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Stocks Surge To Record Highs On Worst Economic Growth In 3 Years
One supremely smart CNBC talking head summed it all up, "today's negative GDP number was excellent news," and sure enough, thanks to someone's multi-billion-dollar bid at the all-time-highs mid-afternoon, we went to the moon, Alice. Trannies are on target for their best month since October (+5.7%). The dash-for-trash has a new life as "most shorted" have now risen 6 days in a row - the biggest squeeze in over 3 months. This all happened as bonds rallied (though yields rose modestly on the day), VIX rose, USDJPY would not play along and aside from the spike in volume, on a total lack of liquidity. Gold and silver were monkey-hammered early on but limped back off their lows as WTI crude rallied from the GDP print on. The S&P 500 is now only 30 points short of Goldman Sachs June 2015 target.
Here's the day in S&P futures land... GDP hits and volume bumps, US opens and volume bumps... and 1436ET hits and volume explodes on an entirely newsless, dataless, co-ordinated asset-class move-less shift...
Artist's rendering of anyone who was short into today's manufactured stop-run at 1436ET...
Another day, another short-squeeze...as the dash for trash continues... 6-days in a row up and the best run in 3.5 months...
As a reminder, things are a little decoupled in bonds...short-term
And medium-term...
and VIX...
and USDJPY...
But here is the week in the cash equity indices...
And a birght green month of May - Trannies are set for their best month in 7 months!
Commodities saw early weakness (with gold and silver slammed once again) but all rallied post-GDP...
FX markets went nowehere fast...
Bond yields dipped and ripped around the GDP print...
Charts: Bloomberg
Bonus Chart: Recovery...
Recovery pic.twitter.com/JlIZZjWcy3
— Not Jim Cramer (@Not_Jim_Cramer) May 28, 2014
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Not the headline on tonight's local news
Didn't hear much about the NYSE breakdown this morning
......
NYSE BBO experienced gap in symbols K thru Q; now resolved 5/29/2014
In Brief NYSE Global Market Data informs clients of issues with the NYSE BBO data feed in symbols K thru Q. The issue is now resolved.
What's to worry about?
You can keep your coverage if you like your coverage, your quality of care will improve and prices will fall.
What could go wrong?
Y'all know, dontcha, that at some point there are no earnings increases to support the multiple expansion....
(inexplicable)infinite
Would someone please revive Lewis Carroll? We need an updated version of Alice Through the Looking Glass. The Mad Hatter's on the loose!
Seriously, when this ends ( and one day it will ), it is not going to end well.
Maverick
If I had known the economy would be this bad I would have thrown my entire Bank Account at the stawk maaket.
Shorts Get Blown The Fuck Out: Full Story at 11:00
Where else can you go but stawks? Interest rates are in the shitter with bonds. Diito money markets, cd's and other interest bearing bank vehicles.
Bad economic news means a slowdown or stoppage in the Taper of QE. Maybe some whiff of a mania developing in front running a possible reversal of the taper to MOAR QE.
No matter what.....it's a Lemming curve alright.....straight up the hillside and over the cliff.
Interest is not where the profit is in bonds.
And the relevant ETFs are outperforming the S&P.
Sorry...meant Treasuries....as a means of obtaining some sort of interest while parking cash.
This is just fucking stupid...
Period.
! or ?
No it is CRIMINAL!
Yawwwwwnnn......
Buy in May, buy every day.
New regulation: There are no Rules!
How about the last "money manager" who said "there's NO RISK in this market."
Good Lord, Full Retard doesn't even come close to describing this madness.
Full retard drools out WTF on this shit.
SUPREME retard?
ZARDOZ !!!
https://www.youtube.com/watch?v=4c4y9xT-mfs
farting in the bathtub, laughing your ass off. It makes me want to take out a loan and buy moar.
Do you all not get the feeling we are all being set up for the "FALL OF ALL TIME!"?
Yes I do. I predict this will crash within one year, so june 2015 the world will be different.
Yes I do. I predict this will crash within one year, so june 2015 the world will be different.
I don't know why you guys care.
Michael Lewis laid it out clearly just a few weeks ago. Why are you still trading? At all?
Sell it all. Nowhere else to go? Bullshit. Within 30 miles of you, wherever you are, there is farmland.
Agree. Farmland & precious metals are the way to go.
But buying some puts in this fucked up craziness (with some spare change) still seems like a once in a lifetime opportunity. Would hate to miss it... In case they shut down the "markets" in the aftermath, this money is lost. I know. But still...
Nothing says expansion like contraction.
Well, let's face it, it doesn't matter whether it's good or bad, gold will get slammed either way.
Bad news always = Good news in the casino
Splunk(splk) I have no clue what they do but they stated that they expect their, of course, non gaap operating margin to be approximately ZERO.....WINNING!
Epic dislocations. Interesting times for sure.
WTF
Please tell me the end is coming soon because I can't handle it anymore.
^^^^^
congrats to the albino midget and the menstrual chunk eating, cum bubble burping lackies in belgium, you are the proud owners of shit stained, worthless, IOUs printed by the yellow bellied cunt herself and backed by the full islamic faith of the big eared jihadist in chief
Blow off top...mania phase
that's what i told myself at SPX 1500.
What happens if that's the dollar you're talking about?
Unlike equities and and treasuries "that thing has stayed at fully nuked ever since George W Bush...
I think the dollar is finished....let it begin...I'm ready
At this rate, yields will be caught up to SPX in no time. Anybody who shorted based off of "record low vol" got tuned up something bad over past week and a half. Again illustrating, you can't short this market.
It's not a market.
Walk away.
I read alot of guys on here that are alot smarter than I on the markets and the consenus seems to be the Fed can prop this up through asset rotation ad infinitum.
I don't think they can. I think they are only playing for the next news cycle to get through November. Q1 - 1.0% finally printed. So let's assume it's closer to - 1.5%. I bet Q2 is going to be a shit sandwich since my feeling is the economy has continued overall weakness that is now self reinforcing.
come on it was nice weather last weekend. +4%
No doubt they are making this up as they go. Too much going on. Too complex. Too many pressures.
What is clear though, at least to me, is that we crossed over into uncharted territory some time ago. Many prior correlations may no longer be valid now that they represent systemic, soveriegn risks. Centralization and corruption have now gone full retard. (not to mention currencies/finance/banking/etc. are weapons of war).
It doesn't matter. If Q2 falls short, Yellen will just stop taper or increase QE. Fed has proven they have an endless balance sheet and certainly are willing to use it. It's beyond any rational and intellegent person's comprehension.....hence why it has to be carried out by the government
After years of reading zerohedge and finally figuring out this market, I can say definitively I have no fucking clue what is going on now.
Whoehahahahahaha!
They do have an endless balance sheet, but so what. The Money Never Leaves The Fed. It's redeposited as excess reserves.
It's not injected into the economy.
There is no market. There is no economy. How can there be with $104ish oil?
It's all a group of a lot of people who have to keep their jobs proceeding to each do their individual pretense that all is what it used to be.
It's not and never will be again. Ever. Buy farmland and have food. Soon, no one else will.
Buy farmland and have food. Soon, no one else will
If this is the case buy weapons and keep a circle with friends and family prepared to act ruthlessly in a lawless world.
Possession = What you can defend and/or take
If you can find good farmland more power to ya. The farmers in Texas are dumping land like crazy due to the dourght and the crazy cities givng that priority to watering the lawn and washing cars over growing crops. Some land north of Austin used to sell for $15k at the peak now hard to sell at $6k. It's much worse further south where the drought has hurt cattle ranchers badly.
So be careful where you buy that land. That's all I'm saying
the things about 'tapering' the taper is that it's become obvious that it's not working. we know it, the Fed knows it, but the lemmings that have become to conditioned to expect it, they don't know anything else. what that leads to is their failure to appreciate that the Fed is looking at alternatives to QE, different rates to manipulate to redirect capital. with 'financial stability' concerns now at the forefront of QE4EVA (even Lagarde brought it up) the days of buying bonds and MBS indiscriminately and hoping for the best are numbered. but then, hasn't TD been telling us this all along?
I agree...always about elections. Those aholes in DC always will prevent anything of significance until after they are re-elected.
Thanks Tyler to all Zerohedge Team, too all contributors and followers.
This site is the only one, that really adds value in the middle of the darkness.
Has been a great honor to be part of ZH last 5 years.
Regards,
Your friend,
Hugo, always a ZH
Curious suicide note, hvb...
Were you short today?
Hang in there, baby.
.
Stay with us, Hugo!
wait Hugo
http://www.nmd.vn/News.aspx?id=59005&nmd=China-and-India-consuming-more-...
Smells like more stock buy backs if you ask me.
I have, for a while, thought they would try and keep this thing propped up until they can dump ALIBABA on the unsuspecting masses
"Artist's rendering"...hysterical. +1000
Brace yourself, fellow ZHers. Some fvcktard is calling for "Godzilla-sized QE" in Japan.
Godzilla-sized QE could help bring Japanese equities back from the dead
By Kevin Chupka
Breakout
http://finance.yahoo.com/blogs/breakout/godzilla-sized-qe-could-help-bri...
vomit-inducing excerpt:
“It’s [QE] worked for them lately,” argues Kleintop. “They’re likely to do more, and I’m talking a lot more, like Godzilla sized QE. Not 1954’s little Godzilla. I’m talking about 2014’s towering monster...that type of QE is coming later this year to pull them out of this rut they’ve fallen into...The hope is to stimulate some consumption -- if you create the impression that inflation is going higher and that things are gonna cost more in the future.”
What do they do when QE-zilla fails?
Could be worse than building up tolerance to viagra.
Pool party at Fukashima.
Beats me. Mad Max rules? Pretty scary stuff. Hard to make good sense out of these actions. Given the mistakes central banks have made in the past, I can not imagine how this ends well at all. Maybe a global financial crisis followed by a massive reset?
Surprisingly good article here (published several months ago):
http://www.marketwatch.com/story/central-banks-continue-to-make-the-same...
In my opinion it is a certainty that we are going to experience a global financial crisis. It has to start somewhere too - a big player. It may not be the first domino, but it is the one that will make people realize that in fact the dominos are starting to fall.
Japan and the EU seem the logical candidates for going over the cliff first.
The current dislocations to me indicate potential capital flows that we have not seen in a hundred years coupled with a shift from government to private sector assets (confidence failing in governments faster than elsewhere, all things being relative).
Watched "The Crash of 1929" last night...had recorded it from awhile back. Halfway through husband and I looked at each other and said "This looks extremely familiar...Yeah, it's getting set up..again."
When it starts to slide, and slide badly, there will be nothing to stop it other than to close the markets for awhile.
Good watch
http://www.youtube.com/watch?v=7EPTCm9RVRM
Fucking awesome. Go for it! Balls to the wall.
(note to self: need to go out and buy extra popcorn. this is going to be a good one).
Classic
https://www.youtube.com/watch?v=Zfh_MoPYqRI
Bonus chart = flight to safety.
I just know Janet was behind that 14:36 buy.
That bitch had her hands in that buy the whole time. If i had 3 billion to burn i would of placed a fucking short directly after just to make them do it again.
New record highs daily until the sun burns out in a couple billion years!
Beyond ridiculous.
Beyond Thunderdome!
Two men enter. ONE man leaves! Woweeee, We're going all the way to the moooon!
I have been in the market for 40+ years. I won't say that I have not seen this shit before, I have. What I will say is that the times I have seen this shit before, there was a lot of pain for many people. Markets always resolve like that. The piggies will indeed have the extreme shits before this is over. The long piggies and the short piggies properly smoked, they all get eaten.
"Verja De" actually. "No experience necessary" as we all have that feeling "like we have never been here before!" in these here parts.
They can roll out the PPT Cruiser anytime "they" want.
I didn't get my "S&P closes at all-time highs" alert on my phone. WTF, mainstream media!
you will have a $500 monthly cell bill if you pay per text.
"Where no man kind has ever gone before" Captain Kirk 1967?
"Warp factor 10 Mr. Sulu!"
Jewish Confetti. Move along.
We've already had our Jewish Lightning attack in these here parts (with much more on the way I imagine.) "Phuck Detroit!" is their motto.
You're making the assumption that stocks have to correct down to where bond yields are. I think, in the short term, it's the other way around. Today is the first day of a sharp upward correction in bond yields. I was in TLT calls on the way up and shifted to puts this morning.
Short the dollar...against the yen apparently.
The Feds panicked and nuked the home islands...turned out to be a mistake.
Now we have war on two fronts, a religious war to the death and no FDR anywhere near coming to town.
These folks think fighting a war in the Pacific and a land war on the entirety of the European Continent was "really no biggie."
I recommend a re-reading of the history books on that one. Talk about running an economy flat out.
The USA was barely militarily engaged relatively speaking I might add.
We did buy and pay for that thing tho.
Nowadays the only thing the bulk of economists say is "keep buying."
"Expect the unexpected" folks...that's why that National Command Authority exists "and gets paid the big bucks" (250,000 a year with a pension and full dental.)
funny you should mention the Pacific. i went to school with a guy (now an officer in the military) who tells me the US is increasing its troop count in Hawaii by a substantial amount. like they're expecting something to happen in the Pacific. i'm assuming that's where all of the Q2 orders for military equipment went.
stocks will go up forever, just because.
unless all that Asian revenue being hemhorraged by US companies gets picked up by another big regional spender, there's no reason for this recession to end in Q2. that's why the top in bonds isn't even visible yet.
then again, i'm a macro guy, not a day trader. if it makes you a quick buck, more power to you.
poor bankster bastards are now totally insane ... would like to sell shitload of worthless stocks, but everyone is boycotting ... ha ha ha now comes MS and MSM bullshiters "recommending" russian stocks ... ha ha ha
poor bankster bastards are now totally insane ... would like to sell shitload of worthless stocks, but everyone is boycotting ... ha ha ha now comes MS and MSM bullshiters "recommending" russian stocks ... ha ha ha
ive never seen this putrid type of trading volume on a consistent basis.
its simply nauseating to watch.
every morning, the dow and s&p trade within a 2 pt range until like 3 pm.
the fact that there are some ppl who still believe that there are actually real buyers and sellers playing this market and its not all fed controlled is comical.
i dont care how greedy someone is, the greediest ppl would want to take profits once in a while, yet somehow never ever are there any sell offs, and when they do occur in the rare occurences ( once every 5-6 months) they are always wiped away the following day.
we will be reading about this time period in history books one day.
What is especially scary is that they couldn't even spin the numbers to
show growth.
"Stocks surge...."
Yeah. stocks like AMZN are looking mighty attractive with a PE of 489....
gulp.
There can't be any real long-term investors in this bullshit market?
People in 401k's are forced into participation.
Thay have no choice.