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Stocks, Bond Yields, & USDJPY Are Tumbling

Tyler Durden's picture




 

Every US equity index is now in the red post-"great" jobs report on Thursday. Bond yields have plunged and stocks have caught down to that weakness. USDJPY appears the main culprit for now as chatter of JPY repatriation over Super-Typhoon concerns sends USDJPY back to 101.50 and below all key technical levels. Whocouldanode that stock exuberance last week was over-done? On a side note, it's small caps that are getting slammed from yesterday's opening... and it's Tuesday!!

 

Stocks catch down to bond yields...

 

And USDJPY is driving...

 

 

as every US equity market has now given up its Jobs gains...

 

And small caps are getting slammed...

 

Charts: Bloomberg

 

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Tue, 07/08/2014 - 09:52 | 4935077 buzzsaw99
buzzsaw99's picture

transitory

Tue, 07/08/2014 - 09:55 | 4935092 Headbanger
Headbanger's picture

Let's all sing along with Obozo's favorite tune to make it all nappy happy joy joy !!

http://www.youtube.com/watch?v=jfNajFYPljQ&list=RDjfNajFYPljQ#t=18

 

As I said before,  The """market""" has just broken below the support of the two peaks seen last month

Tue, 07/08/2014 - 09:55 | 4935100 buzzsaw99
buzzsaw99's picture

a blast from the past:

Many of the transitory factors that held back growth in the first half will subside, said Lockhart in his interview on Bloomberg TV. Further, the Fed's highly accommodative monetary policy will help set the scene for stronger growth—somewhere in the neighborhood of 3 percent...

Tue, 07/08/2014 - 09:59 | 4935115 LawsofPhysics
LawsofPhysics's picture

"Many of the transitory factors that held back growth in the first half will subside," -- Indeed, complete bullshit, unless thousands of fusion reactors are coming online of course.  The infinite growth meme in a closed system with finite resources...  ...good luck with that.

Tue, 07/08/2014 - 10:33 | 4935219 Beam Me Up Scotty
Beam Me Up Scotty's picture

Their will probably be some fusion reactions that happen.  Just not in a reactor.

Tue, 07/08/2014 - 10:13 | 4935158 BLOTTO
BLOTTO's picture

When the walls come tumblin' down
When the walls come crumblin' crumblin'
When the walls come tumblin' tumblin' down...Mellencamp

.

Anyone have some 'line and a match to speed up the process?....

Tue, 07/08/2014 - 10:15 | 4935165 buzzsaw99
buzzsaw99's picture

Second best is what you get
'Til you learn to bend the rules...

Tue, 07/08/2014 - 09:51 | 4935078 max2205
max2205's picture

Trade weather

Tue, 07/08/2014 - 10:01 | 4935120 Sudden Debt
Sudden Debt's picture

The sea lions left in San Fransisco. The last time they left... it was more than just a weather problem...

Tue, 07/08/2014 - 10:07 | 4935138 Headbanger
Headbanger's picture

Yep.  They got word from the dolphins :

http://www.youtube.com/watch?v=jc6aufHz-i0

 

 

Tue, 07/08/2014 - 10:36 | 4935237 viahj
viahj's picture

"So long and thanks for all the [radioactive] fish!"

Tue, 07/08/2014 - 10:30 | 4935211 Spitzer
Spitzer's picture

The USSR always blamed the weather

Tue, 07/08/2014 - 09:51 | 4935080 LawsofPhysics
LawsofPhysics's picture

but, but... ...the Fed is going to "raise rates"?!?!

(LMFAO!)

Tue, 07/08/2014 - 10:06 | 4935134 Dr. Engali
Dr. Engali's picture

Yeah and El presidente Zero is going to start acting for the benefit of the country too.

Tue, 07/08/2014 - 10:11 | 4935152 Headbanger
Headbanger's picture

Nope.  The Fed MUST raise rates now to prevent the dollar from being worthless.

And El Presidente will be removed from office soon by impeachment or a military coup.

Tue, 07/08/2014 - 10:18 | 4935177 stant
stant's picture

Maybe they will send to a gm plant to test drive a few cars.

Tue, 07/08/2014 - 10:19 | 4935184 LawsofPhysics
LawsofPhysics's picture

Please, look at the rates in the E.Z., you tell me, is the Euro "worthless"?  I think not.  Rates will go lower.

Tue, 07/08/2014 - 10:31 | 4935215 Headbanger
Headbanger's picture

But the Euro ISN'T the global currency which the U.S. dollar is so the Euro value isn't threatened by losing that status.

So the Fed must raise rates to help maintain the dollar's standing as global currency.

Tue, 07/08/2014 - 11:59 | 4935364 LawsofPhysics
LawsofPhysics's picture

The FRN will lose it reserve status, but if you want american oil, coal, or natural gas, you will still need dollars.  Plenty of time for this to play out.  Please, energy companies in America have not been nationalized (like the BRIICs) yet.

Tue, 07/08/2014 - 10:18 | 4935174 asking4it2k
asking4it2k's picture

We all know they cant raise rates without an economic collapse. They will just keep lying and the media will spin it.

Tue, 07/08/2014 - 09:52 | 4935084 101 years and c...
101 years and counting's picture

tiny pomo today and even smaller on thursday.  none on weds or fri.  it seems printing less and less is having an effect.  

Tue, 07/08/2014 - 09:53 | 4935090 coulous
coulous's picture

US GDP 2014 = because snow and polar vortex

Japanese GDP 2014 = because Neoguri Thyphoon vortex

Tue, 07/08/2014 - 09:54 | 4935093 NDXTrader
NDXTrader's picture

Buy signal

Tue, 07/08/2014 - 09:54 | 4935094 Sudden Debt
Sudden Debt's picture

no problem, just go into gold and silver for safety!

Tue, 07/08/2014 - 09:57 | 4935107 dow2000
dow2000's picture

Meh...Barbaric relics

Tue, 07/08/2014 - 09:56 | 4935101 SoDamnMad
SoDamnMad's picture

The doors ar elocked. The doors are locked. We can't get out/ What do we do?

Sell Mortimer, Sell

Tue, 07/08/2014 - 09:59 | 4935112 buzzsaw99
buzzsaw99's picture

The way is shut. It was made by those who are dead, and the dead keep it... [/Tolkien]

Tue, 07/08/2014 - 09:56 | 4935103 LawsofPhysics
LawsofPhysics's picture

Job gains you say?  The retiring baby boomers don't give a shit about "job gains".  They want to maintain their lifestyles, period.  Since the fixed income market and savers have been destroyed, you better keep those dividends coming...

 

Tue, 07/08/2014 - 10:03 | 4935126 greatbeard
greatbeard's picture

>> They want to maintain their lifestyles,

If keeping a roof over your head and food on the table is lifestyle, I agree.

Tue, 07/08/2014 - 10:13 | 4935155 LawsofPhysics
LawsofPhysics's picture

A "lifestyle" is what it is...  that's why I said "period".  lifestyles, like "results" can vary.

same as it ever was...

Tue, 07/08/2014 - 09:57 | 4935109 Dr. Engali
Dr. Engali's picture

I was watching CNBS this morning (yeah I know I'm a sick bastard) and Liarman was going on about how these job numbers are historic in nature. Sometimes I wonder if he believes his own bullshit, or if he knows he has no credibility and just parrots the official 'truth'.

Tue, 07/08/2014 - 10:04 | 4935128 Spastica Rex
Spastica Rex's picture

When/if the herd ever decides that it's really time to leave the pen, the gate will already have been closed.

Tue, 07/08/2014 - 10:27 | 4935200 jbvtme
jbvtme's picture

doc...it's not sickness you should feel, but shame

Tue, 07/08/2014 - 11:21 | 4935397 Dr. Engali
Dr. Engali's picture

Yeah there's that too.

Tue, 07/08/2014 - 10:00 | 4935113 Cattender
Cattender's picture

i bet the Economy is as Bad as i think it is... theyll say Recession. i'll say Depression. the stockmarket BS is going end some day.

Tue, 07/08/2014 - 11:27 | 4935430 Cattender
Cattender's picture

the whole Dog and Pony show on Wall St is so FAKE it's Amazing how many people refuse to SEE!

Tue, 07/08/2014 - 10:01 | 4935118 replaceme
replaceme's picture

I remember having to modify tabes to handle local currency conversions, after Zimbabwe had their 'difficulties'... As long as we have room for the digits, they'll keep printing.  It worked out for Zimbabwe, right? 

Tue, 07/08/2014 - 10:03 | 4935125 foodstampbarry
foodstampbarry's picture

Noise.

Tue, 07/08/2014 - 10:05 | 4935129 TabakLover
TabakLover's picture

"Great" NFP the top?   .............  old WS adage: bull markets end on good news, not bad.   Hmmmmmmmmm.

Tue, 07/08/2014 - 10:05 | 4935131 Kaiser Sousa
Kaiser Sousa's picture

right now only 11 million shares r being handed back and forth on the fraudulent Dow...

"What’s happening here? How can the stock market rise year after year if trading volume is down? It’s very simple, but I’ll explain this new phenomenon in a moment. First, look at the chart of the S&P 500 below. Pay close attention to the volume at the bottom of the chart. As volume on the S&P 500 collapsed, the price of the index rose.

S&P 500 Large Cap Index Chart

Chart courtesy of www.StockCharts.com

Volume is collapsing because the number of shares companies have outstanding is being reduced at an accelerated rate. For example, in the first quarter of 2014, S&P 500 companies purchased $154.5 billion worth of their shares back (stock buyback programs). Over the trailing 12 months, S&P 500 companies purchased more than half-a-trillion-dollars worth of their own shares—$535.2 billion to be exact. (Source: FactSet, June 18, 2014.)

Add to the shrinking number of shares outstanding the fact that central banks have also been buying equities (see “Guess Who Is Pushing the Stock Market Higher Now”), and the number of shares to buy (supply) has really been sucked up.

Dear reader, we have a dire situation at hand. Companies on the key stock indices are buying back their shares in bulk (to make per-share earnings look better), and central banks are buying stocks because they don’t want to miss out on the returns. As this happens, “retail” investors are forced to bid prices higher as there is only a limited number of shares that can be traded. What do you get as a result of this? Rising key stock indices.

But when we look past the smoke and mirrors, we quickly see the fundamentals that drive the key stock indices like the S&P 500 higher are deteriorating; corporate earnings and revenues simply aren’t growing. Any investment analyst knows the key to a healthy stock market is rising volume (rising demand), not falling volume.

As interest rates start to rise, S&P 500 companies will not be able to offset lower earnings with stock buybacks because they will be paying more interest on the money they need to borrow to buy their stock back. Higher interest rates will also change the environment for central bankers and what they do with their money.

The risk in the stock market remains elevated. And all the hype aside, the Dow Jones Industrial Average is up only three percent for 2014—a gain that can be easily erased."

http://www.profitconfidential.com/stock-market/so-this-is-why-stocks-are...

Tue, 07/08/2014 - 10:14 | 4935160 LawsofPhysics
LawsofPhysics's picture

"As interest rates start to rise"---  LMFAO!!  NOT. GOING. TO. HAPPEN.

Tue, 07/08/2014 - 10:17 | 4935168 replaceme
replaceme's picture

I just skimmed that, so "Buy"?  

Sorry, but it's the only game in town right until the point it's not.  If you have a good exit strategy, you can be king.  Please share an exit strategy.

Tue, 07/08/2014 - 10:25 | 4935194 asking4it2k
asking4it2k's picture

A great exit strategy is buying gold and silver.

Tue, 07/08/2014 - 10:13 | 4935141 stant
stant's picture

Let's crank up some skynard , Tuesday gone in the wind

Tue, 07/08/2014 - 10:09 | 4935144 SheepDog-One
SheepDog-One's picture

DAMN YOU WEATHER!!

Tue, 07/08/2014 - 10:13 | 4935156 foodstampbarry
Tue, 07/08/2014 - 10:15 | 4935164 Bernoulli
Bernoulli's picture

Way too much "trading" still going on for my taste.

I wanna see the day where NOBODY buys anymore! Minus 1% is BORING! Bring on a minus 10% day or a minus 20% day.

Tue, 07/08/2014 - 10:28 | 4935205 Hindenburg...Oh Man
Hindenburg...Oh Man's picture

don't hold your breath. there are entities within the establishment that will buy to ensure there are no significant losses. 

Tue, 07/08/2014 - 10:30 | 4935209 valley chick
valley chick's picture

Wake me up even if it is a 1% correction....zzzzz

Tue, 07/08/2014 - 11:00 | 4935308 timmeh
timmeh's picture

with an intraday recovery to green!

Tue, 07/08/2014 - 10:17 | 4935173 Hindenburg...Oh Man
Hindenburg...Oh Man's picture

 stocks not recovering but gold ass-hammered on Jolts report

Tue, 07/08/2014 - 10:23 | 4935191 Zeptemberalevin
Zeptemberalevin's picture

this economy is officially in a recession. tick tock....

Tue, 07/08/2014 - 10:32 | 4935218 Al Huxley
Al Huxley's picture

I'm just hoping they halt trading for a few hours and give everybody a chance to calm down.

Tue, 07/08/2014 - 10:43 | 4935254 timmeh
timmeh's picture

but... it's Tuesday...

Tue, 07/08/2014 - 10:54 | 4935295 Market Rage
Market Rage's picture

Interesting that today's focus is on supporting /ES.  Puts are going crazy and my TOS platform is seizing up.  It's all good though, right?

Tue, 07/08/2014 - 11:04 | 4935321 GFORCE
GFORCE's picture

2 day pullback then new highs into the weekend off FOMC.

Tue, 07/08/2014 - 11:32 | 4935452 ThisIsBob
ThisIsBob's picture

When they stare into a crystal ball and tell you what is going to happen, we laugh.  When they stare into a pile of numbers and tell you what's going to happen we take them seriously.

Tue, 07/08/2014 - 13:17 | 4935881 Chuck Knoblauch
Chuck Knoblauch's picture

I would like to see an article on PUTS being purchased.

Could someone be a dear and make it so?

Thanks.

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