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Ukraine Reality Ignored As Stocks Close At Highs On Hopes of More Japan Easing
Another day, another epic ramp. Any "investor" watching the last two days of totally manic market behavior must be open-mouthed at the total lack of fundamental sanity behind any of the moves. Even the mainstream media is stunned by the moves embarrased into mere commentary and afraid to opine on any reason. The reason for today's rip - an economic assessment downgrade for Japan which smahed USDJPY higher and through magic of carry, lifted US equities. There was no let-up in Ukraine, no data to confirm growth hype, no US news... but the Russell and Nasdaq managed a 2.5% bounce in a stright line after the Japan headline. Away from the idiocy in stocks, precious metals were rammed lower early on but leaked back higher all day. The USD pushed higher but FX was relatively quiet aside from the idiotic moves in JPY. Treasuries rallied at the long-end on the day (despite the surge in stocks). "unrigged"
Somebody was busy today...
Average Quotes/Trade for 8000 NMS stocks at it's highest point in 2 years. Thanks #HFT
— Eric Scott Hunsader (@nanexllc) April 15, 2014
These are your markets...
The Nasdaq bounced perfectly off its 200DMA and the Russell 2000 ended back above its 200DMA (after breaking it early in the day)
Here are your momo stocks today... just take a look at these moves... Bioetchs, Amazon lost 6% and rallied all the way back to unch...and TWTR rose 11.4%
USDJPY was in charge... but the last hour stocks got ahead of themselves...
Credit markets were correlated with stocks as expected but nothing like as juiced by the JPY monentum...
Growth stocks are at 7-month lows versus value stocks...
VIX remained closely coupled with stocks as Nanex exposed the freakish nature of the options market ince again today...
Precious metals were monkey-hammered early on but limped back higher. Oil prices rose on Ukraine fears (but only modestly)
FX markets were relatively calm aside from the outargeous swings in JPY...
Treasuries rallied at the long-end with 30Y Yields back at 10-month lows...
Charts: Bloomberg
Bonus Chart: High-Yield Credit remains the arbiter of the cycle and it seems stocks want to catch down to that reality as the growth hype unravels
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The Saudi asshole who was threatening Putin, Bandar bin Bush, has been fired.
Looney
Here is the play book. The robot is deciding what sort of trade to make. On the one hand you have civil war (backed by Russia) ready to to break out any minute in eastern Europe. On the other hand you have some idiot central banker in Japan deciding to print even moar worthless currency. The robots decide that the idiot banker from Japan is moar important than a Russian backed war. Makes sense to me.
And again I ask -- Why does Japan release "News" in the middle of their night (arount 1:00 AM in Tokyo) ?
Non-interest bearing notes issued by insolvent banks (based on a mark-to market basis)...seems good to me for a 'funamenal' rally. . . right? Why would anyone move away from that?
stack and prep
None of this would a problem if we only had more HFT algos providing liquidity and more great alternative exchanges like BATS.
I can't wait to see the final report from Nanex
.
Nanex; "blasting billions of fake quotes in options today: I don't know who you are, but I will find you"
Nanex; "Average Quotes/Trade for 8000 NMS stocks at it's highest point in 2 years. Thanks #HFT"
https://twitter.com/nanexllc
A most magical levitation, just when the NASDAQ was entering bear territory... Quite convenient and once again we have a Tuesday in the green...
Don't ignore the obvious: the markets are up because they're prosecuting the gal that threw the shoe at Hillary!
Here is another interesting piece of info highlighted by Eric over at Nanex.
"Options Upgrades Low Latency Route Between Carteret and Weehawken"http://www.businesswire.com/news/home/20140415005854/en#.U02WcaLLJ8E
Hillary know what she likes, and I like it too.
http://www.eonline.com/news/351242/christina-aguilera-ogled-er-honored-b...
I've never seen her so happy!
For the love of gawd folks, goto cash. It is obvious the boyz have "no shame" and will move the market to whatever level they want. They have 5 years and trillions of dollars on their side. They can move the market multiple percentage points at will. Even war won't stop them.
Because it was written in the playbook
forget japanese easing; desperate hedgies and wag-the-dog options expiration on bunny shortened trading week.
"these are not the hemi-droids you seek"
/NQ's hit the 200 Day MA the same time the
Japan Central Banks announcement
Yeah.....at around 2AM local time.
What was the movie line....Gekko said to Bud Fox ?
Yes, I really want to hear the justification for JAPAN announcing "news" when they did (2:00 AM Tokyo). This is just getting too damned blatant!
Desperation, my friend. The girlz see the writing on the wall and fear the end-game....
This is so great. The US market now depends on Abe's further debasement of the Yen for it's daily steroid injection.
heroin addicts have a hard time quitting... world events getting hotter doesn't help. everything all good, until it suddenly goes all bad.
A junkie will find a way to get high, no matter what. The markets, meh, same same...
Hey, you got some?!!
Hell of a two o'clock bounce...this market is built by the insane for the insane..
dont read anything about finances, don't think...just buy....and enjoy the fruit
That's my problem... I am pragmatic, logical and apply reason to reality... That's where I went wrong...
Up is up, but down is up. Good is good, but bad is good too?
Global finance is broken.
I assume the Jap downgrade means "moar BOJ free monies!" and therefore DOW rocket?
"Pay no attention to that man behind the curtain!"
I saw that movie 50 years ago and still haven't learned shit...
What if it resembles a woman.
Gold bitchez!
Oh, wait ...
Oh wait
PUTIN
This shit is really starting to piss me off!
Why? You know it's going to happen so take advantage of it. Like I said before, there will be no big money made shorting the broad market.
When you have unlimited "printed with air" cash ....
Remember, every time they smash the PMs down, more paper contracts are used up and more stackers deplete the physical supply, there is not an infinte supply of physical so it HAS to end sometime.....
Just saying.
just the perfect time for north korea to lob a couple missiles over japan while QE`Infinity war-s-a-mongrel-kneading-to-put-down',whilst the gandhi inoculators reminiscence of ole USS of A-- forever preoccupied with no-where landS!
a cankerous exogenous and billigerent gastric ulcer is U.S....?
Are we sure these algos know the difference between the US and JPN economy?
"zero percent financing a war."
i'd love to know who's been bidding up Facebook et al to the moon.
Tesla is well below 200 now...but if we are talking Civil War in Eastern Europe that vehicle platform looks like a real winner to me.
"Free's up a lot of fuel to do whatever with."
Sure, but if there's a Civil War in Eastern Europe Facebook will have all the latest news and cat pictures.
That's better than Tesla, any day.
How many AM's you willing to be confused? How you think China and /or Russia plan to reflate? You would think Russia would find a more willing ear selling gold to the CENTRAL RESERVE mechanism than to sell dollars to the Swiss?
Thread jack.
Hey you guys who dared me to start a blog? You crazy fuckers are gonna be sorry you did that, cuz I just fed Bernie Madoff to a motherfucking tiger:
http://fedtoatiger.blogspot.com/
Nearly pissed byself writing it. Okay maybe that kind of thing is an aquired taste, I dunno.
This is going to become a regular thing I do, so stay tuned.
c@
very funny. i enjoyed it and had a good laugh.
Belgium seems to be, the nest, the heart of the NWO. If the demon oligarchs can feed money into the US Treasury, out of Belgium, the FED can keep its software buying up the US markets.
What a strange day....bad news.....but it still goes up....there can never be a correction...I think its the government..where else can they get capital gains taxes from...but the PM bust was even stranger...the rush to the 10 year but the selling of PMs...WTF
it's going to be interesting for we young 'uns when some semblance of normalcy in markets and economy arise. we've been raised on 'extraordinary', 'unprecedented', and ass backwards logic since i started trading/investing. nevermind all the crashes we've seen just since I was born. i really think a lot of my peers are going to get caught flat footed when the logic that has sustained us as 'normal' turns into 'surprise, it wasn't normal all along!' we've grown so habituated to 'just have the CB do some LSAPs' that the day everyone realizes it no longer works (for technical or transmission reasons) its going to jarr some people's perceptions of how the world works, how insane the current normalcy will prove to be. it hasn't worked the dozens of times it's been tried before, what makes them think it will this time?
How can you write this headline with a straight face?
It's good that Japan might take on even more debt????
A commenter on another site made a good observation about the move in usd/jpy today. I agree with his analysis.
Here's the link http://www.fxstreet.com/news/fxbeat/article.aspx?storyid=241034fa-d4a2-4...
Japan isn't going to do jack-all right now. They would just makes things worse if they did. (inflation in food and energy)
USD/JPY is stuck in a range until further notice. Looking at ES we do have a daily level imo to bring back shorts tomorrow. Same with Russel,Nasdaq and Dow. IDK fucking market sometimes just makes ya wonder.
If any chart shows how rigged markets are it is crude. With all the shit going on, its being held at current price to not sky rocket to all time highs. Its what it wants to do. Something tells me war is coming from that chart alone.
Anybody wants your daily chart porn here is a good link. I tend to use it sometimes by double checking data. http://finviz.com/futures_charts.ashx?p=d1
One can never have too many backups when it comes to charts. Thx. :-)
Not a problem. I am a paranoid trader who always double checks phantom spikes without news especially if I get stopped out..lol.
Listen, clearly we have made a bottom and the next move will be past 1900. The reason given for the rally is irrelevant, the fact is that loads of fiat is chasing this thing higher and the central banks are guaranteed to not only continue printing but to increase the rate of printing in the near future. Buying the S&P right now under 2000 is a bargain because according the the FED balance sheet (only thing that matters) we should be over 1900 on our way to 2100+ by the end of the year.
Hell we closed on the highs and then rallied another 100% of todays move.
New highs are a given.
You've been touting this horseshit for 3 months now. Get back under the table and goose neck Abe's crane ya fool...
Well in fairness I have been correct, look at a chart; the bottom is in and we are exploding higher.
Buying them when they are down 5% (the dip) has worked 100% of the time. If you wanna bet against 100% probability go right ahead.
while you are at it take a picture of the S&P trading under 1850, after this week you may never see it again.
i have to agree on both accounts. +1
So the Dow bounced 250 points from the days low to the price now AH ...remarkable, ludicrous, and embarrassing all at the same time
Just before the Roman Republic vanished in the first throes of Julius Caesar, the Roman economy was in the clutches of the financiers and high level opportunists such as Maracus Licinius Crassus, the richest man in Roman history and among the richest men in all history.
The Fed is today’s Crassus. Today’s opportunists, feeding off Fed money, are men the likes of Little Boots Harry Reids rising from nothing to become multimillionaires whose leverage on fellow legislators can turn environmentalism and other trends into cash. Their only audience to keep happy is the Federal Reserve, their ultimate source of riches.
The standoff at the Bundy ranch in Nevada was not so much about a cowboy and his cattle as it was the Majority Leader of the United States Senate and a $5 billion solar development deal with Red China. It wasn’t so much about the endangered desert tortoise or a rancher not paying grazing fees as it was a top leverage senator and his son turning yet another big money trick into a boondoggle.
All courtesy of the Federal Reserve.
Crassus with his silver mines, slave trafficking, speculative real estate, constant manipulation of military equipment contracts, and energy, road building and industrial leveraging was said to control most of the Roman politicians, even picking up the debts of Julius Caesar.
Crassus played the key role in transforming the Roman Republic into the Roman Empire and its ultimate demise. Today’s Crassus is the money printing Federal Reserve. As Crassus, the Fed is simply buying the political system and then using it for its advantage.
Markets aren't efficient. Unfortunately your dream of stocks going to zero and gold to infinity just won't ever happen.
"Another day, another epic ramp. Any "investor" watching the last two days of totally manic market behavior must be open-mouthed at the total lack of fundamental sanity behind any of the moves."
Under global QE, isn't this to be expected?
This is one dumb market. All-ignorant to say the least. An 'intelligent' market would sell-off huge on any whiff of money printing as this printing will eventually destroy the economy. Oh well, what do you expect from a bunch of idiot Ivy-League Losers?
The Market is now, for the most part, run by a series of interactive computer algorithms and programs...
...So of course these systems are "Happy" and Bullish as SkyNet prepares for total activation.
I'm long on Coltan!
When the yen drops faster than the Japaneses stock market rises it will no longer protect the wealth of those invested within its borders. Japan is the most indebted developed country in the world and its future prospects are dim and getting worse. It is only a matter of time before the yen becomes worthless and as inflation begins to take root it will place upward pressure on Japanese bond yields and raise the cost of government to service its massive debt.
At some point Japan will just fall away. With the BOJ set to absorb half of the government bonds planned for sale this fiscal year, domestic investors have already started venturing overseas for higher yielding assets. If this turns in to a tsunami of money fleeing Japan it will constitute the end of the line for those holding both JGBs and the yen. More on this subject below,
http://brucewilds.blogspot.com/2013/08/japans-economy-going-forward.html