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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Headbanger's picture

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


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

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...

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.

Beam Me Up Scotty's picture

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

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?....

buzzsaw99's picture

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

Sudden Debt's picture

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

viahj's picture

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

Spitzer's picture

The USSR always blamed the weather

LawsofPhysics's picture

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


Dr. Engali's picture

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

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.

stant's picture

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

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.

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.

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.

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.

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.  

coulous's picture

US GDP 2014 = because snow and polar vortex

Japanese GDP 2014 = because Neoguri Thyphoon vortex

Sudden Debt's picture

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

SoDamnMad's picture

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

Sell Mortimer, Sell

buzzsaw99's picture

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

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...


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.

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...

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'.

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.

jbvtme's picture's not sickness you should feel, but shame

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.

Cattender's picture

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

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? 

TabakLover's picture

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

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

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."

LawsofPhysics's picture

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

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.

asking4it2k's picture

A great exit strategy is buying gold and silver.

stant's picture

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

SheepDog-One's picture


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.

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. 

valley chick's picture

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

timmeh's picture

with an intraday recovery to green!