US/Europe Stocks Melt-Up Into EU Close

Tyler Durden's picture


US and European stocks are spiking higher this morning supposedly on the back of better-than-expected data (Philly Fed) and self-referencing bias that surely Janet Yellen didn't mean what she said. Stocks (oddly) melted up on the last Philly Fed release (which was a massive miss). Anyway, fun-durr-mentals aside, this move is all about AUDJPY all the time as Financials lead the way (and are the only sector green post Yellen). European stocks are merelty tagging along for the exuberant melt-up ride. Beware of financials as CDS are widening even as stocks soar - a pattern we have seen before into the run-up to CCAR (stress-tests) and doesn't end well for bank stocks.


All about AUDJPY...


And Europe catching up into the close...


With financials leading the way...


But we've seen this exuberance before...


and copper is tanking...


Charts: Bloomberg

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Thu, 03/20/2014 - 12:48 | 4573061 DavidC
DavidC's picture

Someone's got the bank stress test results early.


Thu, 03/20/2014 - 12:49 | 4573071 LawsofPhysics
LawsofPhysics's picture

Yes, "all is well", move along, move along...

Thu, 03/20/2014 - 13:10 | 4573174 Soul Glow
Soul Glow's picture

The bank stress tests.  Is Lew running the same tests Geithner did?  Because those standards were laughable.

Thu, 03/20/2014 - 12:50 | 4573075 Max Damage
Max Damage's picture

Yeah they all passed. nudge, nudge, wink, wink. Forget the fact that world debt is almost 50% higher than 2007 meaning in reality that they are all completely bankrupt though....

Thu, 03/20/2014 - 13:07 | 4573157 derek_vineyard
derek_vineyard's picture

timing is everything when investing.  zh is a good news feed, but 5 years of the sky is falling is just awful timing for investors.

hey zh, human behavior is not your area of expertise.

Thu, 03/20/2014 - 13:11 | 4573177 Uber Vandal
Uber Vandal's picture

Show us the "humans" buying or selling, please, not the ones writing the HFT programs for Skynet.

Thu, 03/20/2014 - 13:28 | 4573247 derek_vineyard
derek_vineyard's picture

whomever programmed the computers

an audacious call would have been to predict the outcome of the last 5 years and 'bet' on it

Thu, 03/20/2014 - 12:49 | 4573068 Max Damage
Max Damage's picture

Banks stocks that missed Q4 and profit warned for Q1 all melting up, you couldn't make this shit up if you tried

Thu, 03/20/2014 - 12:54 | 4573096 DavidC
DavidC's picture

It's another way to rip the shorts up and for the banks to make perfect trading quarters (and yes, I am short).


Thu, 03/20/2014 - 12:58 | 4573114 gjp
gjp's picture

Just another slap in the face of common sense.  But why bother, at this point common sense is already in the fetal position on the ground showing no vital signs.

Thu, 03/20/2014 - 13:04 | 4573139 NOTaREALmerican
NOTaREALmerican's picture

Well, as they say about "common sense":  Common sense isn't very good, because common is another word for "average" and "average sense" is just what the "average person" thinks is real. 

The average person is just another manipulated dumbasses. 

Thu, 03/20/2014 - 12:49 | 4573072 NOTaREALmerican
NOTaREALmerican's picture

I'm fealing the wealth effect already.

BTW,  bonus season at my TBTF Financial Institoo-SHUNNNN (please say that in a low respectful voice).   It's good to be a debt-pusher.

Thu, 03/20/2014 - 12:55 | 4573102 roadlust
roadlust's picture

It's all about several hundred thousand SPY put options needing to expire worthless tomorrow. 

After that, watch out below.

Thu, 03/20/2014 - 13:01 | 4573126 gjp
gjp's picture

Bullshit.  It's always just around the corner.  Not this time, when the reserve currency custodians are all in on preserving the illusion and have only one tool at their disposal to do so.

Monetary madness, this can keep going up until all of the sudden the shelves are empty.

Thu, 03/20/2014 - 12:59 | 4573115 yogibear
yogibear's picture

We will not allow market price discovery. We have the bots and HFTs together with Wall Street and the TBTF banks to manipulae prices  in an instant if needed. So don't F with us.

- The Federal Reserve

Thu, 03/20/2014 - 12:59 | 4573117 Rainman
Rainman's picture

Only 7 trading days to go til Q1 bonus/fee bookings. Short the end of the quarter at your peril.

Thu, 03/20/2014 - 13:07 | 4573161 Soul Glow
Soul Glow's picture

Thus why gold was brought in line.  So advisors can still tell their clients gold is a bad investment.

Thu, 03/20/2014 - 13:00 | 4573125 FieldingMellish
FieldingMellish's picture

No collapse yet.... maybe next year, eh?

Thu, 03/20/2014 - 13:08 | 4573166 Soul Glow
Soul Glow's picture

Trying to call a collapse is futile.  Just remember it is baked in.

Thu, 03/20/2014 - 13:15 | 4573192 FieldingMellish
FieldingMellish's picture

or is it? If everyone is expecting one, maybe it won't happen? Maybe its 1995 and we are about to go skyward for the NEXT 5 years? 

Thu, 03/20/2014 - 13:03 | 4573135 Yen Cross
Yen Cross's picture

     We'll see how well a rise in s/t rates does for the financials when loan demand falls through the floor and loan defaults rise. The country is tapped out, unless you're the Fed. of course.

Thu, 03/20/2014 - 13:06 | 4573151 Soul Glow
Soul Glow's picture

By tapering maybe the Fed is saying they are tapped out.

Thu, 03/20/2014 - 13:10 | 4573175 Yen Cross
Yen Cross's picture

    The Fed can turn up the spigots at any time. The Fed. just sees the diminishing returns of endless printing.

Thu, 03/20/2014 - 13:04 | 4573138 astoriajoe
astoriajoe's picture

How's russia doing? Any new research out by Carney Investment Services?

Thu, 03/20/2014 - 13:05 | 4573143 Soul Glow
Soul Glow's picture

It's good to be king, says Jamie Dimon.

Thu, 03/20/2014 - 13:06 | 4573152 skwid vacuous
skwid vacuous's picture

so AUDJPY strength means a burrito chain is worth 60X earnings, got it...

Thu, 03/20/2014 - 13:09 | 4573169 soopy
soopy's picture

How's that China default/Ukraine/JPY/Yellen end of the world trade coming? Talk about being 'Stolpered' and 'muppet-slain'.

Thu, 03/20/2014 - 13:15 | 4573196 jtz5
jtz5's picture

"The president cautioned that the threatened economic measures if implemented could hurt the global economy, as well as the Russian economy, but "Russia must know that further escalation will only isolate it further from the international community."


I think Obama is settiing up Russia as the reason why the US market will go down...perfect scapegoat.  This could be just like 2009 when he said "now is a good time to buy stocks."

Thu, 03/20/2014 - 13:19 | 4573214 Baby Eating Dingo22
Baby Eating Dingo22's picture
Neither snow nor rain nor heat nor gloom of night stays these algos from the swift completion of their appointed rounds.
Thu, 03/20/2014 - 15:25 | 4573910 ivana
ivana's picture

Ukraina will cancel debt payments to Russia. Than starts a mess. Putin blamed.

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