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Bonds & Gold Rip, But Stocks Dip Despite Furious Late-Day VIX-Slip

Tyler Durden's picture




 

Stocks just could not figure it out - good jobs data, bad jobs data, WWWIII? But Treasuries and gold did. 30Y yields tumbled to fresh 11 month lows (lot of desk chatter of GPIF buy orders ahead of their holiday), 10Y to 2014 lows, but the short-end sold off as 5s30s flattened to 5 year lows (under 170bps). Despite some smackdowns this week, precious metals bounced back notably today with gold's best day in a month, back over $1300 and unch on the week. Despite yields tumbling, Utility stocks were the week's losers (-1.2%) while homebuilders were best (oh yeah because lower mortgage rates is all that is holding back pent-up demand for homes!!). On the week, Trannies outperformed but Russell 2000 was worst of the major indices (the opposite of today's action). The USD pumped and dumped around the jobs data, but ended the day unch (down 0.25% on the week). Credit markets closed at their wides of the day, notably divergent from stocks on the week. A massive VIX-selling effort began late in the day (because with 38 dead in Odessa who would need to hedge?) - but stocks ignored it.

 

VIX slam down did not work (and who the fuck is selling protection so aggressively when we are seeing the worst civilian casualties in Ukraine since Kiev and Putin with his finger on the button!!)

 

Stocks tracked AUDJPY closely all day but note the ramp to 103 in USDJPY that ran stops and then collapsed...

 

Stocks did not follow bonds...

 

The Russell 2000 underperformed on the week and Trannies were best

 

On the week, despite bond strength (and yields tumbling) Utilities underperformed...

 

Treasuries rallied all week on weak data (and yes today's jobs data was weak) with the long-end outperforming (and short-end selling off in a tapery way today)...lot of desk chatter of resting buy orders from Japan's GPIF for the long bond

 

Which smacked the yield curve to fresh 5 year lows...

 

FX markets pumped and dumped with USDJPY stops run over 103 and then dumped back down again (JPY unch on the week)... The USD ended the day unch and week -0.25%

 

Gold had its best day in a month and snapped up to unchanged on the week but commodities were broadly lower on the week...

 

Credit markets are not happy...

 

And here's your unrigged markets today...

 

Charts: Bloomberg

Bonus Chart: "Costs"

 

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Fri, 05/02/2014 - 16:18 | 4721669 fonestar
fonestar's picture

When you get tired of playing with the little boys in the p-world, step on over....

 

https://btc-e.com/

Fri, 05/02/2014 - 18:03 | 4722041 N2OJoe
N2OJoe's picture

Son of a bitch, I was about to BTF silver dip.

Fri, 05/02/2014 - 18:34 | 4722146 SoilMyselfRotten
SoilMyselfRotten's picture

They better hurry and install that 1% PM action limit before this gets away from them. Silver could actually get back over $20 if they don't get busy.

Fri, 05/02/2014 - 16:23 | 4721688 crazybob369
crazybob369's picture

Thanks Matt.  I got a woody reading these.

Fri, 05/02/2014 - 16:08 | 4721636 LawsofPhysics
LawsofPhysics's picture

It's a game of "whack-a-mole" for the oligarchs now folks.  I expect things will proceed as expected...

Fri, 05/02/2014 - 16:11 | 4721647 HedgeAccordingly
HedgeAccordingly's picture

Bernanke Love'z it = http://hedge.ly/1m2WClD

Fri, 05/02/2014 - 16:13 | 4721654 maskone909
maskone909's picture

**NEW**

50 year mortgages as low as -2%!  and if youa act now, we will throw in these commemorative janet yellen silicone Dongs FREE!

Fri, 05/02/2014 - 16:18 | 4721668 LawsofPhysics
LawsofPhysics's picture

-2%?!?!?!?!

Shit, that means that the bank will pay me to buy the house and keep paying me for 50 years!!!

I am going to get the biggest fucking house possible!!!

Wait a minute, what are the closing costs and fees?

Fri, 05/02/2014 - 18:05 | 4722043 QE49er
QE49er's picture

9 times out of 10 it's an electric razor, but every once in a while...

Fri, 05/02/2014 - 18:36 | 4722156 SoilMyselfRotten
SoilMyselfRotten's picture

and the taxes which will far outstrip any benefit

Fri, 05/02/2014 - 16:14 | 4721656 101 years and c...
101 years and counting's picture

looks like a certain "trader" at NYFed had some vix calls to sell naked.  or, traders in general dont feel the need to wear protection as they enter the skank house??

Fri, 05/02/2014 - 17:13 | 4721865 Panafrican Funk...
Panafrican Funktron Robot's picture

VXX closing at exactly 40.00 on the nose made me lol.  Somebody apparently has a very sadistic sense of humor.

Fri, 05/02/2014 - 16:15 | 4721659 fonzannoon
fonzannoon's picture

if you own utilities for the 4% div you were up 15% coming into today. i'd take profits too

Fri, 05/02/2014 - 16:20 | 4721679 ParkAveFlasher
ParkAveFlasher's picture

If I had me one of them bloomberg terminal doohickeys, I'd be a-correlatin' 'til the cows came home!

Fri, 05/02/2014 - 16:22 | 4721684 McMolotov
McMolotov's picture

Tyler truly is the Eminem of market headlines.

Fri, 05/02/2014 - 16:35 | 4721739 Fuh Querada
Fuh Querada's picture

Yes, pity there were no "buggered biotechs" this time around.

Fri, 05/02/2014 - 16:30 | 4721717 delivered
delivered's picture

Let's just face the facts. They (being TPTB) can't afford a collapse in equities and will do everything in their power to keep an elevated value. A third collapse since 2000 will truly ravage what's left of America. They can't afford a spike in PMs and will do everything in their power to keep PMs in a very tight collar. They can't afford a panic in credit and will do everything in their power to ensure a strong market (and leverage our new friends in Belgium). They can't afford an oil price that is too high (will damage the economy) or too low (will crush new development) so around $100 a barrell should be just about right. 

Or in other words, they cannot let markets operate effectively resulting in true price discovery as if they do, TPTB will have failed. So there are no markets only a centrally planned set of target prices to keep the system from collapsing. This works of course until it doesn't which as we know from history will happen slowly and then, all at once. The slowly part is happening its the all at once that everyone is trying to figure out.

For me, I believe these MFs have more time on their side and can continue to rig the markets for another year, two, or even longer. Hell, maybe even until 2020 but at some point, it will implode. The hard part is waiting and having to watch MSM constantly push the BS on how great everything is. 

If there's one figure that is truly amazing that I attempt to digest everyday is this - $7 trillion (just in the US). That is, between the Fed (balance sheet increased from $1 trillion to $4 trillion) and Washington (incremental debt increase over a normal level of say 3% of GDP per year of another $4 trillion), it has taken $7 trillion (in addition to historically low interest rates) to bring the economy back to maybe a real level just where it was in 2007 and still be at a much lower employment figure (which as we know is highly suspect). This is a staggering figure and is almost 50% of the annual GDP in the US alone. It is amazing that nobody in MSM is picking up on this fact, how poorly the capital has been deployed by TPTB, and worst of all, what in the world are the twin evil W's in Washington and Wall Street going to do next time around when the system crashes again. What, negative interest rates, laws inacted that you must spend, QE of $10 trillion? 

Can you imagine what private industry (i.e., those that are ethical) would have done with $7 trillion in terms of deploying this capital? Guess we'll never know as free capitalism in this country died a long time ago.

Fri, 05/02/2014 - 16:41 | 4721754 LawsofPhysics
LawsofPhysics's picture

"private industry (i.e., those that are ethical)" -  Were these the same "private industries" that we bailed out? Please, an "ethical" company would go fucking bankrupt an sell their assets/technology to pay back the creditors etc.

Fuck em.

You are correct about one thing capitalism is long dead.

It's time we claw back all that mal-invetment from these motherfuckers.  Starting with Corzine...

then take their fucking blood and put their god damn heads on pikes.

Bad behavior only changes if there are real fucking consequences.

Nothing else "fixes" it now.

Fri, 05/02/2014 - 16:48 | 4721773 Fix-ItSilly
Fix-ItSilly's picture

If one feels that this is a crony, corrupt system manipulating markets, I'm not sure its proper to add the CB debt to the Govt debt.  One is true debt, the other represents unrecognized system risk - but not a true debt.  Pick one - it remains a truly big number that doesn't need to be inflated for importance.

Fri, 05/02/2014 - 17:39 | 4721972 kill switch
kill switch's picture

Unfortunately for them their power is diminishing,, game over...

 

Everything in their power has no teeth..hahahahaah It's only a matter of time the west is fucked...we just need to dodge the FEMA camps.

Fri, 05/02/2014 - 16:33 | 4721729 Fuh Querada
Fuh Querada's picture

Shit, the viagra wore off on the USDX pretty fast.

Fri, 05/02/2014 - 16:53 | 4721792 stant
stant's picture

Eee! I guess the gal at my store didn't even have time to change the price on the gas sign

Fri, 05/02/2014 - 16:57 | 4721811 NaiLib
NaiLib's picture

Well, if you look at the derivatives volume in JPM and Deutche for example, it is easy to understand that someone is desperate to keep Vol down, Together they have well over 100 Trilion in derivatives, and its probably fair to guess that they have not bought , but sold them.

Fri, 05/02/2014 - 17:19 | 4721887 Panafrican Funk...
Panafrican Funktron Robot's picture

3% on the UST 10 year is the global finance "red line".  Shit completely and irrepairably breaks above this point, on a global scale.  There is no other data point that is really relevant.

Fri, 05/02/2014 - 18:55 | 4722227 Pareto
Pareto's picture

+1 for Shit completely and irrepairably breaks above this point, on a global scale., and +100 for the emphasis, that nothing else really matters.

Fri, 05/02/2014 - 20:08 | 4722441 SilverIsMoney
SilverIsMoney's picture

Didn't we hit 3%, or close to it, just a few months back?

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