Ukraine Reality Ignored As Stocks Close At Highs On Hopes of More Japan Easing

Tyler Durden's picture

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...

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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Looney's picture

The Saudi asshole who was threatening Putin, Bandar bin Bush, has been fired.


Say What Again's picture

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) ?

Xibalba's picture

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? 

redpill's picture

None of this would a problem if we only had more HFT algos providing liquidity and more great alternative exchanges like BATS.

Say What Again's picture

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 "

Keyser's picture

A most magical levitation, just when the NASDAQ was entering bear territory... Quite convenient and once again we have a Tuesday in the green... 

Battleaxe's picture

Don't ignore the obvious: the markets are up because they're prosecuting the gal that threw the shoe at Hillary!

Say What Again's picture

Here is another interesting piece of info highlighted by Eric over at Nanex.

"Options Upgrades Low Latency Route Between Carteret and Weehawken"

Battleaxe's picture

I've never seen her so happy!

asteroids's picture

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.

PontifexMaximus's picture

Because it was written in the playbook

what's that smell's picture

forget japanese easing; desperate hedgies and wag-the-dog options expiration on bunny shortened trading week.

"these are not the hemi-droids you seek"

Citizen_x's picture

/NQ's hit the 200 Day MA the same time the

Japan Central Banks announcement around 2AM local time.

What was the movie line....Gekko said to Bud Fox ?

Say What Again's picture

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!

LooseLee's picture

Desperation, my friend. The girlz see the writing on the wall and fear the end-game....

khakuda's picture

This is so great.  The US market now depends on Abe's further debasement of the Yen for it's daily steroid injection.

john39's picture

heroin addicts have a hard time quitting...  world events getting hotter doesn't help.  everything all good, until it suddenly goes all bad.

Keyser's picture

A junkie will find a way to get high, no matter what. The markets, meh, same same... 


The_Ungrateful_Yid's picture

Hell of a two o'clock bounce...this market is built by the insane for the insane..

derek_vineyard's picture

dont read anything about finances, don't think...just buy....and enjoy the fruit

Keyser's picture

That's my problem... I am pragmatic, logical and apply reason to reality... That's where I went wrong... 

TammanyBrawl's picture

Up is up, but down is up. Good is good, but bad is good too?

Global finance is broken.

digitlman's picture

I assume the Jap downgrade means "moar BOJ free monies!" and therefore DOW rocket?

ebworthen's picture

"Pay no attention to that man behind the curtain!"

Keyser's picture

I saw that movie 50 years ago and still haven't learned shit... 


optimator's picture

What if it resembles a woman.

Flux's picture

Gold bitchez!



Oh, wait ...

Pooper Popper's picture

This shit is really starting to piss me off!

Dr. Engali's picture

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.

Pemaquid's picture

When you have unlimited "printed with air" cash ....

Impoverished Psychologist's picture

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.


earleflorida's picture

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....?

NOTaREALmerican's picture

Are we sure these algos know the difference between the US and JPN economy?

disabledvet's picture

"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."

NOTaREALmerican's picture

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. 

elwind45's picture

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?

cougar_w's picture

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:

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.


Baldrick's picture

very funny. i enjoyed it and had a good laugh.

q99x2's picture

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.

youngman's picture

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

Wait What's picture

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?

RockRiver's picture

How can you write this headline with a straight face?


It's good that Japan might take on even more debt????

Yen Cross's picture

  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

 Japan isn't going to do jack-all right now. They would just makes things worse if they did. (inflation in food and energy)

saints51's picture

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.

Yen Cross's picture

   One can never have too many backups when it comes to charts. Thx. :-)

saints51's picture

Not a problem. I am a paranoid trader who always double checks phantom spikes without news especially if I get stopped