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Stocks Shrug At Global Disorder, Squeezed Back To Record Highs

Tyler Durden's picture




 

Just imagine how high stocks would be if more jets were shot down in Ukraine, more ground operations were unleashed in Gaza, more sanctions were placed on global growth, more European and US macro data disappointed, more job cuts at major firms, and more European banks declared bankruptcy. Today's farcical Friday surge (with the Nasdaq up 2% from its overnight lows and 30 point rip in the S&P) appears 100% based on the squeezing of "most shorted" stocks (best day in over a month) and the ramping of AUDJPY.  Credit markets ignored the idiocy; Treasury markets ignored it; The USD went nowhere (after EUR dumped on Italy downgrade then recovered). Gold, Silver, and Copper all closed down 2-3% on the week (given back yesterday's gains) as Oil surged 2.2%. VIX dropped over 2 vols to close with a 12-handle (but disconnected notably from stocks at the close). It's not all ponies and unicorns though - Biotechs are down 5% from Yellen's comments and the Russell 2000 closed red for the 2nd week in a row (and still -1% year-to-date). Best Dow Friday in 5 months (up 11 in a row).

 

 

What Jet shot down? What Israel incursion? Stocks scrambled up to unch from the Ukraine headlines...

 

Quite a run off the lows...

 

On the week, The Russell was the biggest loser... and Trannies got the all-clear from Yellen...

 

A marketwide squeeze lifted stocks back near record highs...

 

And AUDJPY provided the ignition...

 

VIX was actively helping early on but disconnected notably into OPEX

 

Credit markets were not buying it...

 

Nor did bonds...

 

And Treasuries do not appear to have bought bacxk into the growth meme...

 

Commodities were mixed this week with Copper, Gold, and Silver losing their gains and closing oddly toghether down around 2-3% as Oil surged over 2%...

 

What Italy GDP downgrade?

 

What was going on in VXX today? huge volume spikes...?

 

Charts: Bloomberg

 

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Fri, 07/18/2014 - 16:05 | 4975118 bunzbunzbunz
bunzbunzbunz's picture

Google listed bitcoin as a currency...get some free now while the price is still in consolidation: http://freebitco.in/?r=25727

Fri, 07/18/2014 - 16:05 | 4975122 flacon
flacon's picture

What the fuck with these ads on ZH?! AdBlock doesn't even get rid of them! I'm sick of looking at that "BOIL" - it disgusts me. 

Anyway, S&P has been up SIX MONTHS in a row! That's very, very rare.  

Fri, 07/18/2014 - 16:10 | 4975146 Thought Processor
Thought Processor's picture

 

 

Phew, that was close.

 

I was beginning to doubt the ramp algorythms there for a minute.   

 

 

Fri, 07/18/2014 - 16:30 | 4975217 aVileRat
aVileRat's picture

How many times has Gaza led to world war 3, let alone a kinetic response from Iran or even Lebanon for that matter? What I thought.

How many times has an embargo against the USSR or Iran effected domestic energy production or OECD purchasing habits. Anyone who depends on Russia is excempt from the ire of Putina, and thus gives no fucks about the conflict since their pact is with Igor.

Do you really think Putina will continue to risk social unrest by pushing the Donetsk conflict given Russia is looking at weak grain yields and is reliant on food/hard currency imports moving into the fuel sales season ? (August to October?). The shirtless one can't even manage without a Mercedes, the hard fact is Russia is running low on cards to play this round given the BRIC reliance on hard currency / technology transfers to offset domestic problems.

Tyler has demonstrated excellent news tracking on the story (well ahead of the bro's at Warner and FOX) but the situation is unlikely to move ahead. Esp if one asks the tough question of Who's launchers were used.

Gaza, like the Golan is an impossible urban cesspit to hold. The best Bibi can hope to do is finally police the zone, and end Hamas racketeering/smuggling which will bring foreign capital and jobs back to the Gaza-proper. Bring back the wages, and 80% of the bomb-kiddies will find 87 Virgins a dumb idea vs. a engineering degree. I suspect that is the long term plan for this Operation.

 

 

 

 

Fri, 07/18/2014 - 23:28 | 4976368 allgoodmen
allgoodmen's picture

Ordinary things like refinery fires or even unscheduled maintenance will launch gas prices into orbit, amazing that shooting wars cause no changes.

Fri, 07/18/2014 - 16:20 | 4975165 crazybob369
crazybob369's picture

I agree. Plus, they make my browser freeze up every 15 minutes, or so. Just charge us a couple of bucks a month and get rid of that shit. Work it the same way as with free apps; the cheap bastards could keep it that way and get the ads, the rest of us could pay and browse ad free.

Fri, 07/18/2014 - 16:28 | 4975221 OMG
OMG's picture

Install Do Not Track Me no more ads!

Fri, 07/18/2014 - 16:32 | 4975239 flacon
flacon's picture

Thanks. I'll give it a try! 

Fri, 07/18/2014 - 17:22 | 4975293 flacon
flacon's picture

DoNotTrackMe didn't work for me for Chrome. What worked for me was Ghostery.

Edit: See "Yen Cross" post below. There is a way to do block the ad with AdBlock by right-clicking on the ad and selecting the "AdBlock" from the menu.  

Fri, 07/18/2014 - 17:24 | 4975408 OMG
OMG's picture

You will have to tweak the advanced settings in Chrome, for it to kick ads asses.

 

Fri, 07/18/2014 - 19:03 | 4975687 Greenskeeper_Carl
Greenskeeper_Carl's picture

I'd get rid of chrome. I'll never use them or IE again. Download Firefox and then install ghostery with it, trust me, you'll like it a lot better. I've said this before, but I've come to this sight with the blocking function off before, and ghostery found 74 trackers loaded. BY FAR the most I've ever seen on any website. The Tyler's may bash google and all the rest of them and their spy ware and NSA cooperation, but they will sure as shit take their money.

Fri, 07/18/2014 - 16:30 | 4975231 Baby Eating Dingo22
Baby Eating Dingo22's picture

That's a boil?

I thought it was a wrecked rectum

Fri, 07/18/2014 - 16:40 | 4975264 dtwn
dtwn's picture

Use Ghostery.

Fri, 07/18/2014 - 16:44 | 4975289 flacon
flacon's picture

Ah thanks man! That one worked for me for Chrome. DoNotTrackMe didn't work. 

Fri, 07/18/2014 - 16:49 | 4975314 Yen Cross
Yen Cross's picture

 @ Flacon. I'm doing this once, and only once. 

  Firefox 30. download. Adblock Edge 2.1.3 download.

  Adblock edge > open from Firefox addons

  Adblock Edge opened. click filter preferences.  A box will open giving you (2) choices. Click custom filter box. These are your custom filters. (custom ad blockers)

  Back to square (1) Hover your mouse over the ad and right click. In the menu Adblock Edge will appear and give you filtering options. Use the options that suits your needs and close.

  If you "FUCK -UP" as I have on multiple occasions. You can go back to custom filters and delete your "fuck-up". I learned the hard way.

Fri, 07/18/2014 - 17:20 | 4975395 flacon
flacon's picture

That was a handy tip. Thanks!

Fri, 07/18/2014 - 16:05 | 4975120 Ewtman
Ewtman's picture

Record highs for now... but not for long. Money Market funds are signaling an imminent reversal.

 

http://www.globaldeflationnews.com/retail-money-market-funds-signal-reve...

Fri, 07/18/2014 - 16:42 | 4975282 Quinvarius
Quinvarius's picture

Another plank in the argument that this turkey is going down. 

Fri, 07/18/2014 - 16:07 | 4975131 TheRideNeverEnds
TheRideNeverEnds's picture

"If you like your asset bubble, you can keep your asset bubble, period."

-B. Obama

Fri, 07/18/2014 - 16:09 | 4975135 jubber
jubber's picture

that has to be the sickest rally in history, I'm only surprised the Dow wasn't up 298 points, one for every poor bastard that died on that flight.

Fri, 07/18/2014 - 16:08 | 4975137 khakuda
khakuda's picture

Janet "call me bubbles" Yellen must be beaming.

Fri, 07/18/2014 - 16:26 | 4975213 orangegeek
orangegeek's picture

yellen may have a good weekend, but the bitch is cornered and it knows it

Fri, 07/18/2014 - 16:11 | 4975147 Shizzmoney
Shizzmoney's picture

War = moar printing = good for markets

The DOW will be up after a nuke gets detonated, for christ's sake

Fri, 07/18/2014 - 16:10 | 4975150 Racer
Racer's picture

Computers (and that's virtually all that's involved in this 'market') do not care about mutilated murdered bodies

Fri, 07/18/2014 - 16:11 | 4975153 SheepDog-One
SheepDog-One's picture

The news of the prince has not affected finances.

Fri, 07/18/2014 - 16:20 | 4975193 knukles
knukles's picture

Sa-weeeeeeeeeeet!

Fri, 07/18/2014 - 16:11 | 4975155 hugovanderbubble
hugovanderbubble's picture

Easy showing 10 charts thats share THE FREAKING RIGGED MARKET WORLD WE ARE LIVING IN. 

 

LONG LIVE ZEROHEDGE

 

Fri, 07/18/2014 - 16:16 | 4975176 crazybob369
crazybob369's picture

With the FED busy tapering (cough, cough) shouldn't they be running out of money to prop up the equities markets and shoot down the PM's?

Fri, 07/18/2014 - 16:21 | 4975195 TabakLover
TabakLover's picture

Holding some SPY puts over the weekend............just got a feeling today was BS on ice.

Fri, 07/18/2014 - 19:14 | 4975707 Greenskeeper_Carl
Greenskeeper_Carl's picture

I had an IRA that was all S&P index. I dumped it all at SP 1894, and got all of my contribution money out of it, everything I could without paying a txt penalty. Some of the money is now in gold miners, some of it's just sitting there not doing anything, but I did buy some SPXS a couple weeks ago. Looked smart for a little bit, but now I'm down about 5-6%. Haven't learned my lesson about not fighting the fed I guess. It's just mind boggling how they could possibly finish a week like this one in the green.
Edit- good luck with your puts, I don't mess with options. You are definetely right that this week was BS on ice, but these past several years have been as well, so next week will quite probably be more BS.

Fri, 07/18/2014 - 16:20 | 4975198 GrinandBearit
GrinandBearit's picture

Never had a doubt.  Too bad I don't trade anymore.  All you have to do is buy every dip... you'll make a fortune.  Better yet... go long and ignore any/all selloffs.

Algos are programmed to not let the market drop more than -150 points for more than 1-2 days.

Fri, 07/18/2014 - 16:31 | 4975233 you enjoy myself
you enjoy myself's picture

you know, sarcastic comments like "i bet this market ramps up with the start of WWIII" used to be just that - sarcastic.  i'm at a loss for words.

Fri, 07/18/2014 - 16:32 | 4975238 MrButtoMcFarty
MrButtoMcFarty's picture

Just imagine if there were no Muslims, Jews, or Christians....

Fri, 07/18/2014 - 16:42 | 4975275 NOTaREALmerican
NOTaREALmerican's picture

Religions are just common bullshit.   As the human brain is designed to believe bullshit, there's got to be religion.   Bullshit is what makes humans, human.   We won't have true AI until the machines can create bullshit.  

Fri, 07/18/2014 - 18:15 | 4975563 nosoeawe
nosoeawe's picture

Governments are just common bullshit. As the human brain is designed to believe bullshit, there's got to be governments. Following the big eared jihadist in chief is what makes dumb americans, dumb americans. We won't have true freedom until the people quit believing in bullshit.

Fri, 07/18/2014 - 19:16 | 4975727 Greenskeeper_Carl
Greenskeeper_Carl's picture

You guys can both be right at the same time, just sayin...

Fri, 07/18/2014 - 16:42 | 4975285 magnumpk
magnumpk's picture

It's not like the Central Banks can just print money and give it to the elites.  They have to get it to them by buying equities.  

Fri, 07/18/2014 - 16:57 | 4975339 rsnoble
rsnoble's picture

The boomerang market pulls one out of it's ass again. Big surprised. And perfectly timed for friday as well.

Fri, 07/18/2014 - 16:59 | 4975347 Peak Finance
Peak Finance's picture

NOTHING WILL POP THIS BITCH!!!

It is 100% clear that this will end in hyperinflation

I know we debated this endlessly like 3 years ago, and the "hyperinflationists" kinda "lost" causethings settled down, but it's clear now that the next phase is soon

1) Reserve currency under attack

2) US Banking controls pissing everyone off

3) New BRICS Banks / IMF being pushed out of developing countires

4) Energy deals cut in foreign currencies

5) Relentless PM supression

6) They can't even taper QE the tinest bit,  fake taper slack taken up by "belgium" buying

7) Inflation jumped massively this year in food, fuel, electricty

8) Upward wage pressure with take center stage this year, as there are pushes to raise minimum wages + new union contracts to force up wages in Cali, and I think mass

It's time to re-open this debate hopefully with people much smarter than me weigning-in with articles and opening debates. 

Fri, 07/18/2014 - 17:03 | 4975355 rsnoble
rsnoble's picture

In fact based on odds were all fucking idiots for not issuing a strong buy call for a bounce today.  

Fri, 07/18/2014 - 18:34 | 4975617 PiP4PiP
PiP4PiP's picture

there will be no summer break bitchezz

- yours VXX

Fri, 07/18/2014 - 19:38 | 4975700 Hohum
Hohum's picture

Let's take a step back:  since 1982, the nominal Dow has risen about 1600%.  Nominal GDP maybe 400%.  Stock markets haven't had much to do with reality for decades, long before the Fed went full retard.

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