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Stocks Are Soaring While Bonds Are Snoring
S&P (futures over 1900 for first time), Dow, and Nasdaq futures markets are all pressing new higher-highs this morning on the heels of Europe's dismal election news overnight. Helped early on by JPY weakness, stocks now have a mind of their own and have disconnected from an unchanged Treasury futures market (cash is closed) and a fading EURJPY/USDJPY carry trade. European peripheral bonds are the must-have asset of the day with Portuguese bonds particularly loved. Italian stocks are the high-beta idiot-maker trade today (+2.8%).
S&P 2000 or bust...
But JPY carry support is fading...
And Treasury futures are flat...
But European peripheral bonds have retraced most of the dramatically bad losses from last week...
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Spin it any way you like, the bad news is 'good' news because the EU results weren't as 'bad' as they feared.
Snake oil, pyramid, con, no matter how you dress it up
....and Bitcoin is closing in on $600 again! Here we go again!
Turbo Tuesday's are back....weeee
It is not that stocks and bitcoin are rising , but rather the U.S. dollar is falling.
Would it not be better to rephrase this as "Stocks are soaring while bonds are.....soaring"?
This is 2010 all over again.
This is the latest market moving meme: bad news is not as bad as it possibly could have been in some worst case scenerio---so this is good! makes sense. Glad to see that the Algo's are churning away on a memorial day holiday, pushing futures higher, selling and buying within a .02 percent range. The free market at work.
Bonds don't "snore." They're behaving like an entire Army of Cujo's marauding wildly in "that pleasant little town over there" sucking in every penny of capital that could be used for generating recovery and growth.
Hyper inflating energy prices only grows the pack larger.
Tick Tock...The Value Line Geometric Index (XVG) clock is ticking for SPX
http://goldenopportunitytrading.blogspot.co.uk/
lol...oh, I say Watson...
"One of their highest profile casualties has been Sir Graham Watson, MEP for the South West who was instrumental in creating the controversial European Arrest Warrent, allowing other EU states to order the extradition of British citizens, sometimes on quite shakey, spurious grounds."
...bad show, what? ;-)
http://www.breitbart.com/Breitbart-London/2014/05/25/Lib-Dem-President-Admits-Wipeout
FTSEMIB up just 750 points
This week Target also revealed the exit package for Steinhaffel - a whopping $15.8 million. But wait...there's MORE. Steinhaffel, aka the Ginsu knife of CEOs, is staying on at Target as an advisor until August and will continue to be paid his CEO-level base salary of $1.5 million...AND he'll be eligible for a performance bonus this year! Only in America can a CEO fail this badly and come out richer for it.
Target reported its first-quarter earnings this week. The retailer's profit fell 16% from a year ago and missed analysts estimates as Target continues to struggle with the fallout from last year's data breach and its botched roll-out in Canada -- developments that prompted CEO Gregg Steinhaffel to step down earlier this month.
http://finance.yahoo.com/blogs/daily-ticker/excess-files--somebody-s-hap...
It's all Boooyaaaahhh! at the Top!
This is soo bullish. BUY BUY BUY!
Like said both can't be right. Either the economy is doing well which produces higher bond rates in a no 'save haven' bid or the economy is not doing well at all and treasury yields stay low in the 'save haven' bid.
http://www.zerohedge.com/news/2014-05-24/i-will-never-sell-my-gold-marc-...
This is the double think, S&P 500 Rises for Week to Record Amid Optimism on Economy while the US Generic Govt 10-Year Yield 2.53% Now!???
We know the FED favours low rates above anything else since they've said this so many times themselves. But low rates are not a sign of an healthy economy as low bond yields show.
The FED likes to see rates low because it's there only 'tool' for preventing debt payments accelerating and providing an endless stream of cheap money for their very dangerous manipulation games on the bond, stock and precious metal markets.
Good thing we can inflatre away all of our problems. Otherwise we may have to pay back some of our debts.
Taper is another $10B this time next week. Takes us to 35B from 85B in December.
So who's buying bonds at current coupon rates now? Maybe those coupon rates go up to attract buyers.
Hint: Country name starts with a B.....
Hint: It starts with E, rhymes with schmurope and is fronted by the country that starts with B.
The only problem E faces is that they can't print like the Fed, otherwise the Euro would be worth 10 cents today.
I can't wait no longer, I'm buying the fuckin all time high.
They have achived peak insanity! Now what?
I didn't realize that today's futures would be a trading proxy for the market. Might as well open the market and have everyone come in if it's going to go nuts like this.
With seemingly unlimited Central Bank money this stock sector-bond region rotation and churn could go on forever.
It's the ECB's turn to slather some taxpayer gravy via the public treasury on the banks.
Then it will be Japan's turn, then China's, then back to the U.S.
Don't pay your bills; governments and banks don't.