compute ---- except for the algos.

spine001's picture

The level of instability in the financial system Makes it impossibke to predict forward more than a few second, thus you see what the article calls knee jerk reactions, they are just the algos following the fractal bifurcations that they see in the market. Remember they use chaos theory to make the predictions and that the people definig the math built into the algos are physicists

ACP's picture

Took 6 straight days of POMO-fueled HFT criminal manipulation to push this pig over the 50DMA again? They're really losing their touch. Either that of they're building a wall of stops to get ready for a hard core bang-up next week.

spine001's picture

Not schizophrenic but math based and predictable in a non linear feedback system where people are attempting to predict its behavior and can onlybdo it for a few second foirward, and during transitions only foir a few miliseconds due to the rate of bifurcations.

disabledvet's picture

and run by humans who are chaos fact. "must control them! must control them! send in fem bots! send in fem bots" all those numbers say recession. period. the Fed has already gone full on Phillips Curve (from out of the blue I might add.) comes your trade off: recession=no bank. the idea that this recovery can be financially driven has been laid to rest. ironically it was working. (insert Easter island totems here.)

Racer's picture

As long as gold is hit, the banksters care not, so perception of their lack of clothes is put off until another day

bozzy's picture

Yup - just a shame that the rest of the world cannot shake free of the petro-dollar reserve currency scam. The Fed has done wonderfully well to get the rest of the world to pay for the American dream recovery, and there is no sign of the plot weakening. Oil heading North will bring us unopposed fracking, and the new American century will be here for all (US) citizens to enjoy. Well, actually a few, not all. 

Just one thing I did not catch in the jobs data - WHEN exactly are the employment numbers projected to get back to their previous levels?

insanelysane's picture

Never.  Manufacturing lost jobs.  Working in fast food or at Lowes/Home Depot way up.

disabledvet's picture

a house is a manufactured product. "it has the added value of being able to live in it." we can create 100 percent home ownership actually...but we have to turn the media people switch to off. since people are so terrified of that thing "they'd rather blow up banks and markets instead." this doesn't strike me as good for recovery.

krispkritter's picture

Gold did get 'hit':

Gold Vodka, who knew? Precious I have to change my porfolio again...

Clam McCain's picture

Sell your gold it is worthless

alfred b.'s picture



  At these prices, you're not're giving it away!!!



asscannon101's picture

An evil, barbaric relic from a dark time long, long ago when wizards and talking dragons ruled from the Gorge of Liam's Grundle all the way to the abyssal wastelands of Harry's Gooch... Yesssss, I remember it well...

unwashedmass's picture


i agree....going to start looking for it....tossed on the garbage heaps. and dumped in corners. 

all kidding aside, I wish I owned one of those "we buy gold shops" this could make a killing --- i mean, you are getting all this free publicity from the FED and JPM.....ride the marketing wave.....half the people don't have a clue.....

and are getting suckered royally. 

algol_dog's picture

Everybody's forced to be a day trader in today's markets. Nobody knows what the fuck is going on ....

Cdad's picture

What is going the complete and total destruction of any remnant of market credibility.  It is part of the process of taking it down.

SheepDog-One's picture

It really does get me that all these eclownomists have completely sold out, and can somehow just overlook the fact that these markets have been reduced to a laughable farce! 

malikai's picture

Put the god damn glasses on!

therearetoomanyidiots's picture

DING DING DING - We have a winner!!!! 

They've already destroyed the credility of any governmental entities all that is left is to kill the market.


Town Crier's picture

Correct.  Money will be removed from the economy, but not TPTB money.  Retail investors' money.  When every mom and pop and their neighbors are finally all in, TPTB will take their profits, the crash will happen and mom and pop will be broke before they finish their morning coffee.

disabledvet's picture

not true. you still have to find new sources of liquidity. TPTB only exist on "old money." there are many sources of liquidity of course...but usually very few NEW sources. the USA has three and counting: nat gas, solar, cloud computing. they have the advantage of being very low in effect they are "funding currencies." so no...we don't care about the dollar, we don't care about oil, we don't care about the middle east, we don't care about Wall Street. we DO care about the economy however "and the meaning of debt driven growth" as opposed to that which is equity driven.

Dr. Engali's picture

Stocks up, gold and bonds down...Clearly a sign of the great rotation as we enter a period of peace and prosperity. The world is in perfect harmony. What Middle East turmoil?

Never One Roach's picture

More people have two minimum pay jobs. All is good.

Ban KKiller's picture

Totally transparent taper to follow...or not. Market truth is long gone. Fools remain.

Going to Managua today to have lunch with Edward Snowden.

SheepDog-One's picture

Must.....Panic Buy......Stawks....

autofixer's picture

Who is Edward Snowden? 

Ness.'s picture

30K beat in UE can't top the retarded no volume ramp job yesterday as ES now trading lower than yesterday's highs.  

Quinvarius's picture

I suspect they are about to do a USD intervention here pretty soon.  I don't think they will allow it stay over 84.  I suspect our direct trading partner curreny, the CAD and the MXN are viewed as way undervalued at the moment.  And that is bad for trade. 

alfred b.'s picture


   This is great news, job market on a tear.....I think that I'll go and order something from... China!     (sarc)


Racer's picture

What's up with the DAX? Uh, rather what's down with it?

Bearwagon's picture

Conergy has gone bust.

Headbanger's picture

This schizophrenia ain't nothing compared to the anxiety attacks once they get over the hangover from dipping in the punch bowl all these years!

MyBrothersKeeper's picture

10 year treasury explodes close to YTD highs.  Kiss housing recovery goodbye unless FOMC jawbones away from taper

BlueStreet's picture

Cashin is probably marinating ice cubes but it would be interesting to hear his view. 

SheepDog-One's picture

If the number was -150,000 they still would have pumped stawks like a free whore....'certainly moar QE coming' and all that. At this point, there just is no point.

Bold Eagle's picture

I am just rooting for my boy Stolper. What a brilliant mind!

slaughterer's picture

We took profits on the anti-Stolper trade this morning at 1.2822.  Close enough.  Worried about the schizo effect hitting EUR/USD.  Thanks Tom.

Conax's picture

A quick glance at NetDania is illuminating vis a vis what happened to gold and silver this morning.

All those edgy investors made the same move, at the same moment, a half hour before the Comex even opened.

37,000 contracts in silver dumped on the market, and 41,000 contracts in gold dumped on the fire within 10 minutes, in order to get the lowest possible return on those 'investments'.

yep, seems legit.

thismarketisrigged's picture

i fucking love it. futures are fucking collpasing, europe is getting fucking pounded, yields are exploding.


fuck u wall st and u fucking bankers, go fuck urself.



SheepDog-One's picture

Wall St in suicidal denial....they're just so certain that if they just pump enough then everyone will come clamoring for their stawks and it's just never going to happen.

Quinvarius's picture

Cyprus was the end of the illusion that bankers were not going to randomly decide to pull the plug and rape everyone again.

SheepDog-One's picture

And yet so many still just believe 'it will never happen here, Ben's got my back' such an all-time epic raping is coming.

km4's picture

36 Tough Questions About The U.S. Economy That Everyone Should Be Asking | Zero Hedge

5) Why do 53 percent of all American workers make less than $30,000 a year?

7) Why are 76 percent of all Americans living paycheck to paycheck?

buzzsaw99's picture

99) Why do broke ass americans buy fireworks they can't afford to celebrate their slavery to the fascist banksters?

Goldmans-fucker's picture

Fuck Ben Shalom Bernanke....



Mr. Hudson's picture

Where I live there is a bunch of work. There has recently been a surge in the job market. How long this will last is anybody's guess.

ekm's picture

Anyday now, anyday.

This thing is going down not naturally, but on an order from White House, same as Bear Stearns, Lehman or MF Global.


Hold your breath