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Volume-Slump, Gold-Dump And Short-Squeeze Double-Pump Lifts Dow To Intraday Record High
On the heels of Friday's late melt-up, futures opened quietly on Sunday before ramping dramatically higher as Europe opened (which also saw Gold monkey-hammered lower) and then one again as US opened (along with another gold smackdown). In both cases, USDJPY was the 'igniter' of momentum. After last week's best (worst) week for "most shorted" stocks, the US open saw them instantly ramped higher and then again another squeeze pump into the EU close. Notably, the Russell dropped over 0.5% from its opening print as it appears all the buying power occurred in that early short squeeze pump. Shortly after 3ET, AAPL started to fade and then VIX pushed higher (as "most shorted" stocks started accelerating lower). By the close the Dow had lost its record highs, Russell was down 2.65% for July, Gold (and silver) were whacked 2.4% (worst in 2014), oil closed up modestly, USD unch (JPY -0.25%), and Treasury yields only +2-3bps. S&P futures volume ended 30% below average.
The S&P remains marginally green post-payrolls (and notably the ramps in stocks occurred at the EUR and US opens)...
Notably this was all driven by two Squeeze pumps in "Most Shorted" stocks
Lifting the Dow to Record highs (briefly)... Deja vu all over again...?
Thanks to USDJPY
And VIX initial pump
But once that initial pump had faded, it appears the sellers had the upper hand... (this is performance post 0931ET)
And Utilities, Financials, and Homebuilders were the most sold from the open...
For July, the Russell 2000 remains the big laggard...
Bonds are not so exuberant about the growth hopes...
The USD ended the day unchanged but notably JPY weakness was offset by some modest EUR strength...
Treasuries were hardly ramapaging higher as stocks hit new highs..
But the main story was Gold (and silver) - which were whacked lower...
With major volume dumps at the EU open and US open... but nbotably GHold bounced off its 100DMA
Charts: Bloomberg
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Retail-baiting triple-digit headline aside, yet another abysmally shitty trading day -- no sustained moves, even minor jogs immediately retraced, little Johnny gets all excited ‘bout a big open and shoots his whole wad by 10:30, day’s range tighter than a duck’s rump, afternoon flatline longer than Methuselah’s EKG, another VIX-snorting, slug-race derby. They called that a “rally”? More like a balloon trapped inside a sarcophagus. (“Oh, boo-hoo, we can’t buy ‘cause Janet might cough, can’t sell ‘cause she might sneeze, boo-fucking-hoo, gotta lay off more traders, sniff-sniff”)
Hey, big investment houses: remember when your cheap lunchtime algos written by interns could completely fuck half the position-holders? Can you recall when you actually controlled things? Oh -- you do, huh? That’s good … cuz none of us can, you impotent wussies. Just give all your computers to the pre-schoolers, ‘cause you sure ain’t usin’ ‘em !
(Whew ! I feel better now, and can sign out of my IB account without smashing the keyboard again …)
Well written. That actually made me feel better too.
Anyone notice this headline:
Ukraine and Russia edge closer to war amid accusations of cross-border attackshttp://www.telegraph.co.uk/news/worldnews/europe/ukraine/10967316/Ukraine-and-Russia-edge-closer-to-war-amid-accusations-of-cross-border-attacks.html
BULLISH! BTFATH or BTFWWIII - either way I win
"They" will pump the Russel when they run out of other shit to pump. Slaughterer ES Price Target 2090. Be reasonable ZH bears and capitulate and cover. Otherwise have our ass handed to you like that idiot ZH crony Biedermann.
Washington/Wall Street be whistlin' through the graveyard.
buy every day and go away.
I still have my front row seat to the freak show and am enjoying the propaganda
This is the feeling you get when you have paid to see a movie that's billed as a "disaster flick".
You sit there for and hour and half and don't see any action as the soppy-bad-acting personal stories of the 200 future victims are played out, scene after monotanous scene.
The film has 15 minutes left, and you are mad as hell, but just can't get up from the seat and leave because you know that the tidal wave / comet / asteroid is fixing to blow everything sky high, cause that was what you saw in the preview.
Fraud. Rinse. Repeat. Fraud. Rinse. Repeat. Fraud. Rinse. Repeat.
Eat. Sleap. Rig. Repeat. Eat. Sleap. Rig. Repeat.
I as wondering when someone would talk about the increase in shorts...
The E.Z. has made shorting "illegal" before...
thoughts?
"illegal"...that's what they do on the daily.
Spreads are too wide and the us economy has a huge production boom that has been well underway for over 5 years. The theory that there isn't massive speculation in the gold markets...as with all other commodity markets (cough, cough Coffee cough,cough) can be laid to rest now.
Long the means of production.
Don't talk to me about shorting. I am still short CYNK. Fucking Tyler found me in Yahoo Finance too.
If you were wanting some phyzz last week and waited after the big week silver had then stack a little phyzz today and wait for more shenangins tomorrow or later in the week. Get 10 ounces and then chill.
BTFD again in 10 ounces if they whack the PM's even lower again this week. Then wait.
BTFD slowly in small amounts and keep adding to your stack. Nothing wrong with that and if it goes down further, do it again. If they let it run up again then wait because we're going to continue seeing these hit-jobs all the way to the end.
No matter what even if they hadn't whacked silver today it would still be a great buy because it was still below the avg. cost of production which is being said to be somewhere between 23 to 26 per ounce.
It's been this way for several years. I believe that silver is the by-product of numerous mining operations making caluculating of such numbers very difficult. I have have mining engineers tell me anything from less than a dollar to twelve dollars an ounce. Who the fuck knows.
Google "lucky strike mine" and Hecla. Production has doubled in just one year as new drilling techniques for shale oil equates to new drilling techniques for mining (in this case silver.)
I don't think were heading for an outright price collapse as is well underway in Europe and has been underway in Japan going on thirty years...but its hard to see any of this speculation as "unsusceptible" to correction.
In short "keep it cheap, keep it to yourself."
Can't we all just click our heels together and say "there's not place like home, there's not place like home...."
Gawd I long for the days when metals were higher, and yet goods were cheaper.
Tomorrow: Yellen vs. the data. Data up to bat first.
Q2 GDP tomorow?
I give up.
In layman's terms: "WHAT THE FUCK?"
Be happy that they keep slamming PM's. The dollar is fundamentally a piece of worthless paper, so they keep giving you the chance to turn in that worthless paper for something of value.
You can also buy other "real" things with that paper but if you buy financial assets demoninated in dollars that won't help. You can buy land, but they'll tax you to death. You can buy canned food but it won't last forever. You can buy ammo if you can find any. You can buy quality hand-tools and other such things for barter later on, but how many can you store?
Bottom line, unless they've come up with a way to make gold out of other elements, buy a little for a rainy day.