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Third Time Not The Charm For Stock Pump-And-Dump

Tyler Durden's picture




 

Shorts were well-and-truly squeezed this morning providing (yet again) just enough ammo to push the S&P back into the green for 2014 and the Russell to new record highs as the pump-and-dump we noted earlier continued for the 3rd day. However, soon after Europe closed, the fabulous five (TSLA, AMZN, FB, AMZN, and TWTR) all stopped levitating and stocks began to drop back to JPY's reality once again. Treasuries continue to rally (-6bps on the week) to 2-week low yields (leaving stocks disconnected) and while early (and considerable) USD strength faded in the afternoon, the USD index ends up 0.2% on the week (with EUR weakness leading). Gold and Silver were monkey-hammered early on but the former recovered some of its losses to end +0.35% for the week so far. While stocks ended unchanged-ish, VIX (following last night's epiuc WTF moment) rose to 14.4% and credit spreads closed wider on the day.

 

"most shorted" were smashed higher out of the gate but faded fast this afternoon...

 

The fabulous five opened strong but faded soon after Europe closed...

 

Another day, another pump-and-dump...

 

Which left the S&P red for 2014 once again...

 

Treasuries continue to rally, notably disconncted from stocks

 

The USD soared early on but gave some back as the US session stretched on...

 

Credit markets were less exuberant than stocks once again...

 

Gold and Silver suffered as the USD surged but gold recovered some of its losses... notice the PM selling started when Europe opened and finished when Europe closed...

 

Charts: Bloomberg

Bonus Chart: Homebuilders had their biggest volume day in 5 months today and rose a stunning 2.7% (on the heels of a collapse in home purchase applications and a surprise surge in SEASONALLY ADJUSTED new home sales)... Ivy Zelman (a "guru") said it's Nirvana for homebuilders... we are not so sure (h/t @Not_Jim_Cramer)

 

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Wed, 02/26/2014 - 17:45 | 4482098 spastic_colon
spastic_colon's picture

don't forget that the bad bowl cut is speaking tomorrow.

Wed, 02/26/2014 - 17:09 | 4481899 Yen Cross
Yen Cross's picture

  Someone juiced the DOW .16% into the close. The same thing happened  yesterday to the tune of about .25%, then the futures rocketed up into Asia.

Wed, 02/26/2014 - 17:15 | 4481937 Dr. Engali
Dr. Engali's picture

lol..... Tesla is issuing 1.6 billion in convertible notes.

Wed, 02/26/2014 - 17:43 | 4482029 TruthInSunshine
TruthInSunshine's picture

As soon as common posts/comments from "day traders" and "stock pickers" having IQs of at least 85 start to mention it is not possible to do what Tesla claims it is going to do (in terms of securing enough lithium & base chemicals to produce the number of batteries it will need to to meet their projected vehicle production target, or that their per unit vehicle production costs are RISING) it will be too late to short TSLA, one of the greatest short opportunities in a long, long time.

Wed, 02/26/2014 - 17:19 | 4481960 skwid vacuous
skwid vacuous's picture

SPY closed up a penny, the world is saved for another day...

Wed, 02/26/2014 - 17:26 | 4482007 Bosch
Bosch's picture

Been a while time to crank up the Hindenberg Omen. 

Wed, 02/26/2014 - 17:27 | 4482013 101 years and c...
101 years and counting's picture

looking like a nice, rounded top forming.....

Wed, 02/26/2014 - 17:35 | 4482052 TheRideNeverEnds
TheRideNeverEnds's picture

or a cup and handle with a measured move beyond 1900.

Wed, 02/26/2014 - 17:33 | 4482042 maskone909
maskone909's picture

collapse in applications and a surge in new home sales?!?  how the fuck does that happen

 

Wed, 02/26/2014 - 17:34 | 4482050 negative rates
negative rates's picture

Cash buyers at auction, mostly foreign money converted to, dollars.

Wed, 02/26/2014 - 17:37 | 4482057 TheRideNeverEnds
TheRideNeverEnds's picture

the banks are using the money that the government took from us and gave to them to buy houses to rent them back to us at a premium.

Wed, 02/26/2014 - 17:39 | 4482065 maskone909
maskone909's picture

both of those explanations make sense

cash buyers galore i suppose

 

Wed, 02/26/2014 - 17:37 | 4482058 Rising Sun
Rising Sun's picture

So when is the debt due to hit $18T???

Wed, 02/26/2014 - 17:43 | 4482083 negative rates
negative rates's picture

You could do the math and get at least as close as Timmy.

Wed, 02/26/2014 - 17:56 | 4482144 TheRideNeverEnds
TheRideNeverEnds's picture

Debt doesn't matter, hell look at Tesla for example.   They operate at a loss, have loads of debt and are spending billions of dollars of money they haven't even borrowed yet to build a plant to produce a component for products almost nobody can afford with materials that don't exist and the stock has doubled again in the past few months after it was up 500% last year and its up another 10 dollars in the past hour since the market closed.

 

Everything is going to the moon, we will just print money and keep adding zeros.   

Wed, 02/26/2014 - 23:55 | 4483396 goldflows
goldflows's picture

Ready to get raped ALICE?

At least for a month or so, then to the moon again.

Wed, 02/26/2014 - 17:41 | 4482061 Kaiser Sousa
Kaiser Sousa's picture

"The Financial Times' Monday report about a study concluding that the daily London gold price fixing is manipulated probably half the time was deliberately removed from the newspaper's Internet site by the newspaper's editorial staff and did not vanish because of any programming glitch.

The confirmation has come from the newspaper's customer service department in reply to inquiries from readers. While the newspaper has not yet answered further inquiries seeking an explanation for the action, it would hardly surprise close followers of the gold market who read the Financial Times to be told that the newspaper's publishing the story in its newsprint edition was itself a mistake, since the FT seems to have a policy against acknowledging gold market manipulation and against reporting anything that might discomfort bullion banks or Western central banks that trade surreptitiously in gold.

Fortunately, the FT story in question, quickly called to your attention by GATA on Sunday night U.S. Eastern time, has been captured by the Google Internet archive here:

http://tinyurl.com/kz542fc

The FT's reply to inquiries reads:

"This is regarding the query you raised about the missing article in FT.com. Our Editorial Team have confirmed that it was their decision to remove the story 'Gold Price Rigging Fears Put Investors on Alert" from FT.com. Should you want to get further information on this please send your query to ean@ft.com. For any inquiries or assistance that you may need, do not hesitate to contact us.

"Kind regards, Rusella Canio, Customer Service Executive, Financial Times Customer Service."

 

i sent them an email telling them they aint foolin nobody and to FUCKING DIE....

Wed, 02/26/2014 - 17:42 | 4482073 maskone909
maskone909's picture

i wonder how big of bonuses Rusella Canio and the editors will get

they are as complicit in the trampoling of the free press as the worst of em

Wed, 02/26/2014 - 17:43 | 4482085 Kaiser Sousa
Wed, 02/26/2014 - 18:53 | 4482372 Ulterior
Ulterior's picture

ill short 1 contract of s&p micros, just for fun

Wed, 02/26/2014 - 19:04 | 4482420 Kirk2NCC1701
Kirk2NCC1701's picture

Brokers, if you want to induce some "Stock Munchies", you must heighten their sense of (financial) smell.  ;-)

Works for food and pot*.  Don't you just "Love the smell of BS in the morning.  Smells like... profits." /sarc

* http://www.cbc.ca/news/technology/marijuana-munchies-caused-by-heightene...

Thu, 02/27/2014 - 02:10 | 4483608 MeelionDollerBogus
MeelionDollerBogus's picture

And this is why you buy HVU & UVXY http://flic.kr/p/ikyjpz instead of shorting (on margin) because you can completely avoid a margin call through the dips.

In the not too distant future, S&P 500 will certainly hit 1200, 1100 and even 900. While not completely accurate let's use SPY values matching for 120, 110 and 90:

with the trend showing around 219/SPY = HVU 1/11 , you get:

120 :747.98/share

110 : 1,947.89/share

90 : 17,709.96/share

Today rather than 219, 220 happened, which puts HVU 9% higher than it should be for this particular SPY price of 185.03 closing.

That's real technical analysis, bitchez, not this nonsense head-in-the-clouds cup-and-panhandle triple-bottom support-resistance bullshit.

Do NOT follow this link or you will be banned from the site!