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Trannies Melt-Up For 15th Of Last 19 Days On Lowest Non-Holiday Volume In Years
The Dow Transports continue their entirely sensible march to infinity as they have no risen over 11% in the last 19 days with only 4 marginally lower days in that period. The S&P tested lower around the open but that 'dip' was mandatorily bid and lifted the index back towards the highs (with a 330 Ramp off VWAP for good measure). Volumes in futures, options, and stocks were absolutely abysmal (S&P futures lowest non-holiday in a couple years). The USD decided to limp lower (led by EUR strength), gold and oil ended unch (silver and copper -1%), Treasury yields very modestly lower, and VIX was banged back under 13%. Credit remains un-impressed (though rallied modestly in the day).
With volume absent, the machines were running the show again - leverage tool of choice was VIX as the ramp off VWAP from 330 proved infallible once again...lifting ES 5 points on no news at all - just for the shits and giggles... 950,000 contracts at the cash close vs 1.4 mm average...
The major indices continue to rise... with Trannies topping the pack... today was the Transports best day in 3 weeks!!!!
With Discretionary and Industrials leading (and asdide from Utes, Financials lagging)...
Gold and Oil faded back to unchanged as Silver and Copper lost ground...
Despite USD weakness...
But credit remains unimpressed...
Treasuries sold off for much of the day as stocks went higher - bucking the but it all trend from the EU session...
Dec VIX futures dropped to their lows...
Charts: Bloomberg
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@DougKass -- time to go long?
Hold your nose everyone, and buy stocks. The Rockefellers need a new continent.
Very bad thought process. Never buy anything anywhere near a top. tops are where bubbles fail, not where fortunes are made. The time to buy stocks was when BofA sold for $5; and Ford for $10. But the time to clear out is now; or even two months ago. Too early is always alright; too late is never alright.
BTATFH
J & J gets banged $ 2.2B for bad drugging little kiddies and grandmas ... a misdemeanor. My laff of the day !
http://stream.wsj.com/story/latest-headlines/SS-2-63399/SS-2-372500/
Hi. I work at the SEC. Someone said there'd be trannies here?
Not midget ones though.
Try youporn.
No, really..the note said....hot melting trannies on zero hedge. I was in the middle of intentionally hamstringing a very big investigation of a well known "Liquidity Provider" when I got the note. Barely had time to grab my lube...and get here. So...which way to the lovely Shes w/ Ds, if you know what I mean...
"Unimpressed" Bitchezzzzzzz
Another perfect day for the bankers. Yields down, commodities trolling at multi-month lows, equities close at highs of the day and near ATHs, and with Twitter IPO on deck and the Elon Musk cult of personality raging (SCTY and TSLA up 10% or so each today for no good reason) the euphoria promises to build only higher. Sick.
Life "is" good in the New Normal. Thanks Ben for all you've done.
Just think, when Yellen climbs on board we'll have a New2 Normalx.
Hooray for Obamahood, the new tinsel town, a real dream factory!
definetly bubblicious; but the timing is a bitch.
I'll keep on buying rolls of junk quarters, on ebay. Bullish on shipping.
Some bastard just outbid be with 1 second to go. The nerve of people.
that spike alos catapilted bankrupt Europe to new highs, DAX hit a bew ATH on that Wall Street close, stopping any shorts from when it closed 4 1/2 hours ago!
what!!! no BONUS CHART!?!?
Up up and away. The stock market is now guaranteed by the federal reserve that stocks can never go down. Buy, Buy and Buy some more!
... "The melt-up" 1500 of the last 1900 daze is more like it. Fuking groundhog decade in progress Bitchez.
and another thing, we don't need no stinking volume, just a green close.
Same fraudulent shit...different day.
Trannies are exhibiting the SAME pattern from several months ago when APPLE was falling!! The boys in "the club' decided that money can still be made if we ALL work together when the other indexes are flat or down......All sell out of S&P-Dow-Bonds....move into Trannies with help from the ALGOS....We all get richer on down/ low volume days and still maintain the illusion of bid/offer markets.
Hedge Funds and Banks are using the Trannies as both a piggy bank and a Hedge Fund motel!
Trannies will be the absolutely WORST asset class place to be holding paper.....the most to FALL when this mockery BREAKS...and IT WILL!!!
Speaking of Algos and the marketing breaking at some point, when the market does start going down, what is the likelyhood of the algos getting into a positive feedback loop, and start selling at even faster rates making a market crash even worse than with humans being involved?
Look at the daily chart of S&P: don't tell me...POMO began at 11:00Am...
Hi everyone. First time poster here.
My understanding is the general sentiment is that the Feds printing of $85 per month is responsible for the market going up so much. Could someone explain the basics of how that money makes it way into the market? Isn't that money spent on Treasuries and Mortgage backed securities?
The Fed buys that stuff from the "free" market and the selling banks, insurers and institutions get the cash, which their prop trading desks promptly "invest" into the stock market.
These actually near-insolvent "investors" desperately, desperately need YIELD and thus they will chase any junk which pays the most or has momentum...DASH 4 TRASH.
I'm not educated on the reporting aspects of the market, but shouldn't there be a way to see who the big buyers are and where the money in the market is coming from? Thus being able to show the rally over the last several years is due to the Feds money? Or has anyone done a study on that? Thanks in advance.
And who else could it be except the Fed?
One for one correlation between S & P growth, and Fed Balance Sheet. You can look at the bank's balance sheets to see excess reserves growth, as well.
Kredit pretty much nailed it. I would only add that the FED goes to the "Primary Dealers",of which they are 18 or so, including, but notlimited to HSBC, GS, JPM, MS, RBS, B of A, Lloyds Bank, Barclays, RBC, Citi, et al.
Quite correct, Pareto. And, by using those "intermediaries", the Fed can attempt to continue to deny that it is monetizing the debt or printing money.
Don't you just get the impression that we're in "Groundhog Day"??
I mean, there's no point in even watching "the markets" anymore: one day is the same as another. Slow melt-up, low volume, good stuff down, trash up, insolvency gets rewarded, VWAP is reached, VIX is suppressed and no one ever sells...
We need the wheels to fall off this fake charade... I don't think we'll see a revolution so only major unemployment might do it - this time especially among middle-rank management, government employees, office workers, technical staff, overpaid resource industry roughnecks, small businessowners, real estate/financial/insurance and such...
That or a bond market revolt WITHOUT economic growth.
So true Kreditanstalt. I have tried repeatedly to short this flying pig. Stop, stop, stop.
I am fairly sure we wake up to a 5% downdraft some morning. I don't think a bell will ring or if it does, I'm not sure how many will recognize it.
Easy 30% if you are in a leveraged position, though.
"Trannies Melt Up" That sure is a headline that needs context.
Future news: Stocks rise on negative volume