Panic Buying Continues

Tyler Durden's picture

Despite NFLX giving back half its after-hours gains, the NASDAQ is surging to new 13-year highs, the S&P cash crosses 1750 (to new all-time highs), and the Dow Transports explodes higher (to yet another record) for the ninth of the last 10 days. All of this as the USD is monkey-hammered and the EUR surges to 2-year highs... Treasury yields are dropping fast (down 5-7bps across the curve). As we noted last week, US equities have caught up entirely to the Fed balance sheet. Gold (back above its 100DMA) and silver are surging and oil is pressing back up towards $100. The reason for all this exuberance: the jobs number was sufficiently horrible it has moved the tapering consensus to March 2014 of beyond...

Gold has broken above its 100DMA...

 

Treasury yields are dropping fast...

 

EURUSD at 2-year highs...

 

US equities just won't stop...

 

and this is why...

Perhaps equities will stall here as they have reached their short-term Fed balance sheet fair value... or not...

 

Charts: Bloomberg

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Headbanger's picture

VIX chart showing either panic call buying or premiums expanding on both long and short sides

http://www.marketwatch.com/investing/Index/VIX

Anybody have put/call data for today handy?

 

Rut-roh.. Naz went reddddd..

http://www.marketwatch.com/investing/index/COMP

Blano's picture

NFLX 345 puts LOD .05  HOD 15.35.  Yikes.

Manthong's picture

At Filene’s basement, once the fat hog snatches the last gown from the scrawny waif, the sale is over.

NoDebt's picture

Buy everything. Doesn't matter what, Mortimer, just BUY EVERYTHING! Buy! Buy! Bye.

SheepDog-One's picture

Buy everything, it all goes up! Well....except for NFLX. Never know which trapdoor they're about to pull.

Handful of Dust's picture

OMG!

I better grab sumting right away...ANYTING...before the price plunges.

Lewshine's picture

Dear howard stern Tourist,

Yeah...ZOOMING!!! When was the last time you saw stocks BE ALLOWED to lose 5%, OR seen precious metals be able to hold ANY gain whatsoever??? They wack gold on tomorrow's open - Got GLD puts?

FL_Conservative's picture

Dick Fisher said, "No problem, the Fed's GOT this."

HedgeAccordingly's picture

The trend is your friend and Faber is still bearish http://hedge.ly/1bRPTG5

Grande Tetons's picture

Who killed all the Black Swans? 

krispkritter's picture

CHOG...Tyler's can trademark that.  Chinese Halving Oxygen Gas...

khakuda's picture

Bubbles?  We see no bubbles.  London real estate, S&P up 10 times earnings growth and counting, etc, etc.  All happening when the economy is punk as noted in quarterly reports from most established large global companies.

SheepDog-One's picture

Of course when it does implode some morning near or further out, everyone will sit aghast exclaiming how none of them saw it coming, no one.

Cdad's picture

And the criminal syndicate known as Wall Street will take us through the lying once again...as if this market is one thing...one certain thing...it is entirely CONTRIVED.  EVERYONE sees it coming.  ALL of them.

 

SheepDog-One's picture

I seriously believe they planned to pull the rug out long ago, but conditions are preventing it, just like they wanted to launch against Syria and were counting down the minutes until salvos of Tomahawks were launched, yet it was immediately shelved. Something is going on behind the curtain we don't know about, yet. Maybe their computer simulation runs are showing they lose control of it this time? I don't know, but it ain't right, very weird shit afoot.

Transformer's picture

"They", TPTB are losing control.  The string of losses is notable.

 

failed false flag, Boston

whistleblower-- the traitor Snowden changes everything

Syria attack a bust

rest of world begins serious de-Americanization

congress/Prez lose all remaining credibility in debt ceiling/Ocare fiasco

 

America/world is now a different place than it was just 6 mos. ago.

 

 

czardas's picture

Your assumptions presume some kind of dark conspiracy  - a secret cabal calling the shots.  Occam's Razor is a better explanation - all events are simply reactions to a host of factors.  Boston was an amateurish job by two wacko brothers, Snowden's data told us nothing we didn't already suspect, there was never going to be a Syrian invasion (the Prez was unable to keep his mouth shut about "crossing the line"), the world is de-Americanizing in headlines only (the dollar IS the global currency of choice) and though politicians have lost credibility the party ideologues on both sides are not affected and the MSM is busy propping up the administration. 

prains's picture

disagree on your point the dollar is a "choice"

czardas's picture

By "choice" I mean the most liquid, the most widely accepted (try using Yuans in Puerto Rico) and most available.  There is little choice involved since most nations set up mechanisms for the dollar decades ago when the pound fell off the stage.  

quasimodo's picture

Your assumptions assume some sort of ensuing idiocy. No rebuttal or amount of debate will change this fact.

Transformer's picture

You guys can read into it whatever you want.  You are seeing my summary as requiring assumptions, I make no assumptions.  No conspiracy theories required.  The stated failures are just that, failures.  Pick one, the bankers, the politicos, the illuminati, the Rockefellers, the Rothschilds, the Democrats, the Republicans, etc. etc. are losing control.  It should be obvious.

LawsofPhysics's picture

Maybe, certainly starting to lose control over sovereign debt/gold manipulation.  If they kill the dollar it won't matter, but if they want to keep the dollar viable at all, then they can no longer buy the debt and beat down commodities.

disabledvet's picture

I don't consider myself part of a criminal syndicate. Just someone who watched too many cartoons as a kid.

Tsar Pointless's picture

I felt S&P 1800 last week by EOM. I feel it even moar after this employment situation report.

SheepDog-One's picture

Now for the daily exponential pumping to infinity and beyond...because the old treading water just won't cut it anymore. Just wait until a +20 S&P day is considered a bummer day.

Chief Falling Knife's picture

Looks like POMO finished early today.

depression's picture

Yellen's Stealth Taper program initiated

derek_vineyard's picture

i rarely post anymore.  this market is more insane than 1999.  nothing to say until this mania ends.

SheepDog-One's picture

Oh yea, for me now this is just watching some theater of the bizarre....far weirder than wandering thru a circus freakshow.

Bay of Pigs's picture

I tought I saw Janet Yellen at the Freakshow in Venice Beach. She's the Bearded Lady right?

Chief Falling Knife's picture

As someone who wasn't involved in the markets in the late 90s during that bubble, I wish guys like you who were involved would comment more on what is going on now. 

How does what's going on now compare to that period, if at all?

Grande Tetons's picture

In 1999...you could see the end to the madness...but it was not easy to time. I sold out my long position in November 1999 and watched the markets take off for the next 4 months. I felt like an idiot for 4 months. 

 

This time is different. It really is. All of these gains are Fed driven and I sold off my long positions last year. I feel stupid! Hopefully, not for long. 

Fundamentals do not matter now....that is the biggest difference. 

 

yogibear's picture

The Fed is the market. It's buying the US debt and stocks (through it's banks).

When the Fed is the market and promotes more government spending and debt it's trapped in a corner with no way out.

It has promoted the government to push ever more people on welfare/government aid out of productive endeavors.  A self-reinforcing cycle of ever more dependency and debt. While destroying wealth  on the lower end. 

Chief Falling Knife's picture

I appreciate the reply(and the replies below).

Considering this is all Fed driven, then in your opinion, what can/will stop this mania besides a taper and a total end of QE?

And if there is no taper, and instead possible increases in QE, is this market essentially 1920-1921 Weimar?

TheGardener's picture

What fundamentals ? Technology companies with a criminal business model making their banking enablers envious ?

The big scams where in place back then and are still
making profits on things like fake operating systems
and monopolies and criminal licensing policies thereof.

It`s all hanging by a thread, the USA brand which clear
of the three letter agency cobwebs is toast.

adr's picture

People had jobs, gas was $1.25 a gallon. You could buy a weeks worth of groceries for $80. A 2000sq ft home in a good Boston suburb were still under $200k.

Windows 98 was awesome. Apple was close to going out of business.

I would say the exuberance in internet stocks was crazier, but now absolutely everything is crazy. There isn't a single sector that isn't overvalued.

prains's picture

the 90's was a sector gone bonkers, this is global, structural, fundamental and fucking scary

disabledvet's picture

happiness and contentment seems still in short supply actually. not recommending going long on that either but hey "don't ever look a gift horse in the mouth." I would avoid the options market entirely. Risk is a piece of cake to quantify...keep stacking (even if we're on the verge of a statistically significant correction of say 40% or more) but keep a nice "income hoard" too. hiring will commence at some point here (job growth is huge in Texas and North Dakota...it's only a matter of time before you get paid just to be there) ...we'll see about the rest of "The Thing" (or is it "The Blob"?....or maybe "It came from Outer Space!...or how about Piggggggggs In Spaaaaaaaaaaaaace!"? meh, you all get the deal now.

buzzsaw99's picture

The main difference is that many of the pre 2000 ipos had fundamental long term value. This time around none of them do. There will be no recovery ever from the next crash. That's why they are so desperate to keep it artificially propped up.

Grande Tetons's picture

There will be no recovery ever from the next crash. That's why they are so desperate to keep it artificially propped up.

 

Best answer to Buzzsaw...IMO. 

yogibear's picture

The more the Fed pushes the craziness the bigger the fall and reset. The PhDs should know the power of exponents and what will happen.  They keep hoping for growth while destroying it through supporting more debt and a bigger, ever expanding,  government. This includes entitlements.

 

prains's picture

when falling off a cliff all you can do is clutch at the air, this is classic failing ponzi machinations, like when you're drowning and the lungs are filling full of water this is the long drawn out convulsive phase

greatbeard's picture

>> There will be no recovery ever from the next crash.

I agree.  Very well said.  Every once in a while I need a good bucket of cold water splashed in my face to steel me to events to come.  That comment worked.  Now I'm going back out to get started planting my fall onions.

disabledvet's picture

define "it" relative to artificiality. Equities? Debt? The State of Illinois? I have a big imagination now when it comes to the word "it."

czardas's picture

Actually it's insane only with respect to our debt and economic recovery.  PE ratios are well within range, sales are not that bad considering the few people actually working, automation has raised productivity higher than ever, efficiency is increasing at each step of the production cycle.  It's not the big industrials that are doing good but a lot of the small and mid-size firms.  Why not go full in, take a profit, buy hard goods (repeat previous steps)? 

firstdivision's picture

Who dafaq is buying UST's?!?  China ain't.