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Dow Closes Green For 7th Tuesday In A Row

Tyler Durden's picture




 

Despite the Dow's price-weighted index of just 30 stocks pushing comfortably into the green for the 7th Tuesday in a row (on dismal volume), things were not as exuberant anywhere else in stock-land. Amid a very narrow range day, completely divergent from the rest of the risk-asset complex, sustained only by the life-giving blood of Fed-sponsored VIX-selling into the FOMC event risk, performance today was internally weak with Russell 2000 closing red for the week (as the S&P and Dow managed to regain green for April but the Dow still could not make it green for 2014). Away from stocks, Credit markets were weak, Treasuries rallied (with yields lcosing 1-2bps lower on the day despite equity strength), Gold closed marginally higher and oil up 0.5% on the week. The USD closed up for the day but unch on the week as JPY strength dislocated from stocks.

 

On the week, the Dow is shiny but the Russell is whiney...

 

But The Nasdaq and Russell head for an ugly month...

 

As VIX held stocks in check...

 

Because Treasuries did not...

 

and nor did JPY carry...

 

Or credit...

 

 

Away from stocks, Oil rallied, gold bounced off earlier lows...

 

And Treasuris end the day in the green!

 

 

Charts: Bloomberg

 

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Tue, 04/29/2014 - 16:06 | 4709207 Obama_4_Dictator
Obama_4_Dictator's picture

Federal Reserve ftw!

Tue, 04/29/2014 - 16:13 | 4709232 Soul Glow
Soul Glow's picture

The Illuminati's celebration of Tuesday continues.  All hail the brilliant ones!  They don't know what they are doing but because the first world feels comfortable and fearful at the same time they will not be challenged.  Until they run out of cheap oil....Putin striking while the iron's hot.

Tue, 04/29/2014 - 16:16 | 4709242 Ignatius
Ignatius's picture

Smokin' weed and spinnin' records.

Endless loop:  https://www.youtube.com/watch?v=bPLWBhNW3FM

Tue, 04/29/2014 - 16:22 | 4709255 Soul Glow
Soul Glow's picture

I wish everyone understood high art like you and I do.  More important than money is creation symbolized in mythos.  Keep rockin' the free world.

Tue, 04/29/2014 - 17:54 | 4709603 Say What Again
Say What Again's picture

When I saw the words "endless loop" I thought it would be a really long video.

Try this one:  https://www.youtube.com/watch?v=S5PvBzDlZGs

Start it at the beginning of your trading day, and it will still be playing when you come back from happy hour.

Tue, 04/29/2014 - 16:08 | 4709211 paradox
paradox's picture

ballucks!

Tue, 04/29/2014 - 16:15 | 4709233 SheepDog-One
SheepDog-One's picture

Everything coming up roses for the top .001%, shit weeds garden for everyone else.

Tue, 04/29/2014 - 16:25 | 4709267 Soul Glow
Soul Glow's picture

Their garden looks like shit.  I'm not going to their bbqs - they tell bad jokes, they listen to Madonna records over and over, and they smell like sulfer.

Tue, 04/29/2014 - 16:14 | 4709237 Zirpedge
Zirpedge's picture

BOOYAH! 

Tue, 04/29/2014 - 16:15 | 4709240 i_call_you_my_base
i_call_you_my_base's picture

And the pro wrestling stawk "market" continues on.

Tue, 04/29/2014 - 16:20 | 4709250 John McCloy
John McCloy's picture

   The real question is what occurs to the markets when the realization comes that every law being passed, suspended, delayed, accounting gimmick, soft dovish language, Future QE after Trillions of QE for 5 years via ramps when data misses, zero criminarl accountability for the greatest thievery in human history in such a short span, the complete obliteration of every short seller who ever considered shorting a stock, POMO front running determine they have front ran themselves 8 years to a decade into the future??

   That is what occurs when the deck has been so stacked in their favor and the entire catalyst or support for a market comes from a few boxes in NJ and the belief that.."Just Because". 

     Fundamentals will catch up inveitbaly regardless of the unprecedented distortions..markets are always attempting to find their way back to the standard mean and interventions can delay and prolong but this market is one or 2 events away from creating a chain reaction that will wipe out all the hardwork of lies it has been built upon. 

   The end of US Hegemoney will be that via energy deals, oil, reserve currency challenge or the breakout in previous metals..perhaps it will be war but all the lies will crumble the markets in a week or two time and they will be left with not a tool left to attempt to prop it..by then they will be out of office after doing their work or out of their bueracratic job meant to ensure their payouts for reaching into our pockets and all we are going to be left with is 18-19 Trillion in debt and a choice...

Tue, 04/29/2014 - 16:27 | 4709278 Soul Glow
Soul Glow's picture

What occurs?  The end of their fabel.  Too bad they haven't engineered the moon and Mars like Daddy Bush wanted a few decades ago.  Now there is no escaping for them.

Long pitchforks.

Tue, 04/29/2014 - 16:28 | 4709279 SheepDog-One
SheepDog-One's picture

No one gave a shit the last time the banksters pulled the rug out and threatened tanks in the streets if clowngress didn't hand the Fed the free checkbook, so they'll just do it again next time when they feel like it. What's to stop them?

Tue, 04/29/2014 - 16:30 | 4709289 John McCloy
John McCloy's picture

  I think we all know what the only thing that stops them is...we just cannot say it because it does not seem likely to occur at a ballot box.

Tue, 04/29/2014 - 16:34 | 4709302 Soul Glow
Soul Glow's picture

People did care at the time - Congressional approval rating rdopped to alltime lows - it's just that the timespan of thought for Americans lies on a timeframe of panic and when the middle class saw their pensions/IRAs go back to treading water they forgot they were angry and clicked the tube back on.

So when they can't click the tube back on....

Tue, 04/29/2014 - 18:04 | 4709638 SheepDog-One
SheepDog-One's picture

Yea, so all it takes is for banksters to design a scare then assure it will be OK later and American people will accept whatever and its back to TV time.

Tue, 04/29/2014 - 16:36 | 4709317 Midnight Rider
Midnight Rider's picture

I would have to think that once all these distortions have pushed the market absolutely as far as they can, the momentum traders, so used to BTFD, are not going to be satisfied to just sell for their profits. They are going to want to make a lot more on the way down. That sets up for a very steep fall at some point. And then the margin calls, etc, etc, etc... Will get very interesting at some point I would think in the not too distant future...

Tue, 04/29/2014 - 16:24 | 4709263 Rainman
Rainman's picture

Eureka ! ...... Praise the lawd for tuesday ! baby gettin a new pair of shoes

Tue, 04/29/2014 - 16:35 | 4709305 Wait What
Wait What's picture

Taco Tuesdays!!

Tue, 04/29/2014 - 16:38 | 4709326 Squid Viscous
Squid Viscous's picture

don't think I've ever seen the DJIA trade in a 20 point range for SIX FUCKING HOURS... something is rotten in Denmark

Tue, 04/29/2014 - 16:46 | 4709356 NOTaREALmerican
NOTaREALmerican's picture

Re:  in Denmark

it's Belgium now.  ... rotten in Belgium. 

Tue, 04/29/2014 - 16:53 | 4709384 Midnight Rider
Midnight Rider's picture

Dueling algos.

Tue, 04/29/2014 - 17:02 | 4709418 ArgieBargie
ArgieBargie's picture

David Rosenberg says "“Every leading indicator is signalling continued expansion,”

http://business.financialpost.com/2014/04/29/david-rosenberg-is-not-bear...

The levitation shall continue!

 

 

Tue, 04/29/2014 - 17:28 | 4709518 Pumpkin
Pumpkin's picture

The PPT has rules.  This is not an out of controll organization.  All vacations are Wednesday to Monday.  There is also no sick days for Tuesday.  This should improve your view of government.  After all, they are the servants of the people.

Tue, 04/29/2014 - 17:30 | 4709531 polo007
polo007's picture

http://www.safehaven.com/article/33588/dont-look-now-but-the-wealth-effect-is-over

The government's "ingenious" solution to end the Great Recession was to recreate the same wealth effect that engendered the credit crisis to begin with: The definition of the wealth effect is an increase in spending that comes from an increase in the perception of wealth generated from equities and real estate.

Our Treasury and Federal Reserve figured the best way to accomplish this was to rescue the banking system by; taking interest rates to zero percent, buying banks' troubled assets, and recapitalizing the financial system. Most importantly, our government loaded banks with excess reserves. This process, known as quantitative easing (QE), pushed lower long-term interest rates through the buying of Treasury Notes, Bonds and Agency MBS.

It is imperative to understand the QE process in order to fully understand why the tapering of asset purchases will lead to a collapse in asset prices and a severe recession.

The QE scheme forces banks to sell much higher-yielding assets (Treasuries and MBS) to the Fed, and in return the banks receive something know as Fed Credit, which pays just one quarter of one percent. For example, the Five-year Note currently yields 1.75 percent and the Seven-year Note offers a yield of 2.30 percent. The Fed is currently buying $30 billion worth of such Treasuries per month and $25 billion of higher-yielding MBS.

In fact, the Fed has purchased a total of $3.5 trillion worth of MBS and Treasuries since 2009 in a direct attempt to boost equity and real estate prices. QE escalated in intensity as the years progressed. The year 2013 began with the Fed promising to purchase over a trillion dollars' worth of bank debt--without any indication of when the QE scheme would end...if ever.

Therefore, financial institutions did exactly what rational would dictate. These banks bought bonds, stocks and real estate assets with the Fed's credit because not only were the yields higher, but they also understood there would be a huge buyer behind them-one that was indifferent to price and had an unlimited balance sheet. Since these assets offered a yield that was much greater than the 25 basis points provided by the Fed and were nearly guaranteed to increase in price, it was nearly a riskless transaction for banks to make. This QE process also sent money supply growth rates back up towards 10% per annum, as opposed to the contractionary rates experienced in 2009 and 2010.

Of course, most on Wall Street fail to understand or refuse to acknowledge that ending QE will cause asset prices to undergo a necessary, but nevertheless healthy correction. However, looking at the evidence since the tapering of asset purchases began, it is clear that the Fed's wealth effect has ended.

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