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Stocks Shrug Off Ebola, Surge Most Since 2011, Still A Red October
Ebola in NYC, no problem. Crappy housing data, all good. School shooting in WA, buying opportunity... and that is how the S&P 500 broke back above its 100-day-moving-average (proving the world is fixed again), and had its biggest low-to-high swing since Dec 2011. It wasn't all great BTFD news today though as small caps underperformed - though still green (just like last Friday), and only Trannies and Russell are green in October. Despite equity exuberance, Treasuries rallied modestly today (ending the week up 8-9bps on the week). HY credit slightly underperformed stocks but compressed 27bps - the biggest weekly drop in spreads since July 2013. The USD rose for the first time in 3 weeks led by JPY and EUR weakness. Oil fell once again, copper rose (since China data), gold and silver mirrored USD's gains. VIX closed down 5 from last week's close just above 16, but like small cap, and JPY carry, decoupled this afternoon. The last 2 weeks were the biggest squeeze of "most shorted" stocks since July 2013.
For old time's sake... as we await the very last POMO (or not) on Monday...
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Before we start... next week is last POMO and a press-conference-less FOMC statement... so why aren't bonds loving the growth implied by stocks? Especially if as everyone claims last week saw the capitulation of shorts... We note the 3 blue boxes where equity traders were wrong footed... and now we are back at that level...
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Small Caps notably underperformed today...
The S&P had its best week since Jan 2013 and biggest 2-week low-to-high swing since Dec 2011...
Ripping back above its 100DMA...(and almost 50DMA)
On the week, Nasdaqwas the winner...
And off the Bullard lows...
Only Trannies and Russell 2000 are green for October though...
And here is the last 24 hours...
VIX dropped from 21.99 last friday to just above 16 - but notably decoupled
So looks like longs are hedging into the ramps and the rally is short covering as "most shorted" stocks have the best 2 weeks in 15 months...
HY Credit's best week in 15 months...
Treasuries were unchanged today but ended the week 8-9bps higher in yield...
The USD rose for the first week in 3 led by JPY and EUR weakness
JPY carry decoupled from stocks...
VIX decoupled (but was punched lower to ensure S&P success above its 100DMA)
USD strength weighed on commodities as gold and silver mirrored its move. Oil slipped further ending just above $81 and copper rallied after China PMI data...
Charts: Bloomberg
Bonus Chart: Thank the lord for QE3...
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VIX Vapor Rubbed on infected areas cures Ebola.
Aaaaand it's gone.
The bear market of 2014 will go down in history as one the most dramatic for years to come.
I'm glad its over. Now I can go back to buying the open on maximum margin and selling the close. I'm going to get rich for sure.
BREAKING NEWS: Federal Reserve operator, Kevin Henry, suffering a double hernia from lifting the stock markets over the past 12 hours was rushed to NY hospital. From the tiny windows of the Brinks armored truck, Henry waved weakly to Wall Street rich he made richer today. Abner Fleece, a GS trader, yelled out, "We love U, Henry. I'm gonna name my first child after U."
When the Brinks armored truck arrived at Bellevue Hospital, Henry was helped off truck by a tearful William C. Dudley, President of the Federal Reserve Bank of New York. A distraught and visibly shaken Dudley said to the emergency room staff, "I implore you to use every means at your disposal to save this humanitarian. We need his full recovery by Sunday night."
The Bellevue staff told Dudley the Bellevue Hospital and other hospitals in NYC are currently full, and needs to take Henry to Connecticut or New Jersey. Dudley currently is checking to see if the Brinks armored truck has an E-Zpass to get past the many tolls booths to get out of NY.
Interesting - Didn't they take an Ebola patient to Bellevue?
It shows the great American pub(l)ic has great confidence in Warren Wilhelm Jr. (sic)
my co-worker's sister makes $72 /hr on the computer . She has been unemployed for eight months but last month her check was $12806 just working on the computer for a few hours. check this... www.yelptrade.com
Monday is going to be fun. Have a good weekend schmucks...
Have a bloody swell bowel movement weekend to those going to the hamptons this weekend....fuckers
Fun how....watching stawks rise from open all day?
I like how the Dow and S&P trade like penny stocks nowadays. Just look at that V.
2 weeks until the mid-term elections, when the moron voters will vote for mo bigga gubmint! The DOW will keep right on heading northward, well over 17,000 by voting day.
This crap just keeps getting more and more pathetic!
Tell me how those on the right don't want bigga gubmint - as you say - when they vote to limit freedoms of others? If they aren't trying to get into my bedroom, they're trying to get into a woman's womb.
How is that not "bigga gubmint"?
Yeah, gubmint should stay the fuck outta baby killing.
Funny. I don't see the government openly killing children that are born. I know that corporations poison our air and water, leading to illnesses and deaths of children, but I don't see the government doing that. Well, of course, those corporations couldn't poison our air and water without consent of the government. But there's money to be made in poisoning our air and water.
So. Yeah.
No, they only fund organizations that do dipshit.
The govt funds baby killing. It is a big business. If private enterorise wants to do it then let em. Do not take ytaxpayers money to fund it.
Five more trading days to go. A green October is guaranteed. Then a green November. Then a green December, just in time for a white Christmas.
Ahh, America. Paradise.
I hope you mean 'green' as in the Grinch who will be coming to the homes of Wall Street bankers and stealing their huge year end bonuses.
Good one. Thanks for the Friday Funny.
When markets were dropping a week ago, I was thinking it was just maintenance mode to reinforce the balloon for a pump even higher, probably 18,000 by Xmas sounds about right. What's to stop the shitshow?
Fed backstopping the markets. ISIS stopped in it's tracks. Ebola licked. Nothing but clear skies and smooth sailing ahead
QE3 dead! Long live QE4!!
We've been going about this all wrong. It's all about SENTIMENT people! Bad numbers? Tell people so many people hate stocks, they HAVE to go up. Fed worried about an exit strategy? Tell people so many people hate T-bonds, the HAVE to go up. Need VIX to go down cause you just wrote a ton of Vol? You guessed it! So many people hate this market, Vol HAS to drop.
Shit, maybe "folks" need to start moving this argument to the fiscal side... So many people think Debt/GDP is going to be the world's undoing that there's NO WAY it can! Growth or Snow is coming. It's a damn shame you can't pay "peeps" wages with sentiment... you CAN pay them in soon-to-be-worthless AMZN stock though. Oh, right, it HAS to go up.
Party on New York! You're a WINNER!
"Just part of the trading algo." Obviously don't need humans for that...let alone life itself.
The Manichean Struggle continues...
Someone with more time than I - how do you see if the last 2 weeks rise was the result of Fed POMO money?
What do you mean by "if"?
</sarc>
The CIO of CalSTRS (California State Teachers Retirment Systems) is on CNBC saying they are in Amazon for the long term, hedging their portfolio with hedge fund investments, and underweight fixed income.
Buddy - Blankfein and his ilk love ya'!!!
Moron. Amazon's does extraordinary damage to local community finances and their school systems... Fire him.
...Would you rather have an old Obama phone for FREE or a brand spanking new one from Amazon for 99 cents. I'd prolly choose the Amazon phone 'cause it's delivered by a quad-copter drone. If only Bozo would leave...
AMZN makes no money but the pension idiots love it. Dude I hope you really don't watch TV and CNBC. TB is for retards.
It rained today !
It's raining men. Hallelujah. It's raining men. :/
Is it the End of Growth ?
Has Gaia called a halt ?
Has human dominance of the biosphere come to a crashing halt , disguised as economic circumstances ?
Just remember
https://www.academia.edu/8942403/The_Hysterical_Focus_is_your_friend_
This market is a fucking joke! The only thing sicker than the market action is the reason they claim it is going up.
They did it again! To say the market is rigged is an understatement. After over 30 years of trading commodities I will flat out state without any reservations that lies and manipulation run rampant. An unholy alliance of the Federal Reserve, the government, and the too big to fail has left the rest of us in a precarious position.
For the big boys, its insider information and computer trading, this includes computing patterns that exploit where stops are placed, this improves their ability to wash the weak out of their positions. The bottom-line is that the higher the market goes the more vulnerable it becomes to a major collapse and sudden downward move. More on this subject in the article below.
http://brucewilds.blogspot.com/2013/07/markets-more-lies-and-munipulatio...
I am sure the SEC will be right on it.....
You're absolutely right, AdvancingTime. But we've known this now for years and there have been countless posters here on ZH who have been repeating this same story, over and over and over and over...
So... how many times will all you "charlie Browns" allow "Lucy" to pull the football away from you just as you're about to kick a 50-yard field goal? How many times will all of you fall flat on your asses and then go on thinking yet again: "Oh... but time, it's going to be different."?
I'm beginning to think that some ZH'ers actually enjoy being frustrated all the time.
This week certainly taught those ignorant dip buyers a lesson or two concerning the folly of their ways?
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Good market summary. HY still has room to mean-revert. Long end Ts action is the open question to me.