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Bernanke-Based Buying Bonanza Buoys Bonds, Bullion, And Boeing-Less Stocks

Tyler Durden's picture




 

Even with duelling Fed members today (Bullard vs Plosser) the message from 'the man' led markets on a one-way street all week. Even though Boeing impacted the Dow (and Trannies):

  • S&P managed its best week in 6 months (+2.6%);
  • Gold's best week in almost 8 months (+5.1% or $62);
  • Treasuries' best week in 13 months (10Y -14.5bps);
  • High Yield bonds best week in 20 months (+3%); and the
  • USD's equal worst week in 21 months (-1.8%).

VIX remains modestly bid and IG credit spreads are underperforming. Market breadth today was weak as S&P volume was low and the intraday range the lowest in 5 months.

 

Before we discuss the exuberance, let's look at what dragged down the Dow (and implicitly the Trannies) today. Boeing hit the Dow for a loss of 40 points - but that didnt matter as the algos had only one mission - a green Dow!!!

 

Boeing saw its heaviest volume day ever, falling over 4.75% on the day (settling at VWAP as institutional orders hit)

 

Of course it wouldn't be US equity markets withouit the late-day - seemingly Bullard-driven volume-less - vertical ramp job in stocks... a pure algo-driven stop-hunt just for shits and giggles... AND S&P futures collapse back to VWAP after hours - total fucking lunacy in the indices...

 

 

The S&P's best week since the first week of the year...

 

Gold's best week in almost 8 months...

 

Treasuries' best week in 13 months (after exhibiting some JGB-like Fed-has-lost-control volatility over the past few weeks... 10Y -14.5bps, 7Y -21bps (but the whole complex sold off 8bps or so from the US day-session open)

 

which is intriguing given the extremes in sentiment... (h/t @Not_Jim_Cramer) with the bullish view having troughed in August 2012.

 

High yield bonds best week in 20 months...

 

and the USD had its equal worst week in 21 months...

 

Homebuilders were best on the week (+5.7% - best week in 3 months) and while all sectors were green Energy, Tech, and Financials were the underperformers (still up around 2.3%)

 

VIX remains bid as it seems not everyone is buying the idea that this all-time high close break is the sign of another leg higher...

 

Charts: Bloomberg

Bonus Chart: This is the best 13 day run in the S&P since October 2011; that time the S&P 500 lost 140 points in 2 weeks following...


 

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Fri, 07/12/2013 - 16:18 | 3746456 Charles Nelson ...
Charles Nelson Reilly's picture

Gold Bitchez!

Fri, 07/12/2013 - 16:21 | 3746466 Say What Again
Say What Again's picture

All the talking heads say that the bernanke is looking at "jobless rates" and shit, but that is not correct.

The Bernanke is looking at the "short interest," and he will not stop until it goes to zero (or zero hedge).

Fri, 07/12/2013 - 16:24 | 3746482 flacon
flacon's picture

Russell drops into the close. $RUT / IWM. Now... let's have a huge sell-off on Monday...

Fri, 07/12/2013 - 16:32 | 3746515 Say What Again
Say What Again's picture

Tyler,

With all the "B" words in that title, I'm surprised you didn't find a way to encorporate one of the following;

Breasts, Boobs, Bootie, Bush, Booze, Bada-Bing, Banzai, etc

Fri, 07/12/2013 - 16:44 | 3746560 McMolotov
McMolotov's picture

Bernanke's bewitching beard balloons banker boners. Barf.

Fri, 07/12/2013 - 16:51 | 3746580 francis_sawyer
francis_sawyer's picture

Say 'TWAT'again?!?...

Fri, 07/12/2013 - 17:29 | 3746677 Chupacabra-322
Chupacabra-322's picture

Off topic, my appologies for spaming.  Lets light these District of Criminals phone lines up and stop contributing to your own debt bondage and enslavement to the Criminal TBTFBanksters.  WithDraw you money OUT of them!

Credit unions promote the economic well-being of their members, especially those of modest means, through a system that is member-owned, volunteer-directed and not-for-profit.  As a credit union member, I know firsthand that my credit union offers financial products that provide better returns on savings, reduced rates on loans and lower or no fees on services.

Unfortunately, the big banks and some in Congress want to raise taxes and impose new fees on millions of credit union members, who together represent 40% of all Americans. And, they want to do this despite the fact that credit unions are not-for-profit.

Please don’t raise taxes on 96 million credit union members. Don’t tax my credit union!

http://www.donttaxmycreditunion.org/

Fri, 07/12/2013 - 21:25 | 3747191 Say What Again
Say What Again's picture

OK -- "Twat!" 

Now what?

Fri, 07/12/2013 - 17:08 | 3746628 EmmittFitzhume
EmmittFitzhume's picture

That's what I believe too!  I think you're right. All the money is for them and they'll be damned if logic is going to prevail

Fri, 07/12/2013 - 16:19 | 3746460 markettime
markettime's picture

Seems to me everyone is just staying put, not selling, not buying yet they are slowly accumulating puts to hedge a drop. (Just in case)

Fri, 07/12/2013 - 16:21 | 3746464 Honey Badger
Honey Badger's picture

Total fucking lunacy is right.

Fri, 07/12/2013 - 16:31 | 3746513 max2205
max2205's picture

The US is running on fumes....your fumming I am fumming

Fri, 07/12/2013 - 17:41 | 3746699 Its Only Rock N Roll
Its Only Rock N Roll's picture

Honey Badger don't give a shit....

http://www.youtube.com/watch?v=4r7wHMg5Yjg

Fri, 07/12/2013 - 16:22 | 3746469 thismarketisrigged
thismarketisrigged's picture

ive got to start off by saying this. 

 

we all bash cnbc on here, and rightfully so. they are as far distanced from reality as possible, there ratings are at record lows, thanks to tyler for showing us all that with his great charts, etc.

 

However, i can not stay away during the 3 pm hour. its like watching a comedy show. we all love to have a good laugh im sure, and there is nothing funnier than maria every day asking people if they buy the dips, stephanie link, that stupid bitch always wanting to buy stocks no matter how fucking overvalued they r, etc. its great comedy, and i love to laugh.

 

also, i laugh when they say ''investors'' are pouring money into the stock market. investors? algos and hft computers are the only things buying, and of course the fed. 

 

its amazing how john hilsenwrath can fucking take a shit and the market will move higher on that ( not today, in general) but when a big fed member like plosser talks about bubbles, ending qe this year, market does not  blink, and if not for boeing would have prob been up a good 50 plus pts.

 

also, who the fuck would buy into this market over the weekend, when china is releasing gdp numbers which are supposed to be horrendous? i guess as we all know data means nothing so i guess that is the answer

 

 

 

 

Fri, 07/12/2013 - 16:29 | 3746500 McMolotov
McMolotov's picture

It's wrong to watch CNBC for laughs for the same reason that it's wrong to watch the Special Olympics for laughs.

Fri, 07/12/2013 - 18:12 | 3746657 Colonel Klink
Colonel Klink's picture

They're both mentally handicapped?!?!  Difference is CNBS are the only ones faking it.  The SO should be commended for their honest efforts.

Fri, 07/12/2013 - 16:22 | 3746471 Lady Heather...UNCLE
Lady Heather...UNCLE's picture

Wish I had BTFD at 1560...oh well, on any dip back to 1666, I am 'all in' <sarc>

Fri, 07/12/2013 - 16:26 | 3746490 random shots
random shots's picture

Went long in December 2011 when it was at 1260 and held all the way. 

Fri, 07/12/2013 - 16:22 | 3746473 McMolotov
McMolotov's picture

Buncha bullshit, bitchez.

Fri, 07/12/2013 - 16:50 | 3746572 francis_sawyer
francis_sawyer's picture

Biddy Bodder [Shalom] Bernanke bought bum butter... Blah said she, bum butter's bitter, but it's blended in my batter... Biddy Botter PRINTED better butter, better than the bitter butter... Now her bitter batters better...

~~~

In news from the Middle East...

The sixth sick shiek's sixth sheep's sick...

Fri, 07/12/2013 - 16:23 | 3746476 q99x2
q99x2's picture

It's good to have a little getaway money for the weekend. Job well done.

Fri, 07/12/2013 - 16:23 | 3746477 FieldingMellish
FieldingMellish's picture

Gold's best week in 18 months not 8 months?

Fri, 07/12/2013 - 17:04 | 3746617 eclectic syncretist
eclectic syncretist's picture

COMEX gold trading is at a standstill so far this month, and JPM still has a gold inventory deficit problem.

Ladies and Gentlemen: we have a three-fold problem:

i) the total dealer inventory of gold remains at  a very dangerously low  level of only 30.66 tonnes and none of the 9.5 tonnes delivery notices from May and the major part of the 30.70 tonnes from June  issued by JPM  on its dealer side  has  yet to leave.

ii)  a) JPMorgan's customer inventory remains at an extremely low 136,380.609 oz.
If you are a customer of JPMorgan and have your gold in its vault, I think it is best to remove it before we have another fiasco like MFGlobal.

ii  b)  JPMorgan's dealer account rests tonight at 401,877.493 oz.  However all of this gold has been spoken for plus an additional 98,122.51 oz of deficient gold.

iii) the 3 major bullion banks have collectively only 26.03 tonnes of gold left in their dealer account.

http://harveyorgan.blogspot.com/

Fri, 07/12/2013 - 16:27 | 3746493 Cdad
Cdad's picture

Top

Fri, 07/12/2013 - 16:32 | 3746514 unwashedmass
unwashedmass's picture

this is all going to end so so so badly. 

Fri, 07/12/2013 - 16:32 | 3746517 BlueStreet
BlueStreet's picture

R2K dumped into the close could have something to do with the futures dumping after the close. 

Fri, 07/12/2013 - 16:32 | 3746518 disabledvet
disabledvet's picture

big boobs bartiromo drops the f bomb. tells ZH'ers bwahahahahaha. ;0

Fri, 07/12/2013 - 16:32 | 3746519 pragmatic hobo
pragmatic hobo's picture

bernanke is either an evil or an imbecile (but not both). He should know by now continuing with his free money policy will blow a bubble that is far more dangerous than the one he blew 5 years ago. Either he is trying to fan this bubble to maximize return on those who invested in obama election or he is truly a clue-less imbecile.

Fri, 07/12/2013 - 16:34 | 3746523 Colonel Klink
Colonel Klink's picture

Ben Bernanke buying bullshit bonds bouying bankrupt banks barely.

Fri, 07/12/2013 - 16:34 | 3746529 nakki
nakki's picture

Where's the amzn chart man (short and getting beaten)??? I'm just hoping its March of of 2000 and she's about to blow again. I've been trading for many a year and really get dumber every day. Some one please talk me down!

 

Fri, 07/12/2013 - 16:50 | 3746573 BlueStreet
BlueStreet's picture

Feel your pain, not short amzn but s&p's and it's been torture.  Only thing that will make either of us feel better is if the 1687 s&p high can somehow hold and we can trade down to the 200 day.  The article linked below about amzn makes the argument that Bezos is being viewed as the new Jobs and has the trust of the big money.  If the market rolls over it will too so hang in there and see what happens next week, it's a make or break week IMO.

 

http://www.thestreet.com/story/11976512/1/why-jeff-bezos-will-always-be-a-winner-and-tim-cook-will-always-be-a-loser.html?puc=yahoo&cm_ven=YAHOO

Fri, 07/12/2013 - 18:01 | 3746747 nakki
nakki's picture

Thanks for the link, read the info piece earlier. Will probably puke at the top so I'll give you a heads up when I do. While I think the company is rather good at what they do, ship stuff,  they still have a hard time make $$$. I don't think they ever will, and with their push to build more warehouses, distribution centers, I think this will catch up with them soon. Falling out of favor with "investors" is another thing all together. We shall see after earnings or should I say after they post a small loss but bezos comes out and say blah blah blah future. Good luck with the short S&P thing, I too have puts on.

Fri, 07/12/2013 - 16:47 | 3746569 I am Jobe
I am Jobe's picture

Need more pretend that USSA is fine

White Trash Souly Beauty Shoutout

http://www.youtube.com/watch?v=NprbpA7LkaE

 

Fri, 07/12/2013 - 16:51 | 3746577 ...out of space
...out of space's picture

i still think that crash in the markets will start after merkel is re-elected. red october. and in januar ben will step down so it will be like when bush left the white house. and according to jim richards chinese will have 4t of gold by the end of the year.

so no taper next week, not time to go short yet

 

Fri, 07/12/2013 - 17:05 | 3746622 eaglerock
eaglerock's picture

I don't think even bullish ben can save us from the impending catastrophe that is Sharknado

http://www.bing.com/videos/search?q=sharknado+trailer&mid=8FD1B85640E9596FB2DF8FD1B85640E9596FB2DF&view=detail&FORM=VIRE7

Sat, 07/13/2013 - 19:23 | 3749363 glennvtx
glennvtx's picture

Last thing i saw boeing impact was a runway at San Francisco International.

Sun, 07/14/2013 - 18:55 | 3752613 Catflappo
Catflappo's picture
Bernanke-Based Buying Bonanza Buoys Bonds, Bullion, But Boeing Bellyflops
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