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"No Brainer" - Stocks Surge Most In A Week On Worst Economic Data In 5 Years

Tyler Durden's picture




 

Just imagine how strong the rally would have been if US GDP had contracted by 5%? The early weakness in US equities was instantly dismissed the moment US stock markets opened for trading to the general algo public (and POMO began to be disseminated). The S&P retraced a perfect Fib 61.8% of its losses of yesterday's highs and absolutely decoupled from the reality of FX (USDJPY for example) and bond (Treasury) markets suggesting today's low-volume levitation (after big volume pre-open plunge) is nothing but a dead cat bounce. Of course, the ammo for the magical ramp was a short-squeeze and a "VIX-Smash" but even that could not keep pace with the idiocy in stocks. Gold, silver, copper, and oil all rose along with stocks. Late-day VIX-slam lifted the S&P to unch on the week (same as "most shorted" stocks) but was unable to extend.

 

This is the worst non-recessionary quarter of growth in 60 years!!!(oh and May Durable Goods tumbled!!!)

So BFTATH you idiot!!

Who could have seen this coming at 845ET?

 

 

Supported by VIX (but even stocks got ahead of that)...

 

And yet another short squeeze... (clearkly 'smart' money was lining up shorts into today's ugliness expecting a major miss  - and had their nuts squeezed all day long...) Don't think; Buy!

 

Dead-Cat Bounce?

 

Reality check?

 

Commodities all rose notably along with stocks (after oil and copper tumbled on the GDP print)...

 

and across the asset classes today...

 

Charts: Bloomberg

 

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Wed, 06/25/2014 - 16:03 | 4894918 Say What Again
Say What Again's picture

Here are a few interesting statistics for you.

.

The SP500 has gone 402 market days without a 6% correction.
The SP500 has gone 516 market days without a 8% correction.
The SP500 has gone 681 market days without a 10% correction.

Wed, 06/25/2014 - 16:05 | 4894942 Tao 4 the Show
Tao 4 the Show's picture

And one more:

The SP500 is a completely controlled market.

Wed, 06/25/2014 - 16:07 | 4894947 saveandsound
saveandsound's picture

It is called "crack-up-boom".

Wed, 06/25/2014 - 16:07 | 4894957 Top Gear
Top Gear's picture

Bad news for the lower class is always good news for the Productive Class.  That's what the competition of capitalism brings, pain to some, joy to others.

Wed, 06/25/2014 - 16:15 | 4895012 Say What Again
Say What Again's picture

Welcome Mr. TopGear,

Are you experiencing pain or joy?

Wed, 06/25/2014 - 16:30 | 4895070 CarrierWave
CarrierWave's picture

go ahead, scold me big time for daring to write this... on ZH of all sites..

What you see here in the (San Francisco) Bay Area is what gives the markets reason to keep going higher:

The Tech boom is more robust than ever before. People in my profession in Hi-Tech find jobs quite fast, and for salaries not perceived attainable even 6-12 months ago.

Go to local stores the likes of IKEA, H-D, Target, or restaurants, on the weekend and you find long lines of people in checkouts.

Want more? - There is an unusually high number of toddlers seen as well as and expecting mothers.

It may be anecdotal but a very telling sign of how comfortable parents to be are with the economy.

Want even more? - Drive up and down I-5 between San Francisco and Los Angeles and you cannot miss the large numbers of Trucks with their 2 tiers fully loaded with brand new cars

on their way to Dealerships.

All the stats and analysis the Brainy ZH pour on this site day in and day out is just a huge disservice to Investors who would have otherwise been IN the market WITH the trend.

 

Wed, 06/25/2014 - 16:35 | 4895084 ENTP
ENTP's picture

I understand exactly where you are coming from.  I live in Chicago and the areas that are booming are booming, however I also spend a lot of time in another Midwestern city of a few million people (not Detroit) and I can tell you things are much more depressed there.  

We're going to split into two societies I think.  The advanced, wealthy technological society and the poor who beg for table scraps and have zero skills.

Wed, 06/25/2014 - 16:45 | 4895117 Say What Again
Say What Again's picture

@CarrierWave, 

I understand what your are saying.  Some folks have been doing well.  But how do you explain this chart.

http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2...

 

BTW -- I gave you a +1, because I feel you are asking a valid question in the spirit of a healthy debate.

Wed, 06/25/2014 - 17:23 | 4895284 saveandsound
saveandsound's picture

@CarrierWave:

Nice for you and your peers. I vote you green if you techies manage to "deminish" all the banksters "returns". I.e. by taking over their business and replacing them all by software.

However... I believe there will be another deflationary shock. Afterwards more CTRL-P.

Wed, 06/25/2014 - 17:58 | 4895397 Wait What
Wait What's picture

@CarrierWave, i'll see your IKEA, H-D, Target, restaurants and I'll even throw in a Costco, then raise you a "how many empty commercial lots have you noticed throughout california this year?"

I live and travel up and down the california coast and I keep counting more empty commercial lots every time I do. There's a reason you only reference big box stores in you anecdote, and it's the reason labor force participation is at more than my lifetime low.

If you close your eyes to the blight that surrounds you, yes, things are good. if you live in a gated community (I do) and have the resources and skills to take advantage of what the world is giving (I do) you can enjoy the 'tech-boom 2.0' without very much effort (thank you Fed). But for the average american, the vast majority of them, the ones not privy to all these things (I have several dozen friends in this category), all they see is the 'assets are more valuable than people' world leaving them behind.

my point is this: just because it makes you money, makes you better off, doesn't mean it's good for society, good for everyone. the moment you realize this will be the moment you realize that this bubble can't last without consequences that trickle up the financial chain.

Wed, 06/25/2014 - 18:08 | 4895372 CarrierWave
CarrierWave's picture

That's a fair question.. No doubt those charts look ominous and policy makers (hopefully) cannot ignore the data. I learned the hard way that in investing only price matters. Everything else to a large extent is noise. Nevertheless, I remained an avid reader of ZH articles. They are intelligent, poingnat, and razor-blade sharp in their take on the economy and world affairs.

This run by the market is however a momentum rally and those usually end badly. I don't expect to exit at the eventual top but trimmed my holdings over the past 3 months from 90% to 70% and will continue doing so in the coming 1-2 months.

Wed, 06/25/2014 - 19:03 | 4895658 BringOnTheAsteroid
BringOnTheAsteroid's picture

Mate, you have balls of steel holding 70% in stocks now. I have no idea how you can look at that S&P chart and think for a second that things are not in the final blow off top stage.

Your remaining funds could be gone in a matter of days if not seconds.

Wed, 06/25/2014 - 17:09 | 4895222 NidStyles
NidStyles's picture

They have zero skills except they take your trash away, mine your coal, run your power plants, fix your cars, farm your food.

You are kidding if you think you guys can automate everything and still survive. 

Wed, 06/25/2014 - 17:52 | 4895387 ENTP
ENTP's picture

Of course not, but those are 20th century skills, not 21st century skills.  20th century skills get you the illusion you are free, when you are really going to be a debt slave.

Wed, 06/25/2014 - 18:21 | 4895480 NidStyles
NidStyles's picture

LMAO! You think you are free because you have some rudimentary computer knowledge that will be obsolete in 10 years?

 

You truly are delusional. If you want free, you better learn how to do some basic stone-age and bronze age era work.

 

Wed, 06/25/2014 - 18:35 | 4895530 ENTP
ENTP's picture

100% agreed.  Big difference if you have both vs. only one set of skills. 

20th Century skills get you survival, 21st century skills get you fiat.  Both are unfortunately necessary and it is very important to know how to convert fiat into real value.

Wed, 06/25/2014 - 16:36 | 4895090 Say What Again
Say What Again's picture

Have you been buying into this rally?

Are you taking all those excess dollars from you paycheck and buying the SP500, or its equivalent?

Wed, 06/25/2014 - 17:14 | 4895239 CarrierWave
CarrierWave's picture

I learned the hard way that academic accomplishments do not translate into being successful as a trader (my job leaves me little time anyway) or even as an investor.

So, I went the lame way with a 'typical' portfolio and rebalancing twice a year on my 401K + investing 70% of my own cash according to one of the most sane (and inexpensive) subscription sites out there - fibtimer.com  . They follow trends, and have a 20 year proven track record. Following them for the past 3+ years paid off nicely. One obviously needs to find his/her own style of investing, and no one method works in all market conditions.

Wed, 06/25/2014 - 16:38 | 4895103 ENTP
ENTP's picture

What I wonder is how are the booming areas thriving?  Are valuations completely distorted by the hunt for any sort of yield and people are taking advantage of ZIRP, taking out debt, bidding up value in something that isn't all that valuable?  When those people realize that even with ZIRP, there is RISK for LOSS OF PRINCIPAL and valuations plumment, what happens?

Wed, 06/25/2014 - 17:07 | 4895207 NOTaREALmerican
NOTaREALmerican's picture

Re:  What I wonder is how are the booming areas thriving?

Booming areas are simply getting more loot because of the people in these areas.   I live in a bucolic college-town in CA.    The University is hemorrhaging loot by way of the Student Lending Real-Estate building scam AND by small start-up companies related to what the University teaches.  The economy for the intelligent people AND the smart-n-savvy people is humming like never before.     It's the worthless trash at the bottom that nobody knows how to deal with.   The "conservatives" and libetarians keep fantasizing they'll disappear, but - for some reason - they just don't.

Wed, 06/25/2014 - 17:14 | 4895238 NidStyles
NidStyles's picture

Debt is not wealth, and it doesn't matter how much you lie to yourself in some vain effort to convince yourself it's real. Those little communities are built on the debt that is owed to those people you wish to demonize. 

 

This is as bad as the Boomers saying they created all the wealth that was actually handed to them on a silver platter.

Wed, 06/25/2014 - 17:18 | 4895260 NOTaREALmerican
NOTaREALmerican's picture

Yes, but you are using a libertarian morality argument here.    Morals have never mattered when it comes to money.   That's why duplicity is the key to success.   We use duplicity to justify bombing the sand-people for the oil and when spending other people's money.  That's why the most duplicitous adults run all societies, to give us an advantage over the dumbasses burdened with morals.

Wed, 06/25/2014 - 18:05 | 4895391 NidStyles
NidStyles's picture

There you go assuming I am using morals, when in reality I am simply not choosing to commit to the course of action where my profession takes care of it's problems in a way that leaves you bloody and dead in your kitchen with a slug in your skull. 

 

You guys in finance and the IT have a rather large chip on your shoulder, and it's not an earned one...

I'm just warning you that there are several hundred thousand people out there just like me that remain peaceful and civil while you run around thinking you're winning in this imaginary game you made up to screw the rest of us. 

Here I will word it like Obama would.

"Let me be clear, my kind will walk on the graves of your kind if you don't straighten your act out and quit trying to screw us with your ass-hattery."

When the shooting starts as you asshats seem to want to push it to that point, it will not be my kind or me dying by the truck load. You kids need to grow up and quit assuming you know about things that it's obvious you don't understand. Survival of the fittest is for animals living within the scope of nature, and let me tell you, your paper games are not natural, but how quickly you will bleed out from a gut shot is. 

You need to quit assuming that we are too weak to do something because we choose to remain peaceful, you are seriously pushing the patience of a lot of very well trained and armed people. 

Wed, 06/25/2014 - 18:17 | 4895472 faroffthunder
faroffthunder's picture

Tread carefully, friendo.

Wed, 06/25/2014 - 18:44 | 4895493 NidStyles
NidStyles's picture

Which is my point exactly. There are several hundred thousand of people like me out there with similar training and experience, and an entire country that either discards them, or ridicules them while sitting in a position of smugness provided by those same people. 

 

Not all of those guys are going to be as considerate and peaceful as I am. 

Wed, 06/25/2014 - 16:39 | 4895107 Der Wille Zur Macht
Der Wille Zur Macht's picture

You are suffering from a rather significant sampling error.

I suggest traveling outside your local domicile and engaging with people from different walks of life as a remedy.

Wed, 06/25/2014 - 16:40 | 4895111 NOTaREALmerican
NOTaREALmerican's picture

You are right.  (I live in Cali too).   There's two separate economies now.   The top 20% or so are doing great,  the bottom 70% (the trash) aren't.   It's simple survival-of-the-fittests.    Those who don't have what it takes are going to lose.

Wed, 06/25/2014 - 16:48 | 4895147 Global Hunter
Global Hunter's picture

I am in the 10% that would otherwise be in the bottom 70% but happens to NOT be trash?  I think...

Wed, 06/25/2014 - 16:51 | 4895159 NOTaREALmerican
NOTaREALmerican's picture

Yeah,  that giant lunch-meat slicer you see going back and forth is getting closer and closer to your ass every day.   Pretty soon it'll carve up the "middle 10%" too.     Survival of the fittest is a bitch when you find out you're just lunch-meat.

Wed, 06/25/2014 - 17:14 | 4895242 Spastica Rex
Spastica Rex's picture

Do any of the trash look like this?

They will.

Wed, 06/25/2014 - 16:46 | 4895138 khakuda
khakuda's picture

I don't think you should be scolded at all. What you wrote is true and a good comment. Not everyone here is a bear, especially when it comes to the private economy. As you state, you Cali folks are creating some knockout products and services. Drug companies are coming up with cures to cancer via immunoncology, fracking has lowered the cost of energy. Tons of good stuff happening in the real world in certain sectors/geographies. These things go on in spite of our goverment "leaders" and their policies and are what makes this country great.

The common thread is a concern that the Fed, Congress and Executive branch have run amok. Not just with the current adminstration, but for many administrations. The debt keeps building to keep things running. Eventually, it gets repaid or defaulted on directly or through inflation, both of which are ugly.

When the Fed goes crazy printing money and leaving rates at zero, some hid in gold, while others leveraged up and bought stocks. Different, but valid, responses to the same concern.

From a stock market standpoint, the market has gone up because real value is being created AND because interest rates are zero and QE continues. Each person has to decide how much of the increase is from real value creation and sustainable and how much is from government manipulation of the value of money. But, it should be obvious to most at this point that the stock market is by FAR outperforming the real economy overall and has been for years. Tread carefully.

Wed, 06/25/2014 - 16:53 | 4895164 Say What Again
Say What Again's picture

I would add to your comment, that @CarrierWave's experience is EXACTLY why the fed should stop their mindless manipulation of interest rates & markets.  If IRs were based on real cost of capital, then capital would flow to successful ventures, such as you've described, and a more healthy economy would follow.  Yellen is actually working at odds with the smart people in the Bay Area!

Wed, 06/25/2014 - 16:59 | 4895183 khakuda
khakuda's picture

Agreed, it's a boom in certain areas.  A bubble repeat of the late 90s certainly can't maximize the long term economic growth the Fed purports to achieve.

Wed, 06/25/2014 - 16:59 | 4895184 NOTaREALmerican
NOTaREALmerican's picture

Well, in theory.   (Of course, it would NOT help the smart-n-savvy people).     And, there's absolutely no way they can just step back and watch a market "correction" wipe-out the top 10%.   That's the delema they've got now.   The top 20%, or so, have a HUGE interest in keeping the current system going at all costs. 

Wed, 06/25/2014 - 17:23 | 4895286 mikeyy266
mikeyy266's picture

Tech Boom - Agreed, but don't get to comfortable with it. I can hire 10 for the price of one over here in Eastern Europe, and much better quality too.  Mark my words, you will be outsourced shortly. 

Ikea - Well US private credit is what, over 40 trillion? I line up to with my credit I never intend to pay back. 

Target - They take credit cards to. 

Brand new cars - now thats just halirous. The US will tern into a car museum once the chinese stop taking the us paper for hard labour. 

The Stock Trend - Defies all logic. None what so every. Nothing. Can't jutify it. Ive tried, can't. Give me one logical reason to buy stocks. Just one. You tech guys have no clue about investing. 

If you had half a brain you would realized that you will get killed in the stock market. You have no crontrol over it. Be it through a stock crash, taxes, computer viruses, whatever. When you buy stocks now, you actually don't even own them. Try asking for a cirtificate and see what happens.

If you had half a brain, not even a full brain, but just half, you would realize that Gold and Silver have been money for a lot longer than stock markets, and us promises.

Let me give you an example. I have 75K in credit card debt. I told the credit card companies that I didn't believe in paying back stolen money. They are now willing to settle on 5 cents on the dollar. 

Now the banks bought that debt for 1 to 1 will settle for 5 cents, trade it to the fed and get 1 for 1. Hmmmm something doesn't add up. I am not the only one either. 

Wed, 06/25/2014 - 17:23 | 4895287 mikeyy266
mikeyy266's picture

Tech Boom - Agreed, but don't get to comfortable with it. I can hire 10 for the price of one over here in Eastern Europe, and much better quality too.  Mark my words, you will be outsourced shortly. 

Ikea - Well US private credit is what, over 40 trillion? I line up to with my credit I never intend to pay back. 

Target - They take credit cards to. 

Brand new cars - now thats just halirous. The US will tern into a car museum once the chinese stop taking the us paper for hard labour. 

The Stock Trend - Defies all logic. None what so every. Nothing. Can't jutify it. Ive tried, can't. Give me one logical reason to buy stocks. Just one. You tech guys have no clue about investing. 

If you had half a brain you would realized that you will get killed in the stock market. You have no crontrol over it. Be it through a stock crash, taxes, computer viruses, whatever. When you buy stocks now, you actually don't even own them. Try asking for a cirtificate and see what happens.

If you had half a brain, not even a full brain, but just half, you would realize that Gold and Silver have been money for a lot longer than stock markets, and us promises.

Let me give you an example. I have 75K in credit card debt. I told the credit card companies that I didn't believe in paying back stolen money. They are now willing to settle on 5 cents on the dollar. 

Now the banks bought that debt for 1 to 1 will settle for 5 cents, trade it to the fed and get 1 for 1. Hmmmm something doesn't add up. I am not the only one either. 

Wed, 06/25/2014 - 18:13 | 4895454 Antifaschistische
Antifaschistische's picture

technology, for hundreds of years has been a pretty good career choice...but this is ZH, and you don't get reprimanded for not understanding the full picture.   ZH understands how the FED induced debt tsunami fuels a plethora of spending from FB stock right down to your DIY IKEA furniture.   The FED fuels the tech sector via mindless margin accounts and millions of investors around the globe who now think they understand how to play the tech sector.   You and I both are in technology....so we benefit from that. yippie!!  But don't dismiss where the recent surge in party cash is coming from.  Look to the FED and the banking industry.  

Wed, 06/25/2014 - 18:21 | 4895488 Mercuryquicksilver
Mercuryquicksilver's picture

Your localized "tech boom" is a tech bubble fed by the same speculators who have over valued the market.

My domestic associates are desperately looking for a place to park their wealth while escaping cash. S&P is overpriced, both commercial (occupied) and residential realestate is overpriced, that only leaves angel and venture for the gamblers.

Inflation is comming home and its hit investment markets. When those pop, then all that extra cash will hit consumers markets.

 

Also, I think its great you have contrarian ZH post.

Wed, 06/25/2014 - 21:54 | 4896263 TheReplacement
TheReplacement's picture

Drive down to San Diego.  Go over to Las Vegas but stay OFF the strip.  It isn't going great in a lot of other places.  If you have been around for a while then you should not be surprised by what you see.  Remember the tech bubble?  At least then a lot more people were doing better and so the country was a bit more resilient to the bust that came.  Today in tech bubble 2 I see a lot less traffic during rush hour.  McMansions are selling but average homes seem to be sitting.  There are more consignment stores and signs stating that "We buy Gold!"  Food costs more AND sizes have shrunk.  A single donut is over a dollar and sometimes they don't even put the creme filling in.  When I moved here donuts cost 50 cents and I had a higher salary.  Checkouts almost everywhere are quicker.  Fastfood joints are now hiring native english speakers.  What happens to the people they've replaced?  Did they find a better opportunity?  Doubt it since their replacements are an improvement.  Are they on the invisible breadline that is so common and growing exponentially along the southern border in the new normal? 

Odds are, poverty is all around you but you aren't seeing it.  Get away from the "it" locations and head out to one of those bankrupt California cities.  Stockton is one I believe.  How is Oakland this time of year?  Get out and walk around the neighborhoods and report how prosperous they are.  I don't blame you.  I was in your shoes once or twice.

The disconnect is even greater for the .1% who are the financial shotcallers.  They are extremely isolated.  Is there any chance you might be able to go to New York and actually see one of the big players outside of any kind of professional setting?  Not unless you are one of them.  They probably couldn't tell you the name of the person who makes their bed or mows their lawn at their first house much less their third. 

Whatsmore is this who show is being run by fiat.  I don't mean currency, rather, I mean how decisions are made and carried out.  The whole country is bending to the benefit of tiny groups of people who just might get a wild hair up there and really do something crazy.  The potential of the collapse we face could be biblical or it could be, well, it doesn't get much worse than that does it?  That is pretty freaking bad to be feeling good about.

Wed, 06/25/2014 - 22:35 | 4896419 malek
malek's picture

Yeah. How about you go to Washington D.C. area and based on observations from there tell us how great everything in the US is doing.

Secondly someone still taking trucks loaded "with brand new cars" as a sign of economic health, in times of flourishing subprime car loans and GM channel stuffing, is completely beyond me.

Wed, 06/25/2014 - 16:20 | 4895033 khakuda
khakuda's picture

Only if the size of the pie is a fixed size.  It isn't.

Wed, 06/25/2014 - 16:25 | 4895052 NOTaREALmerican
NOTaREALmerican's picture

As somebody famous once said:  It doesn't matter what size the pie is, if I control the pie slicer (or something similar to that).

Wed, 06/25/2014 - 16:29 | 4895067 khakuda
khakuda's picture

Your point is correct.  The government controls the pie slicer and it is controlled by special interests, not people trying to create a fair, even playing field.

Wed, 06/25/2014 - 16:33 | 4895080 NOTaREALmerican
NOTaREALmerican's picture

Re:  not people trying to create a fair, even playing field

How could "the nice people" compete with the smart-n-savvy people.   It's just not how life works.  It's the same system here as everywhere else in the world.    Consolidate power,  loot,  FTW! 

Survival of the fittest, bitchez!!!

Wed, 06/25/2014 - 16:38 | 4895104 CH1
CH1's picture

Any playing field that can be "made" anything is a playing field to avoid.

Controlled markets benefit the controllers. Always.

Wed, 06/25/2014 - 19:00 | 4895645 Bemused Observer
Bemused Observer's picture

No, the pie is not a fixed size. But it DOES take time and materials to make another. So if Big Piggy walks off with the whole thing, the ones in line behind him get nothing...
That there will eventually be more pie doesn't make Big Piggy any less of an asshole now.

Wed, 06/25/2014 - 16:46 | 4895139 The Most Intere...
The Most Interesting Frog in the World's picture

Pussy!

Thu, 06/26/2014 - 17:48 | 4895316 Victorio
Victorio's picture

productive class?

Are you sure you're using the proper terminology?

Wed, 06/25/2014 - 16:10 | 4894982 Stoploss
Stoploss's picture

"Money on the sidelines"

Wed, 06/25/2014 - 17:00 | 4895187 disabledvet
disabledvet's picture

yeah no shit.

GOVERNMENT MONEY on the sidelines.
"And here comes ISIS."

strange bedfellows indeed.

if that Giga factory actually gets built "look out." the real hybrid "killer app" is the marrying of the engine technology with the super capacitor.

that's two to three hundred miles per gallon...on a city bus. "good luck competing with that."

they are deploying this technology in Philadelphia on their public rail transit actually.
http://spectrum.ieee.org/energywise/energy/the-smarter-grid/supercapacit...

couldn't pay me to live next to one of those things. Obviously however the Tesla model of "transit" will be the final solution to this problem. as "solar cites" get built out in conjunction with battery electric hybrids that will in fact create the ultimate in grid security and be the end of "grid profiteering" (Enron) pretty much once and for all.

Wed, 06/25/2014 - 16:18 | 4895021 holgerdanske
holgerdanske's picture

"As we 'joked' before the open, "If the complete collapse of the US economy doesn't send the S&P to new all time highs, nothing will.""

 

And yes, that is most likely true. The gains in the stock market is a mirror of the declining value of the Dollar, to come. The stock market has caught on to the fact, that if some idiots have access to the money printing presses, they can buy the whole world, or most of it, before the man in the street catches on to the trick. Then we get BIG inflation, and then we get the run for gold, as they find out they have been conned the whole way.

Look at the stockmarket in Zimbabwe, the best performing market in nominal terms, before the economy imploded.

Take a short cut, drop shares and go straight for gold. That will also be a grab at the jugular of the enslavers at the FED and it might just set you free.

The world order is in free fall, but few have caught on to it.


Wed, 06/25/2014 - 16:07 | 4894951 khakuda
khakuda's picture

Calling it a market is an insult to markets.

Wed, 06/25/2014 - 16:09 | 4894971 Top Gear
Top Gear's picture

A market is just people, right? Well, this is how people work. They compete. Competiton is the core of capitalism. Some win, some lose.

Maybe you're a loser, since you're so peeved about the outcome of the competition.

Wed, 06/25/2014 - 16:13 | 4894999 mayhem_korner
mayhem_korner's picture

 

 

Just like the voting process is democratic.  True as long is there is no - dare we say it - manipulation. 

"Manipulation" is not to be confused with the activity you perform in your sister's closet.

Wed, 06/25/2014 - 16:19 | 4895013 khakuda
khakuda's picture

A free market is very different from one where the price and quatity of money (on which EVERYTHING is priced) is set by central fiat.

Not peeved at all.  Being in the investment business, I've actually been a beneficiary of these "markets", but it doesn't make what is going on right and it doesn't mean it will end well for me or anyone in the game.  Importantly, it is very unfair to people who don't own stocks, bonds or real estate.  They just have to pay ever higher prices for homes, tuition and healthcare with no offsetting asset inflation to compensate them, making a nation of haves and have nots/debt slaves.

I believe in free markets and competition, but this is not that and it is not the right way to run an economy.

Wed, 06/25/2014 - 16:27 | 4895058 NOTaREALmerican
NOTaREALmerican's picture

Manipulation is also competition.    The smart-n-savvy people manipulate for the own (and their DNA's) advantage.  

Wed, 06/25/2014 - 17:17 | 4895257 NidStyles
NidStyles's picture

LOL! That's like me walking around saying only the strong survive and killing everyone else in the room...

I thought you were more evolved than that? Because seriously, if that is the playing field that we are all going to accept I will gladly accept. I thought the whole point of calling oneself civilized was because you left that sort of bahavior where it belongs, in the past. 

 

Like I said, if that's a playing field you want to be on, I will gladly accept it. 

Wed, 06/25/2014 - 17:32 | 4895337 NOTaREALmerican
NOTaREALmerican's picture

Look,  i'm not one of the Elysium class.   I'm just part of the Elysium Management class.   I not smart enough to manipulate the dumbasses, or create all these immorals scams, but I AM smart enough to work for a predator lender to dumbasses.     Some people build nuklar bombs,  some sell tobacco,  some invalid the sandbox, I help sell debt to dumbasses.    

Wed, 06/25/2014 - 18:04 | 4895424 NidStyles
NidStyles's picture

One day you will realize who the real dumbass is...

 

 

Wed, 06/25/2014 - 18:52 | 4895603 Ness.
Ness.'s picture

He's the guy in the con who doesn't realize he's the mark.  

 

Wed, 06/25/2014 - 19:22 | 4895714 Bemused Observer
Bemused Observer's picture

Lol nidstyles!...Why do I get the idea that you are indeed capable of playing by those rules if you must? (I picture a lean, hard survivalist type, with military training..)

Most of the people who claim they want such a playing field have NO CLUE what they are really asking for. Or of the types of folks they'll end up playing with. They talk a tough game, until they get a look at the other team and wish they had brought extra underwear.

Wed, 06/25/2014 - 16:20 | 4895031 Yen Cross
Yen Cross's picture

  "A market is just the Fed., right? Well, this is how the Fed. works".

   There, fixed it for ya...

Wed, 06/25/2014 - 16:45 | 4895136 The Most Intere...
The Most Interesting Frog in the World's picture

Pussy!

Wed, 06/25/2014 - 19:08 | 4895676 Bemused Observer
Bemused Observer's picture

When your fixed market collapses like a cheap lawn chair you'll face some REAL competition...
Folks like you are like a heavyweight who has gotten used to fighting opponents half his size...

Thu, 06/26/2014 - 00:10 | 4896673 Eirik Magnus Larssen
Eirik Magnus Larssen's picture

"I can calculate the movement of the stars but not the madness of men." -- Isaac Newton

Wed, 06/25/2014 - 16:04 | 4894934 Number 156
Number 156's picture

Green is the new red.

Wed, 06/25/2014 - 16:07 | 4894936 HUGE_Gamma
HUGE_Gamma's picture

I don't see any winter headwinds in the economy for at least the next 4 to 5 months.

Wed, 06/25/2014 - 16:26 | 4895056 101 years and c...
101 years and counting's picture

dont worry, el nino will be blamed for q3 and q4 weakness.  before snow in winter destroys q1, 2015.

Wed, 06/25/2014 - 17:01 | 4895194 Obchelli
Obchelli's picture

Yes but there is always hockey sticj recovery next quarter

Wed, 06/25/2014 - 16:05 | 4894939 SethDealer
SethDealer's picture

I told your ass

Wed, 06/25/2014 - 18:21 | 4895487 edifice
edifice's picture

To which my ass replied, "Pffffffttt!"

Wed, 06/25/2014 - 16:05 | 4894941 Wahooo
Wahooo's picture

Wednesday is the new Tuesday.

Wed, 06/25/2014 - 16:10 | 4894972 mayhem_korner
mayhem_korner's picture

 

 

+1 Wimpy meets The Twilight Zone.

Wed, 06/25/2014 - 18:56 | 4895619 Ness.
Ness.'s picture

Every day is Tuesday now!

 

'Cristal for my men, Tuesday's for my horses!'

Wed, 06/25/2014 - 16:05 | 4894944 syntaxterror
syntaxterror's picture

Who cares about data from the past?

Wed, 06/25/2014 - 16:08 | 4894945 ENTP
ENTP's picture

Sure would be sad if all the people who jump up on the BTFD bandwagon every morning, woke up to ES down 25 points one day because Baghdad has fallen or Putin is in Ukraine.  Wonder what happens when ES is down 80 by lunch, keep BTFD?  oh wait....margin calls.

Wed, 06/25/2014 - 17:11 | 4895234 RaceToTheBottom
RaceToTheBottom's picture

Haven't margin calls been outlawed?

Wed, 06/25/2014 - 16:06 | 4894949 mayhem_korner
mayhem_korner's picture

 

 

Wonder if the frog has noticed that it's getting a bit warm in this here pot.

Wed, 06/25/2014 - 16:07 | 4894950 HUGE_Gamma
HUGE_Gamma's picture

dont expect any market moves tomorrow with Team USA playing.. the big rumor out of Brazil right now is that Yellen might show up to ensure a victory.

Wed, 06/25/2014 - 16:20 | 4895034 Winston Churchill
Winston Churchill's picture

Is she going to throw bundles of FRNs at them ?

Otherwise the Braziliains' score will prolly be in the teens.

 

Wed, 06/25/2014 - 16:08 | 4894961 Squid Viscous
Squid Viscous's picture

another 3 handle dip to buy AH, i just loaded up

Wed, 06/25/2014 - 16:09 | 4894962 Rainman
Rainman's picture

I haven't looked for my shocked face for so long I forgot where I put it.

....how much can I get for a slightly used Dow 10K hat on ebay ?

 

Wed, 06/25/2014 - 16:14 | 4895005 mayhem_korner
mayhem_korner's picture

 

 

How about a minty-fresh S&P 10K hat, eh?

Wed, 06/25/2014 - 16:08 | 4894964 BiteMeBO
BiteMeBO's picture

I didn't make any $$ today so I added $5000 onto my checkbook balance.

Wed, 06/25/2014 - 16:10 | 4894968 devo
devo's picture

A lot of printed/digital dollars out there that have to go somewhere.

Bad news = more printing so stocks go up. We've seen this for 5+ years now and know the routine. The bet is now next quarter will be a big surprise and/or they'll increase QE. Funny thing is gold market never gets the message.

Wed, 06/25/2014 - 16:10 | 4894978 jubber
jubber's picture

Is there anyone in the market anymore? feels like it's just the Central banks and Wall Street houses followinga pre determined script, this move today is just utter bollox, but the only likely to stop it I'm afraid now is a Nuclear strike somewhere

Wed, 06/25/2014 - 16:13 | 4894998 ENTP
ENTP's picture

nuke strikes are worth at least a 30 spx jump.  think of all the gdp that will go into clean up and rebuild.

Wed, 06/25/2014 - 16:29 | 4895073 NOTaREALmerican
NOTaREALmerican's picture

There is still 401k loot.  I don't know anybody who is fully in "the market" but I know lots of people who are "staying the course".

Wed, 06/25/2014 - 16:10 | 4894979 khakuda
khakuda's picture

With the Fed's nearly perfect record of bubble creation and failure to recognize bubbles, even as they encourage their creation and growth, is anyone surprised?

Wed, 06/25/2014 - 16:41 | 4895116 moneybots
moneybots's picture

"With the Fed's nearly perfect record of bubble creation and failure to recognize bubbles, even as they encourage their creation and growth, is anyone surprised?"

 

The FED doesn't publicly recognize bubbles, as it does not want the blame for starting a panic.  In private, they know it is a bubble.  Publicly, to baffle with B.S., the FED will point to some ratio and say, see, it is not a bubble, despite all the other indicators screaming that it is.

Market participants hang on every word the FED says.  The day the FED would admit it was a bubble and they are going to do something to stop inflating it, before it gets too large, the Dow would drop a thousand points in a minute and keep on going.  So of coarse, Yellen or any of he other FED members, never publicly see a bubble.

Wed, 06/25/2014 - 16:13 | 4894992 we built this city
we built this city's picture

I wrote earlier that the market will go up today....

Low Gdp means higher PE's but the market ignores everything so far.....

How this will end- everybody knows- when- nobody knows!

Wed, 06/25/2014 - 16:13 | 4894993 we built this city
we built this city's picture

I wrote earlier that the market will go up today....

Low Gdp means higher PE's but the market ignores everything so far.....

How this will end- everybody knows- when- nobody knows!

Wed, 06/25/2014 - 16:27 | 4895057 Squid Viscous
Squid Viscous's picture

does your name reference that horrible Jefferson Starship song from the 80's? sarc?

Wed, 06/25/2014 - 16:13 | 4894997 Goldilocks
Goldilocks's picture

Styx- The grand illusion + lyrics
http://www.youtube.com/watch?v=ZW8TlrYhBxk (4:37)

Wed, 06/25/2014 - 16:14 | 4895003 Bindar Dundat
Bindar Dundat's picture

This time it is different!  All the companies are being bought up by TPTB with public money at ZIRP rates.

 

It's over.

Wed, 06/25/2014 - 16:17 | 4895018 island
island's picture

Bad GDP report -->  The Fed will continue to pump --> Stock Market rise.

Wed, 06/25/2014 - 16:40 | 4895113 machineh
machineh's picture

End-of-month seasonality --> July 4th holiday weekend --> test of S&P 2K

 

Wed, 06/25/2014 - 16:54 | 4895169 spastic_colon
spastic_colon's picture

and GOOG, PCLN, AMZN etc etc pump

Wed, 06/25/2014 - 16:25 | 4895047 buzzsaw99
buzzsaw99's picture

dead cat bounce - lulz

Wed, 06/25/2014 - 16:26 | 4895049 Squid Viscous
Squid Viscous's picture

can't trade looking in rear view mirror, we are on the cusp of an economic boom driven by higher gasoline prices and 11 million on disability

Wed, 06/25/2014 - 16:28 | 4895060 Kurpak
Kurpak's picture

The rigging has gone full retard. Never go full retard.

Wed, 06/25/2014 - 16:29 | 4895064 edifice
edifice's picture

Just wake me as soon as I can don my big, goofy, foam "DOW 20K" cowboy hat.

Wed, 06/25/2014 - 16:34 | 4895082 Cannon Fodder
Cannon Fodder's picture

Actual question: How long can this go on? All these levers being pulled to make the market go up everyday, what are the constraints that will evenutally limit it? Or is this some hyperinflationary scenario where it triples from it's current price?

Wed, 06/25/2014 - 16:44 | 4895131 NOTaREALmerican
NOTaREALmerican's picture

We've never had anything quite like this,  but it's been free money since the 1980's.   The pessimists on here have been waiting for the last 5+ years for the immorality to stop.   The only think that's for certain is that morality doesn't matter.

Wed, 06/25/2014 - 17:17 | 4895258 RaceToTheBottom
RaceToTheBottom's picture

What has been going on since 2009 is very different from the earlier phase you mention.

Wed, 06/25/2014 - 17:26 | 4895300 NOTaREALmerican
NOTaREALmerican's picture

It's just an improvement on the previous scam.   The smart-n-savvy people learn and push the envelope.  We've got OVER the slippery slope of socialism that all the libertarians warned us about for the last 100 years.

Wed, 06/25/2014 - 18:05 | 4895429 RaceToTheBottom
RaceToTheBottom's picture

I think that you should stop calling them smart, maybe something like ethically challenged or something like that

Wed, 06/25/2014 - 16:46 | 4895143 NotApplicable
NotApplicable's picture

How long? As long as you continue to accept dollars as payment for goods and services. That's how long.

Wed, 06/25/2014 - 16:37 | 4895097 orangegeek
orangegeek's picture

just check your pomo reports - that's today's technical analysis

Wed, 06/25/2014 - 16:39 | 4895105 The Axe
The Axe's picture

Crazy. Just. Crazy

Wed, 06/25/2014 - 16:41 | 4895115 The Most Intere...
The Most Interesting Frog in the World's picture

There is no crony capitalism, only crony communism.

Wed, 06/25/2014 - 16:46 | 4895141 NOTaREALmerican
NOTaREALmerican's picture

There is no ISM, except one.   There's only smart-n-savvy people using bullshit to manipulate dumbasses.

The only natural ISM is fascism,  the smart-n-savvy kick the asses of the dumbasses and the dumbasses love the smart-n-savvy for doing it (and some even ask the smart-n-savvy to kick their kid's asses).

Wed, 06/25/2014 - 16:41 | 4895118 Enoch
Enoch's picture

Simple, keep the public pouring in 401K and IRA cash. 

Wed, 06/25/2014 - 16:43 | 4895126 gcjohns1971
gcjohns1971's picture

Stupid question here:

 

Could the FOMC intervene in the market for the purpose of expanding money supply by purchasing short options with newly created money, and then having the Region Banks or Primary Dealers, or Market Makers purchase long contracts on the same issues to cause a short squeeze? 

It seems to me that this would result in very cloaked monetary expansion.  The Designated Long would profit from the short squeeze, and all the profit would be pure inflation.

It would also be like a volleyball spike to any developing market crash so long as the puts were bought sufficiently in advance.

Wed, 06/25/2014 - 22:36 | 4896424 merchantratereview
merchantratereview's picture

Maybe email this suggestion to the fomc?

Wed, 06/25/2014 - 16:45 | 4895133 khakuda
khakuda's picture

delete

Wed, 06/25/2014 - 16:52 | 4895165 assistedliving
assistedliving's picture

who's complacent?  no one on this board, my neighborhood even

my broker's are shitting...BTAFH!! (even tho i aint)

point is until my heart rate drops below 180bpm this market keeps racing...or i get a heart attack

Wed, 06/25/2014 - 16:54 | 4895173 blindman
Wed, 06/25/2014 - 17:03 | 4895200 TabakLover
TabakLover's picture

Got to believe we see Dow 17K by EOD 7/3.  Take the sting out of those holiday gas and beef prices.  After that...........we'll see.

Wed, 06/25/2014 - 17:03 | 4895204 TheRideNeverEnds
TheRideNeverEnds's picture

It must have been the weather.  Now that the weather has cleared its all good from here on out!  I actually read an artivle the other day tying the GM recalls the the weather.  Dame uneven heating of the earths surface! 

Wed, 06/25/2014 - 17:05 | 4895206 Billy Shears
Billy Shears's picture

The machinations/manipulations of the markets have just one object: that is undermining the real economy by dislocating equity prices from the real world assets they represent. Of course, this can go on a long time given the underlying deflationary forces at work, i.e. bad loan portfolios, no net income growth, horrendous demographics, et al. Obviously, this is not sustainable but always increasing share prices have a narcotic-inducing effect that allows the day or reckoning to be put off until, and at such time, the common knowledge phenomena asserts itself. Not fun times! Oh, and I almost forgot, we are doomed but enjoy the ride!

Musical interlude: https://www.youtube.com/watch?v=VlMjdwb6HY0

Wed, 06/25/2014 - 17:05 | 4895208 D Plainview
D Plainview's picture

"You see, I take these glasses off, she looks like a regular person... on, formaldehyde face."

Wed, 06/25/2014 - 17:12 | 4895228 Mr. Saxby
Mr. Saxby's picture

Who could have seen this coming at 845ET?

Who, indeed?:

Wed, 06/25/2014 - 17:29 | 4895317 AdvancingTime
AdvancingTime's picture

This is just more proof the economic recovery that the media and talking heads have been bantering around does not exist and is just a myth. A manipulated stock market distorted by recent economic policy hides and mask the real truth, in many ways it is ground zero in the war to convince us all is well.

The American people and Main Street will tell you they are far from convinced that it is smooth sailing ahead. Huge weakness in the economy has been shown by numbers that barely get by even after record amounts of stimulus. Fact is if QE or the massive government deficit spending that props up our economy is removed it will fold like a cheap umbrella.

Recent changes in how the GDP is figured , which boosted growth thus reducing the debt to growth ratio, and attempts to spin poor numbers regarding employment have been met with skepticism. More on this subject in the article below.

http://brucewilds.blogspot.com/2013/10/myth-of-economic-recovery.html

 

Wed, 06/25/2014 - 17:52 | 4895388 viator
viator's picture

I'm liking it. Buy the SP500 and let the government keep it going forever. Boom schoom. A stock market that only goes up. Who said life isn't wonderful?

Wed, 06/25/2014 - 18:02 | 4895416 It's fine
It's fine's picture

Yea, it reads new. However I'v been on this site every day for 2 plus years following the Tylers. The cat from Sillicon vally or San Fran here's life in the world around metro-detroit. I have a good business refinish and install hardwood floors and I take great pride in what I do, stay busy. Though what I see of people losing homes as investors call on me to do my thing. well the things I see would break your heart. I'v seen a relative lose her house and a few friends. A couple down the street right now fighting off eviction. Yea, you may have it good and people around you with full shoping carts, but here its called survival. Stats dont lie my friend. Repo man comes for many. Live it up friend live it up. Jobs around here are gone good jobs tool makers, die makers, anything in automotive has gone down nearly 60 percent from the good days. Hard working folks who had pride and dignity are lost. Live it up friend live it up Walk in their shoes for a day friend and stats don't lie.

Wed, 06/25/2014 - 18:02 | 4895417 It's fine
It's fine's picture

Yea, it reads new. However I'v been on this site every day for 2 plus years following the Tylers. The cat from Sillicon vally or San Fran here's life in the world around metro-detroit. I have a good business refinish and install hardwood floors and I take great pride in what I do, stay busy. Though what I see of people losing homes as investors call on me to do my thing. well the things I see would break your heart. I'v seen a relative lose her house and a few friends. A couple down the street right now fighting off eviction. Yea, you may have it good and people around you with full shoping carts, but here its called survival. Stats dont lie my friend. Repo man comes for many. Live it up friend live it up. Jobs around here are gone good jobs tool makers, die makers, anything in automotive has gone down nearly 60 percent from the good days. Hard working folks who had pride and dignity are lost. Live it up friend live it up Walk in their shoes for a day friend and stats don't lie.

Wed, 06/25/2014 - 22:30 | 4896400 eworrall
eworrall's picture

equities are pricing in US$ devaluation/hyperinflation? bad news justs brings this event closer?

Wed, 06/25/2014 - 22:30 | 4896401 eworrall
eworrall's picture

equities are pricing in US$ devaluation/hyperinflation? bad news justs brings this event closer?

Wed, 06/25/2014 - 22:41 | 4896402 merchantratereview
merchantratereview's picture

Sometimes I get confused. It looks on the (s&p "most shorted") chart like shorts did ok, made profit.

At least the early ones.

Thu, 06/26/2014 - 02:44 | 4896861 Jano
Jano's picture

At least something knocks USSA down.

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