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The Un-Taper? Stocks Up, Bonds Up, Gold Up, Oil Up, USD Down

Tyler Durden's picture





 

It seems Janet has some work to do on her "communications". Judging by today's follow-through on dismal retail sales data (and a miss for claims), stocks, bonds, and gold screamed higher (and the USD lower) suggesting an increasing crowd does not believe the QEeen's "stay the taper course" meme. The S&P 500 rallied 25pts off early lows - practically in a straight-line, dislocated from JPY-carry, dislocated from bonds, and coupled almost perfectly with gold after Europe close. Nasdaq is up 6 days in a row and back near multi-year highs (+1.5% in 2014) as "most shorted" stocks were ripped 2.5% higher intraday. Gold closed back above $1,300 (outperforming on the week and since Taper); Treasury yields tumbled 6-7bps; and the USD Index dropped 0.5% led by EUR and GDP strength. VIX traded under 14% briefly. Bad news is great news once again. This is the Nasdaq's best 6-day run in 27 months.

 

The Dow is holding around 16,000 and at a 50% retrace of the 2014 losses...

 

The Nasdaq bounced perfectly off its 100DMA and has rallied 6.8% in the last 6 days - its best run since December 2011...

 

This morning saw Nasdaq open right at unchanged for 2014 and found support...

 

As "most shorted" stocks were crushed higher...

 

QE-maven Materials and Discretionary and Homebuilders are leading the way off last week's lows as they anticipated Yellen printing to oblivion... but she didn't!!

 

But stocks decoupled from USDJPY and bonds - and found a new friend in gold...

 

Commodities all rallied today with Gold outperforming...

 

And Treasuries (espeially the long-end) have almost recovered all the post-Yellen losses...

 

FX markets were more volatile with EUR and GBP strength dragging the USD Index lower...

 

 

Charts: Bloomberg

Bonus Chart: The Dow was interesting as Dow futures just managed to tag yesterday's highs (run those stops) and then rolled over into and after the close...

 

Bonus Bonus Chart: The Nikkei 225 is at its cheapest in six months to the Dow...

 


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Thu, 02/13/2014 - 17:08 | Link to Comment Say What Again
Say What Again's picture

I previously posted this on a different thread, but I have some aditional data to mention.

This has been one strange day in the "markets"

Every index has experienced a Ramp-a-palooza even after the dismal job numbers and retail report.  But there is something I found that I felt is worth sharing with Team-ZH.  I track the Average Trade Size (ATS) on a number of assets, but today ES has had some strange behavior.

Beginning at 13:50 the ATS for ES had a noticeable increase.  Then, at 14:37, the ATS abruptly went back to the daily average.  Note that, as of this writing, 13:50 was beginning of the Ramp-a-palooza, and ~14:15 was the end of the Ramp.

The $NDX has had the best 6 day run in over two years, breaking into a 12 year new-high (and we are getting with spitting distance of an All-Time High).  BUT -- The UP Volume was only 60% of TOT Volume for the NDX.  Doesn't look like a stampede to BTFATH.

Not sure what to make of this, but the data is there for everyone to see.

Thu, 02/13/2014 - 17:11 | Link to Comment Mr. Chairwoman
Mr. Chairwoman's picture

After the federal funds rate reached its effective lower bound, close to zero, um, at the end of 2008, uh, the Federal Reserve was, um, forced to provide additional accommodation through tools that, um, were new and novel.

Thu, 02/13/2014 - 17:16 | Link to Comment spastic_colon
spastic_colon's picture

hey mr. chairwoman.....was your non-appearance today planned way ahead of time?  Or did the weather muss your bowl cut?

Thu, 02/13/2014 - 17:19 | Link to Comment fonestar
fonestar's picture

Gold was money for 5,000 years until Bitcoin came along.

Thu, 02/13/2014 - 17:27 | Link to Comment hobopants
hobopants's picture

I think your biggest mistake with that stuff is assuming that people will understand it as well as you do. The psychological forces that will be at work after people are burned by intangible digital assets are going to keep them away from it, no matter how irrational it may be.

Thu, 02/13/2014 - 17:43 | Link to Comment TruthInSunshine
TruthInSunshine's picture

"digital assets..."

lulz.

Thu, 02/13/2014 - 17:50 | Link to Comment hobopants
hobopants's picture

Ya....paper is a misnomer, they dont even have that intrinsic value

Thu, 02/13/2014 - 19:03 | Link to Comment X_mloclaM
X_mloclaM's picture

fuk dat.

nobodies expecting anyone to do the work. It's hype that's always moved sheep.

Your 'psychological forces wthat will be at work after people are burned by intangible digital assets" ... are easily unloading their 401k, SS, banks, right outtada ATM or teller, nooo prob, no HSBC, nope, you are right. People just will not trust a digital fiat currency. or a decentralized-oligopoly-prone-ledger as the fonestars like to say of BTC.. right,

The biggest mistake is you, your 'people need to understand you' shit. Fuck that . people will get theirs. everyone does what they can, and owes you nothing, your bullshit attitude that others have some obligation to explain ... to your satisfaction misses the point you attempt to make otherwise:

Psychological forces indeed move masses into MintChip, BTC, one-world-currency trial balloons, with Fed white papers opining on what it takes to move along the natural process of centralizing what starts as tantilizingly decentralized, modern, global, GUI'ed, and make it right for those (Visa/MC/Amex) who fall underline those with ample asset today (Central banks/nations) to control the timing and means of mass introduction and push. No one is opposed to iterating on dat fabian front. Today we set the framework, the legislation, we get bored, weak-on-the-work modernistas to proclaim transcation public permanence is kosha

Thu, 02/13/2014 - 21:35 | Link to Comment hobopants
hobopants's picture

Tell me how you really feel, don't hold back. I have no dog in this fight. I think bitcoin is a cool concept, but I also think the reaction to this mess is going to be fear, not faith in things the average Joe isn't going to understand. Scared people flock to what they know, they don't experiment, and to the uninformed bitcoin is going to look exactly like the fiat that just burned them. But shit, buy all the bitbucks you want and the best of luck to you, you incoherent nut.

Thu, 02/13/2014 - 17:27 | Link to Comment Say What Again
Say What Again's picture

Really?

What would I rather have -- an ounce of gold, or some "virtual" amount of fiat in a "bitcoin wallet."

You make the call

Thu, 02/13/2014 - 17:34 | Link to Comment fonestar
fonestar's picture

Who ya gonna call? 

fonestar?

Thu, 02/13/2014 - 17:33 | Link to Comment asteroids
asteroids's picture

Very strange day. Just before 3PM, it looked like something bad happened and right after 4PM there appeared to be massive amounts of selling.

Thu, 02/13/2014 - 17:41 | Link to Comment skwid vacuous
skwid vacuous's picture
  1. it's all good, mkt shits the bed at 4:01 pm... nothing to see here - move along
Thu, 02/13/2014 - 17:43 | Link to Comment akarc
akarc's picture

My bet, I can walk down the street to the local watering hole and offer to sell a bit coin and people will go WTF is a bitcoin

Thu, 02/13/2014 - 18:03 | Link to Comment automaton
automaton's picture

I said the same about the hill people of Appalachia.  They would accept payment in cans of Coke over bitcoin.  But, fonestar assured me that the people of Appalachia, amongst the poorest in this nation, would accept bitcoin.   

Thu, 02/13/2014 - 18:09 | Link to Comment B.J. Worthy
B.J. Worthy's picture

You're like ZH's version of the Farmville-invite guy.

Thu, 02/13/2014 - 17:14 | Link to Comment disabledvet
disabledvet's picture

the what? "the data"?

that not only says we're going to hell in handbasket....but we've actually been there for sometime now.

i mean...bad news as good news is one thing...
but bad news as GREAT news!???

http://www.youtube.com/watch?v=t63_HRwdAgk
"just get used to the idea that's all wrong to begin with."

Thu, 02/13/2014 - 17:22 | Link to Comment TheRideNeverEnds
TheRideNeverEnds's picture

The market is just trying to price in the un-taper and increase in QE that we all know is coming.  Will she up QE to 100,200,500 billion a month?  higher? 

 

Nobody knows for sure but one thing is certain, keep buying because we are going sharply higher from here; from current levels we should have another 50% of upside at least in the major indexes till we start getting over extended.

 

I expect SPX 1900 by the end of this month. 

Thu, 02/13/2014 - 17:48 | Link to Comment RaceToTheBottom
RaceToTheBottom's picture

"Will she up QE to 100,200,500 billion a month?  higher? "

QE to infinity and beyond.....

QE Argentina

Thu, 02/13/2014 - 18:46 | Link to Comment ArkansasAngie
ArkansasAngie's picture

I agree.  The tell is the dollar.  The bet is the US will devalue compared to the Euro.  Boy howdy defending the 102 yen must hurt some times.

Trite but true ... the race to the bottom is unfolding before our very eyes.

 

Thu, 02/13/2014 - 17:13 | Link to Comment NOTaREALmerican
NOTaREALmerican's picture

We have a code release this week.

Maybe the trading algos were updated with some new code.

Thu, 02/13/2014 - 17:16 | Link to Comment spastic_colon
spastic_colon's picture

and yet yesterday the CCMP was UP 10 pts and all those names (amzn, aapl, goog etc) were DOWN....I'll ask again, somebody pls explain how a cap weighted index like the CCMP is actually calculated! Tyler??

Thu, 02/13/2014 - 17:19 | Link to Comment Max Damage
Max Damage's picture

So NY FED was pumping between 13:50 and 14:15 then. They must not let the chart follow the 1929 one at any cost.

Thu, 02/13/2014 - 18:08 | Link to Comment Phat Stax
Phat Stax's picture

There is that last gap to fill before heading down or sideways.  Must.  Fill.  The.  Gap.

Thu, 02/13/2014 - 20:02 | Link to Comment Honey Badger
Honey Badger's picture

Thnaks for all of that. The dollar down has me confused.

Thu, 02/13/2014 - 17:06 | Link to Comment thismarketisrigged
thismarketisrigged's picture

tyler, i love the work u do, but i think now on u should start ur writeups early morning, because we all know the bullshit that will take place on a daily basis by days end.

 

fb, goog, twtr, nflx, aapl, im seriously fucking puking,

 

this shit is so fucking insane, nothing matters anymore, jobs,retail numbers, gdp, who gives a fuck, as long as fuckshit is up on a daily basis and the nasdaq always finishes up 0.80- 1 percent on a daily basis, all is good.

 

these fuckers will go on and on about how well the economy is improving, or how well earnings r doing, its fucking bullshit.

 

i know you guys prob wouldnt do this, but i feel one of the tylers should go on tv and fucking speak the truth, because no one else will. expose these fuckers for what they r. these bastards continue to get away with saying how well the economy is improving and all is good, i think its time for some peole to expose these fucks.

 

o and thank god janet yellens testimony was ppd today, now we get another day next week for this bitch to pump up markets again. god i hate that fucking cunt

Thu, 02/13/2014 - 17:12 | Link to Comment fonzannoon
fonzannoon's picture

no once believes the economy is improving. That is exactly why those momo names you mention are leading the market higher. 

Here is the question you have to ask. If they build a rigged market that only goes up. Would the masses sit there and bitch, or jump on for the ride? Once you have your answer you can be at peace with this insanity.

Thu, 02/13/2014 - 17:15 | Link to Comment spastic_colon
spastic_colon's picture

-

Thu, 02/13/2014 - 17:18 | Link to Comment eclectic syncretist
eclectic syncretist's picture

You can't have a double top or a head-and-shoulders top without more than one top.

Thu, 02/13/2014 - 18:10 | Link to Comment TheRideNeverEnds
TheRideNeverEnds's picture

There are zero indications of a top, nada, none, zilch.   We had a modest correction which is totally normal and have already broken out to new highs on the NQ with the rest soon to follow.  Today was just day one of the breakout.

 

The bottom is in, new highs in the ES TF and YM are a given, I don't understand why people are you not buying them here, are you waiting to buy the highs? 

 

Even if you missed the dip last week thats OK just BTFATH, some greater fool will surely come along and buy them from you later on at higher prices, until they don't, but you can't bet on them not coming for em at higher price; on a 60 month basis buying the dip has worked 100% of the time, its a no brainer.

 

What are you going to do, sell them here and hope they go down?  When are you going to throw in the towel, 1900, 2000, 2200, 2500, 3000?  You really gonna hold short e-minis as they go hundreds of points against you hoping someday maybe by the grace of god you will be able to scratch them?  

 

I mean seriously, the FED has been telling you in no uncertain terms for years now they they are going to print money to infinity and will never again let markets decline, they know they cannot let that happen ever again as it would cause the entire system to collapse in a way which there would be no coming back from.

 

You are lucky we even got 5% down, you should have been buying with both hands; that was probably the biggest correction you will see till we back off of the 2000 level before we push through it sometime around OCT 14.

Thu, 02/13/2014 - 19:52 | Link to Comment playnstocks
playnstocks's picture

Drop the kool-aide before you OD

Thu, 02/13/2014 - 20:22 | Link to Comment new game
new game's picture

the head got chopped off and the sholders tilted so as to point to dow 20000 and qqqq 5000

Thu, 02/13/2014 - 20:07 | Link to Comment LooseLee
LooseLee's picture

My vote for who is the 'greater fool' is you, TheRideNeverEnds

Thu, 02/13/2014 - 17:16 | Link to Comment thismarketisrigged
thismarketisrigged's picture

lol, i hear what you are saying, although i do not think i will ever be able to be at peace with this insanity, not possible.

Thu, 02/13/2014 - 17:28 | Link to Comment philosophers bone
philosophers bone's picture

"Would the masses sit there and bitch, or jump on for the ride".

Well, one trend that happened over the past couple of decades is that the "masses" no longer control their own finances.  The financial firms have taken the decision making away from the individual client and their broker and handed over "discretionary trading" to their firm sponsored "asset management programs".  Clients complete a piece of shit questionairre and then the "computer" kicks out an "objective" and "optimal" asset allocation based on the client's "preferences", "objectives" and "risk tolerances".

Once the money managers have full control, they can justify doing whatever the hell they want - hey, FB or TWT are better than no return on government bonds, right.  OK, then they go "all in" with the money of the "masses" and send a quarterly piece of shit "portfolio analysis" with a bunch of pie charts, accompanied by the latest spew from their "independent analyst" giving their considered advice behind the "Chinese Well" after speaking directly with the corporate executives who promise underwriting gigs for the firm is the analyst's recommedation is to their liking.

The "masses" - actually they don't have much to do with it.

Thu, 02/13/2014 - 17:34 | Link to Comment fonzannoon
fonzannoon's picture

I'm not talking about who decides what. I mean the masses give the money to the asset managers, either through retirement plan contributions, or just non qualified assets. All the stuff you mention is just a part of the masses handing over their dough. .

 

Thu, 02/13/2014 - 17:46 | Link to Comment philosophers bone
philosophers bone's picture

No argument with you.   I just don't know how to answer your question about the masses when by and large they are not only "tuned out" but worse most have handed over control, whether it be voluntary or unvoluntary.  For example, if someone's money is with a broker and they want to pull it out to buy physical gold, they end up getting talked into GLD or some ETF or mining company.  And if they want to invest in a rental property that they will own directly, the broker convinces them to buy a REIT.  Things won't change until the "masses" call their broker, money manager and banks and state "DON'T ASK ME ANY QUESTIONS, JUST GIVE ME MY FUCKING MONEY BACK.  I'M DOING SOMETHING WITH IT.  FUCK YOU".  It's hard.  Many ZHers have done it.  The "masses" - not so much......

Thu, 02/13/2014 - 17:50 | Link to Comment fonzannoon
fonzannoon's picture

yeah man no worries, I agree with that completely.

Thu, 02/13/2014 - 17:53 | Link to Comment RaceToTheBottom
RaceToTheBottom's picture

Banks are now required to ask questions about any withdrawal over 4K.....

 

"Whores and Blow, Whores and Blow", is the only acceptable answer for a ZH'er

 

PS. Females can replace Whores with Strippers, if they feel so inclined.

Thu, 02/13/2014 - 18:06 | Link to Comment philosophers bone
philosophers bone's picture

Can we hang out?

Thu, 02/13/2014 - 22:21 | Link to Comment RaceToTheBottom
RaceToTheBottom's picture

Just to clarify, big boy, I was saying what their response should be.  That still leaves other actual uses of the money, say PM purchases.  Also see boat accidents

Thu, 02/13/2014 - 20:10 | Link to Comment Honey Badger
Honey Badger's picture

You are right. We don't crash until retail is all in. Unfortunately, we have a ways to go I think.

Thu, 02/13/2014 - 17:16 | Link to Comment hobopants
hobopants's picture

Maybe this is the market calling janet's bluff? She will have to show her cards soon...

Thu, 02/13/2014 - 17:31 | Link to Comment skwid vacuous
skwid vacuous's picture

apparently -you don't understand the new economy... 20 and 30 somethings living in mom's spare room but their click thru's are worth trillions...

Thu, 02/13/2014 - 17:06 | Link to Comment ...out of space
...out of space's picture

this is vital info

http://t.co/GYjpom74X1

 

Thu, 02/13/2014 - 18:31 | Link to Comment DrunkenMonkey
DrunkenMonkey's picture

Awesome !

Thu, 02/13/2014 - 17:09 | Link to Comment fuu
fuu's picture

All that and a $101,186,000,000 TOMO.

Thu, 02/13/2014 - 17:10 | Link to Comment Its Only Rock N Roll
Its Only Rock N Roll's picture

William has already made us $15,000....

You want me to break something else?

NO!!!!!!

Thu, 02/13/2014 - 17:10 | Link to Comment TaperProof
TaperProof's picture

Everybody knows the bad economic data will keep coming and Yellen will be yelled at to turn yellow and untaper.

Thu, 02/13/2014 - 17:09 | Link to Comment Obama_4_Dictator
Obama_4_Dictator's picture

I've got to say I'm totally confused.

Thu, 02/13/2014 - 17:09 | Link to Comment TaperProof
TaperProof's picture

We're damned no matter what, trust nobody, buy gold.  :)

Thu, 02/13/2014 - 17:34 | Link to Comment Droid Fuel
Droid Fuel's picture

what do i do with my Au Tokens when gold peaks?

Thu, 02/13/2014 - 18:02 | Link to Comment Obama_4_Dictator
Obama_4_Dictator's picture

I think a lot of people are planning on buying real estate when that bottoms.

Thu, 02/13/2014 - 17:12 | Link to Comment skwid vacuous
skwid vacuous's picture

it's a full on recovery, masked by polar vortex- stay-in-your-trailer park weather, everyone will be back at the mall soon no doubt

Thu, 02/13/2014 - 17:20 | Link to Comment The_Ungrateful_Yid
The_Ungrateful_Yid's picture

One thing about yellen; She is going to be Gold's best friend.

Thu, 02/13/2014 - 17:15 | Link to Comment i_call_you_my_base
i_call_you_my_base's picture

Check this out from Greece:

"Pensioners and salary workers who make as little as one euro in annual revenues from properties or freelancing will have to pay a tax deposit equal to 55 percent of their income for the following year, according to officials at the Finance Ministry."

http://www.ekathimerini.com/4dcgi/_w_articles_wsite2_1_13/02/2014_537374

"Tax deposits" on next year's taxes!

Thu, 02/13/2014 - 17:17 | Link to Comment akarc
akarc's picture

"IF" markets are predictive

And if gold and oil reacts to inflation

and dollar is definately not on fire

Are we fixing to see stealth inflation drop it's cloak and go ballistic?

 

Thu, 02/13/2014 - 17:21 | Link to Comment jtz5
jtz5's picture

Question (may be a dumb one): if somehow we had proof that the Federal Reserve was forcing the large banks to support and ramp the market higher, is that in and of itself, criminal activity?  I honestly don't know, just curious what the law is.

Thu, 02/13/2014 - 18:00 | Link to Comment RaceToTheBottom
RaceToTheBottom's picture

Someone posted here the exact words but the FED has in its purvey the right to do whatever it feels necessary to defend the dollar, when it wants to defend the dollar.

This would explain a lot including repothicating Gold, fractional selling gold, goosing the market.....  Any-friggin-thing it wants to do

Thu, 02/13/2014 - 18:18 | Link to Comment Savyindallas
Savyindallas's picture

ALL THE POWER BROKER ELITES (and their stooges) DAILY ENGAGE IN CRIMINAL ACTIVITY ON A MASSIVE SCALE   --"criminal activity" is what they say it is- and when. We are NOT a nation of law. Forget what you learned in school. it's bullshit

Thu, 02/13/2014 - 17:23 | Link to Comment Flakmeister
Flakmeister's picture

I thought all that new Bakken supply was supposed to bring the price of oil down?

Could it be that someone wasn't completely honest with us?

Thu, 02/13/2014 - 17:44 | Link to Comment FreeMktFisherMN
FreeMktFisherMN's picture

that would be the effect of inflation. Supply/demand idiosyncrasies exist for all commodities but what they are paid for is in fiat that is increasing exponentially. And the marxist TOTUS also hates anything un-'green' and refuses to allow pipelines that would create jobs and improve supplies/refinement and lessen prices.

Thu, 02/13/2014 - 17:55 | Link to Comment lakecity55
lakecity55's picture

'green' is just an underhanded way to get moar communism...

Thu, 02/13/2014 - 18:02 | Link to Comment FreeMktFisherMN
FreeMktFisherMN's picture

yep. I also think the PC beta males out there like driving Priuses.

Thu, 02/13/2014 - 19:09 | Link to Comment Flakmeister
Flakmeister's picture

Cost push inflation driving oil? yeah, but that isn't what you had in mind. was it?

If you are correct why have the prices of most commodities gone down except for oil, simply look at copper, iron, aluminum, silver etc...

But other than that your post is full of discredited canards and unverifiable claptrap about Keystone...

Keystone is all about getting heavy sour crude to the Gulf Coast so it can be refined and exported so as to exploit Tax Free trade zones....  

You really should learn to get your talking points from someone besides the API....

Thanks for playing...

Thu, 02/13/2014 - 17:24 | Link to Comment Iam Yue2
Iam Yue2's picture

It that is has now been established that women are better forecasters; please note (per WSJ blog):

Five others expected the Fed to slow the pace of reductions in response to a weakening economy. “The Fed wants to get out of bond purchases, but has a habit of overestimating growth,” observed Diane Swonk of Mesirow Financial.

Julia Coronado, chief economist for North America at BNP Paribas, said if the core PCE price index falls below 1% it could cause the Fed to halt reductions. Her team doesn’t expect that to happen, but they see further disinflation was a real risk since the index “has been bumping between 1.1 and 1.2 for about a year,” having fallen from a peak of 2% in 2010. “Low and falling core inflation would be a reflection underlying weakness in the economy and we think the Fed would respond.”

Thu, 02/13/2014 - 18:05 | Link to Comment fijisailor
fijisailor's picture

Hooray.  Yellen is in charge.  We are all saved

Thu, 02/13/2014 - 17:34 | Link to Comment HpDeskjet
HpDeskjet's picture

People who believe Yellen will untaper in the coming months are simply retarded. The FED has very little credibility left, but unless we will get negative NFP numbers (very very unlikely), the balance sheet is at its top in 2014 for probably the next decades. Why? The FED cares about rates, not about equities. Rates have decreased since taper is announced, i.e. the "proof" for the FED that they can stop QE. Question is when will the morons buying stocks at 40% overvaluation finally realize that the period of easy money is over.

Thu, 02/13/2014 - 18:14 | Link to Comment Wait What
Wait What's picture

while you're right about overvaluation, i don't think you realize how overconfident the Fed is in its ability to use its balance sheet to fight 'deflation', however the hell it defines it. you and i may think they are devoid of credibility, but those 17 people around the FOMC table certainly don't act like it.

someone posted this quote from Twain on ZH a while back, and it always comes to mind when thinking about the Fed: "All you need in this life is ignorance and confidence; then success is sure"

Thu, 02/13/2014 - 18:20 | Link to Comment Clowns on Acid
Clowns on Acid's picture

Agreed DJ - The Fed has finally realized (being the arrogant dumb fucks that they are) owning 40% of the lowest section of the World's capital structure can really screw up the system like in the repo market for example. So..the desperate dumb fucks decide to "taper" after buying $4.5 Trillion of bonds and MBS because the TBTF banks balance sheets are now clensed of the real stinking MBS slime.

But now the Fed has the Equity market to be concerned about, because the wealth effect has to be the catalyst for inflation, where inflation alows the feckin' thieves at the Fed to pay off their balance sheet woth depreciated USD.

The Fed's plan is so amateur and convoluted, its almost as immoral and ineffctive as ObamaCare, but the stge the are at now is....buy the Stalingrad and Poorsky 500 futures and raise all boats. That is the Quarterly plan... could change at any moment.

Taper the bond buying, Top up on the equities. Feckin' Clowns !    

Thu, 02/13/2014 - 19:09 | Link to Comment X_mloclaM
X_mloclaM's picture

"People who believe Yellen will untaper in the coming months are simply retarded.

The FED has very little credibility left, but unless we will get negative NFP numbers (very very unlikely), the balance sheet is at its top in 2014 for probably the next decades. Why?

The FED cares about rates, not about equities."

yep, and they'd prolly really like to shake that 'all the Fed cares about is equites, and MainStreet dont own no equities,' cept lil 401ks'

yep, and banks can flip bets on market directions, but own bonds as assets, which held at banks for sale are still hurtin since the crisis

 

 

Thu, 02/13/2014 - 17:33 | Link to Comment lasvegaspersona
lasvegaspersona's picture

or......there is secret funding....nah.......

Thu, 02/13/2014 - 17:56 | Link to Comment GooseShtepping Moron
GooseShtepping Moron's picture

Is it Yellen running the bulls, or are the bulls running Yellen? Maybe we're seeing the advent of the "stock vigilantes."

My guess is, there just wasn't any place else for the money to go today. Asia was skid row; Europe was mostly down; commodities are always a good play when the nation's getting creamed by a Nor'easter. All it took was a few intrepid souls (or algos) to nibble at the Dow, and it was all momentum chasing from there.

Traders are building the right shoulder for what's turning out to be a rather ominous, juggernaut-looking top. After that, look out.

Thu, 02/13/2014 - 18:33 | Link to Comment John Law Lives
John Law Lives's picture

History indicates that the price of many items bought and sold in a marketplace (even if the market is rigged for a period of time) eventually revert to some level considered "historically normal" (assuming that sufficient supply of said item exists such that a perpetual shortage situation doesn't occur).  Let the sack-o-shite shyster villains keep pumping these phony markets higher as they try to suck in every last lemming.  Sooner or later, the "smart trade" will be to short equities back down to a more "historically normal" level.  I have little doubt that we will hear cries o'plenty of "economic terrorism" as the shorts have their day in the sun.

MarketFUBAR.

Thu, 02/13/2014 - 20:23 | Link to Comment LooseLee
LooseLee's picture

......."stock vigilantes." Sadly, no such intelligent creature exista...Bulltards are MORONS by definition...and that includes BULLTARDS of ALL Asset classes.....

Thu, 02/13/2014 - 17:50 | Link to Comment Wait What
Wait What's picture

it seems so quaint to read headlines speculating on the 'untaper' when anyone who wasn't born in 2013 knows what happens every times QE comes to an end. at this point if you don't think bad data is great for asset markets, and worse data even great-er, then welcome to the new normal. the threat of 'untaper' is the Fed's real weapon, and has been since its shift from calendar based to data based, against the boogie man of markets repricing risk to reflect reality. ATH by the end of the week, bank on it.

Thu, 02/13/2014 - 17:55 | Link to Comment NaiLib
NaiLib's picture

All of this just points to inflation. And with no growth it is the come back of stagflation. Nice world with centrally planned price fixing.

Thu, 02/13/2014 - 18:13 | Link to Comment MagicMoney
MagicMoney's picture

Well I imagine it's kind of hard to believe the little lady when she contradicts herself. First she says the economy is in recovery, then says she will raise interest rates when the economy recovers...Confused??? Maybe.

Thu, 02/13/2014 - 18:30 | Link to Comment Rising Sun
Rising Sun's picture

RottenBox and DingleBarry are firing up the printers again.

 

Fucking assholes!!!!

Thu, 02/13/2014 - 22:09 | Link to Comment BullyBearish
BullyBearish's picture

REITS, housing up...what do they know?  Correcting market creates the safe haven trade, buying down yields for another go'round for the spring housing market...OR...taper off and get the 10-year below 2%??

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