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Treasuries Tumble Most In 6 Months As Trannies Soar To New Highs

Tyler Durden's picture




 

The world and their pet rabbit was convinced yesterday that today's jobs number was both the most-important-number-in-the-world and didn't matter (because whether it beat or missed it was bullish for stocks). Seconds after the release that appeared to be true as JPY instantly dragged stocks to record highs (and the USD up and bonds and gold down). However, trumped by confirmation that the taper is continuing, Gazprom warnings, Lavrov threats, and finally reports of a Russian invasion, stocks leaked lower to Tuesday's ramp-day closing levels. Thanks to some last-minute JPY and VIX banging, S&P closed green for the 15th of last 16 NFPs. Despite intraday volatility, the USD ended the week unchanged, gold +1%, silver -1.5% and Treasuries +14bps or so (its worst week in 6 months!). Credit markets continue to be non-believers (with the high-yield bond ETF plunging this week). Critically, after last night's default in China, Iron Ore and Copper futures were crushed and we suspect Sunday night's Asia open could see more fireworks.

So some see today's jobs data as good news (NFP beat) which is bad news as it encourages moar taper... sell bonds, sell gold, buy USD and it took a little for stocks to catch up that in fact this is dismal job growth and hoping that we have reached escape velocity is a dream... and this print won't allow the Fed to save the day if we tumble on the back of some exogenous event...

 

Only one thing mattered today to keep the "common knowledge" meme alive - a green close on a payrolls Friday no matter waht was critical... JPY was tired having been abused all week... so VIX, the old-whipping-boy of market-manipulating muppets, was smashed lower into the close just perfectly to get the S&P 500 cash index to close green by the smallest margin...

 

Now tell us this - some talking head claimed that everyone is hedged? and that's the ammo for a rmap higher... if everyone is hedged then who the fuck was selling the crap out of vol into the close today?

 

For 2014, Gold and Silver remain the winners, The USD and HY Credit the losers...

 

High-beta has had a tough couple of days...the S&P has closed higher on a jobs Friday 15 of the last 16 times... as we were saved in th elast few minutes...

 

And the MoMo names suffered the last 2 days...

 

But Trannies just were on fire on the week...

 

Healthcare (well Biotechs) continues to lead the year but Financials were th ebig winners this week (up over 3%)...

 

Treasuries were banged higher in yield all week...

 

and even as stocks fell on Friday to end the worst week in 6 months...

 

Credit markets are not as exuberant as stocks...

 

While the USDollar ended the week unchanged (ramping back on the NFP print) - it is clear from the chart below what currenies were in charge this week (AUD up, JPY down)...

 

And so AUDJPY ran the show in stocks...

 

Commodities were a mixed bag despite the UNCH of the dollar... copper crushed on China and gold bid as fear remains about Ukraine...

 

Interestingly, "Most shorted" stocks ended the week -0.6% as the massive squeze at the start of the week gave way as "most shorted" stocks sold off dramatically more than the broad market...

 

Charts: Bloomberg

Bonus Chart: Iron Ore and Copper collapsing as credit fears unwind in China...

 

Bonus Bonus Chart: Seems like the NFIB "promises" to raise compensation were worthless...

 

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Fri, 03/07/2014 - 17:08 | 4522818 Colonel Klink
Colonel Klink's picture

Obama just got excited when he read the news about trannies soaring.  Then when discovering it was in reference to transportion, he experienced deflation.

Fri, 03/07/2014 - 17:19 | 4522873 Pig Circus
Pig Circus's picture

O'DipShit couldn't Careless he is leaving for his 3rd vacation this year. This time to Key Largo with the fat ass in toe. I suspect as the cow stuffs her face with Buttered Lobster the Zero will be packing his nose with taxpayer funded Coke.

Fri, 03/07/2014 - 17:27 | 4522908 jschurchin
jschurchin's picture

I didn't know Bill O'Reilly was going to Key West!! And that's really not nice to call his wife Fat Ass.

Fri, 03/07/2014 - 17:33 | 4522937 Abi Normal
Abi Normal's picture

Who the hell cares about wishy-washy O'Reilly?  I want to comment on the charts!  They are a fuckin' waste of your time!!!!

Got that, ROFLMA!!!!  They are ALL manupulated....dang!!!

Fri, 03/07/2014 - 17:38 | 4522959 Soul Glow
Soul Glow's picture

And the charts aren't a waste of your time?

Sat, 03/08/2014 - 09:14 | 4524655 Abi Normal
Abi Normal's picture

Not really, I look at the pretty colors and then I look at what they are saying, and they are not reflecting reality, then I give up.  So no they don't waste much of my time.

Fri, 03/07/2014 - 17:37 | 4522953 skwid vacuous
skwid vacuous's picture

no the packing will be done to him, maybe after sasquatch passes out from all the C-food

Fri, 03/07/2014 - 17:16 | 4522861 jubber
jubber's picture

they just had to close this shit up

Fri, 03/07/2014 - 17:21 | 4522871 Yen Cross
Yen Cross's picture

    Look at this chart then overlay it with usd/jpy for the week. It's going to get interesting for risk next week.

    U.S.  10 year 

 

Fri, 03/07/2014 - 17:19 | 4522872 thismarketisrigged
thismarketisrigged's picture

''the S&P has closed higher on a jobs Friday 15 of the last 16 times''

 

 

thanks tyler for the research. i knew it had to be some insane number, but thanks for the exact. 

 

if this does not convince people about the amount of fraud in this market, i do not know then what will. 

 

out of those 16 times,  we may have had 1 good number back in november i believe it was over 250,000, but every other time, the numbers have been shit, and yet green it is.

 

just shows what happens when a market trades on 0 fundamentals.

 

Fri, 03/07/2014 - 17:22 | 4522885 TheRideNeverEnds
TheRideNeverEnds's picture

Seriously, did anyone think we would NOT make new highs and close green?

Fri, 03/07/2014 - 17:36 | 4522950 Soul Glow
Soul Glow's picture

In other words, did anyone think reality is setting in and the charade can only go for so long?

Yes.  I believe that the mountain of paper that holds the financial system in place was set on fire long ago and they must keep pushing more and more paper into the fire to keep the heat up.

Fri, 03/07/2014 - 17:22 | 4522888 jubber
jubber's picture

and of course the Boeing news comes out just after the close LOL

Fri, 03/07/2014 - 17:25 | 4522894 Kaiser Sousa
Kaiser Sousa's picture

fucking joke all these paper markets....

the shit with the only 2 forms of real money today was classic...

glad i only bought 50oz's weds. cause now i can pick up the other 50 at another discount...

FUCK YOU OLE' YELLEN.............

Fri, 03/07/2014 - 17:32 | 4522935 Winston Churchill
Winston Churchill's picture

They really monkey hammered silver today.

This is where the industrial demand for it bites you in the ass if you're trying to use

it as a SOV. Acting more and more like Dr.Copper, rather than a monetary metal.

Fri, 03/07/2014 - 17:35 | 4522946 Soul Glow
Soul Glow's picture

There are big time gold bugs who don't think silver is a monetary metal.  I'm not one of them, but I thought I would play devils advocate and bring that up.

Fri, 03/07/2014 - 17:34 | 4522939 Soul Glow
Soul Glow's picture

What a boring life these psuedo-intellectuals live.  Always trying to prove their fallacous theories.  Always defending the status quo.  Talk about lacking creativity - here is why your State sucks America!  You gave your fredom to a bunch of Ivory Tower types, and you were warned not to long ago.

Fri, 03/07/2014 - 17:28 | 4522918 jubber
jubber's picture

and miracuously the DAX closes at 9400 AH ,rallying 55 points after it closed hugely down for the week

Fri, 03/07/2014 - 17:31 | 4522931 Soul Glow
Soul Glow's picture

The DAX was monkey fisted today and is showing signs of a double-top.  Think Russia forgets how Germany stabbed them in the back circa '41?  

I think not.

Fri, 03/07/2014 - 17:29 | 4522924 Soul Glow
Soul Glow's picture

Good thing millions of traders are so good at pushing buttons like rabid monkeys waiting for their next banana.  

Where would we be without them?  They create soo much GDP and the wealth effect has been soo stimulating for the low and middle classes.

Thank you paper chasers!  You do GOD's work!

Fri, 03/07/2014 - 18:05 | 4523045 skwid vacuous
skwid vacuous's picture

Dow theory confirms, buy everything that's not nailed down... preferably on margin so you can leverage more $$$ - easy money...

Fri, 03/07/2014 - 18:42 | 4523177 GreatUncle
GreatUncle's picture

Iron Ore and Copper futures were crushed - this is a joke statement and think people misunderstand the capabilitiy of fiat money and the central banker world.

If you can create as much fiat as you want and allow rehypothecation on  everything up / down has no meaning. Who sets the prices on stocks and shares? Put it at whatever price you wish if you havwe unlimited fiat. Scared of punters moving into commodities, smack the price down through the 90% paper.

Central banker world is being able to create how much artificial value you want with the consequence of bringing that value to market you can set the price on everything.

That power was really exposed for the first time in 2008.

Keynes / Mises what brand you choose does not matter if they both employ the same mechanism in any form and even Mises would be forced to utilise the borrow and inflate mechanism = THE SAME. The reason is we are in deflation and have been for a long time but never seen because of central bankers iunflating economies. That you are deflated -> 0 is a price paid for ensuring those more priviliged -> everything and never lose.

Fri, 03/07/2014 - 18:43 | 4523185 GreatUncle
GreatUncle's picture

Ain't FIAT power fucking awesome although it does fuck over populations well.

Sat, 03/08/2014 - 03:18 | 4524408 AbbeBrel
AbbeBrel's picture

Wow Dr. Copper got a huge whack on Friday - if it punches through $3 next week things could get interesting!! Deflation city as all the wire manf will push off orders waiting for the price to stabilize, and all the shadow bank folks will be getting margin calls or whatever the Chinese equivalent is for rehypotheticated metal...

 

chart:

http://stockcharts.com/h-sc/ui?s=%24copper

bloomberg:

http://www.bloomberg.com/news/2014-03-07/copper-reaches-15-week-low-as-c...

and from the FT (registration required - a Good Deal)  - seems that the chaos is spreading around:

“The Chinese steel industry is in total disarray today, following rumours surfacing of the first debt defaulting mill (3.6m tonnes per annum) from Shanxi province shutting 5-6 furnaces,” commented Melinda Moore, analyst at Standard Bank. “Rumours then spiralled that banks are seeking to call in 20 per cent of loans to some [private] steel industry participants.”

http://www.ft.com/intl/cms/s/0/6674de98-a622-11e3-9818-00144feab7de.html...


Sat, 03/08/2014 - 04:20 | 4524461 Andy Lewis
Andy Lewis's picture

He said "trannies", heh heh, heh heh.

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