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Dow Surges To Best Friday Since January Amid Geopolitical Chaos

Tyler Durden's picture




 

NATO threats to Russia - storm in a teacup. ISIS and Iraq airstrikes - transitory. Israel-Hamas un-cease-fire - fuggetabaadit. This was the week to buy stocks... the riskiest, most overvalued growth-oriented stocks. GDP downgrades - no sweat. Russell 2000 surges to its best week in the last 8 (up 1.5%) while Trannies closed lower for the 2nd week in a row - the first time in 6 months. The Russell rallied perfectly up to its 50-day moving-average. S&P, Dow, and Nasdaq scrambled back to around unch on the week on the back of a tweet and a 4-day-old piece of news... bonds and FX did not. Gold closed the week up 1.3%, back over $1,310 (but silver closed down 1.8%). Oil ended modestly lower (as did copper). Treasury yields saw safe-haven buying and fell 5-7bps on the week (but well off the week's lows -15bps). "Most shorted" stocks rose 1.3% today - best in almost 4 weeks (and biggest weekly squeeze in 2 months).

 

And this is what happened after cash markets closed...

 

This was The Dow's best Friday since January (up 12 of last 14 weeks).

 

Quite a week for stocks...

 

But it seems geopolitical risk is a BTFWWIII opportunity... (notice the afterhours dump as cash closed though)

 

As "Most shorted" stocks got the treatment once again (squeezed on EVERY open)

 

EURJPY was in charge for most of the day but even that gave up when stocks went full bulltard...

 

And VIX gave up on stocks too... (though did get slammed into the close on the 4-day-old news...)

 

Stocks have it all fuigured out but bonds remain less excited...

 

 

Treasury yields ended the week lower.. but bonds sold off as equities rallied this afternoon...

 

Gold ended the week higher, silver lower and oil down...

 

 

Charts: Bloomberg

Bonus Chart: TKMR exploded on Ebola news...

 

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Fri, 08/08/2014 - 16:07 | 5067231 SHEEPFUKKER
SHEEPFUKKER's picture

I'm speechless....please send teleprompter. 

Fri, 08/08/2014 - 16:08 | 5067241 Say What Again
Say What Again's picture

So the market participants are telling us that they think the world is in a better place today than last week.

Fri, 08/08/2014 - 16:09 | 5067244 Slave
Slave's picture

Duh

Fri, 08/08/2014 - 16:13 | 5067276 wallstreetapost...
wallstreetaposteriori's picture

Algo led short covering rally.....  

Fri, 08/08/2014 - 16:28 | 5067348 Squid Viscous
Squid Viscous's picture

thanks for the cliff notes, you should start a fund

Fri, 08/08/2014 - 16:30 | 5067357 Say What Again
Say What Again's picture

I *was* impressed that deep analysis

Fri, 08/08/2014 - 16:33 | 5067372 TeamDepends
TeamDepends's picture

Cheers to the PPT!!!  Raise your hand if it's HH (happy hour) where you are!

Fri, 08/08/2014 - 16:38 | 5067395 Wait What
Wait What's picture

5% corrections are all that are allowed during QE. get used to it.

Fri, 08/08/2014 - 17:05 | 5067487 gh0atrider
gh0atrider's picture

We are seeing strong correlation across risk assets and further compression of yields.  It is therefore gh0atrider's recommendation that you buy Bitcoin.

Fri, 08/08/2014 - 18:01 | 5067713 wallstreetapost...
wallstreetaposteriori's picture

fuck off foneystar.

Fri, 08/08/2014 - 18:53 | 5067917 gh0atrider
gh0atrider's picture

Do you think gh0atrider is just some Canadian douchebag you can ignore?

Fri, 08/08/2014 - 16:48 | 5067350 Quus Ant
Quus Ant's picture

So the market participants are telling us that they think the world is in a better place today than last week.

no.  They're telling us a new revenue stream is coming on line. 

Line up at the trough, boys, it's suppatime.

Fri, 08/08/2014 - 18:06 | 5067729 Squid Viscous
Squid Viscous's picture

exactly market sentiment was super bullish until 4:00 pm and 05 seconds, then they had second thoughts...but anyone with 8/8 weekly puts got fucked good, lather rinse repeat... see you next week

Fri, 08/08/2014 - 16:14 | 5067279 Bloppy
Bloppy's picture

Boobs beat bombs anyday:

http://tinyurl.com/pyzyxm7

 

LOCO beats sanity, buy MOAR! MOAR CMG! Netflix!

These are BARGAINS!

Fri, 08/08/2014 - 16:38 | 5067363 Squid Viscous
Squid Viscous's picture

don't forget TSLA and SCTY, Elon "Wile-E, super-genius" Musk is a transformative icon, like Thomas Edison and Henry Ford, lol...

Sun, 08/10/2014 - 01:17 | 5071996 good man
good man'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

Fri, 08/08/2014 - 16:08 | 5067238 huggy_in_london
huggy_in_london's picture

What does the Dow Monday chart look like??!!

Fri, 08/08/2014 - 16:10 | 5067248 LawsofPhysics
LawsofPhysics's picture

Yes, it helps to ask the right questions, especially when you know that there is no spoon, as it were.

Fri, 08/08/2014 - 16:24 | 5067325 There is No Spoon
There is No Spoon's picture

agree

Fri, 08/08/2014 - 16:43 | 5067410 disabledvet
disabledvet's picture

Yep. "Vacation looking good on that Vineyard place" methinks too.

Say hello to the wake up call as all truces seem to be off in the Middle East (save Afghanistan amazingly enough.)

Fri, 08/08/2014 - 16:08 | 5067239 LawsofPhysics
LawsofPhysics's picture

"Free market" at work.

Fri, 08/08/2014 - 16:09 | 5067246 jubber
jubber's picture

...and of course DAX regained 9000 even after falling through AH to finish 9100 and amazingly the Nikkei regained 15000 just at the bell , how coincidental is that LOL

Fri, 08/08/2014 - 16:15 | 5067273 Grande Tetons
Grande Tetons's picture

Do not short this piece of shit. It will collapse for sure...but nobody will make a quick buck off of its demise.  

Easier just to sit back in awe and admire the bullshit. 

Fri, 08/08/2014 - 16:54 | 5067450 disabledvet
disabledvet's picture

German yields are negative! That dollar should be going through the roof! Nay, veerily. "New Normal."

Someone is gonna hit the panic button here...especially once miles per gallon suddenly jumps to "on average 200 give or take" as Nissan Leaf sales keep compounding double digits. Interesting company that makes natural gas engines...with no chance of earnings etc of course...had a huge day today.

Fri, 08/08/2014 - 17:07 | 5067492 eclectic syncretist
eclectic syncretist's picture

Let's face it.  Anyone with any vested interest in any of this is gambling.  Of course, just about everyone thinks they have some sort of special information, knowledge, or edge that favors their speculative position, but now more than ever this is just another corrupt casino.

Fri, 08/08/2014 - 16:21 | 5067295 Gringo Viejo
Gringo Viejo's picture

I've no doubt that the American "safe haven" meme will one day, crash in a millisecond of disbelief and agony courtesy of radical islam. We've tolerated them when we should have been exterminating them. Sorry to say, we have it comin'.

Fri, 08/08/2014 - 16:17 | 5067298 pn17
pn17's picture

How can anyone even talk about this market with a straight face. Next stop for the S&P: 5000 or whatever number is programmed in to the algos. I mean why not? If the market is completely fake and not based on any kind of fundementals or the economy, we may as well go up 10% a day every day.

Fri, 08/08/2014 - 16:22 | 5067318 gatorengineer
gatorengineer's picture

I saw 4 bomb dogs in the Atlanta airport yesterday....  Chances for a false flag are very high.............  hard to see holding long............

Fri, 08/08/2014 - 17:07 | 5067500 eclectic syncretist
eclectic syncretist's picture

Are you sure those weren't Ebola sniffing dogs working for the CDC there?

Fri, 08/08/2014 - 16:24 | 5067327 Keltner Channel Surf
Keltner Channel Surf's picture

Hate to contradict Tyler, but the Russell 2000 came nowhere near its 50 DMA, nor even the 20 DMA.  I suspect they may have been looking at the 50-week MA by mistake, as the 50-day MA is nearly 2.6% away.

Anyway, the underperformance of the Russell rebound after being clocked down much sooner than the larger indices -- it’s failure, despite heavy machine buying last Friday, to get follow-thru to at least the 20 DMA, could be seen as a sign the worries are far greater than advertised.  Headlines aside, this seemed more covering by those shorting overnight and not wishing to remain non-long over the weekend than any confidence increase.  On to next week . . .

Fri, 08/08/2014 - 16:48 | 5067430 disabledvet
disabledvet's picture

Oil is weak...the dollar weaker. Very cool summer in the Northeast so could get some downside surprises in the utility sector. Still...a nice double bottom in the high beta names might be just what the doctor ordered here to pull the trigger at start getting back in this nonsense.

Fri, 08/08/2014 - 17:09 | 5067511 Keltner Channel Surf
Keltner Channel Surf's picture

So difficult to put abhorrence of Fed goosing aside and execute the correct trades that will provide the best results for you and your family.   You’d have to think that, before Russell ninjas will allow a greater breach, they won’t resist their patented dynamite-in-a-fish-bowl-face-ripper rally some lazy summer morning, which they’ll immediately use to reverse and short the bejesus out of and annihilate the late-to-the-party Russell dippers, those trying to get high by sipping the drinks of those already passed out.

Fri, 08/08/2014 - 16:29 | 5067339 Squid Viscous
Squid Viscous's picture

good job all around, prop desk heros ...you fucked the shorts all day...xlnt

Time to hit the Hamp-steins, tonight's on me... (signed Lloyd Bankfiend, and Jamie Demon) 

Fri, 08/08/2014 - 16:34 | 5067377 you enjoy myself
you enjoy myself's picture

The only chart that matters is the Obama leisure index. Wake me up when he skips a vacation, tee time, stevie wonder performance, fundraiser, or pop culture interview. Then you'll know that shit just got real. I'm betting that absolutely nothing disturbs his vacation over the next 2 weeks, even Baghdad drowning under 10ft of water.  Hence, SPX levitates upwards.

Fri, 08/08/2014 - 16:55 | 5067457 disabledvet
disabledvet's picture

Obomber!

Fri, 08/08/2014 - 16:34 | 5067378 nosoeawe
nosoeawe's picture

Listen - the market went up because the cunt of cunts, yellen the hag, along w/the ppt in NYC saw the market approaching some key technical levels. they didn't step in all week, waiting for Friday due to it's low volume nature, to melt the market up.

The cunt of cunts knew if the dow broke 200 the market will suffer a severe correction.

So the cunt of cunts and the asshole of assholes called their boot licker bankster criminals and they all colluded to drive the market higher today.

Its really that fucking simple. 

Signed,

 

Yellen, the cunt of all cunts, the filth of all filth, the trash of all trash

 

PS: offer still stands. when the cunt of cunts is taken and thrown into the lake of burning USDs, party my place. i'll be handing out free t-shirts celebrating the blessed occassion

Fri, 08/08/2014 - 16:42 | 5067405 Squid Viscous
Squid Viscous's picture

I'm on the Jitney to the Hampsteins, how did we close, up 20 handles at least? - anything less would suck gravlax

Fri, 08/08/2014 - 17:00 | 5067472 huggy_in_london
huggy_in_london's picture

If the market is going down then what they did today doesn't matter (other than providing a selling opportunity)

 

Fri, 08/08/2014 - 16:35 | 5067381 Wait What
Wait What's picture

beautiful action this week. headline after headline sloshing the sheeple/algos from one side of the ship to the other, as if the rest of us didn't know what was happening.

that 5% goldilocks 'correction' in SPY (not too aggressive, just enough to shake out weak hands) that is typical during QE episodes was so predictable.

now the market resumes its upward trend until QE is moved completely to a Belgian proxy. that will be the next point of interest.

Fri, 08/08/2014 - 16:41 | 5067400 Son of Captain Nemo
Son of Captain Nemo's picture

So when are Brad and Mike going to do "soixante du minute" part deux with Mr. Kroft to tell us HFT can really be our friend?...

Fri, 08/08/2014 - 16:44 | 5067418 Jack Burton
Jack Burton's picture

Who can believe this is anything but a massive liquidity dump into entities that the Fed knows will play the ZIRP to Stock Market spread? The more unbelievable the markets the more people just keep playing the Fed's guarantee of upwards market action, no matter the price in money printing. A few decades ago, anyone seeing this type of market action would piss their pants in disbelief.

Fri, 08/08/2014 - 17:12 | 5067522 Son of Captain Nemo
Son of Captain Nemo's picture

A few decades ago, anyone seeing this type of market action would piss their pants in disbelief.

Not anymore JB

30 years ago the market would have been finished two years after TARP got underway.  These are the new fundamentals we are talking about. 

Who needs a history lesson?  It's un-Amurikan!

Can't wait for the best part that is just around the corner.  Pressure on the ol' bladder w/ release is probably going to be the most welcome thing that will happen to the majority when the "Casino" decides to close the window....

Fri, 08/08/2014 - 16:48 | 5067432 rsnoble
rsnoble's picture

We all should know about fridays around here by now.

Fri, 08/08/2014 - 18:09 | 5067445 Squid Viscous
Squid Viscous's picture

yes... and Mondays...and those other pesky days that start with a "T" or a "W"  

Fri, 08/08/2014 - 17:20 | 5067554 MFL5591
MFL5591's picture

Its hard to describe the level of courrption in America. 

Fri, 08/08/2014 - 17:30 | 5067599 Irishcyclist
Irishcyclist's picture

Dow will be at an alltime high when it closes on Doomsday. That's how disconnected equity bourses are from reality.

Fri, 08/08/2014 - 18:39 | 5067858 mastersnark
mastersnark's picture

How about some "safe-haven buying" of gold?

Dicks.

Sat, 08/09/2014 - 09:30 | 5069465 Ghostdog
Ghostdog's picture

It was an easy techincal trade. Probbaly rally into Opex on Friday and then make a determination if the sillinesss continues or not

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