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Post-European Close Buying-Panic Lifts Dow Green For 2014

Tyler Durden's picture




 

Despite European weakness, US equity investors decided bailing out BES with taxpayer money means BTFD. As soon as Europe closed, VIX was monkey-hammered lower and stocks took off, first running today's stops, then Friday's highs, then pressing all major indices into the green for August. Notably, "most shorted" stocks were sold hard early on and that provided the ammo for the bounce. VIX was clubbed over 2 vols lower back under 15 as EURJPY became all the fun-durr-mentals stocks needed to surge. Treasury yields rose as stocks rose but 10Y ended the day -0.5bps (30Y +1.5bps). The USD flatlined as modest EUR weakness was offset by GBP/AUD strength. PMs slipped lower as oil and copper gained. Credit markets rallied along with VIX. The Dow closed unch for 2014.

 

Stocks back into the green for August...

 

and Lifted the Dow green for 2014...

 

But US stocks remain red from Thursday's European close - when BES news started to leak...

 

As "most shorted" stocks were squeezed as Europe closed...

 

VIX and Stocks...

 

EURJPY and Stocks...

 

Treasuries ended unch in general weakennig after Europe closed...

 

Commity markets were split with oil and copper gaining but PMs lagging (driven by weakness at the European close)

 

Charts: Bloomberg

 

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Mon, 08/04/2014 - 16:07 | 5045385 Jannn
Jannn's picture
Chinese Gold Demand 1063 MT YTD

Total Chinese Reserves Reach 15,000 Tonnes

https://www.bullionstar.com/article/chinese%20gold%20demand%201063%20mt%...

Mon, 08/04/2014 - 16:09 | 5045417 zorba THE GREEK
zorba THE GREEK's picture

Central Bank engineered BS. 

Mon, 08/04/2014 - 16:14 | 5045459 nosoeawe
nosoeawe's picture

you mean zero hedge engineered. as soon as the first negative market commentary came out this morning the algos bought the market immediately afterwards. 

zero hedge is the ultimate contrarian indicator. 

Mon, 08/04/2014 - 17:13 | 5045855 stocktivity
stocktivity's picture

It's all Bullshit!!!

Mon, 08/04/2014 - 16:14 | 5045467 TabakLover
TabakLover's picture

My feeling is short any pop at the open tomorrow.......the slide ain't over.

Mon, 08/04/2014 - 16:50 | 5045727 Keltner Channel Surf
Keltner Channel Surf's picture

Agreed.  The only caveat is if a gap open is large enough, institutional sellers may wait until the 20 DMAs in a few of the indices to re-sell.

Today’s session seemed more ‘postmodern’ than “post-European”, with a fair amount of pastiche, irony, hyper-reality, and a lack of an overarching narrative – more Robert Coover than James Joyce …

Mon, 08/04/2014 - 19:13 | 5046393 gatorengineer
gatorengineer's picture

todays session was nothing but a good old fashioned short squeeze...

Mon, 08/04/2014 - 16:18 | 5045498 Bloppy
Bloppy's picture

Note the late aapl sell-off. Cramer & CNBC spent all day calling the bottom.

Elsewhere: is Hannity next to be blacklisted from UK?

http://tinyurl.com/nsrz8ao


Mon, 08/04/2014 - 16:35 | 5045635 Sudden Debt
Sudden Debt's picture

Oh yeah... And taper is a fact....

Mon, 08/04/2014 - 16:53 | 5045748 CHX
CHX's picture

Your taxpayer $s hard at work with the PPT.

Mon, 08/04/2014 - 17:01 | 5045785 MH17FLIGHT
MH17FLIGHT's picture

My last pay check was $9500 working 12 hours a week online. My sisters friend has been averaging 15k for months now and she works about 20 hours a week. I can't believe how easy it was once I tried it out. This is what I do... http://goo.gl/bhiamE

Mon, 08/04/2014 - 17:52 | 5046078 Sudden Debt
Sudden Debt's picture

After reading 6 lines in you disclosure, it seems you charge people 3,6 dollars a day after a 7 day "trial" without a easy exit.

Now what is that about? That's fraud you know?
You pray on people in trouble and have no problem ripping them off even more?
What are you?

Mon, 08/04/2014 - 17:52 | 5046080 dogfish
dogfish's picture

Your sister has no gag reflex.

Mon, 08/04/2014 - 20:11 | 5046669 Moe Howard
Moe Howard's picture

Peddling your sister online - it doesn't get much worse than that.

Mon, 08/04/2014 - 17:56 | 5046101 kill switch
kill switch's picture

 

The only thing lifting stocks is the corporates borrowing money to buy back their own stocks..let's cut he shit here.... and Yellen

Mon, 08/04/2014 - 18:36 | 5046261 ali-ali-al-qomfri
ali-ali-al-qomfri's picture

monkey-hammered, i love that term, its so befitting to describe something as being wildly pounded with crazy psycho animal ferver; screaming monkey noises echo all round, 'Cheetah' is on meth.

Mon, 08/04/2014 - 18:42 | 5046280 monopoly
monopoly's picture

This is all so absurd. Rod Serling from the Twilight Zone would really be impressed with the insanity of our markets.

Truly this is all from the "Twilight Zone."

Mon, 08/04/2014 - 18:57 | 5046323 Mentaliusanything
Mentaliusanything's picture

My that "Escalated" quickly !!

OH and where is my Bonus chart, so I can see where I've been.

It's giving me a good chuckle watching the deck chairs move around

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