Late-Day Buying Panic Saves Russell From 3-Month Lows

Tyler Durden's picture

In a word... "mixed" Early ugliness gave way to another ramp job courtesy of USDJPY's 101.50 level holding - which managed to clamber the Dow to unchanged on the week and stabilize the S&P (after it bounced off its 50DMA). But... Nasdaq and Russell just could not get it together until the last few minutes  thanks to a VIX slam, JPY ramp and 30Y dump. Yellen's testimony pushed some volatility through markets and perhaps provided the extra pressure on the small caps (after warning of valuations). The term structure steepened modestly with 30Y +1.5bps and the rest of the curve rallying 2-3bps (10Y unch). The USD rallied modestly off 19-month lows. Gold had its worst day in 3 weeks, breaking below 1300 and testing its 100DMA (tick for tick with silver on the day). Oil prices jumped back up to around $101 as Copper slipped back towards $3. And finally, we hesitate to mention it... today's market schizophrenia was enough to trigger a Hindenburg Omen.



The divergence between high beta and the rest is growing quickly...another opening dump and pump though (Dow and Trannie sunch on the week) - only Trannies are green for May though


Close up on the day - Putin Pop, US open DUMP and Yellen Q&A Pump


As the momos continue to slide off the Tarullo top...


USDJPY was in charge - providing the anchor along with 30Y yields (as gold slipped - apparently on Putin's diplomacy)


VIX provided the extra impetus as JPY approached 102 to keep stocks exuberant


But across the curve Yields compressed... (notice the steepening post Yellen)


Gold and Silver were spanked after Putin's apparent diplomacy... even though oil surged and NATO and the US confirmed it was all talk and not real


Charts: Bloomberg

Bonus Chart: Where have we seen Nasdaq decouple from the Dow before?

Bonus Bonus Chart: Yellen confirmed she was not "goosing" stocks...


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Say What Again's picture

Yellen's been goosed

Say What Again's picture


He was goosed too.  Have you seen the performance of his funds?

messymerry's picture

I'd rather goose Gross than rub the rump of yellin' Yellen,,,


Say What Again's picture

All that matters is this...

The largest central banks in the world, Fed, ECB, BOJ, & PBOC, are all in a race to print moar fiat than they others, creating an insane amount of "money" that is going straight into the various markets.  All markets will continue to go up until there is a catastrophic event which, eventually, will happen.  Until then; BTFD, BTFATH, just BUY, BUY, BUY!


And the Hindenburg Omen doesn't count.  In fact, it has not been a very reliable indicator for many years.

Tenshin Headache's picture

I nominate the BOJ for "most likely to lose control first."

messymerry's picture

In the (gross ;-) sense, none of the traditional indicators have meaning anymore.  TPTB know and understand this.  What they don't understand in their endless hubris is that they can run, but they cannot hide.  Justice will prevail in the end...

HardlyZero's picture

Natural Gas or is that H2 ?  Something is smelling gassy and Omen-ous.  Is the market lighter than air ?  Goose the gas bag.

Lore's picture

Spank the shiny. Oh yeah.  Oh Baby.  You know what I like.

Seriously, everything is fixed. The psychos behind the financial crisis are being prosecuted and locked up.  All is well. 

Ban KKiller's picture

Yeah, I'll hit the bong too. 


what's that smell's picture

you will never be lonely if you BTFD.

ebworthen's picture

The U.S.S.A. 21st Century Hindenburg has been filled with 50% laughing gas so even if it bursts into flames "it's all good."

Notice also that in the 21st century it takes 3,600 people dying instead of 36 to be a "human tragedy".

Al Huxley's picture

It got a lot warmer in the afternoon, which is what caused the ramp.

HardlyZero's picture

Omen-ous gassy eminations after lunch.

what's that smell's picture

when i was a teenager i goosed the yellen all day.

Dr. Engali's picture

You just painted a picture in my head that should not be there. Did she give you a cookie afterwards?

HardlyZero's picture

She's sticking her flexible neck way out there.

SilverIsKing's picture

Be honest, when you were a teen, you yanked the Bernank.  Goosing the Yellen started very recently.

FieldingMellish's picture

No end in sight for the Fed's hacky sack game. All possible forms of protection are once again sold as insurance is seen as a completely waste of leveragable capital.

replaceme's picture

we used to call woooden carnival darts "Hindenburg!".     If you heard that, you better duck and cover.

Spungo's picture

All 4 of the big metals were smashed pretty hard. There be some panic brewing somewhere!

NaiLib's picture

If you look at certain big banks holdings of derivatives, its easy to understand the daily VIX slam. Its getting very near the melting point.

Ban KKiller's picture

Please suggest a trigger! What are the banks total holdings in derivatives..and source? How many times can something be "sold" and "counter pledged"? 

These folks have nerves of steel! Until 5 PM. 

OldE_Ant's picture

The hindenburger Omlet was eaten by Wimpy.

He says he'll get ya back on Tuesday.

Fuh Querada's picture

30 Y dump- like having a country sh*t?

Hongcha's picture

Another ballstomped day of false hopes and false dawns for those who went in short ... I'm just sayin ... I know no one is short on this board ;)

SheepDog-One's picture

I have no idea why they call it the Hindenburg Omen, after every small dip, markets just go higher, they don't crash and burn. Rename it the Phoenix.

NoTTD's picture

The Hindenberg "Omens" have portended a whole lot of fucking nothing over the last few years.   Perfect example today: Yellen says a bunch of bullshit that should cause a panic and it does - straight out of gold and into the safe haven of stocks, which can only go up.



HardlyZero's picture

Divergence...CHECK IT OUT !

60-day DOW to Russell 2000 Correlation Chart is significant.

Looks like this happens whenever markets collapse (2000, 2008, etc.)

A warning sign? Market divergence worries traders
spine001's picture

Markets can't go down while the Fed is ready to restart QE any time the economy weakens, as Yellen indicated she'd do today. That threat alone distorts all market forces and is forcing the correction and shift from momentum to blue chips. They know that they may let momentum crash and burn but that they will support blue chips.

The system is so distorted that the market is responding to anything but market forces. This distortions are accumulating like loading a spring.