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Stocks Fading As Hilsenrath Kills Hope Taper To Taper, EMs Currencies Sliding

Tyler Durden's picture


It was all going so well. It appeared the "market" had decided that this was not weather-related (as we showed) but real weakness and that real weakness can mean only one thing - a fickle Fed re-primes the pump by un-tapering the taper. However, as we noted last night, it is Jon Hilsenrath of the Wall Street Journal that creates the "common knowledge" upon which we should act. The bounce in stocks was evidently hope of the un-taper for as Hilsy noted in a Q&A that the "Fed is likely to stick to its course on rates and bond-buying in the wake of the mixed jobs report," stocks, USDJPY, and Emerging Market FX started to fade.


Bonds never bought the un-taper by the look of it...


And EM FX started to fold pretty quickly...


as, of course, JPY is in charge...



Charts: Bloomberg


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Fri, 02/07/2014 - 11:39 | Link to Comment PR Guy
PR Guy's picture



"The project" is starting to fail.

This is what happens when big projects go bad. Someone has to take the fall...

Fri, 02/07/2014 - 11:54 | Link to Comment Headbanger
Headbanger's picture

Hillsy just gave us moar proof the Big Banks have had it playing the stupid QE game to support an ass hat president and congress so they're leaving the party!


BTW..  DON'T piss off your mail carrier!

Fri, 02/07/2014 - 11:59 | Link to Comment flacon
flacon's picture

In the first chart, GOLD IS INVERSE. Gold is now doing what it's supposed to do, be a counterbalance to the markets. 

Fri, 02/07/2014 - 16:10 | Link to Comment Rick Blaine
Rick Blaine's picture

I'm just waiting for the ZH Dow 10K v.X hats to appear...

Fri, 02/07/2014 - 12:29 | Link to Comment GooseShtepping Moron
GooseShtepping Moron's picture

This comment is much more astute than many will realize.

For all the jeering and rage projected at the bankers from this site and elsewhere throughout the infoworld (and I'm not saying the anger isn't understandable), we still have to recognize that they were basically doing exactly what the culture demanded of them: financing a lifestyle we couldn't afford and allowing us to avoid making tough political decisions. The bankers are like bedraggled, deep-pocket, soft-hearted fathers forever duped into supporting the scandalous lifestyle of their valley-girl daughters. This is not to excuse the criminal actions of individual scumbags like John Corzine; it is simply to say that the industry as a whole was being importuned by the culture and was provoked into its collective behavior.

I know it's anathema here, but I eventually expect the bankers to do the "right thing," to cut off the money and force the political process to begin addressing the problems of society. A change will have to come at some point anyway, for things can't go on forever like this. A day of soul-searching involving much more than the mere economy is needed for us.

Fri, 02/07/2014 - 12:51 | Link to Comment SDShack
SDShack's picture

Delusional. TPTB are sociopaths. They have no morals, no empathy... only a never ending lust for control, power, and desire to be on top. They are not benevelont fathers that just can't say no to their families. They will willingly sacrifise anyone, anyone, including co-workers, friends, and family to meet their goals. They are all like John Corzine and Bernie Madoff. Some just play the game more intelligently than others so they don't get caught. And if they do get caught, they have become so interconnected in the power elite that they can buy their way out of any justice. There is no law for them, or accountability. The consumate con man always rises to the top. They will never do "the right thing". To them, the "right thing" is enlarging their empire. They don't view the political process as some way to address the problems of society. To them the political process is just one tool to control society. They may indeed be ready to throw in the towel on QE that props up the corrupt 0zer0 and congress, but rest assured that they will simply replace those political hacks with new ones that will continue to do their bidding. It's delusional to think that bankers are just responding to the culture. It's TPTB that are destroying the culture in order to control society. They want and need mindless masses, addicted to weed, sports, iShit, free govt shit, reality tv, etc. so they can distract them from their real masters. You are willingly becoming a serf in their New Feudal World Order, and you don't even realize it. The pure definition of sheep.

Fri, 02/07/2014 - 12:58 | Link to Comment GooseShtepping Moron
GooseShtepping Moron's picture

Time will tell.

Fri, 02/07/2014 - 13:06 | Link to Comment SDShack
SDShack's picture

No, history has proven it.

Fri, 02/07/2014 - 12:58 | Link to Comment NihilistZero
NihilistZero's picture


You forgot your /sarcasm tag goose stepper :-)


Fri, 02/07/2014 - 12:04 | Link to Comment halfawake
halfawake's picture

Actually, I'd submit the project to destroy all currencies for annex by a world fiat is right on schedule.

Fri, 02/07/2014 - 12:22 | Link to Comment The Dunce
The Dunce's picture

Trust me.  You're gonna see a lot more tapering.  These markets can't survive without their heroin.  Good news for you gold bugs.  Bitches.

Fri, 02/07/2014 - 13:24 | Link to Comment tempo
tempo's picture

$20 billion of tapering, FED will not support equities. Real economy is crap with a majority evaluating working part time for cash, living at home, free bamacare/foodstamps/disability.
The BS overpriced college experience has peaked for most as well as housing prices. So we are left with more adults milking the system. Those are the incentives and people are not that stupid.

Fri, 02/07/2014 - 11:38 | Link to Comment ebworthen
ebworthen's picture

So are the shorts out yet so this can crash 5% today?

Fri, 02/07/2014 - 11:43 | Link to Comment The man with po...
The man with pointy horns's picture

You need actual selling to crash this fucker 5% in one day, if that was all shorts the next few days would be one epic short squeeze! But when do HFT algos sell? <May 6th '10 flash crash, cough cough>

Fri, 02/07/2014 - 11:49 | Link to Comment FMR Bankster
FMR Bankster's picture

If you want a 5% sell off (or more), step back and wait for the proper set up. In other words don't trade now, observe as the market carves out a right shoulder for this ugly looking top. Pull up a chart of any US market and note the left shoulder formed in Nov/Dec, and the head in late Dec/early Jan. We are in the early stages of the right shoulder. If this pattern holds we'll trade between S&P 500 1720 to 1810 for about a month or so. Then look out below.

Fri, 02/07/2014 - 11:41 | Link to Comment Obama_4_Dictator
Obama_4_Dictator's picture

As teh Culture Club onmce said - "I'll Tumble for Ya"

Fri, 02/07/2014 - 11:39 | Link to Comment Ray745
Ray745's picture

Where did Hilsy say that?  The link provided just says the chat will start at 11?

Fri, 02/07/2014 - 11:46 | Link to Comment Winston Churchill
Winston Churchill's picture

Pre release notes,like him and old benspankme.

Fri, 02/07/2014 - 11:40 | Link to Comment Silver_K-9
Silver_K-9's picture

How do you people trade in the Crazy A$$ Centrally Planned market?!

Fri, 02/07/2014 - 11:42 | Link to Comment Obama_4_Dictator
Obama_4_Dictator's picture

Top Tip - I don't.

Fri, 02/07/2014 - 11:46 | Link to Comment Headbanger
Headbanger's picture

As I've explained to friends before, you don't have to be crazy to trade for a living, but it sure does help!

Fri, 02/07/2014 - 11:54 | Link to Comment medium giraffe
medium giraffe's picture

I've discovered the trick is to flip the v-sync.  Then it all makes sense.


edit: someone seems to be BTFWSJD tho..

Fri, 02/07/2014 - 11:44 | Link to Comment order66
order66's picture

Okay, so....emerging markets tanking, employment tanking, housing tanking, baltic dry tanking so I buy stocks?


Got it.

Fri, 02/07/2014 - 12:15 | Link to Comment Dr. Engali
Dr. Engali's picture

That's all you need to know. A cow farts, you buy stocks. A meteorite falls from the sky and takes out a city, you buy stocks. The sun goes super nova, you buy stocks. Got it?

Fri, 02/07/2014 - 13:02 | Link to Comment SDShack
SDShack's picture

"Business is bad... fuck you, pay me". "You had a fire, ... fuck you, pay me". "Place hit by lightning... fuck you, pay me".

Fri, 02/07/2014 - 23:23 | Link to Comment soopy
soopy's picture

Paulie ain't gonna take no for an answer!

Fri, 02/07/2014 - 11:47 | Link to Comment game theory
game theory's picture

Even at the current taper rate, the Fed balance sheet will grow this year...something like 20% over current assets. 

Fri, 02/07/2014 - 12:34 | Link to Comment Boeing Boy
Boeing Boy's picture

No taper as yet Fed added 100BN to the balance sheet in January 2014..

Fri, 02/07/2014 - 13:03 | Link to Comment game theory
game theory's picture

Looks like just over $80b to me. But +/- $20b...who's counting? 

Fri, 02/07/2014 - 11:48 | Link to Comment Dr. Engali
Dr. Engali's picture

Did he say that before or after servicing Yellen's pecker?

Fri, 02/07/2014 - 11:51 | Link to Comment Winston Churchill
Winston Churchill's picture

Nice visual Doc,. Now how do you get vomit off a keyboard again ?

Fri, 02/07/2014 - 11:49 | Link to Comment rubearish10
rubearish10's picture

I just cannot understand how one day (Monday) the sky is falling (EM, China, systemic risk) etc....and for three days all is cool, then we get this mixed at best UE report and we depend on  Johnny Boy to cut the rally down a smidge??? Where's the reality reside?

Fri, 02/07/2014 - 12:07 | Link to Comment Dr. Engali
Dr. Engali's picture

Here is all you need to know. The 'market' is a policy tool, until that changes the direction is up. They will put out some horror stories and remove some support to lure in shorts for the squeeze, but in general the direction is up.

Fri, 02/07/2014 - 12:17 | Link to Comment rubearish10
rubearish10's picture

Ah yes, Central Planning remains in control. Maybe the aliens should pay us a visit and take charge. We'd be better off!

Fri, 02/07/2014 - 11:51 | Link to Comment Itch
Itch's picture

Dont all FED governor's usually go one way or another and stick that course to the bitter end; very few of them flip flop? I think Yellen is here to pull the reins in, and has already prepared herself for the flac, the market may get used to it. 

Fri, 02/07/2014 - 13:01 | Link to Comment Oh regional Indian
Oh regional Indian's picture

Very astute observation. The next few years are about soaking up the float, globally.

That is why one of the most used words in the general chatter is austerity.


Fri, 02/07/2014 - 11:54 | Link to Comment madbraz
madbraz's picture

No worries, $100 billion reverse repo coming up at 12:30 to provide ample collateral to be rehypothecated N times and manipulate this turd - courtesy of your friendly NY FED, the best a (banker) man can get.

Fri, 02/07/2014 - 11:58 | Link to Comment halfawake
halfawake's picture

See, this is why we need one world currency, so this doesn't happen anymore.. /sarc /barf


The writing is on the wall.

Fri, 02/07/2014 - 12:06 | Link to Comment PR Guy
PR Guy's picture

But then all the poor currency traders will be out of a job.....

Fri, 02/07/2014 - 12:09 | Link to Comment halfawake
halfawake's picture

Methinks they'll get new jobs as currency distributors. Or Angels of Peace and Prosperity for All, as I like to call them.

Fri, 02/07/2014 - 12:03 | Link to Comment PR Guy
PR Guy's picture

But then all the poor currency traders will be out of a job


Something wrong with strike through on this editor?

Fri, 02/07/2014 - 12:09 | Link to Comment thismarketisrigged
thismarketisrigged's picture

the only thing that matters in this economy is fuckbook, twitter, and google.


as long as people continue to be out of work, it is extremely bullish for those companies and they must never be allowed to see the color red again.

Fri, 02/07/2014 - 12:17 | Link to Comment Hindenburg...Oh Man
Hindenburg...Oh Man's picture

Was this another curse of the ZH bottom call? Straight up from there!

Fri, 02/07/2014 - 14:28 | Link to Comment Emergency Ward
Emergency Ward's picture

Heisenberg threatens to stop production of "Blue Crystal", markets go crazy...

Fri, 02/07/2014 - 12:19 | Link to Comment the grateful un...
the grateful unemployed's picture

what, the punch bowl is half empty not half full? either way its time to fill her up!

Fri, 02/07/2014 - 12:21 | Link to Comment Callz d Ballz
Callz d Ballz's picture

Here's what some of our "experts" have to say:

“For the Fed, this report will confirm their current bias for reducing the pace of asset purchases, consistent with their expectations for the strong momentum in economic activity during the last six months of the year to be sustained in 2014. And as the weather distortions in the data begin to dissipate, we expect the tone of economic data to improve.” — Millan L. Mulraine, deputy head, U.S. research & strategy, TD Securities USA.

• “While US payroll growth of 113,000 disappointed, household survey showed huge growth of 606,000 new jobs!” — Anatole Kaletsky, chairman, New Institute for Economic Thinking. @Kaletsky

“Silver lining: Participation Rate up to 63.0% from 62.8%, and Unemployment Rate still falls to 6.6% from 6.7%, Mixed-mostly negative report.” — Christopher Vecchio, currency analyst, @CVecchioFX

• “#NotEnough. The economy added 113,000 jobs in January while the unemployment rate dropped slightly to 6.6 percent.” — Michael Steele, former chairman, Republican National Committee. @MichaelSteele

• ” U-6, broadest measure of unemployment went from 13.1 to 12.7, with higher participation this is good news.” — Douglas Holtz-Eakin, president, American Action Forum. @djheakin

• “The bond market will like the soft payrolls data, the equity market less so, but looking over the full report, including the strength in goods producing jobs that move with the cycle, we don’t see it as that negative for growth.” — Avery Shenfeld, CIBC WM Economics

• “The U.S. continues to churn out new roles, the jobless rate continues to fall, and the Fed will continue slowly removing support under the new leadership. If they were giving out Olympic medals for job creation in January 2014, frankly, I don’t know if the U.S. would even be on the podium.” — Jennifer Lee, senior economist, BMO Capital Markets.

• “This report...will do nothing to deter the Fed from tapering QE. That is happening. UE target different story.” — Ben White, Politico writer. @morningmoneyben

Comedy gold!

Fri, 02/07/2014 - 12:24 | Link to Comment B.J. Worthy
B.J. Worthy's picture

"It was all going so well."


Fri, 02/07/2014 - 12:35 | Link to Comment slightlyskeptical
slightlyskeptical's picture

IBD will tell you when to sell, at least that's what they told me.

Fri, 02/07/2014 - 12:43 | Link to Comment Spungo
Spungo's picture

It was all a dream
I used to read Word Up magazine
Salt 'n' Pepa and Heavy D up in the limousine.

I'm going long on the VIX today. Wish me luck!

Fri, 02/07/2014 - 12:44 | Link to Comment soopy
soopy's picture

Yawn. Wrong on all counts again, ZeroEdge. Post-Europe close ramp like a Patek Philippe. Just stop trying to give trading advice already.

Fri, 02/07/2014 - 21:38 | Link to Comment Wait What
Wait What's picture

funny, i have to agree. as long as the market can 'keep hope alive' that QE will continue, there's nothing to deter it from that belief... until QE actually ends, 5% is the pullback target to BTFD. once QE is over we can start talking about real corrections... but we all know the Fed will keep it in its back pocket as a threat to anyone fool enough to short equities. maybe next time ZH doesn't start with the victory laps in the 2nd qtr.

Fri, 02/07/2014 - 12:43 | Link to Comment Shleprock
Shleprock's picture

Well grease me up for the hokey pokey ?%@""

Fri, 02/07/2014 - 13:06 | Link to Comment Tsar Pointless
Tsar Pointless's picture

This was just another buying opportunity for the algos.

Now at HOD.

Gloom and doom: It's fun, but it will get you nowhere. Sit back, relax, and enjoy the Homophobic Games from Sochi.

Fri, 02/07/2014 - 14:05 | Link to Comment EuropeanBankster
EuropeanBankster's picture

Astonishing bullishness in this market!... just look a the NFP estimates from the giant squid and the rest of the world domination financial institutions published earlier today.. NFP really disappointed and the revisions even more. March revisions were anticipated. WTF? Who buys, when everyone knows that GDP will be revised downwards?... sluggish growth and a hardly no job creation. What the hell, lets buy some more stocks! It truely amazes me!! Im more convinced than ever before that a major sorrection is coming.

Does jobs in the snow-plowing industry categorize as "construction".. cause thats apparently highlighted as postive on CNBC

Fri, 02/07/2014 - 14:45 | Link to Comment TheRideNeverEnds
TheRideNeverEnds's picture

When the "market" is just the FED giving your money directly to the banks it doesn't matter, we will just keep going straight up as they use your money to keep buying up assets. 


New highs are a given.  The real questions are how much will yellen increase QE and will the S&P pass 2000 in the summer or the fall?  

Fri, 02/07/2014 - 16:49 | Link to Comment Hindenburg...Oh Man
Hindenburg...Oh Man's picture

i've never seen such a melt up of stocks. 

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