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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...

 

Coincidence?

 

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 | Link to Comment Cult_of_Reason
Cult_of_Reason's picture

No, this...

Burning tires in St Petersburg now?
https://pbs.twimg.com/media/BhQKeKkCMAAf-N0.jpg

Putin is next.
https://pbs.twimg.com/media/BhQLG2rCYAAjKuC.jpg

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.
http://www.bbc.co.uk/news/world-europe-26323760

Mon, 02/24/2014 - 12:57 | Link to Comment 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 | Link to Comment HyBrasilian
HyBrasilian's picture

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

Mon, 02/24/2014 - 13:03 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

Hah!  Well played!

Mon, 02/24/2014 - 13:06 | Link to Comment max2205
max2205's picture

Will riot for pussy....and food

Mon, 02/24/2014 - 20:57 | Link to Comment StychoKiller
StychoKiller's picture

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

Mon, 02/24/2014 - 12:36 | Link to Comment RaiZH
RaiZH's picture

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

/sarc

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

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

Mon, 02/24/2014 - 13:11 | Link to Comment 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 | Link to Comment The_Ungrateful_Yid
The_Ungrateful_Yid's picture

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

Mon, 02/24/2014 - 13:25 | Link to Comment Obchelli
Obchelli's picture

What does Good News equal than? Gransiouse News?

Mon, 02/24/2014 - 12:42 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Racing to the bottom!!!

"winning?"

Mon, 02/24/2014 - 12:42 | Link to Comment 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 | Link to Comment TheRideNeverEnds
TheRideNeverEnds's picture

BTFATH!

Mon, 02/24/2014 - 12:49 | Link to Comment 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 | Link to Comment NOTW777
NOTW777's picture

state banking advice - 

Mon, 02/24/2014 - 13:00 | Link to Comment 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 | Link to Comment 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 | Link to Comment Being Free
Being Free's picture

AUD/JPY - not likely.  It's just a spurious momentary coincidence.

http://www.zerohedge.com/news/2014-02-22/just-12-wtf-charts - bonus chart reveals all.  EOFS.

Mon, 02/24/2014 - 12:52 | Link to Comment 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 | Link to Comment StychoKiller
StychoKiller's picture

Fear "The coming of the great white handkerchief!"

Mon, 02/24/2014 - 12:53 | Link to Comment fonzannoon
fonzannoon's picture

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

Mon, 02/24/2014 - 12:56 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment CitizenPete
CitizenPete's picture

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

Mon, 02/24/2014 - 13:05 | Link to Comment 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 | Link to Comment StychoKiller
StychoKiller's picture

Did this playa move to avoid the ghey?

Mon, 02/24/2014 - 13:02 | Link to Comment 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 | Link to Comment 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 | Link to Comment StychoKiller
StychoKiller's picture

Funny you should mention Baghdad Bob...

Mon, 02/24/2014 - 13:02 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment Eahudimac
Eahudimac's picture

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

Mon, 02/24/2014 - 21:05 | Link to Comment StychoKiller
StychoKiller's picture

Free munny!  Invest in stawks!

Mon, 02/24/2014 - 13:13 | Link to Comment 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 | Link to Comment HamRove
HamRove's picture

Meanwhile Silver is up past $22

Mon, 02/24/2014 - 13:16 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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.

Mon, 02/24/2014 - 13:53 | Link to Comment Iam Yue2
Iam Yue2's picture

Timing is all;

"The Australian dollar could face a "benign collapse" to US66¢ by the end of next year amid falling commodity prices, declining mining investment and reduced government spending, Deutsche Bank says in one of the most bearish forecasts for the local currency."

SMH.COM.AU 24/02/14

Mon, 02/24/2014 - 13:59 | Link to Comment Prostar
Prostar's picture

Last check on bloomberg and the exchange AUD/JPY rate is falling.  WTF?

Mon, 02/24/2014 - 14:14 | Link to Comment BullyBearish
BullyBearish's picture

The old "Wall of worry"...simple instructions: whenever you are absolutely, positively sure that the market will go down and you want to short the $hit out of it...just go long any lagging index (e.g. Russell 2000)

Mon, 02/24/2014 - 14:46 | Link to Comment Al Huxley
Al Huxley's picture

Or just buy Facebook, this decade's AAPL.

Mon, 02/24/2014 - 15:56 | Link to Comment gdpetti
gdpetti's picture

This is probably the 'blow off' as expected. It was advertised just last week, and now on Monday morning, the script page is turned and like magic, the carpet prepares to take flight, hope those on it know how to fly.

Mon, 02/24/2014 - 16:26 | Link to Comment The Econ Ideal
The Econ Ideal's picture

ZH seems to quote/reference BofAML quite often lately...

(ZH/TD, still looking for more teeth and investigative journalism - or does that crack your tight ties?)

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