Rick Santelli Explains Why The Number 3996 Is Critical For Bond Yields

Tyler Durden's picture


Forget international capital flows, forget central banks (even though the world's reaction to the ECB enacting such an extreme policy - QE- this far down the 'recovery' raises questions about the entire false state of the world), and forget positioning... Rick Santelli - stunned at the disconnect between stocks and bonds off the February lows... says there is only one number that matters for lower rates - Nasdaq 3996.



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Mon, 05/19/2014 - 15:15 | 4774718 debtor of last ...
debtor of last resort's picture

Go get your Myra now! Call 3996santelli.

Mon, 05/19/2014 - 15:17 | 4774722 NoDebt
NoDebt's picture

I need more cowbell.

3996 is meaningless.  How many times have we seen support broken, the talking heads freak out "this is the big one!" and then it goes right back up again a few days later (on no volume)?

Mon, 05/19/2014 - 15:25 | 4774744 Hindenburg...Oh Man
Hindenburg...Oh Man's picture

Amen brother. We've had a couple years now of 1-2 day pullbacks with everyone freaking out about the "big one" and then, like you say, the markets just springboard higher. 

Mon, 05/19/2014 - 15:31 | 4774756 pods
pods's picture

The days of masturbating while furiously clicking the refresh button to see the Nikkei dropping like a stone are over.  

Used to love those nights.


Mon, 05/19/2014 - 15:57 | 4774841 LawsofPhysics
LawsofPhysics's picture

that's just wrong...

Fucking funny, but very very wrong...

Mon, 05/19/2014 - 17:27 | 4775070 MillionDollarBoner_
MillionDollarBoner_'s picture

ever heard the expression "grinning like a wanking Jap" ?:O)

Mon, 05/19/2014 - 15:39 | 4774792 Muppet
Muppet's picture

Always the when

Mon, 05/19/2014 - 15:17 | 4774725 motorollin
motorollin's picture

Good thing the 30Y doesn't get put against the Russell 2000. We'd already be fucked.

Mon, 05/19/2014 - 15:20 | 4774732 fonzannoon
fonzannoon's picture

i'm still not convinced the market even opened today.

Mon, 05/19/2014 - 15:23 | 4774739 Hippocratic Oaf
Hippocratic Oaf's picture


Mon, 05/19/2014 - 15:27 | 4774752 101 years and c...
101 years and counting's picture

the market closed down 5 years, 3 months ago, once the Fed decided to print money and obama legalized fraud to save all the banks.

Mon, 05/19/2014 - 15:43 | 4774804 g'kar
g'kar's picture

"I've got one who can see"


(They Live)

Mon, 05/19/2014 - 16:31 | 4774939 One of We
One of We's picture

And I'm all out of bubblegum.....

Mon, 05/19/2014 - 16:43 | 4774966 NihilistZero
NihilistZero's picture

"...obama legalized fraud to save all the banks."

.gov supported/endorsed/mandated fraud long before Obama.  You cheapen the argument when you invoke the empty suits name in any way tht implies he has power.

Mon, 05/19/2014 - 19:06 | 4775335 g'kar
g'kar's picture

True, but 101 years and counting is on the right track and Chairman Obamao assumed the mantle and deserves all the criticsm he is entitled to for continuing the fraud as a willing participant as Boosh did and was rightly criticized for.

Mon, 05/19/2014 - 15:21 | 4774737 Al Huxley
Al Huxley's picture

When I read the headline I thought 3996 was going to be the year the bond bull market ends.

Mon, 05/19/2014 - 15:24 | 4774740 Let them eat iPads
Let them eat iPads's picture

That'll be in the year 3535.

If man is still alive..

Mon, 05/19/2014 - 15:25 | 4774746 Al Huxley
Al Huxley's picture

Even if man isn't still alive, I'm pretty sure bonds will still be a good buy-and-hold.

Mon, 05/19/2014 - 15:30 | 4774766 pods
pods's picture

I think the last person alive on this rock will utter "Better than expected." 


Mon, 05/19/2014 - 15:56 | 4774838 cougar_w
cougar_w's picture

The vast, unblinking universe just loves sick jokes like that.

Mon, 05/19/2014 - 15:41 | 4774801 daveO
Mon, 05/19/2014 - 15:26 | 4774745 ebworthen
ebworthen's picture

Sooner or later the world will return to fundamentals...on a long enough timeline.

Problem being this insanity can be passed from one FED chair to the next, and one generation to the next.

I'd bet the FED is patting themselves on the back saying "This is good for home mortgage rates" while not once glancing at the $17 Trillion in debt, the historically low labor participation rate, or the ridiculous inflation us real people live with.

Mon, 05/19/2014 - 15:45 | 4774809 daveO
daveO's picture

They're only limited by foreigners patience to be ripped off via the ever inflating Petro Dollar. It'll end in a tidal wave if they don't change their ways.

Mon, 05/19/2014 - 15:27 | 4774750 orangegeek
orangegeek's picture

Santelli is talking NASDAQ composite - NASDAQ100 is the 100 largest.




If the largest 100 NASDAQ (NDX) companies are sliding, there remaining willl follow.  The NDX excludes outlier moves that affect index calculations.

Mon, 05/19/2014 - 15:27 | 4774751 fonzannoon
fonzannoon's picture

if i were the fed i would sell some of their bonds here. push yields back up to 2.6% or so and then announce they did it later, proving they can in fact exit stimulus and lighten up the balance sheet if needed to.

Mon, 05/19/2014 - 15:49 | 4774824 Bosch
Bosch's picture

But that would be logical.

Mon, 05/19/2014 - 16:20 | 4774905 Winston Churchill
Winston Churchill's picture

No doubt Belgium can handle some more.
Waffles for USTs.
A lot more than they are worth IMO.

Mon, 05/19/2014 - 15:28 | 4774761 Atomizer
Atomizer's picture

One slave after another paying into a pit of unplayable debt. 

Mon, 05/19/2014 - 15:32 | 4774772 q99x2
q99x2's picture

If M'Fen CNBC says it then it must be fucking true.


Mon, 05/19/2014 - 15:34 | 4774781 ptoemmes
ptoemmes's picture

OK...NASDAQ hits 3996, rate to 2.25%, and then...The Rapture?  Cause if it isn't The Rapture then why bother.

Mon, 05/19/2014 - 15:37 | 4774787 sleigher
sleigher's picture

"If you only knew the magnificence of the 3, 6 and 9, then you would have a key to the universe.”

-Nikola Tesla 

Mon, 05/19/2014 - 15:59 | 4774845 cougar_w
cougar_w's picture

Nice catch.

That guy really scares me. If he says that's the key, then it probably is the key. The challenge is then to find the lock it opens and in the process not destroying the world.

Mon, 05/19/2014 - 16:23 | 4774919 Zirpedge
Zirpedge's picture

I am the gate keeper of the house of Zule. 3669 is just some anagram that the generational satanists wrote into Santelli's script. Sounds like something but it means nothing. It's a completely arbitrary line in the sand. 

Mon, 05/19/2014 - 16:29 | 4774933 MisterMousePotato
MisterMousePotato's picture

And I am the Key Master.

Mon, 05/19/2014 - 17:41 | 4775116 MillionDollarBoner_
MillionDollarBoner_'s picture

3, 6 , 9 the goose drank wine ?!?...:O)

Mon, 05/19/2014 - 16:06 | 4774855 Bernoulli
Bernoulli's picture


WTF. Who cares?

None of this bullshit matters.

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