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Wondering Why Stocks Are Soaring?

Tyler Durden's picture


Draghi did nothing; data provided no impetus; and earnings have destroyed many "narratives". So why are stocks soaring? Simple: in lieu of the ECB actually doing anything, it appears that the head of the ECB just announced the BOJ is launching more QE.

Behold the JPY carry trade...


Stocks caught up to Treasury's weakness yesterday...


Of course - there's always credit for some sanity...


Incidentally, the USDJPY is now known as the Patek Philippe trade (aka Swiss Watch), as per our tweet just before the start of the ramp:

One can't wait to learn just how many "investment theses" the BOJ submits to the FX manipulators in the "Bandits Club", the "Cartel", and other such illegal chatrooms each and every morning once the so called investigation into globalcurrency manipulation finally reveals all the dirt behind the scenes.


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Thu, 02/06/2014 - 11:02 | 4407654 Terp
Terp's picture

Fuck you Draghi

Thu, 02/06/2014 - 11:05 | 4407668 Divided States ...
Divided States of America's picture

I guess another FUCK-YOU-shima event is BULLISH for US equities.

Thu, 02/06/2014 - 11:15 | 4407698 ArkansasAngie
ArkansasAngie's picture

This will carry on.  And ... they don't care what you think or say.


Thu, 02/06/2014 - 11:38 | 4407773 Divided States ...
Divided States of America's picture

One day when the JPY is done with and Abe is disposed off like a used whore, the SPX will be tracking something else, I speculate it will be Gold's turn.

Thu, 02/06/2014 - 11:43 | 4407798 fonestar
fonestar's picture

Stawks are soaring because they're stawks and that's what stawks do!  Wall St. has found the magical elixir.  They don't need workers, employment, profits, earnings, reports, news... nothing!


Thu, 02/06/2014 - 12:10 | 4407896 Spastica Rex
Spastica Rex's picture


The techno-human meta-organism no longer needs at least 80% of its existing tissue. It will be shed.

Thu, 02/06/2014 - 12:51 | 4408041 WarriorClass
WarriorClass's picture

All those new immigrants driving the economy!


Thu, 02/06/2014 - 13:15 | 4408101 jomama
jomama's picture

Succinct and profound, as always.

Thu, 02/06/2014 - 13:16 | 4408103 whoisjohngalt11
whoisjohngalt11's picture



an oldie but goodie ,When have you seen this testosterone effect in action?

During the dot-com bubble, people who were working with me displayed all the classic symptoms of mania: They were euphoric, delusional, and overconfident; they couldn’t put a coherent sentence together; and they were unusually horny, judging from the number of lewd comments and the amount of porn that was showing up on their computer screens. No one had actually looked medically at what happened to traders when they were caught up in a bubble. But they were changing. It was like they were on drugs.

Thu, 02/06/2014 - 12:33 | 4407968 graneros
graneros's picture

This can and will go on for years to come.  Everybody keeps talking about TSHTF.  I've got news for everybody, it already did. Years ago TSHTF and it has been spewing around us for a long time now.  It's all about the 1%.  They are insulated from all the shit spewing around them whilst the rest of us live in it.  All those fake statistics? They ain't fake for the elite.  They know exactly what the numbers mean both in our world and theirs.  This simply is not going to stop until we stop it.  Every swinging dick here knows what that means.  Very tough decision.  Our historical forefathers knew what it meant and took up the gauntlet.  Throwing caution, their livliehoods, their property, their lives and the lives of their families to the wind they did what was necessary. Until the consensus among those of us not in the elite (or in their orbit you know cops, unions, politicians, the military, Hollywood, the 4th estate, govt workers, bankers, et al) changes, what you see is what you will continue to get.  It is really that simple.

Thu, 02/06/2014 - 12:59 | 4408065 Ragnar24
Ragnar24's picture

Agreed. I'm willing to throw down.  "It does not take a majority to prevail, but rather an irate, tireless minority keen on setting brushfires of freedom in the minds of men."

Let's rediscover the manhood that Sam exemplified. 

Thu, 02/06/2014 - 13:36 | 4408176 graneros
graneros's picture

You my friend you are so in the minority it is sad.  I do admire your courage though.  Particularly in this day and age when everything one says or does is on the record.  The sad truth is as bad as things are economically and socially they just aren't bad enough for people to take that risk yet.  Yes we have Obamavilles (Hoovervilles) popping up and families moving in with one another to make ends meet but the fact of the matter is people are not hungry and cold enough.  There is still a large physical comfort umbrella we are all living under.  Yes I know folks like you, me, and most ZH'ers feel the mental anguish on a daily basis but we feel it with a roof over our heads, a fire in the hearth, (most of you have central heating but you get my meaning) and most importantly food in our bellies.  Nothing will change until that changes and methinks TPTB understand that all too well.  Although it takes a good chunk out of their bottom line, ensuring the masses have the basics required for life is a good investment.  That covers the bread part then just to show what great guys and gals they are they even throw in "Dancing With Stars" and the NFL to provide the circuses we so crave.  Best of luck and Godspeed to you Ragnar.  I hope you have a seaworthy battleship.

Thu, 02/06/2014 - 16:42 | 4408939 failure to perform
failure to perform's picture

Thank you, you are correct.

Thu, 02/06/2014 - 18:01 | 4409281 Ragnar24
Ragnar24's picture
If ye love wealth better than liberty, the tranquility of servitude better than the animating contest of freedom, go home from us in peace. We ask not your counsels or arms. Crouch down and lick the hands which feed you. May your chains set lightly upon you, and may posterity forget that ye were our countrymen.
Thu, 02/06/2014 - 12:01 | 4407863 The Dunce
The Dunce's picture

The Japanese are printing more money?  What a shocker.  This market isn't going to collapse.  It'll live forever like a gut-shot bear.  Nothing to see here.  Move along.

Thu, 02/06/2014 - 16:20 | 4408866 slaughterer
slaughterer's picture

New ATH on the ES in two weeks.  Just to kill some more shorts.  Before the Debt Ceiling idiocy, which is already resolved anyhow.

Thu, 02/06/2014 - 11:01 | 4407655 Stoploss
Stoploss's picture

Like clockwork.

Thu, 02/06/2014 - 11:11 | 4407689 Theta_Burn
Theta_Burn's picture

And everyone was worried

3 days now and not a peep about EM's

And AGAIN the dip is bought....

Thu, 02/06/2014 - 11:30 | 4407745 Bangin7GramRocks
Bangin7GramRocks's picture

I thought the world was ending again? Stocks were collapsing? Riots were to begin shortly? Ha! You all need to finally understand that the Fed rules all because they can invent trillions instantaneously. I'm not happy that the entire financial system of the world is a sham, but that is the case.

Thu, 02/06/2014 - 12:04 | 4407878 Spastica Rex
Spastica Rex's picture

All one has to do is look at a 5 year graph of the Dow (or S&P, etc.) to temper one's enthusiastic anticipation of a reckoning.

It will happen one day, or not. If it doesn't, the "economy" will have lost all meaning for the common man.

Thu, 02/06/2014 - 14:20 | 4408378 Boxed Merlot
Boxed Merlot's picture

So why are stocks soaring?...


Like clockwork...

I figured it was about time for Calpers / Calstrs and other government pension fund "contributions" entering the market looking for a place to rest.  Their insatiable appetite continues unabated.  We'll not return to normalcy until this monster is neutered.  Saw this glimmer of hope earlier.

Thu, 02/06/2014 - 11:03 | 4407658 InjectTheVenom
InjectTheVenom's picture

You didn't tweet that !

Thu, 02/06/2014 - 11:02 | 4407661 HRamos_3
HRamos_3's picture


Thu, 02/06/2014 - 12:06 | 4407890 madcows
madcows's picture

Shut the Fuck Up, and Ben the Fuck Dover.  Not so pleased to meet you, Ben

Thu, 02/06/2014 - 11:04 | 4407662 fonzannoon
fonzannoon's picture

BOJ denial coming up....

this is retarded.

Thu, 02/06/2014 - 11:03 | 4407666 The man with po...
The man with pointy horns's picture

But at least it's given us 5+ years of entertainment.

Thu, 02/06/2014 - 12:49 | 4408032 Slave
Slave's picture

I'm thinking you're gonna get a few more.

Thu, 02/06/2014 - 11:04 | 4407664 Clint Liquor
Clint Liquor's picture

If there ever was a chart that screamed 'get out of the market', that is it.

Thu, 02/06/2014 - 11:04 | 4407665 Music101
Music101's picture

Temporary oversold bounce -- meaningless. Trend looks like it's changing to DOWN. WORLD OF DEBT!! See Video Below:

Thu, 02/06/2014 - 11:03 | 4407667 replaceme
replaceme's picture

Domo arigato.

Thu, 02/06/2014 - 11:05 | 4407670 LawsofPhysics
LawsofPhysics's picture

Let's hope this goes to 400 or higher, sorry Abe.  But just think of how dead, er I mean competitive the Japanese will be when the USD/JPY hits 400.  Paging Dr. Krugman...

Thu, 02/06/2014 - 11:06 | 4407671 Dr. Engali
Dr. Engali's picture

It's your turn to print, no it's your turn, no it's your turn, no it's your turn..........

Thu, 02/06/2014 - 11:07 | 4407680 fonzannoon
fonzannoon's picture

exactly....3 fuckin stooges.

Thu, 02/06/2014 - 11:23 | 4407724 B.J. Worthy
B.J. Worthy's picture

Long ink cartridges.

Thu, 02/06/2014 - 11:28 | 4407735 TeamDepends
TeamDepends's picture

Dagnabbit, our printer just pitched a rod.  Could you cover this shift for us?

Thu, 02/06/2014 - 11:53 | 4407834 Pure Evil
Pure Evil's picture

Well, what do you OddJobs expect?


Yellen's pinchin' a taper,

Draghi's got a Merkel cork up his butt,

So the only one left to print like explosive diarrhea was Abe Vigoda.

Thu, 02/06/2014 - 11:04 | 4407673 brusty4
brusty4's picture

...or you could see in the charts we were oversold and due for a gain... 

Thu, 02/06/2014 - 11:57 | 4407849 kralizec
kralizec's picture

Heh, humor or was worth a hearty chuckle!

Thu, 02/06/2014 - 11:06 | 4407675 Seasmoke
Seasmoke's picture

And of course this is bad news for Gold



Thu, 02/06/2014 - 11:09 | 4407682 thismarketisrigged
thismarketisrigged's picture

i really hope draghi fucking burns.


this guy is such a fucking douchebag, always talking out of his fucking ass to pump up markets with nothing to back up his claims.


he is no better than bernanke

Thu, 02/06/2014 - 11:21 | 4407695 Theta_Burn
Theta_Burn's picture


Time to send Rocky to kick his ass again?..


Thu, 02/06/2014 - 11:10 | 4407686 CheapBastard
CheapBastard's picture

Some stocks are "Twittering"......

Thu, 02/06/2014 - 11:11 | 4407688 buzzsaw99
buzzsaw99's picture


Thu, 02/06/2014 - 11:12 | 4407690 Smegley Wanxalot
Smegley Wanxalot's picture

And when will the head of the Zimbabwe Central Bank be announcing more QE from the Fed? (or do they need to?)

Thu, 02/06/2014 - 11:11 | 4407693 Trucker Glock
Trucker Glock's picture

Does this mean emerging markets are fixed?  Oh, everything is FIXED.  This game sucks.

Thu, 02/06/2014 - 11:15 | 4407699 Sudden Debt
Sudden Debt's picture

Reminds me of my childhood when I played monopoly with my brother.

Just a little tweak on the rules and I kept winning every game where the price was his pocketmoney :)

Thu, 02/06/2014 - 11:13 | 4407696 Sudden Debt
Sudden Debt's picture

Silver's cardiogramm isn't looking healthy right now... I hope it's not going into chock...

Thu, 02/06/2014 - 11:57 | 4407704 Kaiser Sousa
Kaiser Sousa's picture

same bullshit, different, i meant EVERY fucking day for the last 5 years....


show me another market that trades the same way for days, months, years the same fucking way at the same times and i'll show you a rigged fucking market...

Thu, 02/06/2014 - 11:58 | 4407854 SAT 800
SAT 800's picture

It's been alright for the last few thousand years, I think it'll survive Feb. 6th.

Thu, 02/06/2014 - 11:14 | 4407701 lordylord
lordylord's picture

Stocks are soaring because Obama got us out of a recession caused by Bush.  The only threat to this recovery are people calling for smaller government, free markets, and sound money. Anyone saying otherwise is a teabagger and a terrorist.   

Thu, 02/06/2014 - 11:16 | 4407709 Theta_Burn
Theta_Burn's picture

Thorozine time^

Thu, 02/06/2014 - 11:20 | 4407713 lordylord
lordylord's picture

I suppose sarcasm isn't easily comminucated via the written word.  Sadly, we live in a country where my comment is widely believed as truth.

Thu, 02/06/2014 - 11:20 | 4407718 Singelguy
Singelguy's picture

You are right! Just ask the FSA.

Thu, 02/06/2014 - 11:17 | 4407711 Singelguy
Singelguy's picture

You forgot to add "/sarc". Fixed it for you.

Thu, 02/06/2014 - 11:20 | 4407719 lordylord
lordylord's picture

Thanks.  You would think that the comment was so over the top, one would have no other choice than to believe it was sarcasm.  I forgot that my comment is the prevailing opinion of the people.

Thu, 02/06/2014 - 11:55 | 4407847 Pure Evil
Pure Evil's picture

Just accept the fact that there are some Obama butt lovers trolling these boards.

Thu, 02/06/2014 - 12:52 | 4408038 Slave
Slave's picture

What causes such people to love Obama? He hasn't helped the poor. He's only helped the rich. He has barely done anything for left wing social issues, etc. They're just still caught up in the red team vs blue team bullshit. Quite pathetic really.

Thu, 02/06/2014 - 13:12 | 4408097 lordylord
lordylord's picture

Good question.  I never thought a president (in my lifetime) could be worse than Bush.  I was wrong.  Now I'm just waiting for who the people vote for next.  I'm sure he or she (please oh God not Hillary) will be worse than Obama. 

Thu, 02/06/2014 - 13:18 | 4408111 tip e. canoe
tip e. canoe's picture

*cough* manipulated white guilt *cough*

Thu, 02/06/2014 - 11:24 | 4407727 crash commando
crash commando's picture

Forgot the /sarc tag.

Thu, 02/06/2014 - 11:29 | 4407737 lordylord
lordylord's picture

Do people hate sarcasm on this site or do they think my comment is sincere?

Thu, 02/06/2014 - 11:42 | 4407783 Dr. Engali
Dr. Engali's picture

Never mind the junks. Good sarcasm always catches the suckers off guard.

Thu, 02/06/2014 - 11:14 | 4407705 Calculus99
Calculus99's picture

US stocks should realise that the weaker the Yen goes the MORE deflation Japan will export to the world, including the US.

Thu, 02/06/2014 - 11:20 | 4407716 FieldingMellish
FieldingMellish's picture

Look at the dollar. ECB announcement (no QE) was going to pulverise the dollar. Gold/silver were about to break out. In come the paper sellers. BOOM!

Thu, 02/06/2014 - 11:23 | 4407723 spanish inquisition
spanish inquisition's picture

There is no FX manipulation, you can just ask a couple of my friends that use to work at JP....Dead? Both of them?.... Suicides? They must of been really distraught, forgetting about suicides and payouts of life insurance.

Thu, 02/06/2014 - 12:03 | 4407869 LawsofPhysics
LawsofPhysics's picture

I have heard that JPM has a crack suicide squad.  Good for them.

Thu, 02/06/2014 - 11:24 | 4407729 Wait What
Wait What's picture

shock and awe, man! shock and awe! everyone knows they can't let this bubble burst! they will always step in when it looks like things are on the cusp of getting out of control (to the downside only, of course). those are your real BTFD moments.

Thu, 02/06/2014 - 11:26 | 4407730 Oh regional Indian
Oh regional Indian's picture

Amurika can whip her Japanese keep anytime. Slap slap....up up.

Incidentally, for those who have not experienced Japanese business firsthand (I have, for over a decade), any rate hike is a death knell. Most businesses run on .25% loans to infinity.

The land of the setting Yen.

Built on free energy...


Thu, 02/06/2014 - 11:34 | 4407756 viahj
viahj's picture

yeah, they have so much free energy that they're dumping the excess into the Pacific and atmosphere. 

Thu, 02/06/2014 - 11:49 | 4407818 Oh regional Indian
Oh regional Indian's picture

Dude, I said BUILT on free (nuclear, amerikka supplied/financed) energy.

Then DESTROYED by it, lack of it, Fukushima etc.

Dont skim, dive. This is not a time for lightweights.


Thu, 02/06/2014 - 11:30 | 4407751 medium giraffe
medium giraffe's picture

Wait....   so risk on, or off?    


WTF counts as risk these days, anyone know?  I would have thought shrinking revenues, soaring unemployment, depressed wages, final frontier bond yields, currency devaluation, derivative exposure etc etc would count as risk, but my definition must be a little off.  Does it help if I turn the monitor upside down?  Maybe if I give it a shake...

Thu, 02/06/2014 - 11:35 | 4407761 Iam Yue2
Iam Yue2's picture

Swiss Watch Exports 2013;

Hong Kong recorded negative results for two-thirds of the year and ended the year with a decline of 5.6%. The United States saw their rate of growth slow, and subsequently stabilise in the second part of the year, in line with the global average. After a lacklustre 2012, China recorded the worst result across the board (-12.5%). It posted some significant downturns, particularly in the first half-year. Growth in Japan continued at a strong pace; up +5.7% on the year. The Japanese, despite the weak Yen continue to buy luxury brands, such as, Patek Philippe, whilst the Greater China performance largely reflects the impact of the government's anti-extravagance measures.

Emerging Market Exposure

Shorts on Sanofi were rewarded when the company announced;

"In the fourth quarter of 2013, Sanofi generated sales of €8,457 million, a decrease of 0.8% on a reported basis. Exchange rate movements had a negative effect of 7.3 percentage points largely due to the depreciation of the Japanese Yen, U.S. Dollar, Brazilian Real, Venezuelan Bolivar, Australian Dollar and Russian Ruble against the Euro.
Full-year 2013 sales were €32,951 million, a decrease of 5.7% on a reported basis. Exchange rate movements had an unfavorable effect of 5.2 percentage points mainly driven by the depreciation of the Japanese Yen, U.S. Dollar, Brazilian Real, Venezuelan Bolivar, Australian dollar, South African Rand and Russian Ruble against the Euro."

So much for hedging......".

Thu, 02/06/2014 - 11:38 | 4407767 B.J. Worthy
B.J. Worthy's picture

Just like Philip Seymour Hoffman... one more hit.

Thu, 02/06/2014 - 11:44 | 4407805 Caracalla
Caracalla's picture

Show of hands here please!  Who BTFD?

Thu, 02/06/2014 - 11:56 | 4407827 The_Ungrateful_Yid
The_Ungrateful_Yid's picture

I took a loss not gonna lie, but did buy some stocks yesterday, today it looks like a payoff.

Thu, 02/06/2014 - 11:46 | 4407808 thismarketisrigged
thismarketisrigged's picture

of course yesterday when stocks were tanking they were sticksaved, but today they just keep going higher with no one there to stop it.


what a fucking farce

Thu, 02/06/2014 - 11:47 | 4407820 Hindenburg...Oh Man
Hindenburg...Oh Man's picture

typical day for gold.  morning pop to 1270, then slow and steady retracement to 1250. wash rinse and repeat.

Thu, 02/06/2014 - 11:50 | 4407831 The_Ungrateful_Yid
The_Ungrateful_Yid's picture

Gold is going no where until stocks get hit with real gravity, forget the price of gold until then. Hold phyzz it will be the gamechanger in the end as we all know.

Thu, 02/06/2014 - 11:49 | 4407821 BullyBearish
BullyBearish's picture

We must, we must, we must protect the system...if there is even a small chance to succeed we're willing to take the risk in order to preserve the status quo...we indeed ARE masters of the universe and all others are collateral damage...just passing through

Thu, 02/06/2014 - 11:57 | 4407848 fijisailor
fijisailor's picture

Tylers you guys really make me laugh.  This incredible farce of a manipulated market.  So good to see ZH here keeping us anchored in reality.

Thu, 02/06/2014 - 12:05 | 4407882 combatsnoopy
combatsnoopy's picture

So what is Mrs. Wantanabi buying today?  AUD?  HKD?  USD?

Thu, 02/06/2014 - 12:09 | 4407902 Hindenburg...Oh Man
Hindenburg...Oh Man's picture

I'm guessing we'll see a goldilocks employment number in order to keep things trucking along upward. 

Thu, 02/06/2014 - 12:42 | 4408016 Silver Sativa
Silver Sativa's picture

"[T]he ECB just announced the BOJ is launching more QE."



Thu, 02/06/2014 - 12:57 | 4408054 jomama
jomama's picture

not predictable or anything.

Thu, 02/06/2014 - 13:10 | 4408092 maxouttexas
maxouttexas's picture

It was very predicable if you did not want to cut rates and were worried that desision would drop the market one would weaken the Yen.

Thu, 02/06/2014 - 14:26 | 4408409 Herdee
Herdee's picture

Financial Sense(applying common sense to the markets.It's Jim Puplava's site

Thu, 02/06/2014 - 14:44 | 4408491 BlackBoxFund
BlackBoxFund's picture

Do the Japanese BUY GOLD or just porno and smart phones   When you/they know your currency is going DOWN   Anyone with money would BUY Gold and Silver  I guess their Mass Propaganda Media has complete control of their investment actions  I must be a hari kari offense to not buy JGBs  They have enough savings assets to take the Gold price to $10,000 per ounce  I must do some study tonight on the internet   But anyone out there with any real knowledge your insights are appreciated

Thu, 02/06/2014 - 15:56 | 4408797 thefirstabomb
thefirstabomb's picture
With dissappointing trade data, I wonder where these people would think we would be without our energy growth 

Thu, 02/06/2014 - 16:15 | 4408858 spud01
spud01's picture

The one and ONLY answer to the debt problem is to declare it null and void because of FRAUD!  It is fraud because it is mathematically impossible to repay !   It can not be repaid because the interest is never created on the loan and that is fraud !   And fraud voids all !   If we don’t void all out of thin air debt the bankers will own almost EVERYTHING !    And we will be homeless slaves !  They have a license to counterfeit !   Can I counterfeit the money to repay the loan ?  Why not ?   If we even attempt to repay a impossible debt (the national debt) all we do is show our ignorance !   The way to fix this mess is so simple a 3rd grader can figure it out !   We void the fraudulent debt!  and everyone keeps ALL the items they have so called debt on !   And then we start to use a debt free currency and / or gold and silver !  And then we will have a robust economy like never before — OR WE LET THE BANKERS STEAL EVERYTHING !
  I was in about the third grade when the news was talking about the national debt and I asked my dad who do we owe money to and who could possibly be richer than the United States?  and where did they get the money?  And then my dad took a gulp off his beer and said we owe it to our self !   I said that’s the dumbest thing I ever heard of !  that’s like me borrowing from my right pocket and setting fire to the interest and putting the rest in my left pocket !  This was about 1972 !  But Dad was wrong!  We owe it to international Bankers running the biggest Ponzi scheme on earth called The Federal reserve system!  And yes it really is this simple  !  The bankers have a shoe in on ALL loans they make !  All they have to do is stop lending and then start foreclosing on ALL debts!-meaning they now own everything that has a debt by having a license to counterfeit !  So we 1 keep getting fleeced by continuing to pay this fraudulent scheme !  OR 2 we declare ALL out of thin air debt NULL AND VOID because of FRAUD !   And we ALL keep everything we have so called debt on!   MOST people don't get this part Every car, boat, house, machine, tool, farm,ect.  has already been paid for by the fraudulent paper!   So no one looses !   WE sure as hell cant give it to the banksters!   (let them steal it)   AND IT DOESENT MATTER IF YOU WANT TO  REDUCE THE DEBT 90% ITS STILL UNPAYABLE!  So when we void the FRAUD This will be the ultimate FRESH start for everyone !   Share this if you want THE solution to the WORLDS problems!   If not everything will continue to get worse until we have HONEST DEBT FREE MONEY /and GOLD AND SILVER !  And there is plenty of gold and silver!  just Divide the paper money (FRN) by the gold /silver and you have the value of them!  NO MATTER WHAT IT COMES TO per OZ ! Then we would be happy to work for SAY A ONE OZ. SILVER COIN A day ! Because NOW REAL MONEY will buy what  $100 did before the reset!   THINK ABOUT IT!   This is what Scripture calls the jubilee !

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