Stocks And Bond Yields Jump As Turbo Tuesday Strikes Again

Tyler Durden's picture

Another Tuesday, another sell-off in bonds and rally in stocks. The hawkish inflation data this morning sparked stock weakness and bond weakness but while the latter saw yields keep pushing higher, the former rallied back extravagantly ignoring the dismal housing data - well why not, its Tuesday today and FOMC tomorrow. The Russell 2000 was the winner once again as traders embrace high beta as alpha (and financials outperformed (2s30s steepened for once). 10Y Treasuries saw yields jump the 2nd most in 2 months (with 7Y the worst performer +6.5bps). Gold, silver, and copper all rose notably after the inflation data but oil prices decided to waterfall lower having briefly reached unch for the week (as soon as POMO ended). "Most shorted" stocks were smashed higher today (+2%) enabling the early ramp and while a late-day selling scramble nearly rescued failure from success, VIX pressure was enough to save stocks' green track record.


"Most Shorted" stocks were monkey-hammered higher...


Another Tuesday and stocks are up...


and Bonds are down...


As 10Y breaks its medium-term downtrend...


VIX was in charge of stocks today as stocks entirely decoupled from JPY carry today...


Commodities all rallied on the inflation print...


But oil prices rolled over notably after touching UNCH on the week (and POMO finished)...


Gold's initial reaction was to dump in size on the inflation print...



Charts: Bloomberg

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Say What Again's picture

Since we have already established that there a many large Central Banks working many large positions in the equities markets, I have a few follow on questions.

Which CB conducts activities on Tuesdays that would result in the ritualistic Tuesday-Ramp-Jobs that we've been seeing for the last few years?

What are the "documented" activities?  (e.g. POMO)

Where are their orders filled?

flacon's picture

I'm anticipating the day when bond yield AND bond prices both jump up together. Impossible? Not so fast.... You ain't seen nothin' yet. The oceans are just about to turn to lemonade --> An old Soviet joke. 

Say What Again's picture

That's interesting Bond Prices going up at the same time as IRs go up.

That would be interesting

Soul Glow's picture

Uhm, rates have an inverse relationship with prices.  But as long as currencies lose purchasing power due to printing (inflation) then rates can rise and prices can fall in real terms (as oppossed to nominal loses).

max2205's picture

Lots of solar stocks trading  $40 to $80 with zero.....nada. no earnings


Nothing wrong here









........('(...´...´.... ¯~/'...') 


..........''...\.......... _.·´ 





NidStyles's picture

Tuesday is the day for worship for old-Germanic tribes. It literally means God's Day in old German. So which twisted cabal of weirdos worships a pagan deity (assuming it's a later Germanic religious following, as the earlier Germans were monotheistic) and likes to "create" wealth?

Say What Again's picture

Actually, they are referring to Tiw or Týr, the god of single combat, victory and heroic glory in Norse mythology

NidStyles's picture

Tuesday is from Day of 'Tuews', which is Western Germanic, not Nordic. English originates from Western Germanic. The word 'Tuews' literally means God in old-Germanic. The Nordic version of the word is pronounced completely different and is actually the name of a deity in Norse Mythology which post-dates from the Germanic origin of the word. 


The languages are similar, and it's obvious Wikipedia is wrong as usual. There is no such thing as Old-English when refering to this era. English did not exist until the crown took the island and the language started to split. Before that it was called Western German. In these instances English should be considered a form or dialect of Western Germanic. 

Like a bunch of kindergarteners on that Wiki article. 


Mind you I am limited by the characters I can use here, as the English characters are completely different than the characters used for that language. So the spelling is phonetic. 

Soul Glow's picture

The Masons worship all symbols and religions.  Look at a Masonic text - you'll find the cross, star of David, eye of Horus, etc.  

The Romans fought the Huns, the Goths, the Turks.  They all intertwined along the way.  The Brits fought the French, now they are allies.  Brits vs. Americans.  The West against China (Opium Wars).

Now it is rich versus poor.  Haves vs. Have Nots.  There are no boundaries anymore, just corporations run by the monied class to squeeze/extract all wealth from the masses.

NidStyles's picture

There is only one group in the modern era that speaks old-German, and know's Germanic lore like that. Only one, and they were rumored to have been wiped out in 1945. 


I learned this stuff from my grandparents, both of whom were German descendants and had spent time in Germany. 


Soul Glow's picture

They also scoured Tibet looking for the origin of Aryans.  How German is German?

Rainman's picture

Who cares .... God Bless Tuesday in Amurika !!! ... is this a great country or what ??

SAT 800's picture

"Mr. Jones", (from the B. Dylan song), is buying long Oil contracts 'cause he reads the "news". My buddy in New York told me on the phone; "it won't be long now", "I said, they're piling on, eh?, " "He says, yeah, coupla days, we'll fip their faces off". "Give 'em an Irish Kiss for me, Mike"; "ha-ha".  (Irish Kiss, head butt to the face).

El Hosel's picture

They don't need no stinking orders or money, PONZI magic  = free Royal with cheeses for all.

madcows's picture

AND WE CLOSE UP!  Congratulations everybody.  Another Posi-Tuesday!  Way to go, pumpers.  Don't forget your MOMO's and your POMO's.  It takes daily effort to achieve greatness.  Oh, and today's employee of the day is Kevin!  Good job Kevin.  We couldn't have done it w/o you.  See you tomorrow.  I'm goin downtown to get plastered.  Who wants a taxpayer funded bar crawl!?  Huh?! huh?!

Soul Glow's picture

Why Tuesday?  Because Wednesdays are the middle of the week and the central planners want people waking up thinking all is right in the world?

I know you know that the stock market does not reflect the economy, but the study of economics would have you believe it is a leading indicator.  People have their well being, physical and mental, tied up in stocks.  Boomers can't retire if they fall, young people can't have confidence in their investing either.  

For whatever reason they have chosen Tuesday to conduct their power over the system.

Mr. Saxby's picture

You'd better load up on RSH while the getting is good. No equity left behind....

Goldilocks's picture

er... No chump left behind. Yah know, equal rights and all.

SAT 800's picture

If this is what they call pumped up somebody better tell them about cialis. Pretty weak shit IMHO. 1942 on the S&P; MEH. could impress somebody from Brooklyn, maybe.

Soul Glow's picture

What impresses me is that the dollar strengthened, but I doubt that trend continues.

Soul Glow's picture

Yellen probably leased a few hundred tonnes of gold on the inflation print like the good lil' banker she is.

JR's picture

Now this is the toughest talk ever and for the U.S.A., it’s not morning on the horizon, it’s just darkness.

17 June 2014 | Jesse's Café Américain  

“All men make mistakes. But a good man yields when he knows his course is wrong, and repairs the evil. The only fatal fault is pride.” Sophocles, Antigone

Gold Daily and Silver Weekly Charts - When Trust and Confidence Is Lost, The Die Is Cast

"After nearly 6 years of blocking the normal development of systemic transition, a blocking caused by a flood of dollars leading to a renewed artificial global addiction to the US dollar, history is now taking its course. It isn’t as if during these six years nothing has happened.

On the one hand, the US has failed to relaunch its economy and the actual situation for Americans has only got worse, and on the other, the emerging nations have used – and contributed to creating – this 'pause' to prepare themselves for the ultimate and inevitably painful stages of completing the crisis which we are now approaching.

The Ukrainian crisis and the characteristic aggression against the legitimate interests of one of the major players in the emerging multipolar world, Russia, as well as the US’ attempted annexation of Europe, have blown the whistle for the end of the game. The whole world has thus realized that the US was on its last legs, henceforth dangerous and that it had become urgent to move on."

GEAB N°86: The Major Global Geopolitical Reconfiguration

The BRICS will be having their 2014 Summit in Brazil on July 15, 2014.

The FOMC will be meeting tomorrow.

I am a bit surprised that so little has been said about the somewhat shocking US Supreme Court decision upholding the hardball tactics of the vulture funds with regard to the sovereign debt of Argentina.  I may attempt to write something particular about this in the coming week, but let me just say that it is looking like the first lightning flash in what could become the Perfect Storm.

These things have a cumulative effect. I suspect that trust in the government in Washington is falling to historic lows in places other than Main Street USA. 

Modern money is a confidence game, a masterful combination of both fraud and force.

All things considered, a US bonds looks like a rather precarious place for some people to be, especially given the noises that the Fed is making about erecting barriers to exit for those in bonds funds.

Nothing of consequence happened in the Comex gold warehouses the other day.  That must mean that all is well.

Few will see this one coming...

Armed Resistance's picture


And I said, "Hey Lama- you know, how 'bout a little something for the effort"?

and he said- "It has nothing to do with money.  But on your death will receive total consciousness."


So I got that goin for me....

Which is nice!

Pareto's picture

Sigh. ............"the FED can change what things look like. ............." finish the statement. ....... Somebody please.