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Stocks Stumble On J-Hole But Close Best Week In 4 Months

Tyler Durden's picture




 

US equity markets were led by the stodgy old low-beta Dow this week - not the high-flying muppetry of the Russell or Nasdaq - as stocks enjoyed the best week in 4 months amidst escalation of geopolitical time-bombs in Israel, Iraq, and Ukraine. Dow and Trannies gained 2% by the close as today's disappointment in Yellen and Draghi took the exuberant shine off an otherwise bottom-left-to-top-right Birinyi ruler-based market. The USDollar gained 1.1% on the week - its best week since November - closing at one-year highs. Gold was slapped almost 2% lower (worst week in almost 3 months) as did WTI (back at $1280 and $93.50 respectively). Copper surged 3.2% on the week (2nd best week in a year) on China restocking chatter. Treasuries were a mixed bag with dramatic flattening on the week (30Y +2bps, 5Y +12bps) to 2009 flat. Credit markets cratered on the day - ignoring equity's relative shrug.

 

From Yellen's speech....

 

Stocks on the week led by The Dow...

 

Today was all about the machines and VWAP...

 

It appears algos were all set for mashing VIX-mode once Draghi spoke but stocks were caught between that algo buying pressure and credit's massive selling pressure...

 

Credit was not happy...

 

 

Tresasuries a mixed bag this week with 30Y ending marginally changed on the week...

 

The USD had a big week...as JPY got mashed back ove 104...

 

Commodities were very active... Copper's 2nd best week in a year, gold's worst in 3 months...

 

Charts: Bloomberg

 

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Fri, 08/22/2014 - 16:09 | 5131316 techstrategy
techstrategy's picture

Just sell all stocks trading at greater than 15X EBITDA, raise cash and buy gold.  Liquidate any stock >30X EBITDA.

Fri, 08/22/2014 - 16:17 | 5131362 disabledvet
disabledvet's picture

Silver maybe. Think the free money gravy train winding down is starting to be felt.

"If they didn't care about Detroit what else don't they care about?"

Fri, 08/22/2014 - 16:21 | 5131376 wallstreetapost...
wallstreetaposteriori's picture

The market has a boner for more QE....  My question is: when does reality matter again?  This pretend world is getting realluy fucking boring.

Fri, 08/22/2014 - 16:33 | 5131435 huggy_in_london
huggy_in_london's picture

Well it better get used to the fact that its about to end in the US... and its not coming in europe anytime soon.  

These morons on cnbc, mostly americans with next to no understanding of european markets, bleeting on how they "just have to" do QE are desperados.  They know that the current valuations cannot be sustained without more money printing ... and lots of it.  

I think the market is running headfirst for trouble.  People need to stop convincing themselves that it can go up every day and stop finding reasons to justify it.  

Fri, 08/22/2014 - 17:00 | 5131524 wallstreetapost...
wallstreetaposteriori's picture

AGREED...  The cocophony of BS spilling out of the CNBC pundits shows they know absolutely nothing... QE in the EU is not going to fix the structural issues, which are a massive plague of unemployment and tax evasion.  Plus, the ECB has a long standing of steralizing purchases, which MEANS NO MONETARY BASE EXPANSION.  These idiots dont know shit. They just talk and hope, like Obozo, that everything will be OK... Well, in my informed opinion, let it all fucking burn... 

Fri, 08/22/2014 - 16:19 | 5131368 AccreditedEYE
AccreditedEYE's picture

Ummmm, NO. You buy all equities. How many times do you have to fail to learn this lesson? Margin it for Gold purchase, but you BUY not sell. Especially over a holiday week.

Fri, 08/22/2014 - 16:15 | 5131343 Cattender
Cattender's picture

Bung Hole.. Uh,Huh,Huh...

Fri, 08/22/2014 - 16:15 | 5131346 TabakLover
TabakLover's picture

I'd say we are headed down next week................ but that's been rare on pre-holiday weeks.

Fri, 08/22/2014 - 16:34 | 5131354 NOTaREALmerican
NOTaREALmerican's picture

Well, the DowBuck closed at almost exactly 17k.   A nice round number.  

That means a single DowBuck can purchage over 13oz of gold, or a small car.     

It's nice to have currency that is worth more every year. 

Fri, 08/22/2014 - 16:57 | 5131519 Spungo
Spungo's picture

"Just sell all stocks trading at greater than 15X EBITDA"

If you're feeling frisky, buy long dated put options. It's safer than shorting because maximum loss is 100%.

Fri, 08/22/2014 - 18:11 | 5131850 ramacers
ramacers's picture

why is this fraud still referred to as a "market"?

Fri, 08/22/2014 - 20:10 | 5132416 Not Goldman Sachs
Not Goldman Sachs's picture

Noisey data

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