• Knave Dave
    05/23/2016 - 18:16
    This past Thursday marked the one-year anniversary of the US stock market’s death when stocks saw their last high. Market bulls have spent a year looking like the walking dead. They’ve...


Tyler Durden's picture


In awfully familiar sense of deja vu, at 1300ET on the dot, "most shorted" stocks were ignited into a vertical short squeeze by a rampfest in AUDJPY... the only problem... credit markets are not playing along... Trannies are the best performers (almost back to unch) with Russell lagging (though ramping most aggressively).




Driven by a Short squeeze...


Thanks to AUDJPY...


But credit ain't buying it...


Charts: Bloomberg

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Mon, 07/21/2014 - 13:44 | 4984400 1stepcloser
1stepcloser's picture

if anyone is interested:


UBS E-TRACS ISE Solid State Drive ETN (SSDD)

 - 27.78  0.54(1.91%) Jun 3 - Nasdaq Real Time Price

Mon, 07/21/2014 - 14:02 | 4984490 El Oregonian
El Oregonian's picture

Is this the only game? If the players refuse to play then what is it then called? There is only ONE sure thing and that is physical ownership. Period.

Mon, 07/21/2014 - 14:54 | 4984724 Monty Burns
Monty Burns's picture

Slightly off topic....but nothing seems to have transpired from all that wierd numerology stuff from Christine LeGards.  Yesterday was the day.

Mon, 07/21/2014 - 13:46 | 4984406 NOTW777
NOTW777's picture

aka the KNDI GLUU PLUG market

Mon, 07/21/2014 - 13:47 | 4984411 101 years and c...
101 years and counting's picture

the next few weeks are going to be gut wrenching for bulls.  a massively horrifying correction of 10% is about to kick in.  

Mon, 07/21/2014 - 13:52 | 4984440 rccalhoun
rccalhoun's picture

the lack of a meaningful correction is what should be worrying those that are in this market

Mon, 07/21/2014 - 14:02 | 4984487 PT
PT's picture


"Where did all the muppets put their money?"
"Okay then, make sure that black comes up."

"Where did all the muppets put their money?"
"Roughly equally distributed between red and black."
"That's why we have the greens."


Mon, 07/21/2014 - 14:11 | 4984519 Eyeroller
Eyeroller's picture

IF a correction reaches 10%, it won't stop there.

Muppets who have been used to VIX at 11 all summer (except for a few blips up) would absolutely panic.

Once 7% down, all would head for the exits thinking the Piper had come to collect.

Mon, 07/21/2014 - 14:22 | 4984570 Bossman1967
Bossman1967's picture

they appearently wont let that happen untill they are ready then 10 percent will be a dream number. 10 is a correction that the markets need. we are way beyond that

Mon, 07/21/2014 - 13:50 | 4984424 Carpenter1
Carpenter1's picture

10% is not horrifying. The 80% crash will be horrifying. You can't correct an abomination like this, it needs to die

Mon, 07/21/2014 - 13:50 | 4984426 gjp
gjp's picture

why is it a problem that credit isn't playing along?  it hasn't played along for the whole freaking rally and it's hardly been a problem.

more generally, it's all assets up, bonds stocks art horses, you name it.  don't think TPTB see any problems here ...

Mon, 07/21/2014 - 13:51 | 4984434 fonzannoon
fonzannoon's picture

"credit not playing along" = yields stay low


this is a problem?

Mon, 07/21/2014 - 13:56 | 4984456 gjp
gjp's picture

exactly ... since hyperfinancialization started (aka the beginning of easy al), bonds and stocks are both up massively.

who says they have to move contrary?

Mon, 07/21/2014 - 13:59 | 4984476 CrashisOptimistic
CrashisOptimistic's picture

Bonds have been up 30 years.  Yields have been falling that long -- way before any of the QE silliness.

Yields fall when there is no growth.  Japan is down south of 1%.  We have a long way to go.

Mon, 07/21/2014 - 14:01 | 4984484 fonzannoon
fonzannoon's picture

right, but lower yields makes it possible to enable deficit spending etc. Lower yields is credit playing along. Higher yields either means growth, or lack of faith in the currency. Whether it's actual growth (not gonna happen) or lack of faith in the currency, higher yields = death. 

Mon, 07/21/2014 - 14:56 | 4984725 Al Huxley
Al Huxley's picture

Once the yields are negative, all problems will be solved as the government will be able to pay down the debt by increasing the debt.  I'm amazed it took until 2014 to figure that out - they should have been paying negative interest back in the 1940's post WWII. 


I bet the whole fucking depression of the 30s could have been avoided with negative yielding debt.  Think of the fucking surplus if the govt had been paying negative yields for 70 years - we'd have a death star by now.

Mon, 07/21/2014 - 16:12 | 4985031 disabledvet
disabledvet's picture

We had no plan for an invasion of Russia I the 1930's or 40's (even though after World War I we did occupy parts of it actually.)

I cant say we have a plan now to do that...but we do have "Dortmund" down pretty good.

I think it is purely delusional right now to believe that the USA and Russia...and Russia and the USA...are not in fact at war with one another.

I'll let the so called experts explain to me "the Middle East."

Mon, 07/21/2014 - 13:52 | 4984443 prudent1nvestor
Mon, 07/21/2014 - 14:25 | 4984577 Bossman1967
Bossman1967's picture

did George Soros say to do that? then I will

Mon, 07/21/2014 - 14:42 | 4984654 daveO
daveO's picture

Same story, different year. 25% short interest, already.


Mon, 07/21/2014 - 13:53 | 4984444 madbraz
madbraz's picture

Not coincidentally all triggered by reverse repo at 13:00.  Good job, NY FED - feed your owners.

Mon, 07/21/2014 - 13:55 | 4984445 medium giraffe
medium giraffe's picture

A 5 pip rampfest? Damn, I missed out on that one...

Mon, 07/21/2014 - 13:55 | 4984459 coulous
coulous's picture

Who could put a term of this daily insanity ramp ?

Please, quickly !!

Mon, 07/21/2014 - 13:58 | 4984471 caShOnlY
caShOnlY's picture

when my co-workers are conversing about the "FED's planned wealth effect" with this market and cheering like its 1999, I want to vomit right there and then.   I can't take it anymore, shoe shiners are now giving market advice.

Mon, 07/21/2014 - 14:12 | 4984523 Tjeff1
Tjeff1's picture

There may not be a significant correction until the dollar is not the reserve currency.   This may take a few years to come to fruitition

Mon, 07/21/2014 - 14:14 | 4984541 nink
nink's picture

It ain't over kiddies we got zirp and nirp to go yet  double down on #7


Mon, 07/21/2014 - 14:51 | 4984707 Al Huxley
Al Huxley's picture

Even the piggy miners are rebounding.  There's nowhere left to lose money in the market.

Mon, 07/21/2014 - 16:15 | 4985042 disabledvet
disabledvet's picture

Only if you're short or a hedge fund.

Mon, 07/21/2014 - 14:59 | 4984741 Keltner Channel Surf
Keltner Channel Surf's picture

Though our video age craves a narrative (“stocks shrug off global issues, rebound from morning losses”), this was a simple case of lower volume as news events were monitored coupled with a key (and, apparently, recently hedgie-shorted) index starting near its 200 DMA, namely the Russell.  As big players work more off of daily charts, it often takes several attempts to break through such a key MA, both coming and going (check April & May’s action for reference.)  Yes, some is machine short-goosing, but more is due to clever souls who shorted at the 50 or 20 DMA, or higher, taking interim profits (e.g., buying to cover).  The annoying lesson is:  markets trade purely technically, unless news events are strong enough to knock the train off the tracks.  Now, will overnight event risk mute the last hour?

Mon, 07/21/2014 - 14:59 | 4984746 dracos_ghost
dracos_ghost's picture

So if the shorts stop shorting, the market will go down?

Mon, 07/21/2014 - 15:05 | 4984770 Amish Hacker
Amish Hacker's picture

Years from now, someone will look at those charts and think, "What the hell were they thinking? Those idiots in 2014 must have been blind!"

Mon, 07/21/2014 - 15:51 | 4984943 ThirteenthFloor
ThirteenthFloor's picture

Shorts squeezed for 1-2 hours particularly on Financials.  Smells like ESF loading currencies to swing markets.

DJI really peaked Dec '00 (18359 in '14 dollars, at bogus inflation %). Real US economy died in '08 now living on FRB/ESF oxygen. Bottom line, administration is using stock idx's as another propaganda stream to convince masses everything is ok, meanwhile making some $$.  When that oxygen is really cut...look out.

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