This page has been archived and commenting is disabled.
Crude Oil Rip Sparks BTFD In Stocks But S&P Sub-2,000 3rd Day In A Row
For the 3rd day in a row, the USDollar flatlined as JPY & AUD weakness offset GBP & EUR strength (following Kuroda's speech this morning). Stocks dipped-and-ripped once again - as they always do into and after the EU close - with the S&P managing to scramble back into the green (but not 2,000 for 3rd day in a row) in a late-day buying panic (after some Draghi headlines saying nothing new). Not everyone was drinking the same bounce-back juice as stocks with HY credit, and JPY-carry not supportive at all. Stocks seemed to track WTI crude most closely today as oil jumped higher (to $93) compressing the Brent-WTI spread to $5. Gold, silver, and copper slipped lower once again. The Treasury curve continued to bear flatten led by 5Y weakness.
S&P 500 languishes below 2,000 for the 3rd day in a row
As high-beta Russell and Trannies ripped higher, the Dow, S&P and Nasdaq all floundered in the red... until the last few minute sof manic buying panic
It seemed stocks wanted to test the Scotland poll level ahead of tonight's poll (due at 1700ET)
On the week... Russell and Nasdaq scrambled back into the green amid this afternoon rush...
On the back of a broad short squeeze again...
Not everyone was drinking the equity Kool-Aid today...
JPY-carry wasn't...
HY Credit wasn't....
As Oil seemed the closest driver today...
Treasuries continues to bear flatten but ended the day practically unch across the complex...
FX markets looked quiet from the USD index perspective but AUD keeps plunging...
And commodities kept sliding (aside from oil)...
As WTI left Brent behind - crushing the spread to $5... (lowest in 2 months)
The iClock-maker dipped and ripped - pinned to $100 for 3 hours - then oscillated around the iPhone6 news level...
Charts: Bloomberg
Bonus Chart: Why Oil Ripped Higher Today... (cough gartman cough)
»
- 5462 reads
- Printer-friendly version
- Send to friend
- advertisements -
I "KILLED IT" today when I BTFD!!!!!!!
Look out below old chap.... look out below....
Well sure you did. Got quite a supporter with the FED buying S&P to keep hope alive. Hope and change baby. Hope and change.
I'm getting bearish emails from metals dealers. About as good an indicator as the to-da-moon ones I was getting in 2011
"Taper tantrum two."
Regret the debt? Just add a war and everything will be oooooootay.
Dear Market:
Don't forget that Iran is, like definitely, building nukes to wipe Israel off the map...
http://www.nytimes.com/2014/09/12/world/middleeast/focus-on-isis-stirs-f...
The US has a number of wars still to fight!
For freedom, democracy, and mom's apple pie!!
"Don't forget that Iran is, like definitely, building nukes to wipe Israel Saudi Arabia off the map....
FIFY
ENERGY MARKET IS THE MOTHER OF ALL MARKETS
remember this.
Oil makes and oil breaks,... not interest rates.
Manipulated markets. Expect some more manipulation, until, indeed, energy breaks. PM's follow within one hour.
Yeah I'll be out there waving the Alan Greenspan flag too.
Would be interesting to see what happens if the Fed ever did decide to raise rates again. In effect with the Bucky surging that is exactly what you are getting.
I'm sure someone out there is exclaiming "the problem we have is we're not spending enough." Seriously though...even a mild correction in equities could slam debt markets as "we all catch down to our growth numbers."
Bought some oil today. At the pump.
"Pump'n'dump" if you drive a garbage truck.
"Rotate into the most beaten down sector, monkey-hammer PM's."
Lather, rinse, repeat.
Fucking pathetic.
DavidC
show me silver at 18 and I'm buying with both hands. at 17.50 i'm backing up the truck.
Might be hard to back up the truck if you are buying with both hands, although I would be tempted to wait for sub $17. The way metals are getting ass raped we might see $16 again this year, you know......because the dollar rocks and the economy is doing friggin AWESOME!
MAN IP U LATION!
When article algos go wild! “Oil rip … test the Scotland poll … broad .. squeeze .. oil …driver … bear … ended … keeps plunging .. kept sliding … crushing the spread … dipped and ripped”
Love it!
Look at a 15, 30 or 60 min chart of the Nasdaq over the last 10 days. It's apparent that the "price" moves are nothing but a computer algorithm.
Russell 2000 traders see this about 6 or 7 times each year: a ‘surprise’ machine ambush that sends the index screaming higher (.65% despite opening down near the 50 DMA), at one point nearly a percent above the Q’s despite, or perhaps because of, lower than average volume. When you have a moment, admire today’s 3:00 hourly candle as a marvel in steely erecti-tude – even the Washington Monument expressed jealousy.
In the past, this sort of thing has been engineered as a one-day pause before a big downdraft, but who knows, it may be they simply detected a short bias after the 20 and 50 DMAs were breached and decided to apply electric cattle prods to those hoping for the 200 MA. Well-played, algos.
Normally, I would agree that the price action over the last week signals a big down move starting tomorrow. However, with Futures expiring next Friday I think it's just whipsaw action back and forth to screw over calls and puts. They do this every 3 months now as we come to futures expiry
Makes sense, given how important various hedging strategies have become. Also noticed the typical ‘sawtooth’ algos (both distribution and short-goosing varieties) have been replaced this week with more of an “S” pattern, waves with identical amplitudes but very, very short wavelengths.
At the same time, it’s hard to know whether we’re seeing a big program from one of the larger houses or, more likely, the combination of various competing algos, perhaps offset in time, producing a “flanging” effect, as first heard in 60s tunes like “Pictures of Matchstick Men” and on the Beatles’ Revolver record.
The goldbugz kinda get quiet when The XAU-USD dials back to 4 years ago. Just an observation. I thought the BTFDers would be screaming in ecstasy !
GOLD!!! (bitchez)
Selling climaxes in both silver and oil. Beginning of the end of the decline. More time needed, but will become more bullish now.
I'd love to agree but I am still not convinced the price is made up of purely supply and demand. The price is "set" by the powers that be and I have a sneaking suspision they will continue to push it down as they see fit.
The markets are pretty effin off planet retarded... Look at the PeNikkei. Up from the 15,560 area on the 5th to 15.9 k on that shitshow of a ( -7.1) revised gdp print? It's all about the carry and U.S. bond yields.
Take a picture, today may be the last day the S&P ever trades below 2000.
No BTFD in gold though. Boy cried wolf way too many times.
First time commenting but have been a ZH reader for a good number of years now. The comments are the best part of ZH! See a lot of perspectives. For my part I think Q4 will be significant and going into year end things should shape up to be very, very interesting!
Testing the Scotland poll level? Seriously? Maybe they were retesting the level they were at when Spongebob Squarepants aired the previous day?
Again - The Australian dollar is not one of the six currencies that determine the value of the US dollar index.
I actually think Gartman is too bullish, my target for oil is 80. When it moves it moves further and harder than anybody ever anticipates......
I think the marginal cost for an additional barrel of oil is in the 70's which means if we are in a true surplus, the market will test the marginal suppliers...
I have traded oil for several years and when the vol picks up it picks up big time.....
It could hit 85 tomorrow or it could hit 100..... I have seen many +$5 moves...
Just not lately...
Remember it does have a $10 limit....
Which means the little guy is suckerd into selling options and that always ends bad....
At least Gartman is consistent, wrong of course, but consistent....