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VIXtermination Sends Stocks To All Time High On Lowest Volume Of The Year As Bond Yields Tumble

Tyler Durden's picture




 

This is what we said this morning:

For now equity futures have failed to be   dragged along although with the S&P all time high just around the   horizon, the psychological level of 1900 staring the rigged market in   the face, and the weekend just around the corner, it is virtually   assured that the S&P will close at an all time high today - after   all the people need to be confident when they go shopping at malls with   money they don't have (but delighted by paper profits they haven't   booked) so they boost the US non-GAAP GDP (at least before like Italy,   the BEA too changes the definition of GDP to include cocaine and   hookers). Finally, assuring a (record?) low-volume levitation today is   the early closure of the bond pit ahead of Memorial Day holiday which   also means only a skeleton crew of algos will be frontrunning each other   to push the S&P over 1,900.

Everything turned out precisely as predicted. Summing it all up perfectly - VIX closed at 15-month lows, Russell 2000 had its best week in 3 months, and Treasury yields are 13bps lower than when the S&P was last here... un-rigged.

 

The Russell 2000 rallied all the way back to unchanged for May - Mission Accomplished

 

Mission Accomplished 2.0 - S&P 1900 close

 

Mission Accomplished 3.0 - Dow and Nasdaq back to green for 2014

 

On the week...

 

And since the last time the S&P hit record intrday highs...

 

Who could have possibly know that stocks would wait for the bond police to close before they melted up in the last few minutes...

 

VIX was in charge - but note just how noisy VIX has become - desk chatter is that "things feel fragile" in vol-markets...

 

And a glimpse at the intrday shows the moment the bond market closed.. the VIX-hammering began...

 

And USDJPY did its part bouncing off the 200DMA...

 

But bonds closed 0-3bps lower in yield on the week...

 

And 13bps from the highs when the S&P was last trading here...

 

FX markets were dominated by JPY weakness from mid-week Boj jawboning and Aussie weakness after crappy data early in the week - leading the USD up 0.38% (for the 3rd week in a row)

 

Gold, silver, and copper all closed the week practically unchanged with WTI crude +1.7%

 

Charts: Bloomberg

Bonus Chart: Year to Date - Oil just became the best performing asset classover takinbg bonds and gold...

 

Bonus Bonus Chart: Growth has rallied back to unch relative to Value for the year...

 

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Fri, 05/23/2014 - 16:06 | 4789622 Theta_Burn
Theta_Burn's picture

....with shorts at an all time high

What a shocker

Fri, 05/23/2014 - 16:13 | 4789641 StacksOnStacks
StacksOnStacks's picture

This is really great!  Come over here guys, let's celebrate!  Hey, you!  Get over here!  Champagne all around!  I didn't know if we could do it...  but we did!  WOOHOO!!!  DRINKS ON ME!!!  http://themoderatevoice.com/wp-content/uploads/2014/02/Howard-Dean-414-2...

 

/sarc (as if I needed to put that)

Fri, 05/23/2014 - 16:36 | 4789709 Dr. Venkman
Dr. Venkman's picture

Back in 2004 I was in staying in West Palm for a JuCo baseball tourney and a friend and I were in a sleezy motel hot tub, drunk and making fun of Howard Dean's public implosion, rattling off state names and growling. One of the three girls in the tub started crying hysterically. It was his daughter.

 

oh the memories.

Sat, 05/24/2014 - 02:27 | 4790739 mkhs
mkhs's picture

Howard Dean spawned?  Good lord?

Fri, 05/23/2014 - 16:29 | 4789691 Gringo Viejo
Gringo Viejo's picture

Smoke & Mirrors Baby! Running out of runway............

Fri, 05/23/2014 - 16:06 | 4789626 q99x2
q99x2's picture

Reality has officially been redifined according to FED software.

Fri, 05/23/2014 - 16:08 | 4789630 TeamDepends
TeamDepends's picture

They did it for the veterans, God bless 'em!

Fri, 05/23/2014 - 16:10 | 4789634 CrashisOptimistic
CrashisOptimistic's picture

There was talk about two years ago about HFT starting to appear in bond trading.  Then there was talk that it failed to get a foothold.

In which case, bonds are the only unrigged market (other than refiners who negotiate with oil shippers without referring to NYMEX, because they have no need to).

Fri, 05/23/2014 - 16:10 | 4789636 NDXTrader
NDXTrader's picture

Of all the f*cked up days we've had over the last 5 years this ranks right up there. After the opening stop sweep, the Nasdaq did not move down more than 3 points from any price it hit all day. The impossibility of that w/o manipulation is infintecimal. They are obviously programmed to get to the 61.8% (4208) of the drop from the top. Now you would think that even a CNBC bull would want to pull a little off of the table with everything going on in the world before a 3 day weekend. Yea, It's rigged

Fri, 05/23/2014 - 16:32 | 4789699 disabledvet
disabledvet's picture

we're in a recession. move along...

Fri, 05/23/2014 - 18:48 | 4789978 SheepDog-One
SheepDog-One's picture

That's what gets me, not even 1 talking head says to take even 10% here at nosebleed highs? Full retard all around!

Fri, 05/23/2014 - 16:11 | 4789643 Carpenter1
Carpenter1's picture

Evidence of just how desperate the status quo is right now. 

Fri, 05/23/2014 - 16:17 | 4789663 Seasmoke
Seasmoke's picture

Unfuckingbelievable !!!!!......if I wasn't living it, I wouldn't believe it....just like I don't believe the 1930s. 

Fri, 05/23/2014 - 16:18 | 4789666 Ban KKiller
Ban KKiller's picture

I enjoy seeing the confusion. NO ONE can say what will happen. There is no cause and effect that is real or measurable. Most folks are front run, media spews propaganda, shills sling shit and on it goes.

So real assets still win out for the smart folks who want to preserve their wealth. Stocks and Bonds are toilet paper right after they were recommended buys.  

The charts are prettier after a bong. I watch Wall Street to see where the criminals are hatching their next sure thing. 

Fri, 05/23/2014 - 16:19 | 4789668 Spitzer
Spitzer's picture

Enough money to go around to make everything go up. When you are controlling the price of gold...

 

But hey, the CAD went up today, because it lost value !

 

The Canadian dollar gained ground Friday, despite a broadly stronger tone in the U.S. dollar, after consumer price data for April showed inflation moving back to the Bank of Canada's 2% target for the first time in two years. Canadian inflation hits Bank of Canada 2% target i

Fri, 05/23/2014 - 16:20 | 4789670 bbq on whitehou...
bbq on whitehouse lawn's picture

Goldman forced the top, this is just going through the motions of a dubble top. Most of you have seen this movie before, many times.
Now the talking heads cry and throw a fit as the market keeps playing with this goldman top.
A bag of potato chips cost 1/5 and ounce of silver. This the people will not pay.

Fri, 05/23/2014 - 16:21 | 4789673 q99x2
q99x2's picture

I'm going to quit giving away my ideas until I get back to Q99X2.

TECH STARTUP WANTS TO REPLACE CONGRESS WITH SOFTWARE
Fri, 05/23/2014 - 18:45 | 4789967 SheepDog-One
SheepDog-One's picture

Couldn't possibly be any worse than what we've got now!

Fri, 05/23/2014 - 16:22 | 4789676 ...out of space
...out of space's picture

1900 on s&p

time to boost some italian gdp

Fri, 05/23/2014 - 16:26 | 4789686 HaroldWang
HaroldWang's picture

If only I had listened to Obama when he said, "Buy stocks" in April 2009 I'd be flying around in my own helicopter just like the Scotttrade dude. Damn!

Fri, 05/23/2014 - 16:35 | 4789705 fonzannoon
fonzannoon's picture

Don't forget he came out earlier this year and said "buy bawnds"

Fri, 05/23/2014 - 16:27 | 4789689 The_Ungrateful_Yid
The_Ungrateful_Yid's picture

It's rigged but im taking profits and buying hard assets...long on mind altering elixirs for the weekend however.

Fri, 05/23/2014 - 16:41 | 4789722 disabledvet
disabledvet's picture

the man from Texas is a big winner.
http://www.theaustralian.com.au/business/bans-and-soaring-prices-help-bh...

up 40 plus percent in just the past few weeks.
and the US nickel still contains a lot of nickel.

Fri, 05/23/2014 - 16:32 | 4789696 TheRideNeverEnds
TheRideNeverEnds's picture

BTFATH Bitchez! 

Fri, 05/23/2014 - 17:10 | 4789746 marginnayan
marginnayan's picture

Bamksta Mafia Cartel, aka, the worst white collar criminals on earth.

And remember they pumped this pig  after David Tepper came public with the statement "Don't get freaking too long" and David Einhorn came public with the statement "Shorting a basket of high momo nasdaq stocks" just couple of weeks ago.

They took some of the smartest guys on Wall Street to cleaners today.

By the way Einhorn is the guy who shorted Lehman Brothers and said so on CNBC live in 2007. And you already know what happened after that in 2008.

Fri, 05/23/2014 - 18:30 | 4789839 dirtyfiles
dirtyfiles's picture

but still its fucken too quiet for all of this shit...

it somehow feels like we had market crash

Fri, 05/23/2014 - 18:04 | 4789900 SheepDog-One
SheepDog-One's picture

More fuller retardeder.

Fri, 05/23/2014 - 18:46 | 4789972 thismarketisrigged
thismarketisrigged's picture

wow, what a fucking coincidence, we finish at 1900 on the dot going into the long weekend, who could have seen that coming?

 

ya, no rigging going on here

Fri, 05/23/2014 - 19:39 | 4790076 Me.Grimlock
Me.Grimlock's picture

There's more rigging here than found on one of Captain Jack Sparrow's ships

 

(whichever one he's swiped this time)

Fri, 05/23/2014 - 23:33 | 4790548 El Hosel
El Hosel's picture

... record lack of interest in stawks = The Fed can buy/produce another all time high on the cheap.

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