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Low Volume Melt-Up Continues - Dow & S&P Close At New Record Highs

Tyler Durden's picture





 

New 52-week highs reached 2-month highs (and lows at 1-month lows) as stocks ruged to new record-er highs once again today. Aided by AAPL, the NASDAQ outperformed but the ridiculousness was not limited as TWTR continues its exponential rise (up over 59% in the last 2 weeks). Today's range was small in stocks (except for a strange - likely rebalancing related - 6% rise in the Russell at the open) and volume barely above the lowest of the year. Bonds sold off modestly with 7s and 10s worse at +3.5bps following ths morning's un-fat-finger idiocy in Treasury Futures markets. VIX was banged lower (with a late flourish) to 1-month lows. The USD slipped modestly lower on the day but rallied from the US open but correlations to JPY crossesd were not great for stocks once again. Commodities were quiet with Silver up and gold down (back under $1200).

 

Russell's open confused a lot of people...

 

But The Taper continues to be great news for US equities....

 

As TWTR just goes bull retard...

 

Bonds "broke" higher in price (lower in yield) overnight but  sold off from that point on (as the 2s10s30s butterfly supported stocks today).

 

Commodities were relatively flat... (week after POMO started)

Oh - and we heard numerous times today how the market is now priced on fundamentals as the Fed starts to Taper... hhmm seems like the "market" is still "correlated" to the flow of liquidity and JPY crosses when it wants to be...

 

And finally - the credit market's melt-up as once again it proved "too" anxious and explodes to new cycle lows as hedges are lifted...

 

Charts: Bloomberg

 

Bonus Chart: Will The Nikkei overtake the Dow once again tonight...?

 

Bonus Bonus Chart: HY spreads have collapsed in the last few days. It appears the macro overlays that were put on (that drove the index spread notably cheap to intrinsics) have been unwound and crushed the basis back to zero... For now, the squeeze is over in HY but the momo is there now...

 


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Mon, 12/23/2013 - 17:16 | Link to Comment Say What Again
Say What Again's picture

I saw that opening print on my screen, but I thought my data feed had a glitch.

Mon, 12/23/2013 - 17:20 | Link to Comment Hindenburg...Oh Man
Hindenburg...Oh Man's picture

At least when the threat of a taper still loomed, there was some scrap of logic to all this (i.e., taper, or theat there of = bad), but now that even taper means full speed ahead, I'm just left shaking my head at another 1 + percent day on the NASDAQ. 

Mon, 12/23/2013 - 17:23 | Link to Comment 22winmag
22winmag's picture

Wake me up when suits are doing swan dives off the 98th floor...

Mon, 12/23/2013 - 17:22 | Link to Comment toe
toe's picture

aapl up 4%, twtr up 8% P up 5.5%, fb up 5%,  so many ridiculous stocks today and the s&ps up another 10 on 600,000 contracts? is that the lowest volume this year? 

Mon, 12/23/2013 - 17:40 | Link to Comment Rainman
Rainman's picture

All of it is sensible. Times are tough and the year end bonus tape must be painted...while not a creature is stirring. Be voowy voowy quiet.

Tue, 12/24/2013 - 00:58 | Link to Comment cynicalskeptic
cynicalskeptic's picture

MOPE - 'Management of Perspective' Economics.   It's all about how thinks LOOK - this is painting the year end charts.  Stocks have to look good and gold has to look bad

Mon, 12/23/2013 - 18:48 | Link to Comment aVileRat
aVileRat's picture

Apple just got the green light to market a Gold phone, before one of the largest consumer spending months on the planet. In a year when everyone and their pinyng dog wants to cash in before Politburo sponsored 'soft landing'. Of course it's up.

Twitter just proved half of Madison Ave. is redundant and should be joining the non-farm Payroll as Food Workers sometime in 2015/16.

Everyone else just rose according to their QQQ correlation.

Not rocket science.

Lowest volume ? Wait until tomorrow and then the boxing day boogaloo.

 

Mon, 12/23/2013 - 17:26 | Link to Comment Max Damage
Max Damage's picture

Twitter has no barriers to entry and Beyonce has just proved you don't have to pay to advertise on Twitter with her latest album. Use it for word of mouth. The business model is already broken imho, despite the non stop ramping from Wall Street. I feel so sorry for those they will dump this overpriced stock onto.

Mon, 12/23/2013 - 21:45 | Link to Comment TheRideNeverEnds
TheRideNeverEnds's picture

twitters implied vol has it priced to move up to over 100$ by this time next year.

 

Mon, 12/23/2013 - 17:26 | Link to Comment jmcadg
jmcadg's picture

Bullshit. What else is there to say!

Mon, 12/23/2013 - 17:31 | Link to Comment HUGE_Gamma
HUGE_Gamma's picture

BONUS CHART!?!?

everybody loves the BONUS CHART!!!

Mon, 12/23/2013 - 17:52 | Link to Comment disabledvet
Mon, 12/23/2013 - 18:36 | Link to Comment jballz
jballz's picture

ANd that children, is why you BTMFDIIIIP!!!

Mon, 12/23/2013 - 20:06 | Link to Comment Hindenburg...Oh Man
Hindenburg...Oh Man's picture

Holy Sweet Jesus, at 7pm the NASDAQ 100 futures are -0.02 percent. SOMEONE do something!!!! We can't have the slightest bit of red at any time, no matter how insignificant. 

 

 

Mon, 12/23/2013 - 22:19 | Link to Comment chasman
chasman's picture

I have been a advit reaer of zerohedge since 2010 ..... even though Tlyler is right in his theory he has been wrong 80 percent of the time with investing-trading-gambleing....what ever you want to call it .....hence I only read for enertinment now ..... sure someday they will be right ... but come on, anyone who shorted this 5 year bull market when they said to is now eating hot dogs not steaks ...... it is fun to read though

Tue, 12/24/2013 - 01:03 | Link to Comment cynicalskeptic
cynicalskeptic's picture

It never ceases to amaze me how the market manipulators can keep the most irrational trends going.   I waited over a decade for the Real Estate bubble to pop - astoiunded that it could last SO long.  We went from 20% down/36% of income limit/8% interest to NINJA 'give it away'.   Made NO Damn sense but it kept going and going......   Same with the tech bubble before that.  

NEVER underestimate the ability of TPTB to prolong the game - never mind that the longer the game goes the bigger the explosion when it comes.

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