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Dow Hits New All-Time High On Lowest Non-Holiday Volume Day Of The Year

Tyler Durden's picture




 

SSDD. Collapsing confidence, check. Housing Recovery meme toast, check. Volume at 2013 lows, check. BTFATH and send Trannies up for 13th of last 15 days (+10.4%), Dow near all-time highs again (thank you IBM buybacks), and S&P to new all-time highs... but don't tell Treasuries (which stand +/-1bps on the week). VIX wasn't drinking the kool-aid but the NASDARK session enabled futures to drag us back to higher before limping lower into the closer. The USD oscilatted around Nowotny comments and POMO ending the day up a rather notable 0.5% from Friday's close and that pressured commodities in general lower (gold hovering at $1345). The last 2 minutes saw stocks scream higher on their own as the world was terrified it would miss out on something (but no other market moved) and all the major indices managed new highs.

 

US Equity markets have only one master... JPY carry levered muppetry...

 

But bonds weren't buying the stock exuberance (or was the post-PMO rally in both bonds and stocks just more of the same Un-Taper hope?)....

 

And credit is absolutely ignoring stocks' exuberance...

 

But the straight line rise to infinity and beyond continues as the entire market finds Birinyi's ruler...

 

Homebuilders rejoin Discretionary stocks at the top of the heap post Debt-ceiling lows... (up 8.5%!)...

 

Volume continues to slump as stock prices rise...

 

VIX remains 'relatively' bid as we head into tomorrow's FOMC decision...

 

Intriguingly, shorts have actually not done so badly in the last week or so (but today saw a late day squeeze)...

 

When the Nasdaq cash indices cat is away, the futures mice will play...

 

Charts: Bloomberg

 

Bonus Chart: As an FYI - the only valuation method that counts indicates that stocks have pushed to their "most expensive" in 10 weeks...

 

Bonus Bonus Chart: Let The Kool Aid Flow... (h/t @Not_Jim_Cramer)

 

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Tue, 10/29/2013 - 16:16 | 4102654 superflex
superflex's picture

Got Kool Aid?

Tue, 10/29/2013 - 16:21 | 4102671 negative rates
negative rates's picture

I think I sprained my neck on that tranny shift, damn lead foot of mine.

Tue, 10/29/2013 - 16:23 | 4102685 Manthong
Manthong's picture

I feel so freaking wealthy I could just throw up.

Tue, 10/29/2013 - 16:37 | 4102732 Battleaxe
Battleaxe's picture

Instead of QE why doesn't the Fed just take control of the market scoreboards?

Tue, 10/29/2013 - 17:34 | 4102859 kaiserhoff
kaiserhoff's picture

Some aspects of volume are pretty constant.  Think pension funds, mutual funds repositioning, insurance companies..., which makes the fall off in volume even more impressive.  Traders must be bailing out big time, or maybe foreign investors?

Any thoughts?

Tue, 10/29/2013 - 17:45 | 4102881 NDXTrader
NDXTrader's picture

I said it a week or so ago, but there just don't seem to be any sellers. Again, it's hard to tell that for sure, but bids just seem to be chasing anything that is even real on the ask side and the ask just keeps getting dragged higher

Tue, 10/29/2013 - 18:01 | 4102907 kaiserhoff
kaiserhoff's picture

Makes sense.  If you sell, you have to find something to do with the cash.  At least running stops for fun and profit never goes out of season.

I remember when that shit was illegal;)

Tue, 10/29/2013 - 16:38 | 4102733 Say What Again
Say What Again's picture

Did the DOW really hit an all-time high today?

Tue, 10/29/2013 - 16:16 | 4102655 fooshorter
fooshorter's picture

How is this NOT banging the close?

Tue, 10/29/2013 - 16:19 | 4102665 gjp
gjp's picture

When crime clearly pays, why not do it every day?

Tue, 10/29/2013 - 16:22 | 4102677 Say What Again
Say What Again's picture

Hmmm

Options on HGX halted and the Home-Builders scream 8%.  I'm shocked!

Tue, 10/29/2013 - 16:16 | 4102657 ghostfaceinvestah
ghostfaceinvestah's picture

I just noticed that Yelp reported 61M in revenue for the quarter (and of course lost money).  They have a market cap of over $4B.  That is over 10X revenue!

Wow, this bubble is going to pop violently.

Tue, 10/29/2013 - 16:22 | 4102678 gjp
gjp's picture

LNKD is nearly 20x 2013 revenue.  On a GAAP basis they lose money too.  Their revenues are growing fast, but their shares outstanding are growing pretty fast too.  The whole thing is a farce.  But these are all just pokemon cards to trade in a fed-funded trading game, a popularity contest that has little to do with fundamentals and more to do with the daily activities of a narcissistic, unproductive, ADD investor-consumer class.

Tue, 10/29/2013 - 16:47 | 4102759 ghostfaceinvestah
ghostfaceinvestah's picture

Wow, $28B+ market cap there.

The thing is, someone, somewhere is counting that their share of that $28B as an asset, and is either borrowing against it, or making future spending plans based on that value, or a pension fund manager is basing future benefit payouts on that value...

This is why asset bubbles are so much more dangerous to the economy than mild inflation or deflation.  Our economy is heavily levered to asset values.  Once they return to fundamental value, and they will, no matter what the Fed does, the fallout is ugly.

Tue, 10/29/2013 - 17:05 | 4102801 DOGGONE
DOGGONE's picture

Agreed, I try to combat this status quo by showing real asset price histories, which show bubbles very well:
http://www.showrealhist.com/RHandRD.html
http://www.showrealhist.com/recDJIAtoRD.html
I reckon that keeping these out of sight is a/the main instrument of the con.
Please feel free to use!

Tue, 10/29/2013 - 18:37 | 4102999 El Hosel
El Hosel's picture

The only thing getting popped violently around here is DKS maid.

Tue, 10/29/2013 - 19:35 | 4103147 RmcAZ
RmcAZ's picture

As long as the Fed is in control, fundamentals are useless

Tue, 10/29/2013 - 16:18 | 4102660 rustymason
rustymason's picture

I guess it can just go on like this  f o r e v e r   . . . 

Tue, 10/29/2013 - 16:22 | 4102679 Bay of Pigs
Bay of Pigs's picture

It's getting hard to breathe way up here...I need some oxygen!

Tue, 10/29/2013 - 17:04 | 4102783 SDShack
SDShack's picture

My back of the napkin calculations show that the charts indicate Consumer Confidence needs to go below -.45 in order to trigger that -20% drop in the SP500 that will be necessary for bigger QE junkie hit by the Fed. With 0zer0care sucking the sheeple's holiday spending, it appears we will reach that about year end. A crash in January will be what TPTB will need to extort congress to avoid a budget/debt fight in February when the previous faux debt ceiling is reached again.

Tue, 10/29/2013 - 16:19 | 4102664 FieldingMellish
FieldingMellish's picture

New All Time High on Lowest Volume of The Year...

... rinse... repeat....

Tue, 10/29/2013 - 16:20 | 4102669 GrinandBearit
GrinandBearit's picture

Algos running wild accounts for 80-90% of the market action.

The higher it goes, the greater the crash will be.

Tue, 10/29/2013 - 16:22 | 4102682 bdub2
bdub2's picture

I remember April 2010, market crept higher on ridiculous volume, all was well, and quiet. Seems familiar. but but but, this time it's different. So...S&P500/Fed CD to launch to 1900 by year's end? Who wants to take the cap gains this year. Sell in January. 

ahhh, life is good floating on this sea of market bubbles and bullshit. 

Tue, 10/29/2013 - 16:22 | 4102683 mr. mirbach
mr. mirbach's picture

November 13-14, GridExII. Mark it on your (paper) calendars.

Tue, 10/29/2013 - 16:49 | 4102770 Tsar Pointless
Tsar Pointless's picture

I'll see you on this sit on November 15, then. You can tell us why nothing exciting happened.

Tue, 10/29/2013 - 16:27 | 4102702 screw face
screw face's picture

Bullish....disengage plunge control....

 

 

....NOW

Tue, 10/29/2013 - 16:28 | 4102706 NOTaREALmerican
NOTaREALmerican's picture

DOW 35k.    Buy now or be priced out forever!

Tue, 10/29/2013 - 16:29 | 4102711 dobermangang
dobermangang's picture

The masses appear to be buying Grand Theft Auto V.  29 million copies sold.  Amazing quarter by TTWO.

http://finance.yahoo.com/news/two-interactive-software-inc-reports-20050...

Tue, 10/29/2013 - 16:46 | 4102756 bdub2
bdub2's picture

"...the fastest selling entertainment release in history."

proud to be an 'merikan! 

to speak of a brilliant political "revolution" is an 'asurd asinuation with masses buying bread and circuses hand over fist. 

to hell with it...BTFATH forevermore...

Tue, 10/29/2013 - 16:29 | 4102714 orangegeek
orangegeek's picture

LMFAO!!!!

 

Time to go puke my fucking guts out again.

 

Fuck you Bernanke!!!

Tue, 10/29/2013 - 16:34 | 4102725 buzzsaw99
buzzsaw99's picture

BtATH - So Easy a Caveman Can Do It

Tue, 10/29/2013 - 16:52 | 4102777 1835jackson
1835jackson's picture

I think the 10 year yield y axis is wrong in the second chart 3.6076%???

Tue, 10/29/2013 - 18:00 | 4102912 NotApplicable
NotApplicable's picture

That would be the non-Bizarro World axis.

"Those were the days!"

Tue, 10/29/2013 - 18:52 | 4102786 DOGGONE
DOGGONE's picture

On a real (inflation adjusted) basis, the Dow today closed
http://www.showrealhist.com/recDJIAtoRD.html
at 100.0, equal to the average real Dow close in the (all time record) month January 2000.
You can see why the bandits keep real asset price histories out of sight!

Tue, 10/29/2013 - 17:38 | 4102867 venturen
venturen's picture

kevin is getting lonely trading with himself....now the Steve Cohen is out.

Tue, 10/29/2013 - 18:03 | 4102917 Luke 21
Luke 21's picture

Precious metals might take a hit tomorrow.

Tue, 10/29/2013 - 18:33 | 4102992 El Hosel
El Hosel's picture

Supply wins again, we don't need no stinking demand.

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