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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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Tue, 01/28/2014 - 17:12 | 4376815 One And Only
One And Only's picture

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

'murica

Tue, 01/28/2014 - 17:14 | 4376828 Slave
Slave's picture

FUCK YOU YELLEN!!!!

Tue, 01/28/2014 - 18:01 | 4377000 chumbawamba
chumbawamba's picture

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

I AM CHUMBAWAMBA!!!

Tue, 01/28/2014 - 18:16 | 4377044 Frozen IcQb
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!

Tue, 01/28/2014 - 18:17 | 4377073 Gankfest
Gankfest's picture

To Infinity and Beyond!

Tue, 01/28/2014 - 17:14 | 4376835 stant
stant's picture

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

Tue, 01/28/2014 - 17:24 | 4376863 The_Ungrateful_Yid
The_Ungrateful_Yid's picture

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

Tue, 01/28/2014 - 17:44 | 4376927 aVileRat
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.

Mon, 02/10/2014 - 05:30 | 4377074 Wait What
Wait What's picture

+1

Tue, 01/28/2014 - 17:11 | 4376816 kliguy38
kliguy38's picture

need some green for tonite's speech

Tue, 01/28/2014 - 17:14 | 4376827 eclectic syncretist
eclectic syncretist's picture

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

Tue, 01/28/2014 - 17:18 | 4376846 One And Only
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.

Tue, 01/28/2014 - 17:57 | 4376982 B.J. Worthy
B.J. Worthy's picture

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

Tue, 01/28/2014 - 17:14 | 4376823 Stoploss
Stoploss's picture

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

Tue, 01/28/2014 - 17:18 | 4376848 SheepDog-One
SheepDog-One's picture

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

Tue, 01/28/2014 - 17:30 | 4376878 camaro68ss
camaro68ss's picture

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

Tue, 01/28/2014 - 17:25 | 4376865 Dr. Venkman
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.

Tue, 01/28/2014 - 19:46 | 4377400 Wait What
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."

Tue, 01/28/2014 - 18:05 | 4376874 TheRideNeverEnds
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

Tue, 01/28/2014 - 17:33 | 4376890 ebworthen
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.

Tue, 01/28/2014 - 17:39 | 4376906 adr
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?

Tue, 01/28/2014 - 17:45 | 4376935 Spungo
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.

Tue, 01/28/2014 - 17:57 | 4376985 Dingleberry
Dingleberry's picture

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

What am I missing?

Tue, 01/28/2014 - 18:29 | 4377104 RaceToTheBottom
RaceToTheBottom's picture

Feed the DOW monkey!!!!

His darts will be better.

Do NOT follow this link or you will be banned from the site!