S&P Rallies To First 5-Day Streak In 6 Months On No Volume

Tyler Durden's picture

With Europe still on holiday, US equity market volumes were in a word, abysmal (S&P futures only around 30% of average) but VIX saw action as volume was healthy and the machines were in charge of the action from start to finish. The Dow's intraday range (and volume) was the lowest of the year. This is the first time since Oct2013 that the S&P 500 has had 5 positive closes in a row just as we predicted this morning. Between VIX slams and JPY crosses, today's action was clearly unrigged as Biotechs pumped, dumped, then ripped 2.5% off the lows as April's largest POMO sent markets scurrying. The USD rose 0.1% (on modest EUR weakness) and commodities slid lower led by silver, gold, and copper respectively. VIX closed at 13.25% - new cycle lows.


Mission Accomplished...


The day in Biotechs



JPY carry appeared to lose its hold a few times today...


POMO drove FX markets...


Narrow range in Treasuries but once again POMO was the news...


Credit markets did not get as excited as the post-POMO close ramp in stocks...


Charts: Bloomberg

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
DoChenRollingBearing's picture


I dunno..., looks like a good time to sell to me.


EDIT: And I will start some moar stock selling soon.

Say What Again's picture

Not only is this rally based on small relative volume, the internals are also ugly.  Today the UP volume / Total Volume ratio for the SP500 was below 60%.  And this is on a day where the index closed a session highs.  This has been happening often over the last few weeks.  But I'm sure the markets are not rigged.

Most of the current action started when Abe said he was going to print 24 hours a day, and Yell'n said; "me too!"

Ham-bone's picture

market is rigged...debt, equity, currency, commodity...so why do we still watch and infer importance to something we all know is rigged?  These numbers are meaningless.  Volume (or lack thereof) or fundamentals or or or...these markets will do as programmed and when programmed.  That is all.

Say What Again's picture

I love it when the Fed tells us that their money printing is not creating inflation.  All those hedonic adjustments because of technology reverses the soaring costs of meat, milk, eggs bread, shrimp, gas, electricity, etc.  Because, as everyone knows, when I have a new iPad, I don't need to eat, drive to work, or turn the lights on.  Personally, I do all my work on my laptop without ever getting out of bed.  Driving and eating is for suckers!

Oracle 911's picture

+100 000

You made my evening.

TruthInSunshine's picture

Real inflation on necessities of life (food, energy, housing, etc.) is building rapidly and will be the catalyst that triggers the next crash (which is now visible to those with good eyesight), which is much closer than many either admit and/or realize.

Compare real wages with real inflation on INFLEXIBLE (i.e. necessary) costs of living & spot the massive gap between the these two metrics.

There's little doubt in my mind that real inflation on necessities is now running at at least 7% annualized, and this is before one considers the higher tax-flation, regulatory-flation, health care impacts & other increased costs of living just now starting to kick in.

This is why discretionary is getting murdered in the real economy & the pain has only just begun - we're going to see a watershed moment & historic, structural shift in spending on necessities vs discretionary goods/services unlike anything in our lifetimes in the near future (it's already underway).

Say What Again's picture

Exactly.  The Fed's Keynesian Bull Shit logic says that if they give you 0.001% interest to save, you'll spend moar money.  But these idiots fail to realize that no one has any moar money left to spend.  Costs are going up real fast, and wages are stagnant, if not going down.

But Jamie D. is so smart - and that's why he's rich than you and I.

TruthInSunshine's picture

It's even more direct a relationship: The more they suppress interest rates now, given rapidly increasing cost of living (taxation + prices of necessary goods/services), the higher the propensity and/or desire to save they create as an overwhelming psychological force.

The_Ungrateful_Yid's picture

Earnings report this week, china pmi as well.

LawsofPhysics's picture

yes, both are completely meaningless...

Printing money and handing it out to your friends/club members is no basis for a monetary system folks...


youngman's picture

I am sure it was Putin putting all his money into US stocks...safer than Swiss Bank accounts..

disabledvet's picture

Hehehehehehehehe. "Walls with US dollars stuffed in them."

Get your money out of the Banks, folks. The FDIC only insures 250,000.

jubber's picture

Although Europe was closed it did not stop the US jamming the DAX and other European futures up another 40 points

wmbz's picture

Now if Putin decides to invade while Plugs Biden is over in Kiev flapping his gums, that would send the DOW up 500 points in a day!

Rainman's picture

and tomorrow is Tuesday ..cool.

JustObserving's picture

Free and fair markets tend to levitate - just ask Yellen. Or Bernanke.  Or Greenspan.

Sudden Debt's picture

well, to add fuel to the fire, Europe's tourist economy is exploding right now. And now it's really because of the weather.
We're having summer weather for weeks now.

But one thing is very obvious... this year, we only had rain once for about 10 minutes. The dirt in my garden is turning into powder.
And this morning we had a warlk with the dogs in the floodlands. Normally very wet territory and everything is bonedry.
So that means water levels are really low because the floodlands are the lowest place in the province.

Say What Again's picture

All those rich people from the middle east really like to visit those quaint little old European towns.

DoChenRollingBearing's picture

Most of the USA has been cold, practically up until now.

Thanks, SD, for your comments re SCHOOLS yesterday.

BandGap's picture

There are still icebergs on the Great Lakes. Less beach this year because the water levels are up.

Freezing our asses off again, temps in the 30s this week. Sucks.


HaroldWang's picture

So what if volume is low, has been for a while. If it keeps going up, bulls don't give a shit if volume is low. They still make money regardless.

SheepDog-One's picture

They make money 'on paper' while the big boys are slipping out the side door....gonna get ugly for the bullsheep.

disabledvet's picture

Tuesday is the day to sell your YTD shit kickers if you're trading. Simply put the equity bubble has burst. (The credit bubble burst over a year ago.) this has now slammed into various "blue chip" names (GE, Boeing, WMT, etc) and the mid cycle slowdown is now quickly followed by a mid cycle correction.

Utilities have soared YTD as the plunge protection team now stares a "plunging" straight in the eyes. Those UAV's will be set to kill if large crowds start gathering so I recommend hunkering down in a wooded area just as our monkey ancestors still do today.

TheRideNeverEnds's picture

Never sell a dull market, new highs are a given.  


The only question is; in what quarter will the SPX print 2000 this year?

SheepDog-One's picture

In other words, for the 5th day in a row markets were stuffed full of free money....of course in a totally non manipulated centrally planned way.

Rising Sun's picture

Lupus?! Is it Lupus?

SheepDog-One's picture

Must....pay even more....for the same stawks.....tomorrow.....we're all rich...

Hindenburg...Oh Man's picture

7 days in a row: tomorrow's Tuesday. Up-day. 

Herdee's picture

The Federal Government cannot afford to have interest rates go up.The deficit is so huge that they cannot afford the interest rate increase.The tax money is just not there anymore.