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Stocks Surge To Best Day Of 2014

Tyler Durden's picture




 

Early volatility around Draghi's lack of easing (and a subsequent surge in EURUSD) gave way to excess exuberance as USDJPY ramped over almost 100 pips (on absolutely no news whatsoever) on the day dragging the S&P 500 25 points higher from the day's lows, back over its 100DMA and back to unchanged to the December taper. Trannies topped the taper (+1.5% on the day) but stocks remain red on the week. All this re-risking ahead of tomorrow's major noise-soaked jobs data... Bonds sold off once again but from 10amET, which coincided with the end of the initial JPY ramp, Treasuries, gold, and the USD all trod water as stocks and JPY pushed on ahead. Systemic cross-asset class correlation surged on the day to well over 0.9. S&P and Dow have best day since Mid-December; Trannies almost best day since October - and all this before tomorrow's crucial weather-impacted jobs report - make sense to anyone? TWTR -24% at $50.

 

The S&P recovers 75% of its Monday dump...

 

The only chart that matters... notice that the initial opening ramp lifted USDJPY perfectly to 102...

 

Trannies were best on the day with the Dow having its best day in almost 2 months... but they all remain lower on the week...

 

The S&P rallied back to unchanged post-Taper

 

Stocks benefitted from a pretty significatng short squeeze at the open (from yesterday's over-zealous shorting)...

 

Gold and Bonds decoupled from equity exuberance soon after the initial JPY ramp faded (and crossed 102)

 

FX was relatively quiet apart from an epic ramp in EUR on Draghi's "no QE discussion" comments and the corresponding JPY crumble...

 

Over all bond yields are up notably on the week with curve steepening... (with yields up 8-10bps from the ADP data miss)...

 

Silver is setting up fro its best week in 6 months... as copper, gold, and oil limp sideways to higher...

 

 

Charts: Bloomberg

Bonus Chart: Intraday Correlation across multiple risk factors (Stocks, bonds, FX carry, credit, and commodities) surged very systemically...

 

Bonus Bonus Chart: Twurmoil...

 

 

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Thu, 02/06/2014 - 17:12 | 4409065 jtz5
jtz5's picture

This is fucking disgusting...

Thu, 02/06/2014 - 17:19 | 4409105 BLOTTO
BLOTTO's picture
Stocks Surge To Best Day Of 2014 - until tomorrow when the jobs report is listed...

 

Thu, 02/06/2014 - 17:22 | 4409128 Callz d Ballz
Callz d Ballz's picture

Today is "good news is good news", tomorrow will be "bad news is good news". 

Thu, 02/06/2014 - 17:38 | 4409187 spastic_colon
spastic_colon's picture

lets all pretend that we dont know tomorrows employment number will be a huge miss on the headline and a huge drop in the UE rate which will be the perfect fuel for moar!

 

It will satisfy EVERYONE!

Thu, 02/06/2014 - 18:48 | 4409446 Tall Tom
Tall Tom's picture

It is so digustingly funny.

 

Look at that second chart. That is so evidential that markets are being manipulated.

 

The S&P 500 is an AVERAGE PRICE in US Dollars for 500 Stawks. The USD/JPY is a chart that is a Ratio of Currency Evaluation. There is pretty much no correlation that the price of any given single Stock Price will line up with that Currency Ratio.

 

Even the price of one stock WITHIN THE AVERAGE lining up with the Average Price of all of the Stocks within the AVERAGE for any extended period of time would be a Statistically unlikely as the Prices fluctuate during the trading session.

 

Yet the correlation of the average of 500 Different Stock prices have an extremely high correlation with the Currency Price Ratio of the USD/JPY? 

 

What are the odds that it is a Chance Event? And as I have written before...If it not by chance then it is by design. Thus somebody, or a Group, has DESIGNED THIS TO HAPPEN.

 

It has been manipulated.

 

It is absolutely RIDICULOUS to believe that Markets are...actually Markets...when you see crap like this.

 

This should be a direct indicator that valuations are not set by Free Market Forces but are set by something much more Powerful and that Free Markets just do not exist.

 

It is so disgustingly laughable when they present you with something like this. Most involved buy the munbers.

 

THERE IS NOTHING REAL IN THE LIES. NOTHING.

Thu, 02/06/2014 - 19:20 | 4409625 disabledvet
disabledvet's picture

i wouldn't say "manipulated" so much as it appears to be a contrivance of some sort....based upon "feelings" or expectations of "human-ness." (for example "forgetting something.)

and yes...there is all too much that is real about "feelings" and "forgetfullness" (among other things) since we do live in the information age...and where isn't there a touch screen, an "integrated circuit" or some type of "black box" that needs "divining."

the question that needs answering however is ABSOLUTELY "is bad news good news?" this was how the 90's worked...bad news was always good news (until the Nasdaq hit 5500 where it had an intra-day swing of over 20%. FOR THE ENTIRE MARKET!)

obviously folks want to post Twitter...but a far more interesting post would be some of the names that have gone up...and down...40% in a single after hours trading session.

these are equities that are trading like options....which is a nice way of saying "ZERO LIQUIDITY."

At some point there has to be money (physical cash) in order for a trade to exist.
The only other option is Bershire Hathaway were a single stock will set you back a couple hundred grand...and that's gonna be REALLY hard to emulate.

Thu, 02/06/2014 - 17:21 | 4409116 HamRove
HamRove's picture

How long do dead cat bounces last?

Thu, 02/06/2014 - 17:22 | 4409126 Frank N. Beans
Frank N. Beans's picture

apparently you get 9 bounces

Thu, 02/06/2014 - 19:38 | 4409712 Bizaro World
Bizaro World's picture

Minimum 5 yrs.....and counting....

Thu, 02/06/2014 - 17:25 | 4409132 NOTaREALmerican
NOTaREALmerican's picture

Re: How long do dead cat bounces last?

Depends...  If it's Schrodinger's cat how do you know it's really dead?

Thu, 02/06/2014 - 18:09 | 4409325 Tall Tom
Tall Tom's picture

It is like the ACA Bill. As it was with the ACA, to find out what is in it Congress had to pass it, the only way to find out if the Cat is alive or dead is to have the fateful look in the box.

 

If the Cat is alive then you may want to spill the vial of Prussic Acid and breathe deeply. Then you will not need worry about it any longer.

 

The Cat is dead. Long live Schrodinger's Cat.

 

This is a Schrodinger's Cat Market after all.

 

I love Doom Porn. It is just so laughable...so laughable...so laughable.

Thu, 02/06/2014 - 17:26 | 4409136 Winston Churchill
Winston Churchill's picture

Not long , but this one may be a dead sheep bounce.

Logic says no one will want to be holding into the weekend , but mania

trumps logic.

Thu, 02/06/2014 - 17:29 | 4409150 HamRove
HamRove's picture

F-ing Cats...Stop bouncing and DIE ALREADY...

Thu, 02/06/2014 - 17:31 | 4409174 glossolalia
glossolalia's picture

Don't complain, make money.

Thu, 02/06/2014 - 17:14 | 4409076 Callz d Ballz
Thu, 02/06/2014 - 17:15 | 4409079 B.J. Worthy
B.J. Worthy's picture

VIX beaten like a red-headed stepchild.

Thu, 02/06/2014 - 17:13 | 4409080 XenoFrog
XenoFrog's picture

This a machine. A machine for pigs.

Thu, 02/06/2014 - 17:30 | 4409166 czarangelus
czarangelus's picture

I feel like I'm forgetting something. ;-)

Thu, 02/06/2014 - 17:14 | 4409087 RebelDevil
RebelDevil's picture

This is the last and final rally before the bottom drops out! GET READY!
http://www.zerohedge.com/news/2014-01-13/just-three-charts

Thu, 02/06/2014 - 17:17 | 4409102 SMG
SMG's picture

Only been waiting for like 4 years, hope you're right.

Thu, 02/06/2014 - 17:19 | 4409108 NOTaREALmerican
NOTaREALmerican's picture

Publishing the chart allows the evil people who control things to adjust, those charts are no longer valid reasons.  

We need more charts.

Thu, 02/06/2014 - 17:33 | 4409175 RebelDevil
RebelDevil's picture

Bullshit. - There are correlations, even if they're nominal.
Look at the DJIA chart of 1929, and compare it today. - the short term bottom occured around 15300-15500, JUST AS THE CHART PREDICTED. An analogy I can use here is that we just went off the ramp that was sitting on the edge of the cliff. (Look out below!)

Combined with the fact that the FED is insistent that they will NOT save the day with QE5 until after the fact, as they continue on their taper plan.

Thu, 02/06/2014 - 17:50 | 4409227 NOTaREALmerican
NOTaREALmerican's picture

Re:  Look at the DJIA chart of 1929, and compare it today

Sure, but don't you think Janet and Obama meet every night and review ZH and see the same charts we do?

They have the levers of power.  They see your post just now on 1929 and adjust the levers so it doesn't happen as expected.   Sure, it will all collapse, but if you keep posting information they can use, THEY will use it to prevent the collapse.

Basically: YOU are the reason it doesn't collaspe.

Thu, 02/06/2014 - 18:19 | 4409294 RebelDevil
RebelDevil's picture

I get your point, .. and you would expect the FED (or the BoJ even) to step in and save the day!
That does not seem likely now that they've repeatively shown that less QE is the plan by actually tapering twice when the markets cried in pain.

More likely than not, the bankers and polticians want this to happen so that a) interest rates go lower in order to fund higher deficits, and b) they have the ability to take profit now, and buy cheap for the new bubble that Yellen will blow soon with new QE (which is inevitable, but likely to be post-crash).

Thu, 02/06/2014 - 17:21 | 4409122 Frank N. Beans
Frank N. Beans's picture

oh good, so I was actually just a couple days early putting on my shorts (and getting a new one ripped out). 

 

 

Thu, 02/06/2014 - 18:32 | 4409428 Renfield
Renfield's picture

<<This is the last and final rally before the bottom drops out! GET READY!>>

RD, could have sworn you predicted this upswing a couple of days ago in a comment. You said (if it was you), a brief upswing. Ride it up then short at will when the CBs increase QE.

I marked it up-arrow b/c I thought it was the best prediction I'd read at the time. (Meaning only that I agreed the most with it.)

Thu, 02/06/2014 - 17:19 | 4409103 NOTaREALmerican
NOTaREALmerican's picture

Come on,  we had a few good doomer days with hope that the rightous sword of libertarian justice would slay all the socialists and we'd finally have a society where the honest and good people win.  

Thu, 02/06/2014 - 17:24 | 4409129 mayhem_korner
mayhem_korner's picture

 

 

If it were ideological, I wouldn't hold my breath.  It's the requirement for the mathematics to eventually be reconciled that keeps me watching...

Thu, 02/06/2014 - 17:25 | 4409143 NOTaREALmerican
NOTaREALmerican's picture

Those with political OCD are more enthusiastic fans.  They definitely cheer louder.

Thu, 02/06/2014 - 18:10 | 4409336 SAT 800
SAT 800's picture

Me too. Unless the Devil can repeal Mathematics; there's going to be a reversion.

Thu, 02/06/2014 - 19:24 | 4409647 disabledvet
disabledvet's picture

key term "going to be."

the market only works in the present tense...not in "going to be."

Thu, 02/06/2014 - 17:19 | 4409110 ghostzapper
ghostzapper's picture

It's comical but yet I've seen it so many times.  K Henry must have been hammering that keyboard to get that close above my 1772-1773 key level.  Look at that little zip in the last couple of minutes!

Certainly won't be shocked if we see the ole rip pre-open for cash and an ole fashioned ramp it and camp it day Friday.   

Thu, 02/06/2014 - 17:22 | 4409117 mayhem_korner
mayhem_korner's picture

 

 

When this thing finally collapses, it's going to be like Pompeii.

(back to my scotch...)

Thu, 02/06/2014 - 17:26 | 4409145 wmbz
wmbz's picture

No worries, DOW 30,000 soon come...

Thu, 02/06/2014 - 17:28 | 4409156 Gringo Viejo
Gringo Viejo's picture

Chumps ain't bled dry yet. Give it time.

Thu, 02/06/2014 - 17:31 | 4409169 Aknownymouse
Aknownymouse's picture

" all this before tomorrow's crucial weather-impacted jobs report - make sense to anyone?"

Well of course it does. Seems like the employment numbers were faxed out to the paying BLS clients everywhere.

Thu, 02/06/2014 - 17:37 | 4409185 TheRideNeverEnds
TheRideNeverEnds's picture

next stop 1900!

Thu, 02/06/2014 - 17:55 | 4409244 Never One Roach
Never One Roach's picture

Gee.

Thu, 02/06/2014 - 18:09 | 4409331 SAT 800
SAT 800's picture

Yep, everythings fixed now. We can go back to sleep. Thank goodness, I was getting worried there for a minute.

Thu, 02/06/2014 - 18:17 | 4409367 falak pema
falak pema's picture

Apparently now that a woman is running the FED, Draghi has been anointed HEAD MAN of the CB cabal.

All in the market bow to him not to Janet who doesn't yell but squeaks. 

Thu, 02/06/2014 - 19:10 | 4409601 Iam Yue2
Iam Yue2's picture

The market bounced because of extreme pessimism;

"The past few days have been all about records at CBOE. There was record SPX volume and record VIX option volume in January. Just when I thought we had all the records covered VIX option volume topped two million contracts changing hands today. It looks like the exact number is 2,382,752 contracts which beat the old record, set on October 8th last year by just over 600,000. I am not one to use headline type phrases, but today’s volume shattered the old record. Now here is the mind boggling number, VIX call volume was 1,850,206 and put volume was 532,546. The call volume alone would have set a record even if a single put never traded."

Thu, 02/06/2014 - 19:26 | 4409659 disabledvet
disabledvet's picture

"there is no after hours trading in the options market."

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