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Buy The Rumor, Buy The News: Dollar Pummeled On "Kick The Can Day", Bonds, Stocks Soar

Tyler Durden's picture




 

While the stock bubble rages, and the E-mini is solidly in green territory, some are wondering why that is the case on a day in which even the hardcore bulls expected a sell the news event. The reason: the dollar has rightfully regained, much to China's delight, its position as the world's whipping currency, on expectations that the Fed will now not taper purchases until Q1 or even Q2 of 2014, coupled with the realization that the debt ceiling fiasco is set to repeat in another three short months. As a result, the prime broker carry traders are having a field day, shorting their USD-denominated excess deposits and ploughing proceeds into risk assets.

But not only: as the chart of the 10 Year yield bond shows, there has been a buying spree in the 10 Year since yesterday's deal and moments ago we dipped below 2.6% for the first time in two weeks. So do your patriotic duty: kill the dollar and buy paper assets: after all the country that issues the "reserve" currency has not defaulted!

And whatever you do: don't sell. Keith Alexander may be leaving soon but he is still in charge, and is carefully monitoring all those who dare to hit the sell button. For all of them, the NSA has three simple letters: IRS.

DXY

10 Year

 

And yes, the S&P has soared some 12 points since the market open, and is now just why of all fresh all time highs.

 

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Thu, 10/17/2013 - 11:16 | 4065047 kensdad
kensdad's picture

Today's Outlier:  gold

Thu, 10/17/2013 - 11:30 | 4065101 max2205
max2205's picture

Pretty scathing article TD....NFLX near ATH....why worry....IBM near 3 yr lows.....sell old tech and buy new tech?

Thu, 10/17/2013 - 12:10 | 4065104 Clint Liquor
Clint Liquor's picture

Does anyone know what the new 'debt limit' is? I know it doesn't matter, just curious.

 

 

 

Thu, 10/17/2013 - 13:21 | 4065654 Dr. Destructo
Dr. Destructo's picture

The USD is being measured by the metric ton now rather than the denomination itself.

 

The debt ceiling was raised by 240,000 metric tons.

Thu, 10/17/2013 - 15:37 | 4066302 Clint Liquor
Clint Liquor's picture

Thanks, Doc. It is interesting that for all the hype, noone seems to know the 'limit' number. I guess we should just be happy they raised it, no matter what it is.

Thu, 10/17/2013 - 16:56 | 4066608 Dr. Destructo
Dr. Destructo's picture

Absolutely.

All that matters is that when we do jump off it'll be at a higher altitude. The highest I've ever jumped was 12 feet, and that was in basic training, but this is the equivalent of jumping off of a very tall bridge and belly flopping into the water. We know it'll break a few bones, but we don't know if the surface tension will instantaneously kill us or if we'll be conscious as we slowly succumb to the drink. I, for one, am interested in finding out!

Personally my money is on slow and painful. Anyone willing to throw in their fed notes and/or pirate treasure into the pot?

Thu, 10/17/2013 - 11:20 | 4065060 Cognitive Dissonance
Cognitive Dissonance's picture

Sometimes it takes a day or two for the rats to realize they're on a sinking ship. I suspect Monday's market will be far more instructive than the rest of this week.

Thu, 10/17/2013 - 11:18 | 4065061 Dagny Taggart
Dagny Taggart's picture

New John Williams (Shadow Stats) interview yesterday

"That’s going to trigger a massive decline in the dollar in the not-too-distant future, and that, in turn, will give us the early stages of hyperinflation in this next year.”

http://usawatchdog.com/early-stages-of-hyperinflation-next-year-john-wil...

Thu, 10/17/2013 - 11:42 | 4065158 fonzannoon
fonzannoon's picture

I like Williams but anytime someone ties their argument to a U.S debt downgrade I lose interest. It's not going to happen. S&P will upgrade us before any "major" agency downgrades us. He must be another guy who misses the pure fascist aspect to this charade.

Thu, 10/17/2013 - 11:49 | 4065190 eclectic syncretist
eclectic syncretist's picture

Nevertheless, as the dollar falls according to the Fed's plan, imported goods become increasingly more expensive. 

Thu, 10/17/2013 - 11:19 | 4065066 walküre
walküre's picture

They gave the people their last chance at a peaceful Thanksgiving and Christmas. No guarantees that any of us will still be around in 12 months after the shit hit the fan early in 2014. Might as well go out and spend, spend, spend and then walk away from it all. FEMA is warming up the trucks. It's always brighest right before the implosion.

Thu, 10/17/2013 - 11:20 | 4065068 thismarketisrigged
thismarketisrigged's picture

i have no words, i am numbed to this fucking bullshit

Thu, 10/17/2013 - 11:27 | 4065093 1000 splendid suns
1000 splendid suns's picture

Just ride the shitshow market up to the moon. Take out winnings from time to time to buy hard assets, commodities, etc. Don't worry too much, Fukuppy will save us all.

Thu, 10/17/2013 - 11:32 | 4065113 max2205
max2205's picture

Think it's nerve racking to trade this market on the upside...just wait till it turns and imagine the Fed induced swings trying to regain stall speed again

Thu, 10/17/2013 - 11:37 | 4065127 walküre
walküre's picture

The next 3 months are sideways as the Fed's illusion of a market is fighting against heavy outflows from equities into bullion.

If you're a really wealthy dude and you paid attention to the spectacle that unfolded last couple weeks, you got skin in the game and you are not likely to sit and wait until February 2014.

First question. Why that date?

Second question. What do they have up their sleeves next?

Third question. Where is my exit and what are my options?

Thu, 10/17/2013 - 11:22 | 4065077 U4 eee aaa
U4 eee aaa's picture

No comment from ZH regarding Chase limiting international wire transfers?

http://www.infowars.com/chase-bank-limits-cash-withdrawals-bans-internat...

Thu, 10/17/2013 - 11:30 | 4065087 Dr. Engali
Thu, 10/17/2013 - 11:51 | 4065202 eclectic syncretist
eclectic syncretist's picture

What about the stenographer that went bonkers on the House floor as the deal was done last night?

http://www.usatoday.com/story/news/politics/2013/10/16/house-stenographe...

Thu, 10/17/2013 - 11:58 | 4065235 joego1
joego1's picture

They drove the poor woman nuts.

Thu, 10/17/2013 - 12:36 | 4065394 TPTB_r_TBTF
TPTB_r_TBTF's picture

her Religion drove her nuts.

Thu, 10/17/2013 - 12:03 | 4065251 F-Tipp
F-Tipp's picture

Ah yes one slipped through the cracks. Our Masonic conspiracy over this debt ceiling would have been complete, if only we didn't discount the grounded-in-complete-fact ramblings of a house stenographer.

Reading some facebook comments about this last night was laughable. TPTB have done a great job at framing masons as satanic NWO leaders.

Thu, 10/17/2013 - 13:34 | 4065716 U4 eee aaa
U4 eee aaa's picture

Thanks,

I was looking through the posts and could not find it. It was surprising to me they didn't post it but, of course, the hedge was on it. Good to know!

Thu, 10/17/2013 - 11:24 | 4065083 Tinky
Tinky's picture

Not that one would expect the MSM to be curious about the story, but given the serious effort to smackdown gold the other day, this rebound appears to be particularly swift and sharp.

Sorta like the herion addict who gets less and less high from the same dose, it seems that the paper gold market shennanigans are losing their potency.

Thu, 10/17/2013 - 11:30 | 4065099 Waterfallsparkles
Waterfallsparkles's picture

I am suprised that they did not crash the Market to get everyone to sell and incur Capital Gains.  Which would increase the revenues to the Government.

Thu, 10/17/2013 - 11:30 | 4065107 Everybodys All ...
Everybodys All American's picture

King dollar !!!!!
Tom O'Brien and Larry Kudlow you assholes wake up.

Thu, 10/17/2013 - 11:32 | 4065111 walküre
walküre's picture

King Yuan. Get used to it and quick.

Thu, 10/17/2013 - 11:31 | 4065108 NDXTrader
NDXTrader's picture

I'm thinking we go 1999-2000 Nasdaq style hyperbolic into the end of the year

Thu, 10/17/2013 - 11:37 | 4065129 max2205
max2205's picture

Today would be a good guess

Thu, 10/17/2013 - 11:39 | 4065145 khakuda
khakuda's picture

We already are running at the 30% annualized rates of the late 90s thanks to the Fed.  It will continue into next year as they continue to pile on ZIRP and QE.  Bubble is the goal.

Thu, 10/17/2013 - 11:34 | 4065118 thismarketisrigged
thismarketisrigged's picture

ibm down 6 percent and dow down 60 pts. makes lots of sense.

 

at least fuckbook is up, i think fb, nasdaq and s&p must be green daily. its a rule

Thu, 10/17/2013 - 11:39 | 4065144 walküre
walküre's picture

IBM is true big blue chip and bellweather

Thu, 10/17/2013 - 11:37 | 4065131 CrashisOptimistic
CrashisOptimistic's picture

1) Bonds do well when economies are going to decline.

2) The guaranteed Fed bid returns.  The mindset can be February, before taper was a word in the lexicon.

3) Stocks are HFT and buyback driven.  You can play in that game if you want.  There's no fundamental underpinning.  Oddly, bonds have that fundamental underpinning in that economies are indeed going to fall and the Fed is indeed a guaranteed bid.  It's all bullshit, but then so is money in general. 

Thu, 10/17/2013 - 11:37 | 4065133 Yen Cross
Yen Cross's picture

  I'm looking at the DXY, and it was last at this level in January. What's even more interesting is that usd/jpy was barely on the .9300 handle during that time. So we a have an 500 pip disparity. (ABEnomics) 

 The markets are so manipulated that the dollar can't get off the mat and the ES just went green. Correlations are completely broken, and riskier currencies are seeing the weak dollar as positive, instead of weakening against it.

Thu, 10/17/2013 - 11:44 | 4065146 firstdivision
firstdivision's picture

I am Jack's lack of surprise.  Which is why Jill's nipples told you all to sell protection (t-bill CDS) and buy risk (Govt Bonds are risk now FYI) the other day.

Though with us approaching the SPX ATH, I'd get ready for a dip, especially since copper doesn't seem as jubilant as all other assets.

Thu, 10/17/2013 - 11:41 | 4065151 dumpster
dumpster's picture

still pushing the taper talk in 2014  

over the dead body of a lizard

Thu, 10/17/2013 - 11:42 | 4065159 abgary1
abgary1's picture

The push to devalue the dollar is finally working.

If you think it is bad for average Americans now, wait until inflation kicks in.

Thu, 10/17/2013 - 11:53 | 4065214 eclectic syncretist
eclectic syncretist's picture

My GSS is loving every minute of it so far!

Thu, 10/17/2013 - 12:05 | 4065261 ilikepies
ilikepies's picture

Pie and gold is good. + 2.3% on triplle win in stocks and buying cheep g metal in bulk at the right time. Hoo Rah!

 

Thu, 10/17/2013 - 12:09 | 4065283 DosZap
DosZap's picture

Question is, what besides metals do you invest in before the implosion?.Property is great(but you won't be able to keep it).Other Fiat(Yuan?),stocks of uber high qual companies(I think not!).After the basics supplies and home goods, where do you go with it, if you cannot be one of the lucky ones to pull up stakes due to family that refuses to do so?.

 

I know, be a TARGET!.

Thu, 10/17/2013 - 13:24 | 4065670 Dr. Destructo
Dr. Destructo's picture

Invest in crops and livestock.

And women.

Post-apocalyptic pimping will be the industry of the future.

Thu, 10/17/2013 - 13:51 | 4065707 kevinearick
kevinearick's picture

IBM...politics...temporary...buy...crack me up;

Education

If you want to escape the gravity of war, now that the empire is contracting and the ‘elites’ are jockeying, you have to redefine education. Education is not a function of consensus, other than the consensus is always wrong, because it is hopelessly lost in the past.

The Nobel process is obviously corrupt. That’s what the Nobel outcome data tells you. Spying is a function of peer pressure groupthink, which produces scale gravity, but it can never produce quality. America is being rewarded for collective stupidity, supplying artificial demand for artificial supply. That’s History.

Education may only occur in a home built for the purpose, independent of peer pressure gravity. Of course legacy capital is fixated on mass; it’s slow. And like all forms of gravity, capital can only compute itself, compounding error, debt, so it must define debt as an asset. That’s the bankruptcy game.

If all the universe did was compute itself, you wouldn’t exist. Space travel is not about gravity, which is a simple derivative. The objective is not to hop from planet to planet seeking resources to exploit. Nor is the objective to replicate humanity, which is a derivative. Think ahead.

Learn for your self. Experiment. Navigate.

Billions of dollars into NSA and you can break into its data bank for a few thousand dollars and about 20 minutes of your time, if you time it right. If you know what you are doing, you can even have it send you reports periodically, and accelerate black time, implicitly rewiring its generation. So what? You have much better things to do, with your life.

The empire can only know what you are going to do if you follow its data, the herd from the past, to confirm its self-biased equations on one side of a vortex which itself is the equivalent of a plankter in the ocean. That’s why they call it herd behavior. Markets go up, down and around again, fattening up the herd for slaughter and repeating the process.

You are the path to the unknown.

There is nothing wrong with social schooling. Calling it education, however, is damn stupid, propaganda. Don’t train government to control you with conformity and then rebel expecting a different outcome. If you want continuation, buy its crap after it gets out of your way, not before.

 

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