Dow Closes Above 16,000 For First Time (Retirement On)

Tyler Durden's picture

Supported by economic weakness overnight in Asia and a weak Philly Fed print (bad news is good news) along with hope from more QE out of the BoJ, JPY weakness floated all boats today as homebuilders and financials surged lifting stocks tick for tick with carry. Yellen's nomination provided yet another lift. Treasuries rallied (though the long-end remains +10bps on the week). Precious metals were monkey-hammered early then dead for the rest of the day (-4% on the week) as oil prices surged higher ( +1.6% on the week). The USD Index glitched lower on no neg rates chatter early from Europe but the quietness in the index hid major dispersion as AUD was craushed (now 1.6% lower on the week). Credit markets rallied (but remain well off stocks) and VIX was compressed as low volumes meant a slow lift higher (and Trannies best day in almost 5 weeks). Shorts suffered the most until POMO ended - tripling market performance.


The Dow closed above 16,000 for the first time ever...


The S&P managed to get back perfectly to yesterday's highs...


The early going was dominated by a smash higher in the most shorted names... again...


As homebuilders and financials soared...


Credit rallied but has a long way to go to catch up with stocks...


Commodities were dispersed with PMs weak and energy/growth strong...


As FX markets saw a small down day in the USD Index but major buying relative to JPY, CAD, and AUD...


Treasuries rallied modestly after Yellen's nomination...

With USDJPY crossing back over 101, stocks were simply all about the JPY carry trade once again as the promise of Kuroda wins the day...


Charts: Bloomberg



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dcohen's picture

That bear yesterday? What was his name? It doesn't matter, may he RIP, Bernanke wasted no time ripping his face off - for daring to bash stocks.

Buckaroo Banzai's picture

"...homebuilders soared"

You seriously have to be kidding me. It is just rampant, indiscriminate buying out there.

flacon's picture

You think that's bad, look at a chart of JPMorgan (JPM). Liars, settling with the gov. and their stock shoots to the moon. I remember when people were comparing JPM with the price of silver. NOW LOOK AT THAT SHIT. Silver $19, JPM $57! Fuckindamn!

Say What Again's picture

Does the percentage gain in the major indexes correlate with the size of the POMO for that day?

Today was an huge POMO day, with the fed pumping over $5B into the market.

Truthseeker2's picture

It's called the Sucker's Rally of the Millennium!

Everything is being set up for the --->Sucker's Rally of the Millennium ! ! !

Do you get it yet?!?!?

The Sucker’s Rally of the Millennium ... ... ...
Coming soon to a ‘free market’ near you!


flacon's picture

If the powers that be ever let us in on their secret, I'm sure they would win an Olympic Gold Medal for their choreography. "10" - "10" - "10" - "10" - "10" - "10" - "10".

Occident Mortal's picture

I'm calling this the top... for technical reasons.


^^Simple charts are the best charts.

flacon's picture

Are you sure you got the right angle, because every time I try to draw that damn chart the price action always shoots higher. But I really honestly HOPE you are right!

Occident Mortal's picture


The DOW was always going to tag this almighty resistance.

It finally got there, this is the best shorting opportunity of the past 20 years.

15% bears? Market at Mother of all resistance levels? Market at all time blue sky high? Taper facing us down in the new year?

Fucking SELL.

flacon's picture

It's possible. My chart shows we could achieve $16,147 by December 31, and "fair value" (ie, the top of the trend line) TODAY is: $16,113.... but then again I am limited by resolution. 

Best Of Pute's picture

True that, but... but... but.... Kevin Henry ?

rp1's picture

I'm calling for a ranged trip down to 13500-15200 into Sep'14, followed by a run to 16650 into Oct'15, followed by a bear market to 10500, with an extension to 4500 if things get fucked up.

Occident Mortal's picture

I'm expecting a 20% blow out into bear territory for 2014.

Say 12,000's.

There is no way the market beats that resistance on its first attempt. No way.

FreeMktFisherMN's picture

I'm in SPXU since ES 1728. Not been fun but toughing it out. I am looking for at least a re test of those long exposed wicks below at 1640 and 1553 also on ES. those wicks were bullish then but chart history says those get retested eventually.

How much higher do you think ES could go from here?

I think this looks like a major topping process. Today lots of new shorts destroyed again.

Occident Mortal's picture

The trick is to not get into your position with two feet.

I'm happy to sell short over a couple of months, and over a 500pt range.

Trickle in, trickle out.

NobleSavage's picture

Today was "knockout" day for wounded bears like me. I miss the Risk-on, Risk-off swings from 2 years ago...

Running On Bingo Fuel's picture

Booo. Bad Dow! Bad, bad S&P. FED steroids juicing the market!


Occident Mortal's picture

Time to buy some puts.

gjp's picture

Stocks up and gold down until the US dollar collapses.  There's nothing to hide anymore, it's up to the foreign elites to decide when they have to pull the plug.

Running On Bingo Fuel's picture

Who says the market can't remain range bound until the year 2100? You're a boombuster, linear thoughts of boom and bust only.

Let's try to modify our thought process.


gjp's picture

Repeated rescues, accelerating money printing and debt growth, and constantly changing the rules don't lend themselves to range bound behavior.  It truly is boom or bust.  Muddle through isn't an option.

rp1's picture

The world won't let the dollar collapse.  Having a reserve currency means your economy takes the brunt of the adjustment, as it did in 2008.  Before any collapse in value you will have to see a big fall for the dollar in a percentage of world reserves (IMF data).  Right now it is over 50%.

gjp's picture

Not sure how that follows, it looks to me like the non-reserve countries are being forced to take the brunt of the adjustment, swallowing the harmful effects of our inflation while we gorge out to our hearts' content on the product of their hard labor and irreplaceable natural resources.

It may be that the foreign elites like the current system just fine, but their populace is far likelier to get uppity as this continues, than the comatose overfed joe sixpack boobus americanus.

Best Of Pute's picture

It's more like a global race-to-the-bottom currency war. Japan is uber-fucked, but have you seen how Europe has come out with their hair on fire everytime the euro rallied ? Now even hawks like Weidmann and Asmussen are talking negative rates and QE.


If the Fed tapirs next year but Japan & Europe go printo full retard, that turd has a long way to go...

madcows's picture

Retirement for whom?  all that non-existent inflation stole my investable income.  Of course, I probably should have seen this coming and leveraged the shit out of my house and thrown it in the market.  I'd have been a trillionaire in no time.  BTFATH!

rp1's picture

The long term resistance (2000-2007-2013) is at 16150.  I just don't understand what people see in the Dow.  So far there has been very poor reform and no pass through of economic growth in America since the crisis.  Long term, sure, I think things will get fixed, but it could be a bumpy ride so why would you buy the Dow now?  Then again, I don't own it.

azengrcat's picture

You mean the non-industrial leveraged arbitage index? 

dracos_ghost's picture

Hedgies borrow at ZIRP, leverage and go coockcoo for cocoa puffs.

Best Of Pute's picture

Bah, they've underperformed just like everyone else. Why do you see them all on TV pissed at the Fed ? Because Benny only called his few favourites beforehand.

pound the vix's picture

In other news - stock traders slammed the table and stormed out of the NY regulators office yelling "I never put the market on steroids!"

Buckaroo Banzai's picture

LOL, actually not a bad analogy.

One one side, a dope-using, overpaid egomaniac desperately trying to preserve a legacy of success.

On the other side, a deranged organization run by a megalomaniac used-car salesman trying to cover up past mistakes and obscure a legacy of failure.

Max Damage's picture

Bernanke and the rest of the Jewish mafia are a set of thieving twats

Seasmoke's picture

But damn it , you have to admit, they are good 

SpykerSpeed's picture

The ironic thing about all this:  the people who invested in stocks and Bitcoin are now able to buy more "phyzz" than the ZeroHedge readers who've been touting gold and silver for the last 5 years, LOLOLOL

Save_America1st's picture

those people aren't buying phyzz and by the time they try to cash out their paper "profits" to try and buy phyzz it will be too late for them...the train will have left the station and supply will be as dried up as Janet Yellen's coochie. 

If they're so smart they will cash in their profits now and get to stackin'...but as they say:  Pigs get fat and hogs get slaughtered

A lot of hogs out there who aren't going to have a chair to sit in when the music stops. 

SpykerSpeed's picture

Give me a list of businesses that have said they'll accept gold and silver for payment.

I can't give you a full list of Bitcoin accepting businesses because it's tens of thousands - too long to write here.

Bay of Pigs's picture

You really don't get it do you troll? Physical gold and silver represent economic and financial FREEDOM and LIBERTY dumbass. Five years ago? Gold was 700-800 and silver was 10 or 12 bucks.

Try to think outside your Bitcoin world for just one second. Oh, that's right, you can't. You can get fucked you loser.


Save_America1st's picture

whoooops...I didn't realize I was responding to a Troll.  Thanks for jumping in BoP. 

SpykerSpeed's picture

Those purdy rocks represent a lot of stuff, including rap artists.  The fact is, they just don't make a good money.  Nobody wants to lug that stuff around or trust a third party to issue tokens "backed" by it.  The world is moving on without you.

Bay of Pigs's picture

Really Einstein. So please explain why the Chinese, Russians, Turks, etc...have all been buying tons of physical gold for several years now? Who is moving on without it?

Your sheer ignorance of the situation is astonishing seeing you are reading and following this issue here at Zero Hedge.

Save_America1st's picture

I don't go shopping with silver and gold in hand.  I buy "stuff" with my fiat.  But I do know that there are many business owners who will trade their services for phyzz in a heartbeat.  My mechanic, for one, will definitely take silver or gold if anyone was so inclined to barter with him. 

And, of course you've heard that Utah and Arizona have approved gold and silver as legal tender right?  Must be fun to get a gallon of gas for 30 cents (3 pre-1965 Constitutional dimes) plus have enough change left over to get a cold drink :)  Just like the olden days when money was real and meant something. 

Best Of Pute's picture

Remind me how many penny-stock like 30% intraday jumps Bitcoin's had in the last few monthes ?


Gold, not so much.

Rainman's picture

hahaha .....just for that, I'm burning my Dow 10k hat right now !

Jayda1850's picture

I keep stacking, knowing deep in my mind its the right thing and that this whole sham of a market will collapse. But I don't know what will occur first, the lose of the status quo or the lose of my sanity.

Save_America1st's picture

I love the smell of cheap phyzz silver in the morning...smells like...Victory!

FiatFapper's picture

How come AUDJPY or NZDJPY aren't used for carry trades? They pay more swaps than EURJPY.

Best Of Pute's picture

Now spreads have tightened, but the best yielders used to be Spanish and Italian bonds ( 6% in Nov11 ! ) which are Euro den