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Historic Short Squeeze, Biggest In 3 Years, Sends Small-Caps Soaring; Dow Tops 17,000
In a strangely familiar case of deja vu all over again, stocks surged (alone in the cross-asset class world of economic reality) on the day before an FOMC statement. The Russell 2000 has had its best 10-day run in 3 years, best day of the year, and managed to scramble back to its 100- & 200-day moving-average. Dow 17,000 was another key technical level that was achieved. S&P 500 was levitated on volume around 40% below average into the green for October. VIX was banged under 15 and tracked stocks. Away from the equity-vol complex, asset-classes were unimpressed - HY credit, bonds, JPY, and the USD all diverged from stocks. USD weakened slightly, and commodities all gained on the day. TSY yields were up 2-3bps and HY closed practically unchanged. "Most shorted" stocks rose almost 3% - the biggest squeeze since Dec 2011 - smashing the Russell 2000 higher.
"Most Shorted" stocks (BBG Ticker GSCBNSAL Index) had their best day (biggest short squeeze) since Dec 2011...
Don't think it was a squeeze? spot the difference...
Don't forget the last time we were here, Bullard pissed in the punchbowl... Dow tops 17000 into close last minute!
Gentle reminder of the pre- and post- exuberance at the last FOMC in stocks... but not bonds... (just like we saw today)
On the day - volume was a disaster - so that means stocks soared...
The October miracle...
Off The Bullard lows...
Russell back up to its 100/200DMA...
HY credit diverged early then played some catch up but underperformed...
as did HYG at the close...
and JPY carry and Bonds decoupled from stocks too
Treasury yields rose modestly on the day, up 2-3bps on the week - bonds basically gacve back their 4ET-12ET gains from yesterday in the same period today...
The USD slipped lower (down 0.35% on the week) led by EUR strength (big SEK move on rate cut)
The weaker USD helped commodities...
Charts: Bloomberg
Bonus Chart: Divergences (almost) everywhere...
Bonus Bonus Chart: Where to next Janet?
Bonus Bonus Bonus Chart: The flip-flopping stock-gasoline world... and what do bonds know about a tumboing demand driven gas price plunge?
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COMPLETE FUCKING BULLSHIT.
..............waiting for China to revalue the price of Gold to $3,000 an ounce.
Cuz this country needs an enema.
yeah...and u wanna see some really stupid fucking charts...
http://www.silverseek.com/
http://www.kitco.com/charts/livegold.html
<-- Resist the tribe
<-- File into their ranks
I suppose you suffer one way or the other
"Fuck da bears!" - Mr. Yellen
Make this go Viral
"My Ebola Obola"
https://m.youtube.com/watch?v=-lr4mI26c-Y
Well, of course silver and gold are down. They are just metals that sit there and do nothing.
Now take a company like TWTR or FB, there is some real value there.
and look at how these CNBS bitches treated Peter Schiff today...
i cant stand that Jackie bitch...BITCH!
http://video.cnbc.com/gallery/?video=3000325266
golden scissor cut paper..
face ripped the fuck off and some cartiledge came with it,ha...
I witnessed today on IWM 23 trades today all sells most 500,000 to 1 million share bock trades sold at 111.02 when it was trading at 112.00 to 114.00 at the close. They do this who ever this is so they can push IWM up. whenever i see big block trades like this they are selling so they buy some more sounds strange but i have tracked this for several years now and they will buy big blocks when they want to sell. Once they sell a big block now they have the ammo (dollars ) to push the stock up. Zero out
The bid to ask on Tesla alone probably made the market go up a hundred. After a ridiculous hit piece at SA smashing the stock down 15 percent after hours SHAZAM! up ten percent today.
That thing probably had a fifty dollar bid/ask spread at the open...all which goes right into the pocket of the trader and the exchange.
Price of gasoline as a market mover? Bwhahahaha. Collapsing oil prices in 1986 led to one of the biggest jobs and GDP prints in US history. I say again "short this thing at your own risk."
my best friend's sister makes $80 /hour on the internet . She has been laid off for 7 months but last month her paycheck was $13987 just working on the internet for a few hours. visit site... www.Yelptrade.com
OW My Balls!
Must. Make. 17.
Fackin depraved and insane
Seems to me that Janet is damned whatever she does tomorrow after this ridiculous ramp, but I've always been wrong about the ability to damn the torpedoes and just BTFATH
FULL RETARD.
never go!!!
personal question r u still shortin' 'FOO' after all these years?
Some people go. Haven't you heard of the " Fed Treachery Oscillator"? This helps prevent "Market Ebola", or bleeding out of all orafices, that happens after having unprotected sex with the Market.
Cheers;)
That's above my pay grade
All I kno is that I CRIED WHEN OL' YELLER DIED
That oughta count 4 sumthin'
I just sharted my pants.
oh, you said shorted, nevermind.
It's like taking a shit - the size of the turd bears no relationship to the amount of effort expended in producing it.
Oh nuts!
Good time for Eric Idle and the Galaxy Song.
Down on increasing volume and then up up up and away on pathetic decreasing volume, and the thought of 'surely they must print'... This whole thing is fucked!
Ho Lee Fuk,better hedge a bit here, just in case these old kikes Fischer and Yellen disappoint?
"If only I had some assets."
Damn
Can we just stop releasing 'economic data' and just call this a straight up casino?
As Al Capone said, “It’s a racket. Those stock market guys are crooked.”
took one to know one!
Fuck them all......I hope they suffer in agony!
Since price is determined by banks and not markets, one has to assume that the banks are seeing a prime opportunity to steal money from other participants through the manipulation of price.
Banks are able to buy and sell more shares than actually exist and can create infinite money to accomplish that task. Can you? Is that fair and reasonable.
It seems to me that ALL banks should be required by law to not participate in any finacial market, other than borrowing and lending.
Glass-Steagall Act was a helluva an idea.
Where is the Dow Theorist dude? 'Dow theory gave a short signal' Fuck off.
Yeah. Some guy was on here (don't know if it was your Dow Theorist dude) saying he was going to be looking for a shorting opportunity once the S&P got back to 1960.
That was when we were bouncing off of the month's lows two weeks ago. I wonder if he got his shorts in a bunch.
I'm trying to multiple up tick your comment.. Its nice to have a good laugh in this day. I think everyone on this site knew this bitch was gonna shoot the moon today. Wash, rinse, repeat.. there aint no stopping it!
McClellan oscillator overbought? You pessimist. You're looking at it as being half-full.
It's underbought! It can always go higher!
Damn, this is nutz!
Mythology: Origins, Fairy Tales & Other Such Nonsense
On one side, we have less capable squatters that read a fairy tale in school and are upset that more capable squatters, a Jewish sect that dedicated its breeding line to divide and conquer banking mythology, stole its fairy tale, before they were born.
On the other, we have squatters who submit to herd anxiety, but argue that if they are just allowed to redistribute the remainders equitably, all will be well. Both depend upon public education and law enforcement, to inflate their possessions, and complain about the lost purchasing power to those so disenfranchised.
And you are supposed to vote, on how much time in the future you are supposed to waste, on ever-growing crisis bonds, while they consume the remaining seeds of production, with increasingly myopic extortion.
Did I miss something? You didn’t notice Benjamin Franklin in that patent office, stealing 5000-yr-old ideas, or the French secretaries disposing of Napoleon when he became inconvenient? Did I miss anyone worthy of excoriation?
You are much better off dealing directly with the moneychangers, who fully intend to breed you out, than the mealy-mouthed neo-capitalists and neo-socialists serving themselves as gatekeepers in the middle. Let them wage war on their own time, and with their own children.
One grower’s bushel is not the same as another, because each bundles differently, and the only free markets are the ones you choose to create, by discounting the empire noise of equality.
You can see why the political majority votes me off its shrinking island, every time. If you are looking for the people-are-beautiful-and-wonderfully-made speech, my wife is the one thrilled with automation crap, but smart enough not to depend upon it. You might want to pay her, or not. I get called to fix the crap, after the façade of mercy reinforcing addiction has already crumbled.
Empire money is just so much toilet paper to me, and my children are grown, gone, and making their own decisions, which is precisely the Fed’s problem; it’s a paper tiger of, by and for paper tigers.
Those bankers don’t load up on gold and other artifacts by accident. Hitler was just another fool in a long line of fools, expecting the bankers to run out of scapegoats before his position was reached. That American bankers would throw the American middle class under the bus is ironic, not unexpected. How’s that illusion of freedom, to identify other scapegoats with gossip, to feed fascism, working now?
Yes, the empire is a slippery slope, of lies begetting lies, and ‘great’ leaders lining their pockets with manure, money always whistling past its own grave. An empire in hysteresis is no cause for anxiety on your part; it’s always a damsel in distress sh-show.
Peer pressure is fascism, and the participants are always surprised when there is no one left to blame but themselves, just before the system blows up in their face and their great leaders are on a ranch in Montana somewhere. CEOs are paid scapegoats, and Challenger was just a warning. That’s what consulting is all about.
Without privacy, there is no economy. Focus on the system producing the individual outcomes in question. The idea that somebody else, let alone a peer group, gives you freedom is nonsense. Only your own can open that private door. Civil law, MAD insurance, is just the collector.
A conspiracy of stupidity is no substitute for privacy. If you think, you are a bootable operating system and antennae, and it doesn’t matter what the critters steal because all their work ends up in the landfill. Navy isn’t about weapons in a game for juveniles.
Just make everything you touch a little better than you found it, and resources will find their way to you. Be the needle, and let the fools sift through hay.
When will these assholes realize I'm not going to read a post the length of War & Peace?!
like the guy at the party that won't shut the fuck up...
The Bullard comment was the Fed revealing their true and only mandate, that only up is allowed for stocks and even a single digit % decline will not be tolerated - even though we are at levels 3 times the 2009 lows. They haven't given us the price level they are targeting because there isn't one. No number is too high. To keep any economic growth they must keep creating more credit and debt, therefore they must keep inflating asset prices as well to keep the overall debt/asset ratio looking ok. All the while lamenting about the wealth divide they are purposefully creating getting ever larger.
Got the joke yet?
Precisely. What a horrorshow.
Prefer Horrowshow groodies to this.
Just lobotomize me with a fucking hole bit and put an end to my misery! Fuckers!
If they pull some shit out of their asses like the first taper delay, it'll be the metaphorical nail gun to the head of every f'g idiot who dares to doubt the insanity.
Glad I waded in spread-wise, will unwind some tomorrow cause these f's are mf'g insane, nothing is above them.
On to the f'ing moon if they delay the taper tomorrow.
It'll be like the Fed sticking its dick in the face of humanity and making it swallow.
No matter how hard they try, the FED just can't seem to jump the shark...
Great...
Has Jim Cramer been spotted doing the jig?
no he was bludgeoned to death by a TWTR shareholder in CNBC parking lot, sad end to a true market hero! news at 11...
That's a true story, I read the tweet!
pods
A percent a day for 10 days....... against a backdrop of bad news.... WTF............
It cant keep going can it?
It's worked for 5-1/2 years now. Why not?
No POMO no Homo
Buy the fucking rip......I guess
It cant keep going can it?
I bet you knew the answer to your own question before you hit <save>
IYT - 138 - 157 in 8 days - lol
'Merika Fuck yeah!
It’s “Sixties Night” in the Fed’s Eccles Building, their largest conference room reserved, and as the peppy music begins to play, with Bernanke dressed as Ron Townson, Yellen as Marilyn McCoo, they begin to lip-synch:
Would you like to ride in my beautiful balloon?
For we can fly, we can fly !
Up, up and away
In my beautiful, my beautiful balloon . . .
The criminals (a/k/a Mafia elsewhere) have taken over the markets by destroying democracy, logic, and the meaning of life of 99% of the people. There is an algebra equation for this, but the schools destroyed math first. Third down and 14!
1X = 0
(You are X)
Raise your hands everyone who didn't see this coming.
Then tomorrow we get a big nothing burger delivered from the Fed but the financial teabag readers will proclaim 'This is better than expected' and DOW will probably rise over last highs, that's only like 400 points should be simple in 1 day.
it's just two computer algos playing pong
Obama having the Federal Reserve pull out all the stops before his party's election. Have to run it up.
Grandma thinks inflation is too low. And she won't be holding a post-meeting press conference.
Something shameful ( already leaked ) is afoot !
yogibear,
Maybe Wall Street wants the Democrats. After all, they are as accommodating to finance as Republicans and more sympathetic to coke and hookers.
oh well. onward to new highs on dismal volume. Good work PPT.
"Most shorted" stocks rose almost 3% - the biggest squeeze since Dec 2011
Exhibit A why i sit on the sideline this go round.
i shorted 2007 - 2009 ... and swore never again (the ride was bumpy enough then preQE)
Don't you wish life was like the US stock market, where all of your problems can simply vanish within a week?
Kool Aid I thought you said wife not life !
Just like wife the stock market never goes down.
Dolus,
My condolensces.
Euro dude happy dollar weaker.
Japan dude happy dollar stronger.
Everybody happy.
As always, socialism for the rich, capitalism for everyone else.
The DOW will rise solidly above 17,000 after all Nov. 4th. is just around the corner. Everyone with two working brain cells knows it's pure bullshit, but it works. The boyz get to sit around and pounding their puds all day. It's so simple even a full blown retard can do it!
I can honestly say I really don't fucking care any more. ....just Dont be stupid enough to get in my face and tell me everything is great, as then I will care.
economically, i think we're ready to fall off the cliff ... and soon
that's got nothing to do with it
we've already fallen off the economic cliff
just waiting for mr. market to follow (if it ever does)
I would agree but we have been flirting with your aforementioned cliff for how fucking long now?
Feels like that guy that keeps threatening to jump and commit suicide, but never does. Shit or get off the pot already I say.
Don't get too exhausted there bud, we have along way to go tonight, and the senior moments are just beginning.
Soon for a Fruit fly is not the same as soon for a Star.
The last Fed. meeting/announcement bonds initially squeezed lower in yield. The equity markets got spooked, and yields tightened for 2-3 hours.
Then yields widened back out across the curve, and directly, for the next 24-36 hours. This time around, after this idiotic run-up in equity markets and the elections, I'll be long P/M's and cash for the rest of the week. I wouldn't touch bonds or equities with a 10' barge pole right now.
The r/r for equities, EVEN on a 1:1 basis, is to the downside.
Don’t disagree about r/r, but given Europe’s issues, possible the doves got a new word or two into the statement that might give us more ludicrous ramping into month-end. If they did, in light of today’s action, Fisher and Plosser will both have a shit fit. In fact, given today's exuberance is so startling, at levels normally reserved for post-2:30 on FOMC Wednesdays, I’m suspicious the language was somehow leaked.
Thanks for the intuitive insights KCS. Based on that consumer confidence survey(farce), anything's possible.
If your thesis holds, that means the leak has been " front run".
Just another Welcome Back Kotter re-run, prepare for the blood bath tomorrow off of stupid words, shits gettin old...
Edit: Nice job on the charts though Tylers
Of course there was a short squeeze. The bigger the bubble the harder it is to get someone to hold the bag, and this bag is so big after the last five years that they have to MAKE people buy it. Why do you think in a manipulated game with a bullish bias they invented the institution of short selling? Nothing works to the advantage of the average players in this Three Card Monte abomination.
The higher they go the further they fall
If the peaks makes it to 20K I may be the first trillionaire in the making on the way down
. . . But if i crossed a million rivers
And i drove a million miles
I'd soon be where i started. . . .
KEEP YOURSELF ALIVE
You must know, after six long years, gone too far not to play it out!
CRIMINAL lives are at stake...hangman is getting restless!
Gotta reload TLT.
COME BABE!
It's all setting up for the Satan Claws rally...
Some time 11/5 s/b some sort of top if the Repubdickans win the Senate. If it don;t stop there........bulls in charge until 1Q 2015 at earliest.
Btfath!
Market crash this week?
NO WAY is there a crash before the election. Everything the Keynesian PPT does is to benefit Obozo and the Dems. (Why do you think QE3 was brought in just before the 2012 elections?)
Ditto for low gas prices at the pump. Enjoy it for another week.
Unfortunately, the short squeeze is not boosting real earnings.
Yup Id be one of them shorts. What are we to do with 17 trillion in debt and an entire equity market where the biggest buyers are the issuers themselves. Tim Sykes on line 1
people still short the market?
Let turn that sad smile :( over :)
That's better.
Everybody likes QE.
(OR) What if Dudley whispered in the ear of his buddies at Goldman .....
What if the BIG democrats on the FOMC are terrified that the market will crash one week before the mid-term?
What is the over/under on the QE being extended into Dec?
BTFD It's software stupid.
http://www.youtube.com/watch?v=0akBdQa55b4
This market is a bad joke. Again this morning I awoke to a market where stock futures were soaring ever higher even after important economic numbers had been released that came in below expectations. As the stock market continues to remain at historic highs please tell me what is so good? What is so much better? As I see it the weight of carrying a large number of unemployed and nonworking people who have dropped out of the work force will wear down society through attrition.
The article below points out some of the glaring flaws in the argument that blue sky lies ahead. The article below points out some of the glaring flaws in the argument that blue sky lies ahead as the stock market seems to indicate. As I look at a landscape of empty and under-leased buildings that once housed thriving businesses that provided Americans with good paying jobs I'm forced to ask, How are things getting better?
http://brucewilds.blogspot.com/2014/10/tell-me-again-how-things-are-getting.html
Great question AT...
How are things getting better?
Wow.....lets all accumulate a bunch of shorts...again. I like it when they blow up....so pretty.
Perhaps, just perhaps, the PTB are pumping, daring the Fed to end QE, so that if the Fed does end QE, they can burn the market down and blame the Fed for it...
17K! DRINK, BITCHEZ!