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Bonds Bid And Stocks Skid As Investors Realize Wednesday Is Not Tuesday

Tyler Durden's picture




 

It would seem that the day after Tuesday is not Tuesday... and so stocks sold off. The Russell 2000 is now 3% off its Monday highs, comfortably red for the week, and back below its crucial 200day moving-average. The Nasdaq is also down with the 50DMA crossing death-like below the 100DMA. Of course, it is the "you can't trust the signals" bond market that is making the real headlines as 10Y yields slump to fresh 7-month lows breaking notable support. The USD leaked lower on the day (but USDJPY was stable under 102) as ECB talked back some of the recent EUR losses. Commodities all pushed higher with silver up over 3% onthe week, gold back over $1305, and WTI over $102. VIX pumped-and-dumped at the open but could not sustain weakness as 330RAMP saw VIX's slam unable to drag stocks notably higher.

 

Something odd happened today at 330ET:

 

From CNBC we have two wonderful quotes:

1) "You can't trust the signals of the bond market" - but you can 'trust' stocks (apart from the ones that are going down)

 

2) "Buy what's going up" - which we asume applies only to stocks and not bonds, which are going up

 

Monday's ecstatic highs - the day before Tuesday - seems a long way off now...

 

Homebuilders getting mugged - even as bond yields tumble

 

The Dow is almost back to unchanged on the year (and Nasdaq and Russell still notably weak)

 

JPY stayed engaged until late in the day when stocks were dumped...

 

But there's a long way to catch down to bonds

 

It's a bit of a stretch but we did see Biotechs (and momos in general) take a dive after  SEN. LEVIN SAYS HE WILL INTRODUCE BILL ON INVERSIONS THIS WEEK - maybe , just maybe we just saw the M&A bubble hope burst...

 

VIX pumped-and-dumped at the open and then at 330ET - the slamdown failed to ramp stocks

 

As Treasury yields tumble...

 

and 10Y breaking key support...

 

which took 2s10s down to neat 11 month lows (and 5s30s rolled over)

 

The ECB comments on QE saw EUR rally back some of its recent losses and pressure the USD lower...

 

And commodities rallied with gold and silver well bid and oil back over $102...

 

The NYSE broke for 90 minutes today and provided a breather for stocks from D to J - as is clear with FB - which rallied uring the NYSE breakage then dumped

 

Charts: Bloomberg

 

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Wed, 05/14/2014 - 16:09 | 4760333 HedgeAccordingly
HedgeAccordingly's picture

all around day where FIxed income pushed equity markets around like a pooper scooper..

it is cool tho PIMPco has it figured out http://hedge.ly/1jXiQm1

Wed, 05/14/2014 - 16:12 | 4760340 So Close
So Close's picture

Rung the register today.  Not on the LOD but close enough.  Learning.. and $ postive for the day.  :-)

Wed, 05/14/2014 - 18:14 | 4760784 flacon
flacon's picture

This week Monday is the new Tuesday. But investors are front running that... tomorrow is Thursday and will be the new Tuesday from next week. And the next day is Friday, which will be the new, new Tuesday from next week going into the weekend where Monday is the newest Tuesday from next week. Buy puts on Monday afternoon next week to catch the Tueaday dump. 

Wed, 05/14/2014 - 16:14 | 4760344 LawsofPhysics
LawsofPhysics's picture

Tuesday is gone...

 

bitchez...

Wed, 05/14/2014 - 16:50 | 4760488 negative rates
negative rates's picture

Ok lefty, dont make me send rocko and bruno over there to balance your checkbook.

Wed, 05/14/2014 - 18:09 | 4760777 Squid Viscous
Squid Viscous's picture

with the wind...

Wed, 05/14/2014 - 16:17 | 4760353 locklimit
locklimit's picture

Im calling it - Game Over

Wed, 05/14/2014 - 17:01 | 4760535 hobopants
hobopants's picture

If you like your 1900, you can keep your 1900 period.

Wed, 05/14/2014 - 16:18 | 4760359 Haager
Haager's picture

New ATH tomorrow.

Wed, 05/14/2014 - 16:18 | 4760363 Al Huxley
Al Huxley's picture

No POMO tomorrow - short the opening gap up.

Wed, 05/14/2014 - 20:20 | 4761155 motorollin
motorollin's picture

No chance. Monthly OPEX pin on the SPY is 187. We visit near there tomorrow.

Wed, 05/14/2014 - 16:17 | 4760360 Rainman
Rainman's picture

Tail chasing ... it's what I do .

Wed, 05/14/2014 - 16:22 | 4760375 Quus Ant
Quus Ant's picture

paper chasing.  I'm told it makes the world go round.

Wed, 05/14/2014 - 16:19 | 4760367 LawsofPhysics
LawsofPhysics's picture

We all know that the "goal posts" are moved all the time.

We all simply wish we knew when and where...

Wed, 05/14/2014 - 16:24 | 4760380 Unknown Poster
Unknown Poster's picture

It's quite the dilemna for the algos, should the S&P revert to bonds or the bucket shop VIX.

Wed, 05/14/2014 - 16:25 | 4760381 Oxygen
Oxygen's picture

Maybe it's finaly the market top..

Wed, 05/14/2014 - 16:27 | 4760393 Jack Sheet
Jack Sheet's picture

These markets rival a college stud's prick for rapid up and down movement......

Wed, 05/14/2014 - 16:31 | 4760400 SheepDog-One
SheepDog-One's picture

WOW that's a lot of squiggly lines!

Wed, 05/14/2014 - 16:32 | 4760402 I Write Code
I Write Code's picture

The Spx has been rising steadily for 17 months without once dipping down as far as the 200ma.  Is this madness, no, this is Sparta!  I mean The Obamanation!

http://stockcharts.com/h-sc/ui?s=$SPX&p=D&yr=2&mn=0&dy=0&id=p45326937036

The Dow is nearly the same.

The McClellan Oscillator is being held immobile between Yellen's knees apparently, look at this immobile pattern since January:

http://stockcharts.com/h-sc/ui?s=$NYA&p=D&yr=3&mn=0&dy=0&id=p83733137120

Historically the oscillator oscillates, and it looks like a two year indecision pattern (and that's a huge one!) that one would assume would have to blow sometime in the next 90 days.  And, since down is no longer an option, I guess it's going to spike upwards, even if it's just the mark of the beginning of hyperinflation.

Wed, 05/14/2014 - 16:41 | 4760445 thismarketisrigged
thismarketisrigged's picture

anyone here that jackass jack bogel on cnbc closing bell exchange?

 

that guy is prob the dumbest fuck i have ever heard, u would think the stuff he is saying, he says just to piss people off, but after hearing him time and time again, i am convinced he really feels the way he speaks

Wed, 05/14/2014 - 18:08 | 4760763 Squid Viscous
Squid Viscous's picture

Jesus, they had that old fool on again... lemme guess he was super bullish on stocks for "the long haul" just like in 2007, and 1999, and 1987...and 1929

Wed, 05/14/2014 - 18:21 | 4760806 akbarovich
akbarovich's picture

A move of 0.2 points in VIX is not a "pump and dump" nor a "slam." It is noise.

Wed, 05/14/2014 - 18:48 | 4760909 I Write Code
I Write Code's picture

How about Thursday?

Someone give me a week's notice when silver is going to bottom, I'll need to round up some cash to go clean out my local dealer's supply of silver eagles.  Or was that last week? 

Wed, 05/14/2014 - 22:38 | 4761476 disabledvet
disabledvet's picture

Again "outright default of the State of California is great news for equities."

Sure...we still have our Jobless Prosperity here...but more importantly...and what the market will always bid...is "price discovery."

Simply put the world is out of dollars.
The debt bubble was burst a year ago.
Hold not gold is your safe haven.

TBTF is reaching it's climactic phase.

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