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Tuesday Pop Turns To Einhorn Drop As Stocks Stumble Into Close

Tyler Durden's picture




 

US Equity markets were on a mission today... all-time highs for the S&P and Dow were in sight, green for April for the S&P, and unchanged year-to-date for the Nasdaq and Russell was just over the horizon, but... a total divergence from JPY carry, bond yields, credit, and even VIX meant that a 'warning' from David Einhorn about Tech Bubble 2.0 was just enough to take the juice out of what was already a low volume levitation. It's a Tuesday so we closed green - the 6th up day in a row - longest run in 7 months. Biotechs ripped higher on M&A "get rich quick'"fever - biggest 2-day rise in 30 months. Treasuries were mixed with 30Y bond yields ripping lower and 5s30s dropping 4bps to 1.75% - new lows since 2007. Copper made modest gains on the day but gold, silver, and worst of all WTI crude all dropped on the day (WTI -2% to $102).

 

Trannies made new record highs... Nasdaq and Russell almost made it to unchanged for the year...

 

S&P and The Dow broke to green for April...

 

Squeeze...

 

S&P sectors off last week's lows...

 

Let's get a little context on those high-flying growth stocks... from Fed Tarullo's "valuations are stretched" comment

 

 

Biotechs were bid as M&A "get rich quick" fever took hold (biggest 2-day rise in 30 months) - though short of its 100DMA

 

But Bonds weren't buying it...

VIX wasn't buying it...

 

Credit wasn't buying it...

 

and nor was JPY carry...

 

The USD limped back from early strength (around the EU confidence, housing, Richmond Fed beats) to end the day unchanged on the week...with AUD strongest

 

 

Oil tumbled back to $102. Gold and silver limped higher after the ubiquitous morning slamdown...

 

The term structure continues to flatten

 

As the appeal of 30Y Treasury yields appears strong no matter what growth, taper, normalization is priced into stocks

 

One has to wonder if the Europeans have given up chasing Spanish and Italian bonds and are willing to rotate from credit risk to interest rate risk (from 10Y Spain to 30Y US) for an addtional few bps of yield...

 

Charts: Bloomberg

 

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Tue, 04/22/2014 - 16:04 | 4683994 Rainman
Rainman's picture

What day is it ? .... cmon, what day is it ?

Tue, 04/22/2014 - 16:10 | 4684007 Battleaxe
Battleaxe's picture

It's Groundhog Day.

Tue, 04/22/2014 - 16:18 | 4684034 knukles
knukles's picture

OK.... Who farted?

Tue, 04/22/2014 - 16:20 | 4684044 Soul Glow
Soul Glow's picture

Barrick and Newmont.

Tue, 04/22/2014 - 16:21 | 4684052 knukles
knukles's picture

Barrack n' Newlymounted, you say?

Tue, 04/22/2014 - 16:28 | 4684065 Soul Glow
Soul Glow's picture

Gartman will announce a gold short position any moment now.

Tue, 04/22/2014 - 17:03 | 4684182 Groundhog Day
Groundhog Day's picture

It's Groundhog day everyday

Pux Phil

Tue, 04/22/2014 - 16:08 | 4684009 Say What Again
Say What Again's picture

If everyone on ZH starts talking about the Tuesday Ramp and how easy it is to make money on Tuesday's, those sneaky HFT guys will take the market in the other direction, right?  Sorry, I had a moment of doubt, but I'm all better now.

Tue, 04/22/2014 - 16:05 | 4683997 Cognitive Dissonance
Cognitive Dissonance's picture

I love the smell of desperation in the afternoon close.

Tue, 04/22/2014 - 16:24 | 4684060 Soul Glow
Soul Glow's picture

It was a weird 24 hours for markets.  Neikki sold off into the close last night then DAX popped after - up 2%.  Dax moved to the top of its range but the 3 month chart still looks bearish.  Then US equities rose yet oil was crusked.  And silver was....up?  The storm is still brewing, and it looks nasty from the crows nest.  it looks to be a big one when it hits.

Tue, 04/22/2014 - 16:51 | 4684143 LawsofPhysics
LawsofPhysics's picture

What part of "ALL" don't people understand?  As in the value of "all" fiat will go to zero.

Tue, 04/22/2014 - 17:05 | 4684189 Soul Glow
Soul Glow's picture

GLD and SLV included.

Tue, 04/22/2014 - 20:37 | 4684893 samcontrol
samcontrol's picture

pslv cef ?

Tue, 04/22/2014 - 16:06 | 4684001 LawsofPhysics
LawsofPhysics's picture

Shamalama...

< meh >

same as it ever was...

Tue, 04/22/2014 - 17:04 | 4684186 Conax
Conax's picture

 

Shamalama, baby, yomamaslammadingdong..

 

<sorry, it just popped in there)

Tue, 04/22/2014 - 16:07 | 4684002 TheRideNeverEnds
TheRideNeverEnds's picture

haha, slump... right.  That was en extremely bullish close, means most people were trading from the long side.

 

Get your S&P 1900 party hats ready.

Tue, 04/22/2014 - 16:13 | 4684019 LawsofPhysics
LawsofPhysics's picture

Perhaps, only one thing is pretty predictable now...

that being so long as the world/west is going to insist on a "debt-is-money" system, debt must increase and the cost of the new debt must be managable, hence, these criminals will continue to extract real wealth from the blood of savers and the unborn...

Same as it ever was (or at least until all faith is lost or that EBT card "don't work no more")

Tue, 04/22/2014 - 16:20 | 4684046 knukles
knukles's picture

Blood of the unborn?
Surely you don't imply the very same Bohemian Grove and Royal Family types? 

Tue, 04/22/2014 - 16:19 | 4684004 Dr. Engali
Dr. Engali's picture

Like I said in response to a post earlier, Tuesday is the day to harvest profits and buy PMs , not the day to buy stawks. For the record the 'market' doesn't give a damn about Einhorn and neither do I.

Tue, 04/22/2014 - 16:08 | 4684011 NOTW777
NOTW777's picture

AMGN  missed so - new hi s tomorrow

Tue, 04/22/2014 - 16:13 | 4684017 TheRideNeverEnds
TheRideNeverEnds's picture

bad news out of cree also, the collapsing economy / USD should help push e-minis to new record highs by the end of the week.  

Tue, 04/22/2014 - 16:23 | 4684054 NOTW777
NOTW777's picture

more magic tricks - AMGN almost 9% of IBB misses and corrects but IBB up 2 AH

Tue, 04/22/2014 - 16:14 | 4684024 Flux
Flux's picture

Lol, whatever.

Another great day in the market for me. Gold is looking less appealing as the month wears on.

Momentum bitchez!

 

Tue, 04/22/2014 - 16:24 | 4684059 LawsofPhysics
LawsofPhysics's picture

Good indeed and personally, I like it when some things go on sale.

People keep accepting these paper promises in exchange for all kinds of real assets, party on!

When fraud is the status quo, possession is the law...

Tue, 04/22/2014 - 16:46 | 4684125 Flux
Flux's picture

Yes!

It took me a while to clue in, but now I get it. It's theatre. You can enjoy it, participate, and live well ...

Or you can pine away about how things should be. The problem, of course, is that how things should be is pretty damn miserable.

I'll take the theatre.

Cocktail?

Wed, 04/23/2014 - 07:34 | 4684920 samcontrol
samcontrol's picture

buy pslv

Tue, 04/22/2014 - 18:21 | 4684414 Haager
Haager's picture

Now that you mention it, gold seems to rise the first 14 days or so of a month, then it fades. Must be the fundamentals...

Tue, 04/22/2014 - 16:17 | 4684033 Soul Glow
Soul Glow's picture

I put a short in minutes before the Einhorn letter.  Here's to being lucky.

Tue, 04/22/2014 - 16:19 | 4684042 disabledvet
disabledvet's picture

"energy prices can never be too high for the market" seems to be coming to an end.

cue "pretend surprised face."

Tue, 04/22/2014 - 16:35 | 4684082 NOTW777
NOTW777's picture

$5 gas + war = bullish

Tue, 04/22/2014 - 16:55 | 4684141 SheepDog-One
SheepDog-One's picture

Stawks stumble to close up only + .5% which is a travesty...1% higher daily please! Lets get this full-Zimbabwe party started right!

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