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Bonds Up & VIX Up But S&P Hits New Record High (Coz It's Tuesday, Durr)
For the 9th Tuesday of the last 11, stocks closed green with the S&P at new record highs. "Most shorted" stocks were under heavy testicular pressure but seemed the only driver supporting stocks as JPY decoupled, bonds decoupled, the USD decoupled, VIX decoupled, and credit spreads decoupled. But hey, it's Tuesday so that doesn't matter. Copper and oil were flat on the day but gold and silver (battered at the open) lost 1.5 to 2% on the day (gold's worst day in 6 months). Treasuries are 1-3bps lower in yield at the long-end with modest flattening. Volume remains abysmal. The last few minutes saw a mad buying panic come over Russell 2000 bulls which had its best day in almost 3 weeks and is up 6 of the last 7 days.
Coz It's Tuesday Bitches...
Stocks gapped open after yesterday's futures exuberance... The Russell 2000 is back above its 50DMA
Led by yet another squeeze...
Credit markets weren't buying it...
Treasuries weren't buying it...
USDJPY wasn't buying it...
VIX wasn't buying it...
FX markets rolled over in the afternoon of the US session...
And gold and silver rose very modestly off their lows in the afternoon after being clubbed like a baby seal early on...
Gold's worst day in 6 months...
Charts: Bloomberg
Bonus Chart: Far-Term VIX at record complacency
Bonus Bonus Chart: Citi is just un-euphoric so that's a good reason to BTFATH
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You said 9 of the last 11? #eek
Sell your shiny ponzi and get into a rock solid MyRA with the rest of us.
S&P cash close - 1911.91
Scarrrrrry!!
Seriously though, dow couldnt break through highs today. Watch for the bottom to fall out soon
Also glazed right over the 2 of the last 4 Tuesdays were pretty substantial sell offs. Meaningless.
McVain! MCVAAAAAAAAAAAAAAAIIIIIIIIIIIIIIIIINNNNNNNNNN!!!!!
This can continue indefinitely. It's a closed loop: sell bonds-raise dollars-buy back stock with the dollars-stock price rises-captive lemmings buy more bonds...rinse and repeat.
Interest rates are fake. They won't ever be allowed to rise, and they're irrelevant to this anyway. Yield-desperate mutual funds, banks and insurers will buy more and more high-paying junk debt. The companies will pay out dividends on less and less stock as their float falls.
Our only hope is for a massive retail collapse, so that layoffs must ensue and their bottom lines degenerate markedly, forcing them to burn cash to prop up their businesses instead of playing the buyback game. This WILL - and already IS - happening but it will be a snowball-like slow process.
Dividend cuts and suspensions must follow and that will spell the end.
There will come a time to be short these companies but you'd better be patient a few more months.
once the ponzi / bubble / parabolic blowoff is OBVIOUS to the dumbest swinging dick, the FED will raise rates maybe a tad or a smidge.....
but until that terrible day, my frauleins, buy the fook'n ponzi-bubble-parabolic-blowoff (BTFPBPBLOWOFF)
Not so long IMO.
Margin compression/inventory is already devastating cash flows.
There are no perpetual motion machines for good reasons.
Haha. It's becoming conceivable that the stock of, say, a money-losing department store chain which has shuttered 80% of its stores and laid off thousands could SOAR and, with cash flow nonexistent, borrowed money buybacks would keep the stock soaring. Eventually it would be a debt-ridden shell with no real existence at all...
Hmmm...kind of sounds familiar already, doesn't it...coughAmazonFBcough
Simple.
Your devalued savings and tax dollars at work.
So your conclusion on today's market activity is...buybacks?
Bwhahahahahahahahahaha!!!!!!
derp a deetley durp a durr
i go long everytime i watch Buyback Mountain (two cowboys in a tent yanking belt buckles is hot).
Somebody care to explain the significance of Tuesday to me? I'm serious.
Ummmm...."hahahahaha. You paid your taxes"?
Apparently there are two people with better explanations.
How about "we have a secret base on Mars and the Martians we have enslaved have given us mind control technologies."
turn-around tuesday is a market "everybody knows" truth (like the wall of worry thing) and has been hard-coded into every algo.
since everybody knows turn-around tuesday will end higher, nerds have been adjusting the code to buy earlier on monday so the "everybody knows" turn-around tuesday will gift more free money (profit is what the free market fruitcakes call it).
sheez.
"heavy testicular pressure"....well that can't possibly be good.
Had an op for that once, ended up with bollocks the size of rugby balls for a while.
Oh wait, this isn't the agony column.
Quando, quando, quando...
Waiting for the first dividend cut.
"Quando, quando, quando..."
Presenting: Murph and the MagicTones
http://www.youtube.com/watch?v=81qbyTgNcmI
Whoever that is, they MURDER a beautiful song. Try... youtube gzd1f3rutfo
(Caterina Valente)
That was a scene from the film, 'The Blues Brothers'. I (mistakenly) thought that was what you were referring to in your original post.
Aha...! We learn something new every day, I guess...!
" The increase in computer ' program trading " strategies added to the magnitude of the losses, as did the impact of margin calls and the inability of investors to gather information in the chaotic environment "
Black Monday, October 10, 1987
https://www.tradingview.com/v/WwN6HHVe/
Fortunately the problems have been addressed and now thanks to central planning we will never again have a market crash. Hell, we probably will never even have another bear market what with the new paradigm and all...
Personally, we are in this investing fantasyland fueled by the Fed and central bank manipulation. The true value of anything including money itself is being lost. Eventually, like a plane in a fog with no instruments we will run into something...hard.
For those of you who make a living in investing I honestly wish you well. It takes guts in my opinion as the next pronouncement or fake government economic stat can kill or fuel any particular market. If you picked the wrong side...well, burger flippers may be making $15/hr in the near future. :0)
The stock market is never obvious. It is designed to fool most of the people, most of the time.
Jesse Livermore
picking up some bullion today. i've been biding my time until i saw inflation tick higher and PPI, CPI, etc. are telling me now's a good time. when the FOMC, former FOMC officials, and even the Sack himself are saying 'hey, it's time to start preparing your exit' it tells me that cost-push inflation doing wonders for Japan is on its way to Amer'ka. you can't have enough toilet paper, either.
can't wait for daily essentials to become IRA eligible, that'll be a fun day.