Silver & Stocks Soar To Celebrate Donetsk Independence; Russell Up 4% In 24 Hours

Tyler Durden's picture


The Russell 2000 had its best day in over 17 months today - up 2.5% (best since Jan 2nd 2013) and +4% from Friday's lows. All US equity markets exploded higher our of the gate thanks to a ridiculous spike lower in VIX (below 12) and USDJPY stop-run back through 102 which squeezed "most shorted" dramatically higher. The Dow, Trannies, and S&P all made new record high closes...and it's not even Tuesday yet! Away from stocks, silver jumped over 2% for almost its best day in 3 months. Gold rebounded over $25 from overnight smackdown lows. Oil broke back above $100. Treasury yields rose modestly (2-3bps) - majorly out of sync with equity exuberance. JPY was large and in charge of stocks but the USD ended the day unchanged. S&P futures volume was 30% below recent average.


A major short-squeeze...


lifted all the major US equity indices into the green for May... (and the Nasdaq green for 2014)


The Russell is up 4% from Friday's lows - destroying the meme that this is a healthy rotation from high-valuation names to low... this is just another squeeze


Homebuilders were the best performers... sure they were... makes perfect fucking sense as rates rise...


From the early March highs in the Nasdaq and Russell...


Volume was dreadful...


USDJPY was in charge all day...


FX markets were volatile during the European session but ended the NY session unahcnged from Friday... (with JPY weakest)


Copper and Silver surged, oil and gold rose...


and this came after the overnight smashdown in PMs...


Treasuries sold off very modestly - not exactly the heart-pounding wreck that huge risk on belief in stocks woul dhave one believe...


And tomorrow's Tuesday!!!! Fuck yeah! Just 3 more points for Goldman Sachs 2014 year-end target (8 months early!)


Charts: Bloomberg

Bonus Chart: Some context for today's "recovery" in high-beta momo stocks...

Your rating: None

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Mon, 05/12/2014 - 16:05 | 4752048 NDXTrader
NDXTrader's picture

Phil Orlando just informed me that he was going with 3.9% growth for the quarter, but he's "started seeing some 4 to 5 handles on it" - if this economy is growing at 4-5% I'm living in the wrong place

Mon, 05/12/2014 - 16:06 | 4752052 fonestar
fonestar's picture

Too bad that chart has nothing to do with silver eh?

Mon, 05/12/2014 - 16:07 | 4752061 flacon
flacon's picture

I'm long silver and short the Dow. A totally logical (or illogical as the case may be) trade. 

Mon, 05/12/2014 - 16:23 | 4752130 rqb1
rqb1's picture

That may be the trade of the year. 

Mon, 05/12/2014 - 16:26 | 4752141 Sudden Debt
Sudden Debt's picture

sold my silver calls today and went short.
Had a nice 20% profit and if it drops tomorrow which I guess it will, I'll get another 20%

Mon, 05/12/2014 - 21:54 | 4753158 BeanusCountus
BeanusCountus's picture

Give you credit on that bet. Im long a lot of physical silver, dont have the guts to short the Dow. Hoping you are right. Big time. Note to Tyler: silver at 19 and change isnt "soaring".

Mon, 05/12/2014 - 16:08 | 4752065 Say What Again
Say What Again's picture

There was some very strange bid/ask quotes going on all day. The market-depth windows for many of the context ETFs had HUGE volume bids and offers all day until 3:45, when they just disappeared.

Mon, 05/12/2014 - 16:14 | 4752090 NDXTrader
NDXTrader's picture

I would call the bid relentless today. The machines were just set on stun for anyone(thing) that tried to sell. Other than the usual MM dip to load up after the opening, I don't believe the Nasdaq retreated for more than 4 points at any point all day long. And on NO volume - just a bid that would not move down.


My guess is a bad retail sales number tomorrow so they got everyone to cover that they possibly could

Mon, 05/12/2014 - 16:27 | 4752146 Sudden Debt
Sudden Debt's picture

you could say that again, slv started erratic and after 18.82 it was like a perfectly flat line all day.

Mon, 05/12/2014 - 16:13 | 4752084 McMolotov
McMolotov's picture

Unfortunately, you are living in the real world. GDP, however, will be whatever the hell they want it to be, and we'll never have another declared recession unless they need one for some reason.

Mon, 05/12/2014 - 20:06 | 4752836 Squid Viscous
Squid Viscous's picture

Phil Orlando: the 90's called and they want their bulltard back

Mon, 05/12/2014 - 16:06 | 4752053 fonzannoon
fonzannoon's picture

"And tomorrow's Tuesday!!!! Fuck yeah!"



It's about time Tyler finally lost his mind like the rest of us. Let it go Tyler. It's all good. Let it go.

Mon, 05/12/2014 - 16:08 | 4752068 LawsofPhysics
LawsofPhysics's picture

Sounds like you didn't get the memo, Monday is now Tuesday.

Mon, 05/12/2014 - 19:58 | 4752814 Wait What
Wait What's picture

Dudley to Yellen: RUT and NBI are sliding into a bear market!

Yellen to Dudley: well get in there and buy some futures!

Dudley to Yellen: are those within out mandate?

Yellen to Dudley: of course they are, man! send the memo to the big 5! Free money, yo! Financial stability, ya heard?!

Dudley to Yellen: on it boss!

Mon, 05/12/2014 - 16:06 | 4752058 ebworthen
ebworthen's picture

The fix is in.

No more markets, only perpetually FED backstopped gambling.

Biff's World is here.

Sorry Marty.

Mon, 05/12/2014 - 16:09 | 4752074 The_Ungrateful_Yid
The_Ungrateful_Yid's picture

You are 5 years late on that, but who's counting at this stage.

Mon, 05/12/2014 - 17:13 | 4752322 ebworthen
ebworthen's picture

I'm back from the future, it only gets worse, but you are right.

Mon, 05/12/2014 - 16:57 | 4752266 Bastiat
Bastiat's picture

For the right people it is NOT gambling.

Mon, 05/12/2014 - 17:09 | 4752307 ebworthen
ebworthen's picture

Biff always wins at his casino!  And his buddies.

Mon, 05/12/2014 - 16:07 | 4752059 i_call_you_my_base
i_call_you_my_base's picture

Repeat after me: rigged.

Mon, 05/12/2014 - 16:08 | 4752066 TheRideNeverEnds
TheRideNeverEnds's picture

If you think this is an up move wait till they start dropping the bombs, or announce the peace accord and absorption into Russia; either way its going to make today look like a down day.  

Mon, 05/12/2014 - 16:07 | 4752067 LawsofPhysics
LawsofPhysics's picture

Just the normal functioning of a free market...



Mon, 05/12/2014 - 16:08 | 4752069 tommylicious
tommylicious's picture

I am going to end up being a dishwasher at the "El Paraiso" on Scarface.

Mon, 05/12/2014 - 16:44 | 4752209 Two Theives and...
Two Theives and a Liar's picture

"I said sanitation! NOT sanitarium!"

Mon, 05/12/2014 - 16:09 | 4752072 NDXTrader
NDXTrader's picture

So with this new exuberant growth meme - why are retail sales only expected at 0.3% tomorrow and I've heard whispers of flat and possibly negative?

Mon, 05/12/2014 - 20:08 | 4752843 Wait What
Wait What's picture

bullish, bro.

some ppl are still delusional about how long this bond buying can go on. spoke to one of them at a dinner this weekend.

bourbon burns the nostrils when you can't stiffle a cackle mid-sip.

Mon, 05/12/2014 - 16:10 | 4752081 tommylicious
tommylicious's picture

gents at the end of the day does low volume even signify anything?  some of the largest moves i've seen have begun on low volume.

Mon, 05/12/2014 - 16:13 | 4752092 Tsar Pointless
Tsar Pointless's picture

That's kind of his point. Low-volume melt-ups have been the norm since this bull(shit) market started back in March 2009.

Mon, 05/12/2014 - 16:28 | 4752149 tommylicious
tommylicious's picture

sorry thot low volume was dismissing the move.  my bad thanks.

Mon, 05/12/2014 - 20:15 | 4752867 Wait What
Wait What's picture

i've been tracking s&p500 component volume since i was a kid. it's kind of amazing that the shares traded during the regular session over the last week are comparable to volume levels from 2006. no wonder brokers are tightening their belts, watching revs get hammered, hardly anyone is buying/selling.

Mon, 05/12/2014 - 16:17 | 4752104 buzzsaw99
buzzsaw99's picture

stupid shorts :smirks:

thank you sir! may i have another? [/chip diller]

Mon, 05/12/2014 - 16:17 | 4752107 nosoeawe
nosoeawe's picture

so you mean to tell me its not perfectly normal for the market to go up in 5 years what once took from 1950 to 1997-98? 

just think if ol yellen was fed chairthing back in the 50's.

the s&p would be sitting at 18966500.00


Mon, 05/12/2014 - 16:19 | 4752119 Bernoulli
Bernoulli's picture

This is out of control.

Tomorrow I'm gonna stack up some more way out of the money puts. Fuck it.

Still, I can't help feeling like the guy who's seen 12 times red at the roulette table...

Mon, 05/12/2014 - 16:27 | 4752148 nosoeawe
nosoeawe's picture

pull up a max chart on the dow, naz, s&p. does that look like a good place for entry?

apparently so, all my damn yuppie buddies, who know nothing about a p/e, fiat, earnings, debt, margin, and believe ukraine is somewhere south of rio, all have new yuppie cars, yuppie watches and d bolt ons for their wives (and mistresses)

while i dig up and then bury my gold and silver enjoying cup of ramen noodles while my hooptie creates an oil slick bigger than the exxon valdes 

how much are souls going for these days, anyone? 

Mon, 05/12/2014 - 16:53 | 4752244 Bangin7GramRocks
Bangin7GramRocks's picture

Yuppies? What year is this? Are they all wearing docksider shoes ans listening to Don Henley?

Mon, 05/12/2014 - 16:35 | 4752176 q99x2
q99x2's picture

Steve Keen says 7 1/2 more years until the bubble pops.


Mon, 05/12/2014 - 16:47 | 4752216 Obama_4_Dictator
Obama_4_Dictator's picture

Silver soaring.....fuck was over 20 just a week ago.

Mon, 05/12/2014 - 18:00 | 4752468 TN Jed
TN Jed's picture

Thank you. The only thing silver is soring is my ass.

Mon, 05/12/2014 - 16:58 | 4752273 WarPony
WarPony's picture

Not so sure folks.  Brian Williams found some never-before-seen footage of the Hindenburg going down and I took it as a (hello-to-the-masons) sign.  They're out tonight on the pump, and the crash is within a few days.

P.S.  I'm totaly embarrassed to admit I watched the "news." ... been drinking 'gain.  :/

Mon, 05/12/2014 - 17:20 | 4752337 lunaticfringe
lunaticfringe's picture

All I know today is that PVG is up 14% (since noon eastern) on no news. (Or news us hoi polloi don't get) It's about fucking time.

Mon, 05/12/2014 - 17:45 | 4752420 Thalamus
Thalamus's picture

The hedge funds are taking it in the shorts again!  

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