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Low Volume Meltup Leaves Russell BTFATHers Euphoric
A lack of news on deal progress in thelast 24-36 hours was not enough to stall an epic ramp in stocks to take 'most' indices back into the green on the week. The Russell is within a hair of all-time highs again (bouncing 4.6% off Wednesday's lows) but the Nasdaq closed the week -0.27% - breaking a 5-week winning streak. All equity indices are green post-shutdown but we note in sectors, the homebuilders are still -1.6% (and Discretionary with a small gain). Treasures ended the week modestly higher in yield (with Bills ignoring equities and notably higher in yield). Gold was slammed -3%, Oil and Silver -2% and Copper -1% (as the USD gained a mere 0.3% - driven by a 1% dump in JPY). VIX underperformed equity exuberance on the day but closed lower. The close saw a mini-melt-up in stocks taking us back to the highs.
Equities disconnected fro broad risk-assets from the open today...
Just as we tweeted...
Today the 3:30 pm ramp is on time.Yesterday's it was confused by 30 minutes
— zerohedge (@zerohedge) October 11, 2013
The 330 ramp took us to the highs...
But only one thing is driving equities... FX carry back en masse...
The Russell 2000 closed within a fraction of its all-time high on falling volumes - why not?
It was quite a week in equity index land..
Crucially the Dow made it all the way back from its 200DMA to close above its 50DMA - exactly the same as it did on Jan 2nd... (th elast time the Congress folded)...
Much was made of the last 2 days being a short squeeze - while shorts did underperform, there is no clear evidence of a 'squeeze' per se and volume has been declining... in fact since the shutdown, "most shorted" names have fallen more than the market has risen (as the MoMo names lose steam)...
Equity indices are all gree post-shutdown thanks to today's bounce...
The performance across sectors since the shutdown began is relatively diverse with Homebuilders and Discretionary underperforming...
Equities ignored the fact that Bonds and Bills did not play along with the exuberance...
Protection - which has been thrown away in the last 2 days, was bid after Europe closed today as VIX suggested more than a few were looking to protect these gains across the weekend...
Gold was monkey-hammered...
Some context for the moves... seems like great rotation from gold to stocks... Bonds and Crude (growth) unch... The blue line is the level when the shutdown started...
Charts: Bloomberg
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Jesus Christ, these pumpers are relentless. What's that angle of ascent, 80 fucking degrees?
Where's Wilbur Mills when we need him?
I am so sick of this shit
Well yesterday, I posted that I was putting in a price order to sell ES, the S&P500 contract, short at 1700 even, basis Dec.; just because you never know when the market will give you something unless you ask for it; and lo and behold; today the high price for the day in the Dec. contractt was 1700/ even ! So now I'm short four cars from 1700; and we'll see what happens next. I sold my Silver contract bought at 21$even; for a small profit at 21.345; because it's not performing. I'm as sentimental as anyone about Silver and I already own a lot of it; but this is a trade, and if they don't make me money; they go away.
Cheer up; markets go down faster than they go up.
Meanwhile my Bitcoin is trading at $126.
U jelly yet, gold bugs? Oh, that's right. "The grid" might go down. LOL
Technology is only good when we can power it sustainably via renewable sources.
Till then the most important things are in order and reverse order: oil, gold, food, water.
Of course. Gold has done such a fantastic job reigning in government largesse over the years. LOL
Paper or physical? Wait for it centurian! Wait... Wait...
The last time I bought physical it was under $300 an ounce. Wake me when I can take delivery for that price again.
I'll bet all you imaginary "money" we will never see that again unless we have WWIII and take the population back under a billion.
you appear to have a chemical imbalance that is monetary in nature.
My friend the rabbit hole runs deeper than you can imagine. A large part of 'saving' the system is simply to keep everyone alive, the worlds population is not educated enough to survive a finacial apocalypse yet, these things take time. Also gold to a certain extent is a relic. We can't go back to where we came from...only forward, but as i mentioned earlier technology is not the way until we can power it sustainably via renewable sources...maybe a semi dark age up ahead?
Ahead? Have you ever been to Detroit?
I remember when the were saying Spain was Greece and Greece was Ireland who in turn was Italy...but maybe Detroit is the 'developed world'.
When Central Banks start demanding their bitcoin holdings back - I'll take a looksie. Until then.. I'll stick with China, India, Germany, Russia, Brazil, etc.. in holding that barbarous relic.
...
The Fed must have printed a lot of cash in the last 5 minutes. This is what freedom looks like. Freedom for guys like Warren Buffet
Fuck you Bernanke. And you too Mr. Yellen.
ZIRP + POMO + 50X's leverage = Madoff/Dimon/Corzine returns until it doesnt
Now that Yellen is in control, expect monetary stimulus to go parabolic. We ain't seen nothing yet. There is and has been massive inflation in the prices of assets relative to their underlying cash flows. This will continue accelerate under Yellen. She has the keys to the printing press and that is her goal.
LOLWUT We Bankrupt?
Stay Calm and BTF ATH MoMo Ignition Growth New-Paradigm Social Media Cult Leaders
Jay Carney starts the 4 hour delayed daily press conference 2 minutes after the stock market closes.
Basically, NO DEAL!
Monster storm headed for India:
http://www.accuweather.com/en/hurricane/indian
As of midday Friday, EDT, Super Cyclonic Storm Phailin (02B) is an extremely dangerous storm, now with sustained winds of 140 knots (160 mph). Wind gusts are approaching 200 mph. Further strengthening is still possible today as the storm remains over very warm water with little shear to hamper its growth. Phailin is the equivalent of a Category 5 hurricane on the Saffir-Simpson Scale.
On Deck: Another 5 billion or so in POMO on Tuesday. Sure, debt limit breach on Thursday, but that's two whole days removed. Forward earnings pricing mechanism and all that jazz.
All That Jazz,
Echo and the Bunnymen
http://www.youtube.com/watch?v=BLwnyUkTw2I
enjoy
So if I put $10k in Tesla last year, I'd have about $50k right now. So, while that would be nice, its not exactly something to cheer about in the grand scheme of American economic destiny.
The $40k profit would just about cover the loss I've taken on my house. Well not really since I'd have to pay taxes on the $50k, pay the closing costs, realtor, etc. I'd still be upside down and have to come up with cash. Then if I lost my job, and didn't even sell the house, the $30k profit I made wouldn't really last very long. I'd then have to sell the house anyway and get fucked over.
SO while I could post on CNBC about how much money I made on my TSLA trade, reality is I'd be just as fucked as I was if I never invested the money in the first place.
The only way I could have really raked in the dough would be if I could use 100:1 leverage like the big boys. God, then I'd be able to sell the shares, pay back the leveraged loan and have almost $3.5 million to show for it. Now that would be an awesome use of ten grand.
And they wonder why normal people don't participate in this con game.
del
Sweet timestamp.