Is This What Sent Stocks To A Record High This Morning?

Tyler Durden's picture


Many are confused this morning at the exuberance in US equities after dismal data and a bond market that is barely budging. Of course, the answer lies deep in the fun-durr-mentals of the JPY carry trade... but this time it's different as it would appear a note from BofA proclaiming "it's time to buy AUD" coincided perfectly with a ramp in AUDJPY and thus - new all-time highs in stocks...




The BofA note:

It's time to buy AUDUSD.


AUD/$ is set to resume its bull trend. The almost 2wk old contracting range/Triangle is drawing to a close. The impulsive gain from the 0.8658 Jan 24 low says upside targets are seen to the confluence of resistance between 0.9269/0.9338. Further supportive of the bullish view is the potential for a short squeeze, as positioning remains at bearish extremes. Pullbacks should not break 0.8936 and can't close below the 50d at 0.8903.

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Mon, 02/24/2014 - 12:54 | 4471219 Cult_of_Reason
Cult_of_Reason's picture

No, this...

Burning tires in St Petersburg now?

Putin is next.

Moscow court jails seven anti-Putin Bolotnaya activists

Outside the court in Moscow, police detained about 200 people who rallied in support of the defendants.

Mon, 02/24/2014 - 12:57 | 4471308 ZeroPower
ZeroPower's picture

Word around the desk was that there was a fw $Bn coming into the market (MOO) this morning. 

Mon, 02/24/2014 - 12:57 | 4471309 HyBrasilian
HyBrasilian's picture

Well, personally, I'm all for a good pussy riot now & then...

Mon, 02/24/2014 - 13:03 | 4471328 DoChenRollingBearing
DoChenRollingBearing's picture

Hah!  Well played!

Mon, 02/24/2014 - 13:06 | 4471333 max2205
max2205's picture

Will riot for pussy....and food

Mon, 02/24/2014 - 20:57 | 4473237 StychoKiller
StychoKiller's picture

Dude(tte), shouldn't you be like helping to build a barricade or something?

Mon, 02/24/2014 - 12:36 | 4471221 RaiZH
RaiZH's picture

Financial Times pulling down the article on gold rigging should send them much higher lol


Mon, 02/24/2014 - 12:37 | 4471225 Max Damage
Max Damage's picture

What's next weeks bullshit excuse. USD/Bitcoin? USD has strengthened alot agaist Bitcoin recently!!!!

Mon, 02/24/2014 - 12:41 | 4471232 medium giraffe
medium giraffe's picture

Yep, been a funny old day on the fx.  And of course, deinflation Europe keeps the Euro above 1.37.  At least the meaningless S&P has another pair to emulate for a while.  Hooray!

Mon, 02/24/2014 - 12:38 | 4471233 Spungo
Spungo's picture

Imagine how high the S&P will go if Russia has a violent revolution like Ukraine. The NASDAQ might shoot up to 2000 levels if Putin gets assassinated.

Mon, 02/24/2014 - 12:41 | 4471242 Max Damage
Max Damage's picture

5000 if Obama gets hit by a nail gun.....

Mon, 02/24/2014 - 13:11 | 4471352 mayhem_korner
mayhem_korner's picture



Is that your payout offer, or prediction for the market?  Inquiring minds want to know...

Mon, 02/24/2014 - 12:41 | 4471244 The_Ungrateful_Yid
The_Ungrateful_Yid's picture

Bad news always ='s good news for S&P....

Mon, 02/24/2014 - 13:25 | 4471411 Obchelli
Obchelli's picture

What does Good News equal than? Gransiouse News?

Mon, 02/24/2014 - 12:42 | 4471245 LawsofPhysics
LawsofPhysics's picture

Racing to the bottom!!!


Mon, 02/24/2014 - 12:42 | 4471248 Tortuga
Tortuga's picture

Ahhh. The perfect coinciding.

Damnit, it never happens when I'm ready for it.

Other than every other nano hft.

Mon, 02/24/2014 - 12:45 | 4471257 TheRideNeverEnds
TheRideNeverEnds's picture


Mon, 02/24/2014 - 12:49 | 4471265 mccvilb
mccvilb's picture

The Australian dollar vs Japanese yen. Makes perfect sense, seeing Australia's primary export is iron ore and the Chinese are Australia's #1 customer. /s

Mon, 02/24/2014 - 12:49 | 4471272 NOTW777
NOTW777's picture

state banking advice - 

Mon, 02/24/2014 - 13:00 | 4471278 SheepDog-One
SheepDog-One's picture

All this carry trade shit reminds me of a gaggle of drunken dirty ol broke winos staggering down an alley propping each other up...for now.

Mon, 02/24/2014 - 12:51 | 4471280 the 300000000th...
the 300000000th percent's picture

"Many are confused this morning at the exuberance in US equities". That used to be true, I'm not confused anymore. If I had a nickle every time I heard that I fucking retire. I would be confused if this was all based on reality but we have slipped into some quasi permabull, hopium addict, drugged out feeding frenzy. So no I'm not confused as much as I am not confused as of when a heroin addict gets high right before a job interveiw and doesnt get the job. Its not rational, its not rooted in reality.

Mon, 02/24/2014 - 12:51 | 4471281 Being Free
Being Free's picture

AUD/JPY - not likely.  It's just a spurious momentary coincidence. - bonus chart reveals all.  EOFS.

Mon, 02/24/2014 - 12:52 | 4471283 madbraz
madbraz's picture

Do they really need a reason?  I mean, they can pick their nose and a TBTF bank or presstitute like CNBC will come out and say something like "well, the market started the week much higher as Yellen woke up and had a green booger coming out of her nasty nose and proclaimed that markets shall go higher nevertheless"  She proceeded to call Mr. Dudley, who with a couple of quick phone calls to his buddies lifted the stock market in no time.

Mon, 02/24/2014 - 20:59 | 4473245 StychoKiller
StychoKiller's picture

Fear "The coming of the great white handkerchief!"

Mon, 02/24/2014 - 12:53 | 4471287 fonzannoon
fonzannoon's picture

who gives a shit at this point what sends stawks to all time highs?

Mon, 02/24/2014 - 12:56 | 4471305 SheepDog-One
SheepDog-One's picture

It ALL stinks of desperation to me! Fuckin all time record highs, yea sure whatever.

Mon, 02/24/2014 - 15:56 | 4472022 new game
new game's picture

factor in the true value of a dollar and then where are we at?

Mon, 02/24/2014 - 18:02 | 4472477 BringOnTheAsteroid
BringOnTheAsteroid's picture

Irrational exuberance, money printing, record debt, criminal bankers, gold manipulation, global warming, WWIII, environmental destruction. Meh. But I will not sit idly by when people start ending their sentences with prepositions. Right NG, that's it, step outside.

Mon, 02/24/2014 - 12:54 | 4471293 Frank N. Beans
Frank N. Beans's picture

and BofA goes "all in" on this trade milliseconds before releasing their "note."  

This is such a conflict of interest but the repudiation of Glass-stegall makes this "legal."



Mon, 02/24/2014 - 12:57 | 4471310 fijisailor
fijisailor's picture

Maybe it's the same thing that sent gold up this AM?  Naw, no correlation there.

Mon, 02/24/2014 - 13:00 | 4471318 Al Huxley
Al Huxley's picture

Do we really still need a reason to explain the ongoing wealth transfer to a smaller and smaller percentage of the population, as the broader economy continues to stagnate? I mean, other than free money from the FED?

Mon, 02/24/2014 - 13:00 | 4471320 CitizenPete
CitizenPete's picture

Let me know when it's happening on the Mall in D.C.

Mon, 02/24/2014 - 13:05 | 4471331 SheepDog-One
SheepDog-One's picture

America is now so docile they'll never get riled up unless there's a shortage of McNuggets or a Miley Cyrus concert got cancelled...I did recently hear of some civil unrest when an NBA player left for another team, that's about it though.

Mon, 02/24/2014 - 21:00 | 4473252 StychoKiller
StychoKiller's picture

Did this playa move to avoid the ghey?

Mon, 02/24/2014 - 13:02 | 4471325 NDXTrader
NDXTrader's picture

It's the last week of the month. Got to make those statements to the sheep look better. Something ugly is coming soon

Mon, 02/24/2014 - 13:11 | 4471362 SheepDog-One
SheepDog-One's picture

Yep, all time record high markets are just a more advanced Baghdad Bob on the roof with a bullhorn shouting all is well, you don't see those tanks, carry on.

Mon, 02/24/2014 - 21:02 | 4473258 StychoKiller
StychoKiller's picture

Funny you should mention Baghdad Bob...

Mon, 02/24/2014 - 13:02 | 4471326 elwind45
elwind45's picture

Monday hatching plans for merger mania takeout Tuesday? Wednesday produces deflation scare rally followed by accommodation testimony Thursday follow thru buying into Friday anticipated end month window dressing and Monday's panic buying from institutions and pensions scrabbling not to get caught out with capital not fully deployed? Followed again by takedown Tuesday?

Mon, 02/24/2014 - 13:04 | 4471329 alien-IQ
alien-IQ's picture

seeking logic as to why this idiotic farce of a market is doing what it's doing is nothing short of a fool's errand.

Mon, 02/24/2014 - 13:07 | 4471337 Yen Cross
Yen Cross's picture

     There's a significant possibility that aud/usd is forming an H/S on the 4-hour chart. I'd be really reluctant to get long unless it breaks and closes above the .9085/.9100 area. I'm long this trade and that's where I'm looking to t/p.

     I also wouldn't be surprised to see this move in the equity markets short lived. The usd/jpy is basically at it's Friday closing price on this batshit crazy equity ramp.

Mon, 02/24/2014 - 13:08 | 4471341 thismarketisrigged
thismarketisrigged's picture

there is nothing sending stocks to all time numerical highs except for record low interest rates and big pomos.


as many ppl on here have said above, there needs to be no reason anymore.


the market goes up day by day on horrible economic data,  terrible jobs numbers, whatever it is, it continues higher.


we all here the same bullshit reason on those days like '' short squeeze'' which is the biggest bunch of bullshit i have heard.


wtf would someone short going into a jobs report run for cover when the reason they were short in the 1st place was expecting a bad number in which they get?


i can understand that maybe if the number beat slightly and people covered, fine, but the explinations for as to why the market hits all time highs on the shittiest of data is just ridic at this point.

Mon, 02/24/2014 - 13:10 | 4471358 Eahudimac
Eahudimac's picture

Serious question - how does carry trading translate into higher equities?

Mon, 02/24/2014 - 21:05 | 4473266 StychoKiller
StychoKiller's picture

Free munny!  Invest in stawks!

Mon, 02/24/2014 - 13:13 | 4471370 yogibear
yogibear's picture

Maybe all the the out of line finance people are gone. Easing of building jumping and nail guns from this point on.

Mon, 02/24/2014 - 13:15 | 4471376 HamRove
HamRove's picture

Meanwhile Silver is up past $22

Mon, 02/24/2014 - 13:16 | 4471380 elwind45
elwind45's picture

In 1624 the Semper Augustus fetched the handsome sum of 1200 florins an amount sufficient to buy an Amsterdam townhouse. Lets see the modern "flowers for ALGO-NON" top that!

Mon, 02/24/2014 - 13:19 | 4471396 Ban KKiller
Ban KKiller's picture

Could the free market be rigged? Does buying back stocks to increase EPS make for a better buy in that stock? Do REAL earnings matter? Ummm...two plus two is five. Ok, now I get it. 

Mon, 02/24/2014 - 13:23 | 4471407 Rising Sun
Rising Sun's picture

There's no fucking volume on this push up.


ZH said this a long time ago - we are going to the moon until the last two shares are traded between two companies - probably JPM and GS trading the last two shares of Netflix.


Bring on MOAR shit show Yellen and tell those other fuckers like GS and JPM to keep jacking this market higher while we sit on the sidelines and watch.


Remember, the only way out for the banksters is to short squeeze - no one is buying this bull (shit) run.

Mon, 02/24/2014 - 13:33 | 4471455 TrustWho
TrustWho's picture

When a Central Bank trashes its currency, stock market tracked in that currecy can sky-rocket even when stock value is decreasing.


Fuck Bernanke! (I am sorry, Yellen is a pussy and does not hit my scale.)

Mon, 02/24/2014 - 13:37 | 4471476 GrinandBearit
GrinandBearit's picture

Another pathetic, low volume rocket ship ride. 

The only thing bears can do is sit back and laugh about it.

One day it will be the beginning of the end of this phony stock market... not today unfortunutely.

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