Dow Fails To Hold 2014 Gains As Treasury Yields Hit 7-Month Highs

Tyler Durden's picture


Biotechs ended positive but for the 10th day in a row saw the early pump, dumped (as did a number of the momo names). But the big news is the Dow getting back into green for 2014...and then failing to hold it! Trannies and the S&P both hit new record highs. Treasury yields continue to press higher with 5Y now at 7-month highs (testing 1.80%) as 30Y yields are up 11bps on the week. The USD rallied modestly all day (ahead of tomorrow's hope-strewn ECB meeting) but ended unchanged on the week but commodities were mixed with general flatness interrupted by significant spikes in gold and silver around 8amET. Copper faded during the US day session. VIX was slammed under 13 into the close but faded back higher into the close.

It seems odd that Yellen's speech as seen as so amazingly dovosh and yet Bond yields have done nothing but soar since then..?

But it seems it was enough to get "growth" stocks back up to "Value" stocks year-to-date...


For a moment there the crescendo of self-congratulations on CNBC when the Dow managed to get green for 2014 was deafeneing as they cpuld not understand how it was possible it took over 3 months... BUT - it failed to hold...


And the last few days impressive smash higher have almost got builders and discretionary into the green..


AUDJPY was in charge this afternoon...


Nasdaq lagged on the day but the whole jump appears to have been engneered by a massive BTFD program off the 100DMA...just too easy eh?


As Biotechs pumped and dumped once again...


5Y yields at 7 month highs...


but 30Y has been the underperformer this week..


Gold an silver had a decent spike early on held most of the gains. Copper fell all day after that and oil ended flat on the day....


Charts: Bloomberg

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Wed, 04/02/2014 - 16:09 | 4618536 HedgeAccordingly
HedgeAccordingly's picture

We are all just "dumb Tourists" according to Michael Lewis.. we should know better 


Wed, 04/02/2014 - 16:53 | 4618670 Two-bits
Two-bits's picture

This is what angers me the most.  The total disdain that bankers have for the muppets.  As though we are a separate species.  The solution will give me as much joy as the the problem gave me grief:

When the system is permitted to implode upon itself, the masses will descend into chaos.  I for one see the "Local Warlord" style of rule to be in effect early on.  I will make an empty JP Morgan branch my headquarters and decorate it with the heads of said bankers on landscaping timbers from the surrounding properties.

To ensure that I am kept in a fresh supply of bankster skulls, i'll put out a bounty.


In 90% Silver.



Wed, 04/02/2014 - 18:27 | 4618950 ArkansasAngie
ArkansasAngie's picture

Question -- what would happen if we just said ... "no more HFT".  Would the market just tank?  Can these parasites be unwound?  

Wed, 04/02/2014 - 21:08 | 4619564 hobopants
hobopants's picture

No, monetary policy is the real issue HFT just exacerbates it.

Wed, 04/02/2014 - 16:10 | 4618544 TheRideNeverEnds
TheRideNeverEnds's picture


Wed, 04/02/2014 - 16:47 | 4618655 Soul Glow
Soul Glow's picture

Sell the fucking top

Wed, 04/02/2014 - 19:29 | 4619156 Redneck Hippy
Redneck Hippy's picture

The S&P makes a new all time high, and the headline reads:  Dow fails to hold gains.   Strange perceptive bias here at ZH.

Wed, 04/02/2014 - 19:54 | 4619240 Phat Stax
Phat Stax's picture

One sign of the top is a divergent market.  Naz has been dragging.

Wed, 04/02/2014 - 16:10 | 4618545 digitlman
digitlman's picture

El Guapo.

Wed, 04/02/2014 - 16:13 | 4618560 Chupacabra-322
Chupacabra-322's picture

The Stock Market isn't going to crash until the U.S. government defaults.

The U.S. government and the Fed are buying stocks to artificially inflate prices and keep the whole thing from crashing.

Insiders already know this. Check out the interview on CNBC.

Wed, 04/02/2014 - 16:48 | 4618662 SheepDog-One
SheepDog-One's picture

And the US govt will never ever come out and admit 'default' so now what?

Wed, 04/02/2014 - 18:29 | 4618958 ArkansasAngie
ArkansasAngie's picture

Yup.  That's what I see as the problem.


Wed, 04/02/2014 - 16:50 | 4618665 Midnight Rider
Midnight Rider's picture

The Fed's been having to work a lot harder at it the past few months then. Dow still not positive for the year after an entire quarter? Could that be saying something? Law of diminishing returns? I do think a lot of the smart money in it's typical fashion is aready looking out to the future as the market always does anticipating less intervention six months to a year down the road. You know, the intervention that's been driving the market for five years now. The pull back doesn't start when QE end you know. It's much before then. This first quarter has felt like a real struggle to push the market higher. Another sign? Who knows, but I think the Fed is starting to see bubbles, even they will never acknowedge it in public for fear of spooking the market. They would probably be happy to maintain the market where it is. But, that doesn't produce any income for the momentum traders. So they would have to find another game. Of course, things could also be on hold for the jobs report, at which point we could take off in either direction.

Wed, 04/02/2014 - 16:36 | 4618567 Two-bits
Two-bits's picture

Not in the green?  It must be time to announce the next round of sanctions on Russia:


*The United States has officially removed all stroganoff recipies from the White House Pinterest account. - Source: U.S. Undersecretary of Whimpering (via kashyyykian interpreter)

Wed, 04/02/2014 - 16:16 | 4618569 HaroldWang
HaroldWang's picture

Don't worry, it took SPX several attempts to close at ATH, Dow will blow through there too in another day or two. Speaking of SPX how about a nice round 1900 print by EOW? Awesome!

Wed, 04/02/2014 - 16:32 | 4618616 disabledvet
disabledvet's picture

maybe it's just that guys blow better than girls?

Wed, 04/02/2014 - 16:33 | 4618618 Rainman
Rainman's picture

Gross and his 5y load up gettin smoked.

Wed, 04/02/2014 - 16:33 | 4618619 buzzsaw99
buzzsaw99's picture

if you look at it from "their" pov it always makes sense

Wed, 04/02/2014 - 16:36 | 4618628 SmilinJoeFizzion
SmilinJoeFizzion's picture

The VIX is the mechanism of evil- 

Wed, 04/02/2014 - 16:47 | 4618652 SheepDog-One
SheepDog-One's picture

Fuck you, fake ass market manipulating pump monkeys.

Wed, 04/02/2014 - 16:51 | 4618666 Soul Glow
Soul Glow's picture

I wonder how many cheeseburgers Paul Krugman ate today.

Wed, 04/02/2014 - 16:54 | 4618675 SmilinJoeFizzion
SmilinJoeFizzion's picture

3 month copper chart looks like Warren Buffett pre-fluff

Wed, 04/02/2014 - 18:31 | 4618964 ArkansasAngie
ArkansasAngie's picture

Before the government personally bailed his arse out?

Wed, 04/02/2014 - 16:56 | 4618687 Salah
Salah's picture

NASA suspends all cooperation with Russia:

Wed, 04/02/2014 - 17:06 | 4618719 yogibear
yogibear's picture

Since Obama killed NASA it doesn't matter anymore.

Guess US astronauts  won't be  hitching rides on Russian rockets into space.

Obama can have US astronauts assigned to inner-city youth camps making paper airplanes  instead.

Wed, 04/02/2014 - 17:51 | 4618736 Everybodys All ...
Everybodys All American's picture

The Manchurian candidate Obama could not create a bigger mess and I'm led to believe this was his plan all along. Everything. I mean everything this man has his hands on is failing.

Wed, 04/02/2014 - 17:03 | 4618715 thismarketisrigged
thismarketisrigged's picture

everyone should just be laughing at this point.


i left my house for a bit towards the end of the day, and anyone who watched the market today saw how abysmal the volume was and how tight a range the indexes, specfically the dow traded in for most of the day.


however, once they mentioned that we needed 44 pts on the dow for an all time high, when i left my house it was up 22, and sure enough i come home now and i see the dow closed at 53 pts up, despite not trading higher than 25 pts up the entire day before that.


no rigging here.

Wed, 04/02/2014 - 17:06 | 4618725 The Most Intere...
The Most Interesting Frog in the World's picture

...and ohhh what heights we'll hit, on with the show this is it!!!  Buggs Bunny

Wed, 04/02/2014 - 18:09 | 4618887 orangegeek
orangegeek's picture

Consolidation on Monday's close showed up and that's exactly what we got.


No question, these markets are beyond detached, but the NDX and the RUT are failing /diverging - yet another sign of topping.

Wed, 04/02/2014 - 21:18 | 4619592 nakki
nakki's picture

No volume again in SPY. Should be much better volume for ATH, no?

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