S&P 500 Hits Record High As Tepper Turnaround Trumps Draghi Disappointment

Tyler Durden's picture

The initial exuberance over Draghi's actions (and promises) faded quickly with Treasury yields falling and the EUR surging back higher (to close at 10-day highs)... but thanks to sterling work by AUDJPY and some well chosen 'I'm not scared anymore' comments from David Tepper, US equities soared in a world of their own (as VIX dropped). Volume was also heavy (but the siz came on the downswing after the initial jerk higher from the ECB). The Russell 2000 soared ~2% (best day in 3 months), Treasury yields closed lower, the USD closed lower (as EUR surged) and unchanged on the week, and gold and silver jumped. VIX also helped to support stocks at it dropped modestly (but remains notably disconnected from the equity exuberance). NFP tomorrow... time to sell vol for sure!!


What's wrong with this picture? EUR (the most critical indicator of Draghi's ability to improve his region's competitiveness by any means) surged as he disappointed... but US equities couldn't get enough...


Draghi disappoints - EUR pushes up to 10-day highs


Who couldanode that EUR would rally?

As we noted earlier, absent launching full scale QE, which it won't, the ECB's announcement will be a disappointment which means the EUR will ultimately move higher after a kneejerk lower as the market forces Super Mario to do even more next time. As Bloomberg adds, a cut in refi and deposit rates is fully priced in and latest price action suggests investors brace for disappointment if ECB stops short of signaling asset purchases or other liquidity measures to combat deflation

As an FYI - Russell & Nasdaq are up 6% from the lows the day after Tepper said


and now




The Russell was on fire... it s best day in 3 months...


AUDJPY (and NZDJPY) were in charge as EUR and USD had their own Draghi issues to deal with...


VIX remains decoupled as it can't break to record-er lows (even as realized vol leaks to record lows)... todday's action did have high correlation to VIX though...


Treasuries decoupled dramatically...


The EUR strength pushed the USD Index back to unchanged on the week...


Gold and Silver pushed higher and oil dipped and ripped...



Charts: Bloomberg

Bonus Chart: Goldman's June 2015 1950 Target for the S&P 500 is within 9 points... 11 months early...


Bonus Bonus Chart: Did The Market Just Discount The Entire Taper'd Fed Balance Sheet?

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g'kar's picture

Nah, it was the FED buying $3 billion.

lordylord's picture

How high do taxes and inflation have to be before people get angry?  Or does your average idiot think an Obama third term will fix everything?  I'm thinking it might be a good time to get blasted on riot juice pretty soon.

quasimodo's picture

There is the whole problem....so many average idiots that don't think, period.

They have been boiling the damn frog for so many years, at some point it will just liquify and then it's all over. Who needs to worry about the pissed off masses when 3 out of 4 men are obese or overweight?

Last time I checked those "mobility devices" didn't come equipped with hyper drive or any type of fire power. Perhaps if you dangle a Twinkie in front............

lordylord's picture

"Who needs to worry about the pissed off masses when 3 out of 4 men are obese or overweight?"

Excuse me, but...http://4.bp.blogspot.com/-UcedtNmdhRU/Uab3PCvwfKI/AAAAAAAAPwM/snRSLQYoue...

12ToothAssassin's picture

Im sure this sounds newb because I am when it comes to anything past throwing darts at 401k funds but can anyone share a link on how to trade .vix ? Are there ETFs for it? How can you directly profit from .vix volitility?

lordylord's picture

"How can you directly profit from .vix volitility?"

You can profit off of anything.  e.g. dog fights, women's bodies, homeless boxing, US Constitution's death, etc.  Sorry I didn't answer your question.

Say What Again's picture

My data feed shows an intra-day print down around 9 for VXN (Volatility for the NASD).

I know it didn't close at that level but, did the VXN really get that low today?

Say What Again's picture

My data feed shows an intra-day print down around 9 for VXN (Volatility for the NASD).

I know it didn't close at that level but, did the VXN really get that low today?

There is No Spoon's picture

vxx uvxy tvix xiv

some also have options. the long vix etn's are structurally designed to decay so be extremely careful if you're going long vxx uvxy tvix. if you buy them buy puts to protect your downside. don't hold them too long.

i've been shorting vxx when it moves up a decent amount but now that the vix is under 12 i'm not short. the safest simplest way to trade the vix right now would be to buy a call spread on the vix, not on the etn's, expiring late in the year. these etn's are designed to fail so buying puts on the etn's and the call spread on the vix gives you exposure to both sides with limited risk.

HedgeAccordingly's picture

had nothing to do with Tepper.. more to do with supply.demand .. but.. 

– Deutsche Bank Co-CEO Anshu Jain: ‘Europe is stable now…the ECB has done a lot to createstability” http://hedge.ly/1pvYOQi



john39's picture

a corpse is pretty stable as well.  a good thing?

BrosephStiglitz's picture

Right and cardiographs register no volatility.

SunRise's picture

The cardiograph and the olfactory do not lie.

SunRise's picture

The cardiograph and the olfactory do not lie.

TheReplacement's picture

Are you sure it isn't corps, man?  I always get those confuzed.

savedeposit's picture

So what !

In the end its al about value not about some crappy manipulated index

SheepDog-One's picture

Tepper not skeered! All safe to resume BTFATH's yay!

CIABS's picture

"I am nervous, it's nervous time" (buys SPY and QQQ calls)

"I'm not scared anymore" (holds SPY and QQQ calls)

"[silence]" (sells SPY and QQQ calls, buys SPY and QQQ puts)

"I am nervous again; very nervous" (holds SPY and QQQ puts)


maskone909's picture

everything is just super duper dandy!  no need for an economy anymore. no need for jobs.  no need for revenues!  fuckit im headed to the hummer dealership to finance a no money down 10 year loan soccer mom mobile

Squid Viscous's picture

LOL don't forget to attach "Support our Troops" sticker before she guzzles 10 mpg and drives like she owns the road... 

bam's picture

SPX 3000, 2015 Dec.

Beef prices $30/lb, 2015 Dec.

Joe: "Why are beef prices so high?" 

Yellen: "Why didn't you buy stawks?"


NOTaREALmerican's picture

Inflation protection for the Elysium Class and inflation for the things the Trash Class needs.  

CaptainSpaulding's picture

A big hats off to Ann B Davis aka Alice on The Brady bunch. R.I.P...I will see her soon ( Next month )

ebworthen's picture

Hey, SEC Chair White said the markets aren't rigged and investors are better off now than before.

Buy, buy, buy!

My precious.


Squid Viscous's picture

same shit every day everything "decouples" from stocks, ZH fail - again

disabledvet's picture

Explain nickel to me.

That would be the PRICE of nickel.

ebworthen's picture

"Thanks FED!  Tell the next generation and Mom and Pop to go fuck themselves!"

"Where is Jon?  Corzine should be here!"

"Pass the cigars and scotch around!"


valley chick's picture

And when does the bank runs start in euro wonderworld?  Hmmmmm......

dracos_ghost's picture

Was thinking the same thing. Maybe no coincidence about "cashless" society jawboning from Bilderbergers?

NDXTrader's picture

Bonds aren't buying it, FX isn't buying it, I'm not buying it...but when are we going to stop pretending any of that matters? The central banks are only disclosing a fraction of the funny money they are pumping into the system, the inflation numbers are rigged and they are actively begging people to buy stocks. There is no risk - if we were to get a 5% "correction" they would simply not allow it to go further. And guess what? They can do it. It will all end terribly, but that might not be for another 5, 10, 20 years.

It does crack me up that anyone would put any weight on the opinion of a guy (Tepper) that was publically dead wrong just a few weeks ago. He's got as much credibility as Gartman

huggy_in_london's picture

surely at some point the taper matters.  I keep saying that to myself (inbetween cursing over the state of my accounts mtm)

spastic_colon's picture

ZH gotta love ya...even though your analyses are mostly correct it doesnt mean markets are following any rational fundamentals....unfortunately you have fallen firmly into broken clock land.


PS - Abe meant to say "buy all of the split AAPL shares possible in pensions" cuz he gets a big bonus from the US if they do.

NotApplicable's picture

I read the article TWICE and I still have no idea how you came to the conclusion that Tyler is saying "markets are following any rational fundamentals."

Methinks your imagination is getting the best of you.

youngman's picture

I feel a little better today..at least gold and silver rode the coattails of the market a little...must of been a sympathy buy

Kreditanstalt's picture

Who is this "Tepper"?  Never read anything he's supposed to have said...

Must be some alternate universe...

NotApplicable's picture

He's just the guy that made a $3.5B salary last year running a so-called hedge fund.

Besides, he ain't got time to write. He just struts around on CNBS occasionally.

Kreditanstalt's picture

I quit watching ANY TV years and years ago...

timmeh's picture

sell the ramp - and wait for a dump

buy the dip - and go to sleep

NOTaREALmerican's picture

I think we need some more music from Global Death Cross.  

luna_man's picture



Go ahead, admit it...MY MAIN MAN, has the finger on the pulse!


where would we be without YOU

Tsar Pointless's picture

Buy in June, stocks to the moon!TM

savedeposit's picture

Come one push it a little more higher al they way to infinitieeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee !

Quantum Nucleonics's picture

Did anyone check if Tepper was blinking Morse code while he was giving his hostage video recant?