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Stocks Hit Record Highs As Bonds & Euro Shrug At ECB

Tyler Durden's picture




 

The most critical asset to be impacted by the ECB - EURUSD - is not reacting and is now actually higher than before Draghi unleashed his mini-LTRO. US Treasury yields are also unchanged - having roundtripped 7bps. But while bonds and FX don't care - Gold and stocks are loving it... Gold is up $10 from pre-ECB and the S&P 500 - at new record highs - is up 7 points.

 

 

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Thu, 06/05/2014 - 11:54 | 4826964 khakuda
khakuda's picture

Needs more bubble. 

Thu, 06/05/2014 - 11:56 | 4826997 Headbanger
Headbanger's picture

Another VIX slam pump for equities

http://www.marketwatch.com/investing/Index/VIX/charts

Thu, 06/05/2014 - 12:02 | 4827020 NotApplicable
NotApplicable's picture

Sometimes we HERP, while other times we DERP.

Today? We NIRP.

Thu, 06/05/2014 - 12:12 | 4827063 THX 1178
THX 1178's picture

Is it a coincidence that we in America are seeing food price inflation at the same time as equity price inflation? I'm beginning to suspect that even tapering on our side of the pond while belgium untapers for us is going to have disasterous consequences. The whole system is breaking free of the controllers. The collapse is right around the corner.

Thu, 06/05/2014 - 12:25 | 4827113 Say What Again
Say What Again's picture

UPDATE:  The SPX is now at 1938.

The market loves Draghi.

Don't you wish you were all-in on the spoos?

Thu, 06/05/2014 - 12:52 | 4827208 huggy_in_london
huggy_in_london's picture

Ha fool... you could sail the QE2 between what draghi says and what draghi does.  He said a lot, and did very little.  (EURUSD firmly up on the day... nice job)

Thu, 06/05/2014 - 13:00 | 4827236 Say What Again
Say What Again's picture

You don't like my satire?

Thu, 06/05/2014 - 13:05 | 4827251 huggy_in_london
huggy_in_london's picture

I am WAY to stressed today for satire!!!!  Apologies if that is what it was!!!

Thu, 06/05/2014 - 11:49 | 4826965 maskone909
maskone909's picture

this is a nightmare make it stop

Thu, 06/05/2014 - 11:57 | 4826995 PlusTic
PlusTic's picture

don't make the mistake of thinking this is real, it's a manufactured reality.  War, peace, terrorism, stock mkt meltups...it's all just fantsay being orchestrated by those with the printing presses...

Thu, 06/05/2014 - 12:02 | 4827019 NOTaREALmerican
NOTaREALmerican's picture

Re:  War, peace, terrorism, stock mkt meltups.

Actually, that's all reality.   The fantasy is that it's not reality.

Thu, 06/05/2014 - 12:33 | 4827144 john39
john39's picture

it is real only as long as a certain percentage of the population believes it is real. 

Thu, 06/05/2014 - 12:45 | 4827184 NOTaREALmerican
NOTaREALmerican's picture

Re:  it is real only as long as a certain percentage of the population believes it is real. 

War and the smart-n-savvy people screwing the dumbasses with bullshit is about as real as it gets. 

Thu, 06/05/2014 - 12:04 | 4827030 valley chick
valley chick's picture

You are in the Truman Show and can not leave!

Thu, 06/05/2014 - 12:11 | 4827052 TheRideNeverEnds
TheRideNeverEnds's picture

I was trying to tell anyone that would listen yesterday we were going higher but they all poo pooed me.

 

Hope the shorts enjoy getting blown the fuck out as this next leg up brings us to 1950 on the way to close out 2014 over 2000.  You may have a chance to BTFD as we pull back from 1950 but I think the longs are getting wise to the fact that there is zero reason to sell anything here.  

 

Its a foregone conclusion, anyone who thinks this market is ready to turn down is delusional.  Bear markets are a thing for the history books, the business cycle problem has been fixed.  Betting against the central banks capability to print money will kill you on two fronts, capital loss on your shorts and purchasing power loss on your now lesser capital.  

 

The only correct strategy in this centrally planned market is buy everything and let inflation sort it out.  

Thu, 06/05/2014 - 12:18 | 4827088 Spitzer
Spitzer's picture

You got poo pood on here because this is where we come to talk about reality. Will stocks go higher ? Nobody cares. You have no reason. You are trading on momentum and word clouds from the fed.

Want to talk bullshit, go to Motley fool.

Thu, 06/05/2014 - 12:50 | 4827202 huggy_in_london
huggy_in_london's picture

Perhaps you should study what happened in japan from the late 80s to the 90s ... then come back to me on whether you should just keep buying stocks.  

Thu, 06/05/2014 - 13:07 | 4827230 Squid Viscous
Squid Viscous's picture

ass clown  - we remember your call for 1900 by mid march, you were so sure of it... instead you took about 85 handles in the face... and your bio is really fucking gay, FWIW

Thu, 06/05/2014 - 13:12 | 4827271 TheRideNeverEnds
TheRideNeverEnds's picture

Wasn't wrong just a little early, spoos are fast approaching 1950 at this time.  

 

Why you mad though?

Thu, 06/05/2014 - 15:23 | 4827703 Flux
Flux's picture

Holy shit, someone on Zero Hedge actually has a clue!

Yes, the Zero Hedgelings are a miserable lot as the market climbs higher and higher. It sort of reminds me of that emo kid who misses out on all the parties in high school. And the sad thing is, at any point they could go to the gym, get some sunshine, be a little sociable and the world would change.

But nope.

Too obsessed with being miserable.

 

So, why come?

Schadenfreude, motherfuckers, schadenfreude, It's rare to see such a large group of people be so wrong, so miserable, for so long, and with such consistency. It just makes me smile.

I mean, geez guys, even a broken clock is right twice a day!

Thu, 06/05/2014 - 11:50 | 4826966 The wheels on t...
The wheels on the bus are going to fall off's picture

GOLD BITCHEZ \O/

Thu, 06/05/2014 - 11:50 | 4826968 101 years and c...
101 years and counting's picture

speechless.  final blowoff tomorrow?

Thu, 06/05/2014 - 11:57 | 4826999 Grande Tetons
Grande Tetons's picture

I am postless lately. Just enjoying watching the freak show from the sidelines. 

Thu, 06/05/2014 - 12:02 | 4827022 maskone909
maskone909's picture

i have noticed the traffic to the site is down too. i guess thats a contrarian indicator, even some of the zh folks are on the euphoric gravey train.

Thu, 06/05/2014 - 12:05 | 4827038 Grande Tetons
Grande Tetons's picture

Rigged..bla bla bla...gold down bla bla bla...equties up...bla bla bal....end of world bla bla bla....57 reasons to give a shit..bla bla bla.  

That's all folks.

Thu, 06/05/2014 - 12:17 | 4827080 pods
pods's picture

After a while people don't need anymore information about how they are getting fucked. They just realize it.

I come for the comments and the occasional "Let me tell you bout the negro" story. (that one still makes me chuckle)

If I actually traded stocks I would have killed myself years ago.  I learned quickly, by losing $60 at a church bazaar, that I was not that good at gambling.  Trading today is like playing Calvinball against Calvin.  As soon as you think you win, they change the rules.  I'd rather do things that offer a bit of joy.

pods

Thu, 06/05/2014 - 12:22 | 4827106 Grande Tetons
Grande Tetons's picture

Ha! That is what I do lately...skip the fucking article and reads the posts.  Much more insightful at the micro level and certainly amusing. 

Thu, 06/05/2014 - 12:04 | 4827027 Kreditanstalt
Kreditanstalt's picture

Nope.  This'll go and go and go and go...they're so drunk on cheap leverage and SOOOOO.... desperate for YIELD that they'll all run over the edge of the cliff together...sometime in the futre, when a central banks appears to stumble...

Thu, 06/05/2014 - 12:10 | 4827058 Crash Overide
Crash Overide's picture

Thursday humor?

Wow.

Does this have anything to do with big banks trading their stocks to each other in dark pools?

Thu, 06/05/2014 - 11:50 | 4826969 SloMoe
SloMoe's picture

So, Tepper bought the tantrum, and is selling the recant. Fucker.

Thu, 06/05/2014 - 11:50 | 4826972 huggy_in_london
huggy_in_london's picture

Its utterly ridiculous... there's not even a downtick.  Look at a 3 minute chart... it never makes a lower low on any of the bars.  I don't know who is buying this cr@p, but its just fierce.

Thu, 06/05/2014 - 11:53 | 4826980 khakuda
khakuda's picture

It is the clasic low volume melt up caused by ever more easy central banks.  Call it building a massive bubble on purpose.

Thu, 06/05/2014 - 12:09 | 4827053 valley chick
valley chick's picture

This is no bubble...it is a damn boil that has festered and when it pops it is going to be disgusting.

Thu, 06/05/2014 - 13:09 | 4827264 Squid Viscous
Squid Viscous's picture

should have bought when Gartmansiad he was really nervous about the internals, that was about 1875...

Thu, 06/05/2014 - 11:51 | 4826973 newsguy68
newsguy68's picture

Good By America!

 

“You Are You” Summer Camp Trains Boys To Become Homosexuals

http://govtslaves.info/summer-camp-trains-boys-become-homosexuals/

Thu, 06/05/2014 - 11:59 | 4827009 NotAMathWhiz
NotAMathWhiz's picture

Abandon all hope ...

Thu, 06/05/2014 - 11:53 | 4826978 LawsofPhysics
LawsofPhysics's picture

Negative interest rates mean that the fucking mattress is a safer and less expensive place to store your fiat.  the fact that people are not running to the banks to remove their fiat and the "markets" are not crashing simply confirms that most people have no savings and the "markets" are completely meaningless.

 

There is simply no good solution to scarcity and very little precious time to prepare for what comes next.

Good luck everyone.

Thu, 06/05/2014 - 12:00 | 4827011 Winston Churchill
Winston Churchill's picture

Echoing Denninger over at market ticker LoP.

The game of extend and pray is over.

For what we are aboout to receive may........

 

Thu, 06/05/2014 - 12:00 | 4827015 pods
pods's picture

I have been trying to ponder this idea all morning.

In a bank:  You know you will lose the amount totalling NIRP+inflation, and there is a chance you may have to bail-in the bank and you may or may not be able to withdraw it when things go bad.  Couple that with the Feds sniffing around if you do try and move it.

Mattress:  You lose inflation and possibility of theft or fire.  You have access to it at all times.  

They really are slitting their own throats, which makes me happy I might add.

pods

 

Thu, 06/05/2014 - 12:04 | 4827033 LawsofPhysics
LawsofPhysics's picture

"They really are slitting their own throats, which makes me happy I might add." -

Ditto, and hey, silver is still cheap with reasonable delivery times.

Thu, 06/05/2014 - 12:01 | 4827017 NotApplicable
NotApplicable's picture

For many people, banks are nothing more than a bill paying service.

I thoroughly enjoy seeing the $1 balance in my "savings" account.

Thu, 06/05/2014 - 12:06 | 4827036 fonzannoon
fonzannoon's picture

I have asked many people around me what they think of negative rates. all they say is "that sucks". when i ask if that would prompt them to pull their deposits they say "and do what?"

the sheeple will continue to graze even as the blade starts hitting them.

Thu, 06/05/2014 - 12:10 | 4827055 maskone909
maskone909's picture

damn im speachless.  wtf man

Thu, 06/05/2014 - 12:22 | 4827102 disabledvet
disabledvet's picture

The insurance is still good...the money is not.

Governments are bouncing every check they print as we hit "Interstellar Overdrive" on Project Spendicate!

CAN'T TAKE IT WITH YOU BITCHEZ!

Thu, 06/05/2014 - 11:54 | 4826990 alien-IQ
alien-IQ's picture

If anyone is surprised by this, please put on your dunce hat and sit facing the corner for the rest of the day.

Thu, 06/05/2014 - 11:55 | 4826994 khakuda
khakuda's picture

This day has 200 points written all over it.  No inflation here, move along.

Thu, 06/05/2014 - 11:58 | 4827006 Panafrican Funk...
Panafrican Funktron Robot's picture

Once this soaks in, I don't think the EUR/USD is going to stay elevated.  NIRP has the potential to drop this rate below 1.00, absent a fuckton of additional Fed QE.

Thu, 06/05/2014 - 12:01 | 4827016 Kreditanstalt
Kreditanstalt's picture

Everyone try to cram themselves into the same lifeboat...

Thu, 06/05/2014 - 12:04 | 4827021 Kaiser Sousa
Kaiser Sousa's picture

i totally expected a pro-longed attack on the only 2 forms of real money today pre-Draghi bullshitfest...the move up looks very suspicious..i think i will wait to until right before the open in LondonFraud b4 i hit Apmex up...

just talking out loud...sorry if i bored ya'll...

keep stackin.

ps: r u watching the fucking Dow...fucking farcical. supposedly its becuase Tepper made some meaningless comment????????

Thu, 06/05/2014 - 12:05 | 4827037 NOTaREALmerican
NOTaREALmerican's picture

It keeps going up until somebody big doesn't get paid.   (And I'm not sure what the definition of "paid" is exactly anymore).

Thu, 06/05/2014 - 12:06 | 4827041 we built this city
we built this city's picture

I have this headache which reminds me the same pain i had during the crisis of 2008 when i was buyung stocks that were falling...started buying then at 10000 level till 7000 level in the Dow...i remember i was the only one buying back then...

unfortunately i sold most of my stocks at levels of  1300-1500 in the S&P.

Last year was frustrating since i made only 5% while stocks indexes soared 30%

but this year is even worse so far since i gathered a massive short position and so far been hammered!

Shorted S&P at 1800 avg

Shorted Dax index at 9300 avg

Shorted Rusell2000 at 1140 avg

Shorted Bioteh index via BIS and all gains are lost

shorted the high PE stocks- amz-tsla-nflx-twtr-hlf and fb

except from twtr which i close at nice profit- all stocks are at shorts levels

 

 

This is so frustrating- i have 20 years of market experience - never seen such a market

every percent up more pain- my concern is that we havent seen the panic buying yet- which will take indexes up 10-15% more- ...

This rally seems endless so far....

Thu, 06/05/2014 - 12:13 | 4827064 Ban KKiller
Ban KKiller's picture

What rules make sense in this market? Follow the FED? Follow CEO compensation? Follow stock buy backs? 

Confusion is the new rule. At least for me...as I opt out. 

Thu, 06/05/2014 - 12:13 | 4827068 maskone909
maskone909's picture

you are not alone my friend.  got stoped out on a few shorts too.  i just thought, there is no way this can go on.  well it can and it will.  Zimbabwe

Thu, 06/05/2014 - 12:16 | 4827075 huggy_in_london
huggy_in_london's picture

You are not alone there.....

25 years of punting ... never seen anything like this ... nothing but pain today 

Thu, 06/05/2014 - 12:25 | 4827115 gcjohns1971
gcjohns1971's picture

The Federal Reserve Banks are private.  Only the Federal Reserve Board is "public" - though voting members are nominated from the Fed Banks..

Deflation means loans can't be repaid and banks go bankrupt.

The Federal reserve can create ny amount of money with a few keystrokes.  It can offset any number of loan failures by, "adding a few zeros" to the bank's reserve account.

Banks must beat inflation to remain solvent.

With salaries down, and loan repayment dropping, where is there left for banks to put money?

Why would you be looking for stocks to go down?

Thu, 06/05/2014 - 12:29 | 4827121 huggy_in_london
huggy_in_london's picture

Assetprice inflation is predicated on the rate of acceleration in credit expanding.  That's been evident in the past in housing, stocks and whatever other moves you choose to look at.  With the fed tapering, the gamma effect is negative.  Asset owners should be very concerned as the "acceleration" in credit expansion is negative now (by them, and they are the only ones that count).  

Thu, 06/05/2014 - 13:12 | 4827270 arby63
arby63's picture

Agreed. At some point though, product must be sold. I am not seeing that so much. In fact, I see the average family getting poorer by the month. 

Most retail is down big from what i see and hear.

Thu, 06/05/2014 - 12:34 | 4827143 khakuda
khakuda's picture

We have a market where unelected academics are hell bent on causing the mother of all asset market bubbles.  They are intent on destroying anyone who refuses to play the game with them, including shorts, savers and holders of gold.

There is no 'investing' in a bubble.  It is all about speculation.  Bernanke, Kuroda and Draghi have opened the casino.

Thu, 06/05/2014 - 12:11 | 4827060 Ban KKiller
Ban KKiller's picture

Can't tell the sarcasim from factoids. I am sure that is just me. 

Think I will go to Golden Gate Park and see the old hippies. Naturally they play the market as well these days. I mean, who doesn't? Seriously....who in the world plays a game where the rules are changed by the hour, the accounting is false, the regulators are corrupt and the end game is unknown? Muppets? Guess if you have a hand up your ass moving your mouth that may be an excuse. 

Bank trolls everywhere are joining the oil forever trolls? I am telling you that decentralization of EVERYTHING scares the shit out of the control freaks!

Thu, 06/05/2014 - 12:13 | 4827067 AccreditedEYE
AccreditedEYE's picture

Where did all the Long Term VIX chart go? WHat happened to "Tick, tick,tick..." ?

Thu, 06/05/2014 - 12:15 | 4827073 gcjohns1971
gcjohns1971's picture

Well, if banks can't deposit money for a return, where did you think they would put it?

Thu, 06/05/2014 - 12:17 | 4827081 schooltruth
schooltruth's picture

Agree with the others - the most frustrating trading of my life.  No humans involved b/c a rational trader would start cashing in some after this monster rally in 2 weeks on nothing but negative news.  I'm as short as I've been since 2007 and I can't bring myself to look at my account 'cause I'm getting slaughtered every day.  There is not so much as a single downtick.

 

 

Thu, 06/05/2014 - 12:20 | 4827096 huggy_in_london
huggy_in_london's picture

Looked like a ramp at 10:53 ... big volume push in nas, and run everyone out.... 

 

I fuking hate this

Thu, 06/05/2014 - 12:51 | 4827200 schooltruth
schooltruth's picture

Seems like if people really bought into this rip there would be volume in the weekly call options expiring tomorrow.  The way things are going a 1% pop on any job news (good or bad) seems like it's in the bag but there is basically no volume in the calls and TONS of volume in the puts. Could be put sellers in size, but I'm reading caution in those vol numbers (as the QQQ jumps another 0.1% while I type).

Thu, 06/05/2014 - 12:31 | 4827134 medium giraffe
medium giraffe's picture

Mad isn't it?  The cognitive dissonance you are bombarded with.  I'm not an expert, far far from it, but I'd hazard that if you want to get short you don't need to catch the top tick, just get in when it starts sinking and hope that when you take profit there's still an economy left.  Until then.... baaaaaaa....

Thu, 06/05/2014 - 13:15 | 4827284 huggy_in_london
huggy_in_london's picture

it wasn't me ... but... i think you got your downtick..... (-1 red arrow!)

Thu, 06/05/2014 - 12:44 | 4827181 monopoly
monopoly's picture

Hey, I am not smart enough to buy AMZN, CMG and BAC, but at least I am not so stupid as to try and short this market. Been 4 years since I tried to short stocks. I will stick with my gold, silver, and miners. Yes, I am way down the last 18 months, but this too shall pass. Like what I got. How do you trade markets that are a total fantasy.

Thu, 06/05/2014 - 13:34 | 4827338 HardlyZero
HardlyZero's picture

Tried doing it short a few months ago.  Still sore where I had to cut it off.

Thu, 06/05/2014 - 13:21 | 4827300 Kreditanstalt
Kreditanstalt's picture

Attention players...this is Captain Yellen speaking.

S&P has now reached cruising height of +12 points.  Stocks are now on autopilot for the remainder of the session in preparation for the 3:30 ramp. 

No need to fasten seatbelts or place your table trays in the upright and locked position, because there's no risk...

Thu, 06/05/2014 - 13:32 | 4827333 HardlyZero
HardlyZero's picture

Stawk market has that Zimbabwe Zoom to da Moon !!

Expect some major fiat currency collapse in 3..2..1.

Zimbabwe has shown the modern path.

Hyperbolic zoom. zoom...zoom...zoom...to erectoric avenue...and then we take it higher.

Thu, 06/05/2014 - 13:33 | 4827347 scubapro
scubapro's picture

 

 

given the level of despair I see in the comments by people annoyed at the market going higher....echoed by zh'ers who have decided to 'go along for the ride', or stopped trading, I'd say the top tick is upon us.    nothing like a sharp stab up to get what few shorts remaining to cover and make new headlines for ma an pa to feel 'confident' about 'getting back into the market' (but really its being used to make sure they dont EVER sell).      the techies might use the term 'throw over' i think.  

the high-er volume days are all down days.  trees dont grow to the moon.  down is fast, up is slow.  sentiment is ridiculous, margin debt too---crowded rooms.  1.618x the 2002 to 2007 run up (the first B wave) is 1957...less than 1% away.   the first week of the month is always strongest AND the 401k-ers get paid today so they will be buying from the strong hands.

todays 'massive' move in the dow is still less than 100 points, the spx is up the close about 3/4%,  small caps--wildly outsized move up (cue the 'most shorted' chart pls Tylers).

remember law of dimishing returns....ecb does this b/c they are in the shtter, not b/c the economy is good....this is another burst of sugar that will wear off by end of month as the US prints 1% growth and china has to continue to inject liquidity to delay the pop.  

Thu, 06/05/2014 - 15:38 | 4827753 Xanthias
Xanthias's picture

Agreed.  I'd add that the TNX is downticking (presently at 25.84) today, after touching briefly the 50 DMA 26.25.  This looks and sounds like a top, if not the top.

Thu, 06/05/2014 - 13:49 | 4827407 Obama_4_Dictator
Obama_4_Dictator's picture

The only way to win is to not play....cut expenses....buy pyhsical.....reduce tax exposure....stop having kids.....if you have a business move it or close it....fire employees....if you own a farm, only grow what you need to feed yourself.....end this game by not playing

Thu, 06/05/2014 - 14:55 | 4827614 The_Ungrateful_Yid
The_Ungrateful_Yid's picture

I play, but take profits for my gardens, my essentials and my necessities.

Do NOT follow this link or you will be banned from the site!