Russell 2000 Gloom, Camera-on-a-Stick Doom, Bond Yields Boom

Tyler Durden's picture

For the 5th month in a row, US treasury bonds started with a 2-day sell-off as yields rose arond 6bps today (back to unch from FOMC). Gold, silver, and copper all gained notably (despite a knee-jerk lower on the ADP data). The US Dollar jumped instantly on the ADP print then flatlined for the rest of the day but USDJPY pushed higher. However, stocks chose to ignore their ubiquitous drivers - VIX was slammed lower (stocks ignored it) and USDJPY surged (stocks ignored it) as early weakness in Trannies was overtaken by Russell 2000 losses as the S&P and Dow flatlined in a very narrow range. Shortly after the US markets opened, credit markets diverged notably from equity markets (but caught up into the close). VIX closed lower. The Dow had its narrowest range since Dec - funny what happens when there's no $190 billion repo injection, eh? The S&P and Dow closed marginally green at new record highs.

Perhaps Art Cashin summed it up best - good news is indeed bad news...

"I find it fascinating we're all sitting here worried about prosperity breaking out."

Early weakness in Trannies; extended weakness in Russell - S&P and Dow clung to record highs..


Which left the Russell almost unch for the month...


10Y rates rose back to FOMC levels (with S&P +2% still) as USDJPY also surged...


So stocks ignored USDJPY and also ignored VIX best efforts...


Credit and stocks diverged at the US open but credit rallied back towards the close...


The Dow had its narrowest range since Dec - has tended to signal a short-term turn...


10Y rates are back to breakeven from the FOMC (and 30Y above)


FX Markets were quiet with the main action at the ADP print (USD bid)...


Copper surged on the day as the CCFD unwinds continue to squeeze shorts and unwind hedges. Gold and silver also jumped off the knee-jerk snap lower from ADP...


Gold was slammed on the ADP print and again into the European close...


All we have to say is WWJSD?


Charts: Bloomberg

Bonus Chart: Camera-on-a-stick tumbles 17% from its highs...

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NOTaREALmerican's picture

If it goes up too high it'll poke a hole in the bottom of the Hindenburg Omen!  

Say What Again's picture

There was something funny about the close today.

Most of the day was as boring as it can get, low volume, etc., but all of the volatility indexes were creeping higher.  Then in the last minute or so, we get massively high readings in all of the TICK indexes. 


The market is such a value, that everyone wants to get in at this level?

hedgeless_horseman's picture




The market is such a value, that everyone wants to get in at this level?

It should be obvious.  Someone leaked some bad news.  Stock indices pop like that, it could be something really bad, like plague, war, pestilence.  You know, the traditional drivers of stock prices.  Maybe a deflationary monster has left Japan and is headed across the Pacific to attack Los Angeles.

Say What Again's picture

I think J Siegel might be right about the DOW, but not because the economy is that good.  ALL of the central bankers are pulling out the stops and printing even moar than before.

Also, I keep track of the various volatility ratios, such as VIN/VIF, VIX/VXV, etc. and ALL of them were pointing at a lower close.  Someone is working real hard to prop up this POS!

Keltner Channel Surf's picture

Regarding volatility, while the Russell of late has been closely tracking inversely with its vol measure, today the R2K traced a relentless, shallow-sloped diagonal descent (the work of a periodic sawtooth algo visible on the 2-min chart), while the RVX traced a “U” pattern, selling off before rising steadily after 1:30.  Wonder if someone was shorting Russell vol in the morning (as opposed to unwinding a hedge) perhaps anticipating a breakout above the March highs (?)

lotsoffun's picture

jamie dimon has 90% chance.  there - i did it.  i got ugly.  good thing he's smarter and richer then me.  i wish him and his family the best, and maybe - they will wish that upon the rest of us someday also.


buzzsaw99's picture

Bang Dae-Ho (bang the close)

frankTHE COIN's picture

I saw it also. Rightly or wrongly somebody acted like they knew something and expected a burst of Violence tomorrow.

Godisanhftbot's picture

 Tim sykes issued a buy signal based on his years of pimping dvd's

buzzsaw99's picture

siegel = jalapeno on a schtick

Rainman's picture

Dow 20k means I only need to change out one digit on my crusty 4 year old hat . I'll have Mrs. Rainman get right on it.

Godisanhftbot's picture

 has anyone here made two cents from any of the advice proffered, offered, excreted?



i_call_you_my_base's picture

Please point out the advice offered in this article.

RhoneGSM's picture

Want advice? Subscribe to a newsletter. ZH is for gathering information. You decide what if anything to do with it.

Rainman's picture

" Now is a great time to buy stawks " ...Obomba

            March 2009

max2205's picture

That's what made me not buy then....

disabledvet's picture

Too bad for you then.

Gold had a beautiful double top and then got totally incinerated. Something about "making the cabbage but not paying any taxes on it" though seems to be a problem. Especially now that it's game time on World War Z.

How did Ozzie Osborne's opening to Crazy Train go?

"ALL ABOARD!" I think.

lotsoffun's picture

what was that again?  'you can remain irrational longer then the FED can remain insolvent?'  something like that, help me.


SkySavage's picture

I remember that do we wait for the top call from Barry as well?