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Bernanke "Swan Song" Fails To Offset Worst Start To Year Since 2008

Tyler Durden's picture




 

The weakness in stocks accelerated after Europe's close, was briefly stalled by algo wildness and VWAP buys on Bernanke's completely non-news speech this afternoon, then dropped into the close, but was far outweighed by the moves in commodities. WTI Crude has dropped over 6% in the last 4 days - its biggest such drop in almost 8 months. The last 2 days have seen gold rise at its fastest pace in almost 3 months. Treasuries ended the week practically unchanged with a modest selloff on Bernanke leading to a 2-3bps drop in yield sin 2014 so far. The USD kept soaring on the back of EUR weakness (as the liquidity flows came back out) but JPY was in charge of ferrying stocks once again (until the last few minutes). The Bernanke VIX slam failed to ignite any real momentum and stocks slipped into the close - with the NASDAQ ands SPX red (but Dow green). Of course, POMO restarts next week so shorting will be banned...

AAPL dropped to its 50DMA and pretty much close there today - first time in 2 months...

 

Stocks dropped again in the early Asian session, recovered in Europe, tumbled on Europe's close, rallied on Bernanke's speech, then tumbled into the close...

 

And sector performance from the Taper...

 

VIX remains weak...

 

Commodities on the week...

 

With oil's worst few days in almost 8 months...

 

And the new year in gold...

 

USD strength from the start of the new year after EUR and US lqiuidty needs settled out...

 

Notably JPY was the driver post EU Close but AUDJPY ran the show into the close...

 

With POMO starting agaon next week, we suspect correlations will rise once again - or equity markets have a problem...

 

Charts: Bloomberg

Bonus Chart: The Dow-Nikkei channel remains...

 

 

 

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Fri, 01/03/2014 - 17:17 | 4297805 Obama_4_Dictator
Obama_4_Dictator's picture

HAHA - what a fag!

 

I suggest everyone watch / listen to Ice Cubes recent song - "Everyone's Currupt"  I was amazed that he is so awake.

http://www.youtube.com/watch?v=tWv--npxEss

Fri, 01/03/2014 - 17:39 | 4297860 Obchelli
Obchelli's picture

But financials not only regained what they lost yesterday but added some more... xlf down 11 yesterday up 15 today

Fri, 01/03/2014 - 18:15 | 4297945 aVileRat
aVileRat's picture

I loved that trader who wanted to dump 4mm shares in MSFT at the very last second of the day.

Fri, 01/03/2014 - 17:19 | 4297808 101 years and c...
101 years and counting's picture

law of diminishing returns + taper = stocks deep red in 2014.  ENJOY

Fri, 01/03/2014 - 17:22 | 4297812 gratefultraveller
gratefultraveller's picture

For your friday evening/night listening pleasure: Swiss national public radio channel "Virus" - don't worry, it's only music ;)

 

http://www.srf.ch/sendungen/virus/player

Fri, 01/03/2014 - 17:27 | 4297824 yogibear
yogibear's picture

Mrs Debtfire, QEen Yellen will take a stab at it later. She'll bake cookies for next Fed speech.

Who is the female version of Hilsenrath?

Fri, 01/03/2014 - 17:50 | 4297889 Musashi Miyamoto
Musashi Miyamoto's picture

Nora Ephron

same content; same quality

Fri, 01/03/2014 - 19:38 | 4298178 PhysicalRealm
PhysicalRealm's picture

Not likely to replace Hilsenrath though, since Nora Efron's dead...

Fri, 01/03/2014 - 17:31 | 4297838 Rainman
Rainman's picture

The 2 and 20 has been banked, Bernank's running for the door and the boyz don't trust the alleged female replacing him... that means Algo Schitzo coming up for sure.

Fri, 01/03/2014 - 17:33 | 4297842 NOTaREALmerican
NOTaREALmerican's picture

Everything is fine as long a luxury car sales are up.

The new measure of a healthy economy is Bling sales to the top 10%.   

The bottom 90% love it when they see high end Bling because they all know that, someday, their above-average kids will have that Bling too.   It's what makes American great.

Fri, 01/03/2014 - 17:43 | 4297869 Musashi Miyamoto
Musashi Miyamoto's picture

I'm not a bit fan of neuro-chemical psychology but here's an interesting piece

http://blogs.scientificamerican.com/scicurious-brain/2013/04/01/the-supe...

also;

In a survey of faculty at the University of Nebraska, 68% rated themselves in the top 25% for teaching ability.

http://onlinelibrary.wiley.com/doi/10.1002/he.36919771703/abstract

Fri, 01/03/2014 - 18:02 | 4297915 gratefultraveller
gratefultraveller's picture

"And it turns out that thinking we’re above average (even though, statistically, only half of us CAN be above average) is actually good for us. People who suffer from depression usually show a symptom called “depressive realism”."???

Yeah, Clif High mentioned sth about the Tavisstock Institute/CFR beginning to peddle a new "mental health problem" globally through the WHO - the so-called "Adjusted Reality Disorder" or ARD.

Apparently the subjects of this "pathology" desire a different reality from the current one. Go figure.

Anyhoo, the [sarc?] upside he sees to this is the possibility for all those afflicted by it to apply for Disability and recover at least some of the money TPTB rip off global population.

 

Fri, 01/03/2014 - 21:40 | 4298515 Oath_Keeper
Oath_Keeper's picture

Go read pygmalion management. The shit works wonders in practice.

Sat, 01/04/2014 - 04:47 | 4299286 prmths2
prmths2's picture

Re: And it turns out that thinking we’re above average (even though, statistically, only half of us CAN be above average) is actually good for us.

Take 4 laborers with an I.Q. of 125 and one journalist/blogger with an I.Q. of 80. The average I.Q. of the five individuals is 116,  and the four ditchdiggers (80% of the sample population) are above the average.

Fri, 01/03/2014 - 17:33 | 4297843 Musashi Miyamoto
Musashi Miyamoto's picture

Begin the Un-Taper

Fri, 01/03/2014 - 17:33 | 4297848 debtor of last ...
debtor of last resort's picture

When somebody turns off the lights, all this paper goes down the toiletbowl in the same flush. Running for real assets won't matter, it will be too late. The island of patient people is getting less crowded by the week in my opinion, they even start to shout for the next vessel to the mainland. Weird shit. It's about timing indeed. Well, i think i'll take a look at my generational wealth, hugg my pony and go to bed.

Fri, 01/03/2014 - 17:46 | 4297870 ebworthen
ebworthen's picture

"Of course, POMO restarts next week so shorting will be banned..."

Yes, why sell when the FED is going to supply the cash for everything to be bought on margin?

What Bernanke says is meaningless because the Titanic is in port being re-fueled and taking on more passengers.

The departing Captain waning philosophic on the dock means little besides his admirers.

Captain Yellen is having stars attached to his epaulettes and practicing "Full steam ahead!".

Fri, 01/03/2014 - 18:06 | 4297920 Yenbot
Yenbot's picture

That chart is screaming VOLUTION...

Fri, 01/03/2014 - 18:18 | 4297953 Soul Glow
Soul Glow's picture

The Central Planners, or as I like to call them, pigs in suits, are people who live so high on the hog they think they are untouchable by the laws of reality.  They are printing digital currency on the notion that they will not add any significant risk to the financial system.  Problem is they have already destroyed many of their own laws, one being moral hazard.  

What happens when you let loose trillions upon tens of trillions of digital dollars (and their equivelent in Yen, Euro, Pound, and Yuan) on the world via lending and banking institutions like JPM, the weird banks of China, Barclays, BNP Paribas, and so many others that only have one motive - to profit in any way possible?

What happens is the vultures begin to circle themselves because they are the only ones with any meat on their bones, all the people on the street have been served up, forclosed, unemployed, and hungry.

This is what caused the rise in the stock market; the vultures had no idea where else to put their dollars and the Fed et al were continuously pumping the indecies with their PWGFM.  But don't be fooled by the shiny star that the indecies look like, it is being propped up just like the bond market, which the banks also were gorced to lend to by flipping USTs back and forth with the mentioned central banks like hot cakes.

How does it end?  Well it is ending now because both markets are over saturated.  Both markets basically have more cash in them then ever before, and per capita the amount of cash in this system is so far leveraged that they would look like Jabba the Hut eating a goat.  What happens when the financial system is as obese as everyone in the countries?  They die of cardiac arrest.

And just like a heart attack, when you first feel the palputations arrest, you just think you have gas.  These last two days traders on WS must think it is just some acid-reflux from all the coke and pork chops they had on New Years, and it's not true, this is the real thing.  The system is dying.

The importance of turning fiat cash into real money - gold and silver - has never been more important, and considering many many precious metal miners have been shutdown due to operating costs one must wonder where supply will come from over the next year as these same vultures look for the next winning trade.  Gold is oversold now, but it won't be for long.

Fri, 01/03/2014 - 18:48 | 4298046 CultiVader
CultiVader's picture

Enjoying your posts I am.

Fri, 01/03/2014 - 18:20 | 4297958 alangreedspank
alangreedspank's picture

If Bernanke could do a swan dive into the sidewalk after his swan song...

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