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Stocks Reverse Yesterday's Losses On Low-Volume, Carry-Driven Melt Up
Following yesterday's worst day in stocks in 4 months, something had to be done. Starting at yesterday's US close JPY was sold after defending USDJPY 103 and that - along with a slamdown in gold, silver, and VIX provided the admittedly low volume melt-up in stocks today. Trannies and NASDAQ made it back into the green year-to-date. The small beat in retail sales this morning trumped the relative hawkish tones from Fed speakers today as the best day for USDJPY since the taper provided enough magical carry juice to lift stocks by their most since the taper (and the NKY up 400 points) with JPY-ES correlation over 0.92 today. Treasuries bled higher in yield with the belly underperforming (to unch on the week) and 5s30s flattening 3bps. The USD was bid against all the majors with JPY's move the largest as CAD retraced its gains from yesterday to its weakest in over 4 years. Gold and silver were quadruple-whammied today with 4 legs down after daring to show strength yesterday. VIX floored out at 12% once again and leaked higher all afternoon with a late-day press to try and ignite more buying in stocks. In summary, stocks mirror-imaged yesterday's dump with a half-volume pump, that is all.
"V" for Victory... as NASDAQ and Trannies go green year-to-date once again...
With the Yendex 500 (h/t @Not_Jim_Cramer) continuing its sublime path higher...
Today's closing S&P 500 futures VWAP perfectly in line with yesterday's closing VWAP... Interestingly, the moment it hit VWAP the rally stopped...
Healthcare is now the big winner since the Taper...as builders retreat
VIX was slammed lower out of the gate and lifted stocks... until the European close when it diverged notably...
The USD is back to unchanged on the week as USDJPY has its 2nd biggest surge in 4 months!!!
Gold and Silver suffered but retraced back in line with oil and copper on the week...
But the day saw 4 good efforts to smack down gold...
Treasuries sold off today (and flattened 5s30s) but remain notably positive post-jobs...
Charts: Bloomberg
Bonus Chart: The last 3 times the S&P 500 dropped significantly this happened. As dshort.com shows (via kimblechartingsolutions), when the 10Y Treasury yield finds resistance, the stock market seems to want to drop... almost as if someone knows that, given the US debt load, it can't withstand a higher cost of debt
Bonus Bonus Chart: Some context across asset classes for performance post-Taper (the orange dotted line is the close on Taper day)...
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In other news the fed would like to hear from ZHers about bank holding companies in the commodities market: regs.comments@federalreserve.gov
I give that email about 15 minutes before it gets DDoS'd.....
I would like to claim that I'm real smart when I posted that yesterday's drop was a BTFD opportunity.
http://www.zerohedge.com/news/2014-01-13/stocks-crater-most-over-4-month...
Actually, it makes me almost as sad as Gubner Christie to think that these "markets" will continue to go higher because the bernak said so. So who is the real bully here?
Looks like the RUT is ready to make another All-Time-High. Why not? The fundamentals support these Price/Earning, Price/Sales, Price/EV, etc. ratios, right?
Unfortunately, the Central Banking Cartel (CBC) has taken over and yields unlimited power.
all the better to short against, this market is done.
go ahead, post your trades. like to see someone who could make money shorting this. try /es it is a really laid back type of trading.
The pop in the MSFT stock after Wall Street got excited that a nearly 70 year old who has worked for industrial companies his whole life might take over a technology company was a pretty good shorting opportunity. Even with the Fed in charge there are still some things that are just too stupid in these markets. The entire retail sector has been a pretty good short as well as the American consumer is basically washed up. You can make money through short positions.
KY Vaseline sales through the roof today!
Love that bonus chart. Priceless.
I call the Bonus chart of "someone" knows as a Fed interest rate control action. F.I.R.C.A
They withdrawal their unicorns and allow yields interest rates to go down until market technicals are threatened. Then they apply the money again.
Over and over.
http://www.foxbusiness.com/investing/2014/01/14/investment-banks-walk-fi...
Crooks
Huge move up for European Indexes as well DAX up 200, FTSEMIB up over 300 even with over 2 Trillion Euro debt, and IBEX at a three year high, all these falling through the floor just yesterday
total fucking bullshit...
not a fucking word about what happened to the only 2 forms of real money today in mainstream propaganda media...
there r no fucking markets...just the MoneyChangers attempting to manage perception...
assholes, aint gonna stop me from getting rid of those green peices of fucking paper and replacing them with their 5000 year enemies....go ahead, and try me...bought yesterday and 2 other times this month...
FUCK YOU ALL U COCKSUCKER BANKERS....
this is going to sound really back asswards but I would not short this sell off either. (or is it ether?) i think this is all about annihilating the commodity complex and a take out of the mining complex EN TOTO. We simply have no idea how much metal not only is in storage but how much in new supply is coming on line. What we DO KNOW (as card carrying members of the cheap seats) is that commodity markets are SMALL and thus CAPABLE OF BEING MANIPULATED. does that mean we could get a "controlled burn" so to speak in equities? doubtful due to the massive amount of leverage and sheer size of the equity AND currency spaces. Having said that the US Army apparently has "an unlimited supply of silver" since they continue to mint and continue not to charge seignorage to the market http://www.usmint.gov/about_the_mint/mint_facilities/?action=WP_faciliti... have been doing this since 1983. I have surmised via "emliminating all that possible what remains however improbable is the reason" a reason. Obviously all I can say to anyone is "this is why I think this way"...I have no knowledge of this in fact being true...just deductive reasoning. Somebody however has a "forever man" here. http://www.youtube.com/watch?v=cJ9bcm5JzME
as the pile of debt created money mounts up, comods as a percentage of total debt(money) become less and a few billion here and there are monstrous amount in relation. disb-spot on...
controlled until out of control-when - hmmm, could go on til? and the spending just keep going on and on(budget proposed). i just don't fucking know as it is all counter intuitive...
V is for . . .
Participate or parish.
Surprise, surprise ...the markets are up. With Wall Street owning every piece of beneficial legislation, procedure & policy (loopholes included) where did one think the liquidity-driven, systemic coercion would end up...in a more beautiful and sustainable world that our hearts know is possible?? Screw you...onward & upward.
Is that a nipple bottom?