• Steve H. Hanke
    05/04/2016 - 08:00
    Authored by Steve H. Hanke of The Johns Hopkins University. Follow him on Twitter @Steve_Hanke. A few weeks ago, the Monetary Authority of Singapore (MAS) sprang a surprise. It announced that a...

What Are Stocks Doing?

Tyler Durden's picture




 

The US equity market took 16 hours to fall 15 points and 90 minutes this morning to recover amid an absolutely dismal retail sales print. The full bulltard farce of disastrous news being great news is writ large in stocks as they decouple from any FX carry or bond market sense of reality.

 

Bonds and stocks are no longer friends...

 

and FX carry is dislocated as S&P 500 futures "beta" to JPY doubles as stocks open (80 pips down in JPY and 14 point drop in ES...

40 pips up in JPY and 15 point rise in ES)

 

It does seem that stocks are circling around gold to some extent though...

 

One has to wonder at this clear level of total schizophrenia whether the analog that everyone loves to hate is on the cards...

 

 

Charts:Bloomberg

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Thu, 02/13/2014 - 12:16 | 4432397 pavman
pavman's picture

Last mad dash to crash!

Thu, 02/13/2014 - 12:17 | 4432418 kliguy38
kliguy38's picture

just lettin' the boyz finish off distribution..........itsa "process"........they'll hit the "switch" when they're ready

Thu, 02/13/2014 - 12:21 | 4432428 jbvtme
jbvtme's picture

they will reset the dollar (30% haircut) soon.  equities are a hedge and are melting up

Thu, 02/13/2014 - 12:23 | 4432445 Oh regional Indian
Oh regional Indian's picture

Gold and S&P chart looks like a valentine's pair having a bad date...I love you, I love you not....

But overall, what a time, to be alive in a mad mix of Dune+1984+Star Wars+.....

ideas?

Life imitating art...

ori

Thu, 02/13/2014 - 12:22 | 4432452 redpill
redpill's picture

Never go full retard S&P

Thu, 02/13/2014 - 12:30 | 4432486 Clint Liquor
Clint Liquor's picture

Off topic, but does anyone know what the new Debt Limit is? I have searched but can find nothing.

Thu, 02/13/2014 - 12:31 | 4432498 BoNeSxxx
BoNeSxxx's picture

Unless I sm mistaken, they didn't raise it... only suspended the debt ceiling for 12 months.

Thu, 02/13/2014 - 12:34 | 4432510 max2205
max2205's picture

Looking for the bull trap.....seems likely but must hit all time highs again.  

Thu, 02/13/2014 - 12:40 | 4432552 fonestar
fonestar's picture

What are stawks doing?

Trading the privilige of having the reserve currency of the world for nominal all time highs.

Thu, 02/13/2014 - 12:45 | 4432575 TruthInSunshine
TruthInSunshine's picture

Yellen's gasping for air like a fish out of water.

Don't fear the taper.

Thu, 02/13/2014 - 14:00 | 4432952 derek_vineyard
derek_vineyard's picture

wake me when its over

Thu, 02/13/2014 - 12:32 | 4432511 Oh regional Indian
Oh regional Indian's picture

A suspended ceiling. Oxymoron or Freemasonic magic...

An illusion perhaps...

 

ori

Thu, 02/13/2014 - 12:39 | 4432542 Spastica Rex
Spastica Rex's picture

I put a black and white tile floor in my kitchen last summer.

Thu, 02/13/2014 - 12:46 | 4432580 PeeramidIdeologies
PeeramidIdeologies's picture

Exactly man, look at stocks! Look at stocks! Just don't look at Europe. Or JPM...

Thu, 02/13/2014 - 13:11 | 4432683 Oh regional Indian
Oh regional Indian's picture

@SRex: I always had my doubts about Bob Dobbs and the CIA. It's toooooooo damn clever and gripping. I was mesmerised by one of their speakers at my one and only visit to Burning Man...

Fully Ma Sonic Boom, Tyler (yes, Tyler is a masonic degree, from Tiler, Tyler)... Durden you know?

Thu, 02/13/2014 - 13:14 | 4432707 Spastica Rex
Spastica Rex's picture

It wasn't symbolic, it was vinyl, and it cost about $350 USD, including adhesive and incidentals. I've had it for about 6 months now, and I'm pretty impressed with old-fashioned vinyl tile. Highly recommend it to other "poor" people.

Thu, 02/13/2014 - 13:18 | 4432712 forwardho
forwardho's picture

+1 for relevant post!

Thu, 02/13/2014 - 13:35 | 4432826 Renewable Life
Renewable Life's picture

Geezus you got to love that!!! Now who doesn't think the .gov knows something us little peasants haven't been clued in on yet ???

They pass this shit, without a peep from the GOP leadership and it's clean as a whistle, no strings attached!! Come on man, if you can't see this shit coming from 5000 ft up, your fucking blind!!

Unlimited spending for a year, ya government and corporations totally live responsibly under those conditions, don't they???

Thu, 02/13/2014 - 16:14 | 4433525 zaphod42
zaphod42's picture

"...suspended the debt ceiling for 12 months."

That means, for 12 months there is NO limit!  We can party all night long!

And, what else can we do with money?  Buy gold, which is no fun and just holds its value.  Or, buy stocks!  They can go up, and up, and up... never down, of course, in this the best of all possible markets.

Enjoy folks.  The ride is about to get "interesting." 

Popcorn, anyone?

Craig

Thu, 02/13/2014 - 12:33 | 4432504 The_Ungrateful_Yid
The_Ungrateful_Yid's picture

Whatever they want it to be. I doubt a fixed number even exists anymore.

Thu, 02/13/2014 - 16:21 | 4433566 zaphod42
zaphod42's picture

You got it right, TUY.  No 'fixed number.'  And, of course, the 'fix' is in. 

There are no limits.  It is now official.  What is it about none that everyone has difficulty understanding?  Debt can go as high as ... well however high 'they' want.

So, let's say 'they' decide to buy back all the bad assets held by the banksters.  No limit.  Send a man to Mars?  No limit.  Pay off all of 'their' cronies?  Again, no limit. 

Scary shit, I'd say!  And about to hit something rotating behind you.  Get ready to duck!!!!

Craig

Thu, 02/13/2014 - 12:46 | 4432574 Dr. Engali
Dr. Engali's picture

They suspendd it until March of 2015. They don't want a pesky thing like debt brought up during the elections.

Thu, 02/13/2014 - 12:46 | 4432578 fonzannoon
fonzannoon's picture

locked!

I have officially lost it.

Thu, 02/13/2014 - 12:49 | 4432589 Dr. Engali
Dr. Engali's picture

Damn you Fonz! I knew it was you the moment I tried to edit. 

Thu, 02/13/2014 - 12:52 | 4432608 fonzannoon
fonzannoon's picture

these errors will live on forever now. You will wake up many nights in a cold sweat and visit these threads and....hang on my roof just collapsed from the snow...

and wish you could edit this...and there is nothing you can....my power just went out....do about it because....it's getting cold....

what was I saying?

Thu, 02/13/2014 - 12:56 | 4432625 manofthenorth
manofthenorth's picture

" To infinity and beyond ! " Economic idiocracy.

President Camacho: Now I understand everyone's shit's emotional right now. But I've got a 3 point plan that's going to fix EVERYTHING.

Congressman #1: Break it down, Camacho!

President Camacho: Number 1: We've got this guy Not Sure. Number 2: He's got a higher IQ than ANY MAN ALIVE. and Number 3: He's going to fix EVERYTHING.

I am just grateful to be out of this tragic comedy of a market before it goes full Shakespeare. Liquidated the last paper at 16K+ dow and turned it into 2 under 12k monster boxes with a small stack of FRNs left over. ONE HAPPY MINER !

Narrator: The years passed, mankind became stupider at a frightening rate. Some had high hopes the genetic engineering would correct this trend in evolution, but sadly the greatest minds and resources where focused on conquering hair loss and prolonging erections.

Thu, 02/13/2014 - 12:59 | 4432638 KickIce
KickIce's picture

There's no budget, no spending limit, no gold standard and most Americans continue to have 100% faith a FRN.

SNAFU for short.

Thu, 02/13/2014 - 14:35 | 4433046 X_mloclaM
X_mloclaM's picture

right, suspended, as it's increased to the extent that congress allows the expense prior to March 16, 2015, then debt can be issued to pay for it beyond that date 

http://www.gpo.gov/fdsys/pkg/BILLS-113s540enr/pdf/BILLS-113s540enr.pdf

Thu, 02/13/2014 - 12:42 | 4432496 holgerdanske
holgerdanske's picture

It is really rather simple. the government is printing money out of nowhere and they are buying shares with the money. So for them it is cheap, they get productive assets for nothing! And for the man in the street, it is the usual. Your pension, your savings and anything thought of as decent and hardworking is thrown out of the window.

This can continue until people loose the faith in fiat, and that can be a long way off! What is remarkable is that gold has not raced ahead, because this is pure inflation in the making.

For anyone who doubts this, have a look at the meteoric rise of the stock market in Zimbabwe, or, to a lesser degree, in Japan.

We are seeing inflation of unknown ferocity being made in front of our eyes! If this is not going to make you buy gold,what is??

 

Thu, 02/13/2014 - 15:33 | 4433372 bagehot99
bagehot99's picture

Gold is for paranoids and trinketry. I was told that by a Socialist.

Thu, 02/13/2014 - 16:27 | 4433594 zaphod42
zaphod42's picture

There are times that gold is a good investment; there are times it is not so good.  But it is never bad.

Understanding this, I am now looking at physical gold as an essential asset.  Not that I would expect that it would be 'spendable.'  Just that at some point it would be exchangeable for something else of value that I might want then. 

OOOooo... am I really seriously talking about a barter economy? 

Really scary!!!

Craig

Thu, 02/13/2014 - 14:31 | 4433086 lasvegaspersona
lasvegaspersona's picture

jbv

how does one reset the reserve? One can devalue against the reserve but since gold is no longer part of the monetary system the dollar cannot be devalued....and THAT is the problem. 

The dollar needs to be driven til it drops. There is no easy way out (except to print for the banks but that alone does not solve the debt problem enough.)

Unless there is magic which we can't see the dollar will continue to be printed and continue to get uglier until it gets so bad that the rest of the world says 'enough'.

Thu, 02/13/2014 - 14:38 | 4433124 X_mloclaM
X_mloclaM's picture

this is false.

it capitalizes the cb's brosephine:

ECB balance sheet pic:

http://marketupdate.nl/wp-content/uploads/2014/02/ecb-balance-sheet.png

Fed balance sheet link:

http://www.federalreserve.gov/releases/h41/current/h41.pdf

Thu, 02/13/2014 - 12:43 | 4432568 Market Rage
Market Rage's picture

And when they do hit the sell switch, they certainly don't want any retail people to be short.

Thu, 02/13/2014 - 12:22 | 4432441 whatsinaname
whatsinaname's picture

Whatever they are doing I am fine with it. Sold some loss making puts and bought calls (totally by mistake). Was planning to recycle to longer dated puts but just realized I had bought calls instead. Investing for the next century. Am just shaking my head.

Thu, 02/13/2014 - 12:39 | 4432548 slightlyskeptical
slightlyskeptical's picture

You probably should have kept that to yourself. Such errors should make you worry over much more than the outcome of the trade.

Thu, 02/13/2014 - 12:47 | 4432587 The Axe
The Axe's picture

Bounced off that 50day  on the SP 180.83

Thu, 02/13/2014 - 17:03 | 4433237 hobopants
hobopants's picture

The last graph is the only one that makes sense.

Thu, 02/13/2014 - 18:55 | 4434200 StychoKiller
Thu, 02/13/2014 - 12:15 | 4432402 devo
devo's picture

Giffen good.

Thu, 02/13/2014 - 12:17 | 4432403 Ancona
Ancona's picture

Yellenomics unleashed. WTF?

Thu, 02/13/2014 - 12:30 | 4432488 Renewable Life
Renewable Life's picture

Ok, everyone here knows what's going on, stocks are being "restrained" by this taper charade! It's Yellen vs Wall Street for the time being, which has the little children on WS very upset right now!!!

They did a little 1000 point taper tantrum and it didn't get the message thru, the big boys (GS) and (JPM) are setting up for another "Lehman moment", to get this shit back rolling Big Ben Style!!!

Thu, 02/13/2014 - 13:00 | 4432646 wallstreetapost...
wallstreetaposteriori's picture

Full on retard-phoria in the markets now.  I wonder if we can start having 10-20% rallies a day and still be fairly valued?

Thu, 02/13/2014 - 12:16 | 4432406 TuPhat
TuPhat's picture

Right now it's crashing up.  Crashing down will be delayed but it's comming.

Thu, 02/13/2014 - 12:17 | 4432409 Dr. Engali
Dr. Engali's picture

Didn't you hear? Stocks only go up and twitter is the new safety play. Sum bitch is going to cost me a lunch.

Thu, 02/13/2014 - 12:22 | 4432440 fonzannoon
fonzannoon's picture

It's fascinating Doc. When that floor fell out from $65 I was certain it was all over for me and it was sandwich time for you. I was hoping it would find support at $20. Yet that thing gets a bid under it and moves higher again. Algo's at work. Unreal.

Thu, 02/13/2014 - 12:28 | 4432470 Dr. Engali
Dr. Engali's picture

Funny thing is when the bottom fell out my gut told me to buy it, because wallstreet had too much invested in this one to let it fall and I decided to pass. Pisses me off.

Thu, 02/13/2014 - 12:29 | 4432493 fonzannoon
fonzannoon's picture

I threw whatever I had at my 3d printing stocks when they got creamed. With twtr I just sat there paralyzed. 

I think everyone on this site owes Al Huxley a giant thank you btw. He went ahead and shorted the miners at the end of last year and illustrated just what kind of massive power some people have on here. 

Thu, 02/13/2014 - 12:50 | 4432595 RSloane
RSloane's picture

This market is completely emotion driven. Algos are searching for buzzwords and will be triggered regardless of the other economic data accompanying them.

Wall Street is not going to allow one of their new golden cows to fail, even if it is failing.

There is nothing to indicate that your guts or instincts are less than anyone else's In the long run they will be proven to be far more valuable to an unimagineable degree.

Good to see you Doc, and you too Fonz. :D

Thu, 02/13/2014 - 12:59 | 4432635 Dr. Engali
Dr. Engali's picture

Good morning Sloan it's good to see you, and your words ring very true. On another note, I think Fonz has gone off the deep end. Maybe in his insanity he will forget that I'm going to owe him a sandwich.

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