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Stocks And Silver Soar On China PMI Miss

Tyler Durden's picture




 

Headlines will suggest that today's rally was due to the beat in US PMI (a data item that doesn't even rank on Bloomberg's scale of economic importance) and chose to ignore the misses (macro and micro) in everything else (which must be weather-related), the facts are different - it was simply an AUDJPY-inspired almost perfect correlation levitation from the post-China-PMI miss lows - more China QE to come. Having decoupled from USDJPY overnight, today's melt-up in stocks recoupled the all-important fun-durr-mental pair and lifted the Russell 2000 back to unchanged for 2014. With OPEX tomorrow, VIX was noisy and remains bearishly divergent from stocks (though was offered today). Credit markets lifted with stocks. Treasury yields rose back to modestly higher on the week. Gold and silver rose on the day starting from the China PMI miss (as did the USD with most of the majors losing ground against it). US Macro hits fresh 6-month lows.

 

AUDJPY ruled the day...Spot the Difference (what's the forward P/E of AUDJPY?)

 

And USDJPY and S&P 500 recoupled...

 

As The Russell 2000 reached all the way back up to unchanged for 2014

 

Russell and Nasdaq cash are up 7.3% off the early Feb lows...

 

US Treasuries sold off today - back to modestly higher in yield on the week...though the afterenoon saw buying come back in even as stocks rose...

 

Gold and silver rose non-stop following the China PMI miss...

 

Today was all about hope of more liquidity from the China PMI miss...

 

Of course, Goldman proclaiming last night That the FOMC minutes were not hawkish probably helped to pump this idiocy.

 

What everyone was talking about though was FB buying WhatsApp - not every day you blow $16bn and add a few bn market cap... notice that today's VWAP close was almost exactly yeaterday's close - makes u wonder if the machines were running the show higher for the big boys to get out?

 

Charts: Bloomberg

Bonus Chart: US Macro is a mess...

 

Bonus Bonus Chart: NKY and USDJPY not playing well with each other again...

 

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Thu, 02/20/2014 - 17:05 | 4459194 Ulterior
Ulterior's picture

<-- yes!!

<- ok...

Thu, 02/20/2014 - 17:09 | 4459217 fonestar
fonestar's picture

BITCOIN!!

Thu, 02/20/2014 - 17:39 | 4459330 negative rates
negative rates's picture

Okay that's fine, what else you got?

Thu, 02/20/2014 - 17:41 | 4459333 fonestar
fonestar's picture

fonestar is a one bit pony.

Thu, 02/20/2014 - 17:51 | 4459374 DoChenRollingBearing
DoChenRollingBearing's picture

Even though I am down some USFIAT$600 or so from BTC, I am thinking longer term here.  Education can be expensive.  I might not have explored this trail without fonestar.

Thu, 02/20/2014 - 17:58 | 4459403 fonestar
fonestar's picture

After being in silver and gold for the last couple years you should have rough leather balls and a whisky soaked baritone voice by now.  Just sit back and take the long term view.  That's what fonestar would do.

...and thank-you.

Thu, 02/20/2014 - 18:14 | 4459459 silverserfer
silverserfer's picture

Bitcoin= distraction.

money wasted that could have bough the bottom  in PM prices. 

Fonestar= Sideshow Bob and his "magic cure all elixer."

 

Thu, 02/20/2014 - 18:17 | 4459471 fonestar
fonestar's picture

....that's what they said about aircraft in WW1.  Distraction from the real battles.

Thu, 02/20/2014 - 21:41 | 4459661 J S Bach
J S Bach's picture

The careless use of sensationalist adjectives on this site really gets me sometimes...

 

A .5% rise in the price if silver is not "soaring".

 

InvestmentWatch does the same thing.   They will inevitably turn people away.  Crying "wolf" so many times isn't a credible policy.

Thu, 02/20/2014 - 19:10 | 4459690 akak
akak's picture

 

....that's what they said about aircraft in WW1.  Distraction from the real battles.

And in WWI (as opposed to WWII), that is pretty much exactly what aircraft were.

Thu, 02/20/2014 - 20:09 | 4459894 silverserfer
silverserfer's picture

the fact that bitcoins are transmitted via the internet guarantees its demise.

Your whole hope is based on murderous criminal thugs allowing  bitcoin to exist and compete with their fiat on their network is fantasy.

The internet is nothing more than a mechanism used to dominate the masses.

Bitcoin is not the solution to circumvent their oppresion.  

 

 

Thu, 02/20/2014 - 20:30 | 4459965 fonestar
fonestar's picture

Did the internet exist because they allowed it to?  Of course not, it would exist either way. 

fonestar cannot fathom how you give these thugs and criminals credit for all of this imaginary brilliance and omnipotence?  They're child molesters and shit-eating satanists.  Not chess masters, nuclear physicists or engineers.

Thu, 02/20/2014 - 20:32 | 4459978 satoshi411
satoshi411's picture

When the YAKUZA murders everyone who works at MT-GOX in JAPAN, which is comin today.

Will this contagion spread to all the other BTC exchanges?

Given that MT-GOX is 80% of et-al, and given that everyone who pumped&dumped the MT-GOX ponzi will be terminated and their family's liquidated to cover losses brought on by NERD SONS.

How does FONESTAR feel about contagion? Coming to China?

Thu, 02/20/2014 - 20:53 | 4460052 hobopants
hobopants's picture

I tried bitcoin...It gave me gas.

Thu, 02/20/2014 - 21:06 | 4460067 satoshi411
satoshi411's picture

If you ever go to a 'bitcoin factory' and watch it being made, you will never eat it ever again.

Long ago we used to compare 'law making' to 'bitcoin mining', there was even a book written in the early 1900's about what went on.

[ Sinclair Lewis ] The making of Bitcoin, the Goddamn Ugly Truth

*

Fonestar has done his best to portray BTC mining as a clean MATH process, but the reality is that BTC is not unlike the USD, ... DEATH in every direction.

RM likes to say the USD is MURDER ( true ), now BTC is suicide, homocide, and genocide.

Thu, 02/20/2014 - 20:34 | 4459988 satoshi411
satoshi411's picture

Bitcoin is not the solution to circumvent their oppresion. 

*

"I told you BITCOIN would take you places,.. I never said they would be good places" - Satoshi

Thu, 02/20/2014 - 21:02 | 4460082 satoshi411
satoshi411's picture

the fact that bitcoins are transmitted via the internet guarantees its demise.

*

The fact that it traveled the internet and made by NSA, and the internet made by DOD-US-MIL, guarantees that the US-MIL controls the worlds economy, should BTC have succeeded, but as seen CIA/NSA/MOSSAD got BITFUCKED.

But I agree with you, if BTC had of gained traction the NSA  could have pruned the block-chain any time they wish and control everybody on the planet.

That gawd for Tower of Babel, ... the reality of man is that he is weak and fragile. That all he creates is house of sand.

Thu, 02/20/2014 - 20:56 | 4460065 LapseOfReason
LapseOfReason's picture

You are a fucking paid plant.

Thu, 02/20/2014 - 17:18 | 4459262 BandGap
BandGap's picture

This is all being run for the big boys to get out. The problem is, it's not all at the same time and not all at the same exit.

Choose the form of the destructor because if you don't someone else will.

Thu, 02/20/2014 - 17:52 | 4459376 SheepDog-One
SheepDog-One's picture

Another problem seems to be no one left to offload the garbage onto.

Thu, 02/20/2014 - 19:24 | 4459747 forwardho
forwardho's picture

Muppets to the rescue.

 

 

Thu, 02/20/2014 - 17:07 | 4459203 Obchelli
Obchelli's picture

it's the weather stupid...

 

And Bullish: BTATHS = BTATHStupid

 

What is there not to understand?

Thu, 02/20/2014 - 17:39 | 4459329 Stoploss
Stoploss's picture

Their set up on rolling correlations.

Not exactly rocket science.

Thu, 02/20/2014 - 17:09 | 4459206 AL_SWEARENGEN
AL_SWEARENGEN's picture

All I see are peaks and slopes.  Speaking of snow sports.. http://www.liveleak.com/view?i=0e5_1392485707

(you know it's not America when all the girls are skinny and hot)

 

 

Thu, 02/20/2014 - 17:34 | 4459312 BandGap
BandGap's picture

Uh, they were not all skinny, and they definately were not all hot. There were better looking women, fully clothed, watching the action.

Thu, 02/20/2014 - 17:07 | 4459209 stant
stant's picture

no place to run with a world on fire but the us market

Thu, 02/20/2014 - 17:30 | 4459306 ss123
ss123's picture

 

I'm starting to think that the algos have a plus(+) sign in the code where there should be a minus(-) sign.

 

Thu, 02/20/2014 - 17:09 | 4459216 fuu
fuu's picture

Another $84,000,000,000 TOMO today.

Thu, 02/20/2014 - 17:56 | 4459395 El Oregonian
El Oregonian's picture

Time to put on my silver tap shoes and START DANCING!!!

Thu, 02/20/2014 - 17:09 | 4459219 thismarketisrigged
thismarketisrigged's picture

tyler, can u please post the recap for tomorrow before the day even starts just to show what a farce the market has become?

 

no matter what data comes out overnight or in the morning, no matter how much futures decline tonight if they do, at the end of fridays trading session, we all know the dow , s&p and nasdaq will be up substantially.

 

why? because its friday, its a lock

Thu, 02/20/2014 - 19:20 | 4459730 forwardho
forwardho's picture

I have applauded your screen name before.

I do so again.

It says it all.

Thu, 02/20/2014 - 17:10 | 4459221 Sudden Debt
Sudden Debt's picture

isn't China supposed to save the economie by buying their own plastic crap with American plastic crap cards?

Thu, 02/20/2014 - 17:41 | 4459335 negative rates
negative rates's picture

No, just the opposite, they use their American plastic crap cards, to buy other peoples plastic crap, that's what China does.

Thu, 02/20/2014 - 17:10 | 4459223 skwid vacuous
skwid vacuous's picture

it's a great time to BUY... stox, houses, etc.

Thu, 02/20/2014 - 17:27 | 4459234 Kaiser Sousa
Kaiser Sousa's picture

im telling ya'll Silver is getting the most attention from the MoneyChangers and is their achilles heal...

they r repeatedly steppin on the phony paper price at the $22 debt coupon dollar mark... and the attacks in the aftermarkets r so obvious its just stupid...

and heres to the propaganda from Lamestream Financial Media...

enjoy...

https://www.youtube.com/watch?v=q891supv5Ss

Thu, 02/20/2014 - 17:13 | 4459240 Save_America1st
Save_America1st's picture

mmmmmmmmmmmmmmmmmmmmmmmm.....silver phyzz!!!

And STILL a screaming deal at 2 dollars under the average cost of production per ounce...and no virtual, crypto, sasquatchy, is it real or not, Mt. Gox bullshit to deal with.  Just take a nice drive down to your friendly neighborhood LCS and get you a nice shiny roll of sweet silver phyzz! 

 

Thu, 02/20/2014 - 17:14 | 4459243 Sudden Debt
Sudden Debt's picture

so... luxury products... will dip from now on... there goes porsche and ferrari...

Thu, 02/20/2014 - 17:48 | 4459369 DoChenRollingBearing
DoChenRollingBearing's picture

That's OK!  Luxury products like that are a waste of money.  Real savings are a good deal for your children...

Thu, 02/20/2014 - 17:15 | 4459250 NOTaREALmerican
NOTaREALmerican's picture

Buy now, or be priced out forever!

Thu, 02/20/2014 - 17:26 | 4459286 rqb1
rqb1's picture

SILVER is up because of March delivery. 

Thu, 02/20/2014 - 17:37 | 4459305 rqb1
rqb1's picture

52,039 5,000 ounce open contracts.

Thu, 02/20/2014 - 17:38 | 4459322 Kaiser Sousa
Kaiser Sousa's picture

 

* Over 80 pct of Swiss gold exports Asia-bound in January

 

* Swiss gold exports jump 77 pct, imports by 35 pct in 2013

* Flows likely represent bullion heading east - analysts

By Jan Harvey

LONDON, Feb 20 (Reuters) - The top five recipients of Swiss gold exports in January were in Asia, with Hong Kong the top destination for shipments out of Europe's leading refining centre, data from the Swiss customs office showed on Thursday.

Hong Kong received 3.073 billion Swiss francs' ($3.5 billion) worth of gold last month, or 44.3 percent of total exports by value, the data showed. India, Singapore, the United Arab Emirates and China made up the rest of the top five destinations.

The main source of Swiss gold imports was the United Kingdom, which accounted for 60 percent of gold imports by value. London is a major vaulting centre for investment-grade bullion, which was sold heavily last year.

Separate Swiss customs data showed gold flows into and out of Switzerland jumped last year, in what analysts say is likely to be the latest evidence of metal moving from U.S. and European investment funds to Asian consumers.

Exports of the metal from Switzerland jumped 77 percent to 2,777.14 tonnes last year, the data showed, while imports climbed by more than a third to 3,060.66 tonnes.

Investors last year liquidated 881 tonnes of gold from exchange-traded funds, which issue securities backed by physical metal, according to World Gold Council and Thomson Reuters GFMS data released earlier this week.

http://www.reuters.com/article/2014/02/20/gold-switzerland-flows-idUSL6N...

Thu, 02/20/2014 - 17:39 | 4459328 Winston Churchill
Winston Churchill's picture

OPEX tomorrow.Somebody is going to have to do a lot
of covering on their PM shorts.
They are trying hard to get prices down in AH, but its not working.

Thu, 02/20/2014 - 17:46 | 4459356 LawsofPhysics
LawsofPhysics's picture

Optimist.

Thu, 02/20/2014 - 17:50 | 4459364 SheepDog-One
SheepDog-One's picture

.5%, pretty tepid 'melt-up', all based upon Pavlovian reaction to hopes of moar free monies. Wake me when more APC's get fire bombed or something.

Thu, 02/20/2014 - 18:31 | 4459522 MrTouchdown
MrTouchdown's picture

Abe will defend that JPYUSD with everything he's got! Never give a Japanese an excuse to commit suicide. They're all secretly biding their time till they can fall on a sword somewhere...

Thu, 02/20/2014 - 20:40 | 4460011 satoshi411
satoshi411's picture

There are only 3 liquid FIATS on earth to play with ..

 

JPY, USD, and EURO

You can't play with CNY

The USD is fucked, and backed by MURDER

The EURO is ok, but its a failed state and as you can see only by stealing UKRAINE and growing can they keep the bitch alive.

At the end of the day the JPY looks like GOLD, ... sad to say, ... but this is the truth.

The JAPS have their problems, but the problems are tiny compared to EUROPE or the USA.

Thu, 02/20/2014 - 20:38 | 4459999 satoshi411
satoshi411's picture

The ZH post-bots got charts my fuck gawd charts ... what the fuck

Fuck the CHARTS they don't mean shit.

JPY is doing fine and silver is going fuckiing no where.

AUD will do fine,

Lately the CNY is down, ..

*

All ZH posts are BAD for the MIND remember that.

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