Dow Breaks Losing Streak As Bad-News Is Good-News Once Again

Tyler Durden's picture

"Most shorted" stocks rallied their most in 10 weeks. Despite AAPL's tumble (and Seagate), the NASDAQ ended the day green along with the rest of the major US indices as the Dow broke its 5-day losing streak. Stocks in general recovered from the pre-Taper levels but remain notably down on the year. Most of the day's gains occurred in the first hour of the day as "most shorted" names were ripped higher (+1.8% vs the market's +0.75% at 11ET) which helped the Trannies outperform. The USD oscillated once again but ended practically unchanged (on the day and week) as AUD strengthens and JPY weakens providing just enough support to hold stocks higher. The USD stability was entirely missing from commodities which cracked around teh durable goods data with oil surging and bullion bulls purging. Treasuries were mixed but practically unchanged (despite some notable volatility around the Dur Goods data) with very modest steepening. VIX dropped 1.6vols to 15.8% - its biggest drop in 6 weeks.

 

This was a squeeze day... "most shorted" stocks rallied by thei rmst in 10 weeks...

 

This is only the 4th day in thelast 4 weeks when all the major indices are green together... as the Fed hope for tomorrow remains... The short squeeze this morning lifted everything (led by Trannies) then once Europe closed we trod water..

Stocks remain notably weak on the year...

 

 

Treasuries rallied instantly onthe weak durable goods data; fade dback during day and leaked stronger nto the close...

 

 

Commodities were cracked around the durable goods data...

 

Charts: Bloomberg

Bonus Chart: AAPL dead cat bounce...??

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One And Only's picture

The terrorist sellers are dead. NYSE will not harbor terrorists.

'murica

chumbawamba's picture

INDEED YOU SHALL!!! SHE'S ALL YOURS, BRO-MEO!!!

I AM CHUMBAWAMBA!!!

Frozen IcQb's picture

Gotta be the most boring day in quite awile.  The bids just kept coming to keep stocks flat.

And all the deers where out on the highway! Manipulation at its best!

Gankfest's picture

To Infinity and Beyond!

stant's picture

Did anyone think it would be down before the state of the former union address? Correction to resume tomorrow

The_Ungrateful_Yid's picture

Before correction, one more speech from Chief Money Changer himself.

aVileRat's picture

Dead cat bounce.

EA & Yahoo validated yesterday's market call and the Apple proof we are beyond the growth phase of infotainment companies. Carl will likely get more agressive in his activism, we saw this all before with Blockbuster.

Many expect Yellen will stay the course on the taper. This is interesting, because none of the fed data unless it was the U-90 supports taper to continue on target for 2015 exit. There is also the Chinese and their suicide bomb jacket to contend with, and Turkey/Indonesia tonight. And Ukraine.

Good time for currency market training/case study design.

Ah well, onwards.

kliguy38's picture

need some green for tonite's speech

eclectic syncretist's picture

Exactly. 2:15 tomorrow,....now that might be a different story.

One And Only's picture

Whatever you do just don't buy your plants with bitcoin. That would make you a terrorist.

Buy them with dollars and be a patriot. If buying in large enough amounts and laundering through HSBC accept a cash back bonus.

B.J. Worthy's picture

So do I. Too bad I don't live in Colorado.

Stoploss's picture

Where's the USD/JPY 8:30 am opening sledge fest chart???

SheepDog-One's picture

Just wait until every american starts piling their whole unemployment check into their U.S. Treasury IRA! Oh my fuck!

camaro68ss's picture

hahahaha, im cashing in my gold and silver to buy those new U.S Treasury  IRA's.

Dr. Venkman's picture

So is the narrative that the Fed will taper the taper due to the risk of an EM collapse? If so, then they admit that they can never taper and they look like even bigger fools. Allowing some real pain is the only way they can stop the taper now, and we are nowhere near there yet. Taper = at least one sacrificial lamb on the way to un-taper. . .which is why I didn't believe they would do it in the first place.

Wait What's picture

Vote Up! 1. Bernanke says "they have monetary policy, too."

Vote Down ! 2. Bernanke says "hot money flows from Japan-US-UK QE are the reason for EM FX volatility."

TheRideNeverEnds's picture

All you had to do is buy the dip, its not hard just buy everything, next year when the dow trades 36,000 maybe take a little money off the table.

 

Till then clear skies and smooth sailing; Yellen is at the helm and shes got this.  

 

Today was a huge bullish engulfing for all indexes, the bottom is in; next stop ES 1900

ebworthen's picture

Love the bonus chart, bet that made Ackman's day.

The equities casino will be defended at all costs, even if it takes Executive Orders to outlaw PM transactions and force savings into Treasury Bonds and Wall Street "investment" houses.

adr's picture

So the durable goods data is horrendous, which requires oil and transportation, and oil and the transports surge higher? Jesus Fucking Christ we are living in opposite world.

In this world does shit enter your ass from the toilet and come out your mouth as food on a plate?

Spungo's picture

Damn, down 8% in one day? They must have released some record high profits or something. Twitter is up another 4% today.

Dingleberry's picture

Bad news=no fed taper=more liquidity straight to Wall & Fraud.

What am I missing?

RaceToTheBottom's picture

Feed the DOW monkey!!!!

His darts will be better.