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Late-Day Buying Scramble Keeps Tuesday Dream Alive For Stocks

Tyler Durden's picture




 

"Treasury-selling" Tuesday came and went and for the 2nd week in a row, bond yields rose (+2-3bps) following the 7th losing Monday in a row. Equity markets languished amid dismal volumes but were rangebound all day apart form AUDJPY and VIX-driven pumps to try and close green and keep the Tuesday dream alive (and the running count of new all-time highs). The USD jumped once again as EUR tested lower (near Draghi spike lows). Gold and silver saw a squeeze higher at the open this morning and maintained gains (as fears of CCFD unwinds spread) but copper rose as WTI crude touched 9-month highs then reversed sharply lower. As we forecast this morning, a mid-day VIX plunge and late-day JPY tumble (and another VIX plunge) sparked just enough exuberant buying panic among the machines to manipulate stocks to a green close and save the Tuesday plan. Stocks have fallen only 2 days in the last 3 weeks...

The S&P 500 never made it green but Nasdaq and Dow crept back positive...

Whocouldanode?

Don't worry though: the pattern is too well-known and practiced by now, and we fully expect USDJPY levitation to pick up shortly, which is the only signal ES-algos need, trampling over any kind of newsflow both good and bad, and leading to yet another all time record high which it goes without saying is completely detached from any underlying reality at this point and at any time over the past 5 years.

A classic dump (on volume) and pump (on no volume) day in stocks...

 

VIX was spanked twice to ensure this green close... in high beta NASDAQ (but not quite the S&P)

 

and close up on the riggedness...

 

What the hell was going on VIX this afternoon...

 

The trend remains alive and well that you sell Treasuries on Tuesdays...

 

Treasuries closed up 2-3bps, broke above yesterday's tight range then rallied back after the auction...

 

AUDJPY was in charge of stocks today...

 

 

Gold and silver jumped at the open and crude slide as copper rose...

 

As WTI tagged 9-month highs and was sold hard...

 

FX markets had a similar them of JPY buying during the asia session (USDJPY weakness) and EUR selling during EU session (EURUSD weakness)...

 

EUR testing near Draghi spike lows...

 

Charts: Bloomberg

Errata: An early version noted 7th losing Tuesday in a row for Treasuries - in fact that was 7 losing Mondays in a row.

Bonus Chart: It's Tuesday...

 

 

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Tue, 06/10/2014 - 16:10 | 4841803 HedgeAccordingly
HedgeAccordingly's picture

Its fine.. they had to cover shorts into the roll.. now making $$ again .. 

– Open interest In 10 & 30 Year U.S. Treasury Note Futures At Record Levels #TLT #TBT #ZB_F ---> http://hedge.ly/1lXo5Cf

Tue, 06/10/2014 - 17:57 | 4842101 Pool Shark
Pool Shark's picture

 

 

 

Old meme: "Sell in May and go away."

New meme: "Buy in June, it's going to the moon."

 

 

Tue, 06/10/2014 - 16:11 | 4841811 SheepDog-One
SheepDog-One's picture

Equities indexes didn't even budge .001% all day, in all their unrigged glory!

Tue, 06/10/2014 - 16:16 | 4841824 Rainman
Rainman's picture

since I only need to  work one day a week , does that qualify me for any free gubmint shit ??

Tue, 06/10/2014 - 16:22 | 4841838 Soul Glow
Soul Glow's picture

cnbc.com headline -

Dow Scores Another Record Close

Americans all over rejoice, but they don't know this record close was up .02%

Tue, 06/10/2014 - 16:33 | 4841854 yogibear
yogibear's picture

That's what it's all about!

BTFD? What dip?

It doesn't take much money now to run this market upwards to new daily highs with low volume. Just rinse and repeat.

Stuck in Bull Nirvana land. It must be killing people like Karl Denninger who's lost his readership.

Tue, 06/10/2014 - 16:36 | 4841865 SheepDog-One
SheepDog-One's picture

2 points......fuck it, RECORD streak intact till the sun burns out!

Tue, 06/10/2014 - 17:07 | 4841951 SAT 800
SAT 800's picture

I closed out my July Silver contracts today at 19,20 for+1500. non-performing market. maintaining my new shorts on CL and ES.

Tue, 06/10/2014 - 16:32 | 4841859 khakuda
khakuda's picture

ZIRP and QE are now accompanied by Zero Down Days.  They used to just jump in and jawbone after a 'devastating' 5% decline.  I guess they figured it was easier to outlaw declines completely.

Tue, 06/10/2014 - 16:52 | 4841906 ebworthen
ebworthen's picture

Keeping the main street nightmare alive.

"Nightmare on Main Street" starring Freddy "FED" Krueger.

Tue, 06/10/2014 - 17:04 | 4841943 bam
bam's picture

perfect day to buy vega on stocks like nflx, twtr, fb... IV percentile is all <5%... go out to the Jan 2016s and buy long strangles...

 

"pretty sure" the plan is to hammer down IV on everything so that every retail investors selling theta get creamed, while the instutional traders are on the other side holding all the long vega positions. 

Tue, 06/10/2014 - 17:09 | 4841969 SAT 800
SAT 800's picture

Short from 1951; presently at 1951.25; ooh; I'm so scared.

Tue, 06/10/2014 - 17:51 | 4842082 Obchelli
Obchelli's picture

May be not now but you will be very scared in 2 years after s&p will be playing  at 2951.25. With only 10 down days in between with average down day (-0.00001%)

Tue, 06/10/2014 - 19:38 | 4842403 LooseLee
LooseLee's picture

Na, most of you PINKO commies (living in America pretending to be American capitalists) will be dead (by decree) and gone by then...

Tue, 06/10/2014 - 17:20 | 4841993 jubber
jubber's picture

Fucking Civil war in Iraq as Mosul falls, Iraq army falls apart, but US stocks hit another record high,also DAX, Switzerland, 6y high CAC, IBEX FTSEMIB & South Africa up 600 points !!!! fucking crazy

Tue, 06/10/2014 - 17:20 | 4842003 disabledvet
disabledvet's picture

Time to Ring Cramer's Bell.

What a friggin ding dong.

No inflation? REALLY?

Tue, 06/10/2014 - 18:32 | 4842212 thismarketisrigged
thismarketisrigged's picture

its hard to comment, because its the same thing over and over again.

 

does everyone realize that even when the s&p finishes red, its red by decimal points, not whole numbers?

 

ive never seen something like this in my life

Tue, 06/10/2014 - 19:43 | 4842420 firstdivision
firstdivision's picture

Natty got spanked today and yesterday

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