USDJPY Surge Sends Dow To New Record Highs

Tyler Durden's picture


Surprise... following the worst week for stocks in months (and "most-shorted" stocks biggest down week in 2 years), one is hardly surprised that someone decided the investing public needs some confidence-boosting. VIX was slammed, "most shorted" stocks squeezed higher and all on the back of a USDJPY spike and surge based on absolutely no news whatsoever... Meanwhile, as stocks surge and gold collapses, Treasury yields are up (wait for it) 1bps...

New record high for the Dow...


as any post-payrolls reality check is dismissed...


Thank you JPY...


And Treasuries do not seem excited about all the growthiness.../


Who could have seen this coming?

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Mon, 07/14/2014 - 10:02 | 4955245 PAPA ROACH
PAPA ROACH's picture

And Obama plays golf-     a rare clip of obama playing golf-

Mon, 07/14/2014 - 10:04 | 4955255 thunderchief
thunderchief's picture

Tora Tora.

Keep flying low with the sun to your backs.

It worked out great for them in the early 1940's.

Mon, 07/14/2014 - 10:20 | 4955308 dead hobo
dead hobo's picture

Woo Hoo!! Time to buy me some stocks! I'm going to get rich. Then I'll go out rent me a nice place so I can get out of my dad's basement. See yu later, suckers.

Mon, 07/14/2014 - 10:42 | 4955342 lordylord
lordylord's picture

In markets that are based on absolute belief in State propaganda, it is dangerous to have opposing opinions.  Negative sentiments about the economy or the State might land you in jail someday.  I'm not kidding. 

Mon, 07/14/2014 - 10:38 | 4955351 lordylord
lordylord's picture

"And Obama plays golf-

Like I always said, the more time Obama spends on the golf course, the less damage he can do to the country. 


But deep down, I know Obama is a puppet and the NWO plan is moving full steam ahead.

Mon, 07/14/2014 - 10:05 | 4955256 Sudden Debt
Sudden Debt's picture

It's just adjusting to real inflation. It's actually behind the curve.

Mon, 07/14/2014 - 10:07 | 4955260 buzzsaw99
buzzsaw99's picture

You got to never, never, never stop
Never, never
Slide it up...

[/start me up]

Mon, 07/14/2014 - 10:16 | 4955283 Caviar Emptor
Caviar Emptor's picture

Actually, it's adjusting to RE-flation, in other words the paper value of paper has increased relative to paper.
Meanwhile back in the real world the economy withers

Mon, 07/14/2014 - 10:10 | 4955265 q99x2
q99x2's picture

BTFD. It is a software program.

Mon, 07/14/2014 - 10:11 | 4955269 Caviar Emptor
Caviar Emptor's picture

Hay La Hay La! The Bull is back

Mon, 07/14/2014 - 10:13 | 4955277 jubber
jubber's picture

Russell has dropped 10 handles since the open, looks like people taking this opportunity to sell?

Mon, 07/14/2014 - 12:37 | 4955281 SillySalesmanQu...
SillySalesmanQuestion's picture

Daily levitation almost complete... Market booster rocket separation in 3, 2, 1...

Mon, 07/14/2014 - 10:27 | 4955282 First There Is ...
First There Is A Mountain's picture

USD/JPY wedging tightly on a daily and weekly timeframe. Hate to say it but this looks like massive bull flag which, by nature, will resolve with explosive move higher.....

Mon, 07/14/2014 - 10:17 | 4955293 IridiumRebel
IridiumRebel's picture


Mon, 07/14/2014 - 10:18 | 4955295 LawsofPhysics
LawsofPhysics's picture

Go ahead raise rates Janet, I double dog dare you...

Mon, 07/14/2014 - 10:18 | 4955298 101 years and c...
101 years and counting's picture

shocker.  a bank in tiny portugal didnt actually send the world over the cliff.  i cant help but wonder if tyler(s) are a bunch of over dramatic women?  omg, stocks down .5%, the crash is on.  rofl!!!

Mon, 07/14/2014 - 10:40 | 4955365 Squid Viscous
Squid Viscous's picture

keep buying, genius

Mon, 07/14/2014 - 10:18 | 4955300 jubber
jubber's picture

DXY turns red

Mon, 07/14/2014 - 10:23 | 4955321 Hohum
Hohum's picture

Odd, though, how the S & P is up, what, 7% YTD and USDJPY is more or less flat.

Mon, 07/14/2014 - 10:38 | 4955347 GooseShtepping Moron
GooseShtepping Moron's picture

You know, I've watched the DOW fatten itself up by about 10,000 points since I became old enough to pay attention to such things - a greater nominal gain than it added in its first 110 years put together. And on what, exactly? Is the American economy up 60% in the last 16 years? Are we really producing 60% more than we were in 1998? Of course not. If you look at power consumption, oil consumption, miles driven, and unemployment we're actually producing less, hedonically adjusted or no; and this is with 45 million more people than we had back then.

The long term view really puts the bubble into perspective. Ultimately this entire thing has been the result of the expansion of the monetary base and the savviness of connected traders and banks. You could make an argument that the tech boom really did add some productive capacity to the economy, but I still maintain the now unpopular notion that the entire IT revolution was the result of a one-off wealth effect caused by the sheer numbers of the Baby Boom generation. The internet will succumb to the same entropic malaise that is claiming the rest of the nation's infrastructure. If we don't have the capital to repair aging roads, bridges, water systems and electrical grids, we certainly won't have the capital to repair and replace millions of miles of fiber optic cable and multiple energy-intensive server banks. The information economy grows on the substrate of the physical economy, and the physical economy is in bad shape.

The wealth of the now ascendant Baby Boomers is not merely some free-floating quantity of purchasing power that may actualize itself anywhere, like the collapse of the wave function causes an electron to appear in a definite location. It is already "actualized" as it were, stored up in the present order of society: in the great suburban build-out, in the various capital markets and their legal architecture, in the enforcement of contractual obligations (which requires its own sort of order and force), and in the muliiple interdependent systems which transmit mass, energy, and entropy through the economy. When these systems start to lose their moorings and break apart, they will take the "wealth" of the world with them.

As has been pointed out by others here lately, the DOW is just a number until somebody sells. And when many people start selling, we will find out just how unrepresentative of the underlying reality that number was.

Mon, 07/14/2014 - 11:52 | 4955624 The Most Intere...
The Most Interesting Frog in the World's picture

The type of "wealth" that has been built is all an illusion. There is no NET new wealth in the US. Check out the trade deficits we have been running for decades. Hey, you lose your job, you put everything on a credit card, you keep it together for a while, then you get slammed in the face with a sledgehammer.

The baby boomers hold the assets, everyone else the debt in the form of consumer and deferred tax debts. A lucky few will inherit the assets their parents accumulated, everybody will inherit the debt the baby boomers plan to leave behind.

Mon, 07/14/2014 - 10:50 | 4955404 slaughterer
slaughterer's picture

Boner charts in all speculative high P/E QQQ trashola: AMZN, NFLX, TSLA, etc.  Guess the ZH bears are margined out on their shorts and getting the full-on squeeze.  

Sincerely, your friend at the Fed, Kev' 

Mon, 07/14/2014 - 11:43 | 4955584 Keltner Channel Surf
Keltner Channel Surf's picture

Even so, the fact that the Russell, despite a strong open has:  a) retraced much more than normal pre-10:30;  b) has yet to blast up to the upper channel for which my handle is named; -- indicates: a)  there may be a bit more pre-Yellen trepidation than we imagined (e.g., her colleagues talked her into mild "complacency" comments, convincing her if she doesn't we risk 18,000 DOW rocket shot followed by an August crash); b) this puppy just might roll over post-1:00 p.m. to a tepid up day, or even (gasp) unch.

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