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"This Is Madness"
Despite near-record Treasury short speculative-positioning, 30Y Treasury yields just hit a 2.93% handle - in line with the yield at the Bullard lows in mid-October. The S&P 500 is 200 points higher... Discuss...
The S&P 500 is now trading 200 points rich to Treasury markets (or 30Y Treasury yields should be 55bps higher - despite world GDP expectations plunging as fast as oil prices)
As the S&P 500 has now closed above it 5-day moving-average for 28 days (today will be 29)...
This has never - ever - happened before in US equity markets.
Charts: Bloomberg
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This is more than madness! Hamlet and the Macbeth spouses was madness. When i broke that pig's nose it was temporary madness. This is fubaresque insanity times the number of Barry's possible paternity madness squared.
Stop caring.
I don't even read financial news. I figure when a crash happens I'll be out doing things I love and hear about it. Until then they will prop up the markets, and you are wasting your time waiting for a crash. The Fed has won until they lose.
Well said.
Thanks. I was considering "let the bulls circle jerk all over one another" and "stocks are so 2012" but they sounded too much like a bitter, bunker dweller.
Haha...indeed.
I never stopped watching, I just stopped taking the media so literally.
You just find the numbers as an indicator for other news.
Speaking of which, the options pinning crystal ball says that GREK market price will drop below 15 by witching day.
Because never in the history of the world has a central bank bought equities directly in order to prop up the stock market. To anyone who says show me the proof, Tyler here is showing it to you. When you walk into the bathroom, do you need to see a log in the toilet to know someone just took a shit? No, you don't because the stink lingers. Well, these charts stink.
This comment/analogy is hilarious, but for some reason I can't thumb it up.
What are you babbling about?
http://finance.yahoo.com/echarts?s=%5EGSPC+Interactive#%7B%22range%22%3A%2210y%22%2C%22scale%22%3A%22linear%22%2C%22comparisons%22%3A%7B%22%5ETYX%22%3A%7B%22color%22%3A%22%23cc0000%22%2C%22weight%22%3A1%7D%7D%7D
Lower rates, higher stocks so dividend yields stay in line with rates, perfectly normal.
The requested chart would show how bond prices are actually inceasing along with stock prices.
Readers might start to wonder if BT*ATH is causing money to leave te stock market and move, quietly, to the safety of Bonds?
normal?
absolutely not, unless you define massive CB purchasing and meddling normal.
Will African Americans show their solidarity with Ferguson this week and NOT SHOW UP for Black Friday sales?
I would encourage them to consider this. I don't shop on Black Friday, never have and never will.
Folks, if you really want to send a message to this oppressive fucking corporate America, do yourselves and all of us slaves the favor and stay home on Friday. Go visit a park or play a game with your families.
STOP SUPPORTING THE FUCKING STATUS QUO!
If African Americans are looking for someting real to riot over it's this:
http://www.washingtontimes.com/news/2014/nov/25/obama-amnesty-obamacare-clash-businesses-have-3000/
Agreed I'd rather stick my dick in a law mower than go to a walmart on Black Friday.
The motherfucker than junked you is one masochistic sonofabitch. Jesus! Walmart on Black Friday? Fuck that shit! I don't even like to drive near a Walmart on Black Friday.
I'm kind of looking forward to YouTube Saturday morning, thank you very much.
African Americans in Ferguson streets already had a Black Tuesday and a Black Wednesday, getting amazing discounts in Ferguson stores and businesses.
Deficit should exceed $18 trillion soon.
Debt ceiling in play again soon.
I think you mean the "national debt" and not the deficit.
Money is flowing into treasuries
Reducing yield pushes some money into equities
Lack of market in equities makes it sensitive to influx and induces momofos
Smokin hot from china and japan
dont disagree but - the fact money is flowing into treasuries is absurd - from an investing standpoint. It's fresh fiat $, right?
What this is, is the top beginning to wobble....
This is a decaying orbit. I am glad Zh posted this though - it gets more interesting the more I'm chewing on it.
Why should stock prices and bond yields move exactly the same? Does it even make sense to compare the two?
FED prints $$ buys ES and US both ... Yields go down equities go up. FED $$ move markets.
Where's the reward for taking risk?
I mean - if the Fed can truly print forever, then why no give every taxpayer a nice million dollar check>?
FED uses $$ to buy up America either through proxies or now through it's own purchases. The have ZERO interest in helping Americans public. Why write check to taxpayer when you can print money for yourself.
The only answer is to Audit the FED
Another answer would be to stop accepting Dollars for goods and services. We see this happening on a grand scale in the commodity sector to start. Once the American farmer refuses to sell produce or livestock in exchange for monopoly money, the shit show ends and the moneychangers have to come up with a new game plan.
Seriously, when your labor gets compensated in Dollars that the elite can pull out of thin air, why bother showing up for work anymore?
Has sorta the same effect as showering people with monopoly money from helicopters.
People need to just think about it and get it.
Money is essentially worthless.
money became worthless when ZIRP was instituted.
Yeah, I don't think the first chart means what you think it means. But in fairness, I'm sure I don't know what it means.
Turn those machines back on!!
If it's this easy to set records like this - what would cause this pattern to end?
If one believes that it is the FED and company, then the pattern might never end - no?
If one believes that it is corporates buying back stock to get their bonuses, then it will end when the cost of borrowing is too expensive for this ploy to continue to work.
If it is Martians - then maybe when the Jovians invade them.
Any iother ideas?
The rationalization, psychology and investing behavior of an individual investor is directly related to the thinking, feeling and acting of all investors. The aggregate of all investors is, of course, the market itself. Thus, the best guide to how markets function is man himself.
The relationship between price and sentiment changes during different phases of the market. These generic price/sentiment correlations provide a guide to the next move of the market.
• Sentiment Divergence occurs at market extremes
• Trends begin with Sentiment Impulses
• The next series of Sentiment Divergences signals trend maturity
• Then the Sentiment process begins again or recycles
The Sentiment Timing Model attempts to capture these changing relationships of the generic sentiment life cycle. The correlation between price and sentiment can indicate buying or selling opportunities.
Just as everyone was bearish at the lows-they are now bullish at the highs. It is going to turn-but no serious dates approacing. Good luck-
http://www.sentimenttiming.com/times/
Meanwhile, how about that price of light crude? It's a very crowded trade expecting the price to go to $60 due to an inabilty of oil-producers to agree and stick to production limits. Any whisper to the contrary could whipsaw that old boat to the other side.
One of the fundamentals of the stock market is that stock prices move opposite bond prices. If this is indeed broken, then the whole system is broken. So what happens? Do we eventually revert back to the norm? Will they remain permanently decoupled?
Not always. Bonds and equities moving opposite each other in price is from a time of balanced portfolios. One might argue that we do not have that anymore in that speculation money might be exceeding the marginal money in the balanced portfolios.
What that first chart is saying is that someone is buying risk assets (equities) and someone is buying the 30 year. Pension funds / Insurance companies with long-dated future obligations like the 30 year. but they certainly don't like risk assets as a rule. Someone else could be buying the risk assets.
I see only that instead of there being one class of investor with both bonds and equities, we now have diverse classes with interest in single classes of financial assets - so that first chart is a reasonable expectation in that context. There is still risk money pursuing equities even as other money pursues the 30 year.
Nasdaq Bio ETF goes parabolic . this market is just so bent
Someone who feels like typing can explain it a little better. If you wanted the chart to plot prices for bonds and sp500, in a normal market they are always diverging. Tyler has it right.
I'm not so sure, {what's "normal"?} but...
in any event - check this out:
140 years of Equity Yield vs US Bond Yield | The Big PictureWorld War 3 can not be far off...
Treasury shorts are INSANE.
And soon ... liquidated.
Bond vigilantes got wiped out in the 80s. There are no more bond shorts and haven't been for decades. They're now in the process of wiping out stock shorts. This is why we see H.H et al capitulate. Soon the stock market will be marketed as a private retirement account and privatizing SS will be linked to it, allowing perpetual inflows.
Is PNC bank management panicky selling their stocks?
cctranscripts
Conference Call Transcripts
PNC Financial Services Group's President/CEO just disposed of 10,000 shares http://stks.co/f1LmO $PNC
Nov. 25 at 4:15 PM
ARNInsiderTrades
ARN Insider Trades
PNC Financial Services Group CEO William Demchak Sells $9,674,500 in $PNC http://stks.co/f1Lpu
Nov. 26 at 3:11 PM
cctranscripts
Conference Call Transcripts
PNC Financial Services Group's Executive Vice President just cashed-in 27,500 options http://stks.co/a1IOs $PNC
How does one spell PARABOLIC
FED up
You do know this is a ' Bull Market ' ?
I'd rather that the whole charade just unravel already, waiting....
Makin money, makin money. Sellin for profit, makin makin money. Not sitting slack-jawed, haterating... I'm makin moneys. Pocket the chips as you earn them at the new casino... or sit in the bathroom drawing pictures on the wall complaining to the guy in the next stall how life sucks.
I bet most on ZH are making money, we just don't turn a blind eye to the vast majority being hurt by this Econ policy. We don't relish that as you seem to do.
Dude doesn't know the difference between making money and keeping money. Better be smart enough to convert a good bit of those profits to tangibles that won't wind up in a big pile of digital nothing. I doubt that guy is. I am laughing at how easy it is to rip the bucks off of these wall street robber assholes, and bracing for the end game.
"This has never - ever - happened before in US equity markets" US equity markets have never been controlled by sociopathic, neo Bolsheviks with the ability to print USD out of thin air.
If they had the opportunity to do so before in history, they would have done the same thing. So one must conclude that historically they have been scared physically. Today they have lost that fear of physicality......
Yeah, we are faced daily with things that never happened before in history... getting a little old. Points to the very Corruption of Rules, Standards, Auditable Actions, control, efficiency of the market... blah blah black sheep.
We have Status Quo with Lobbying, Money & Gifts in Politics, Medicine & Justice Systems... with Monopolies & Cartels & Crony Capitalism... and Officials with Conflict of Interest.
BUT:
After Dot.Com Crash, Fraud of 9-11, Enron Scandal, Maddoff Scandal, Corzine Scandal, Knight Scandal, Peregrine Scandal, Standford Scandal, Sandy Weil Scandal, Robert Rubin Scandal, NAFTA Scandal, Graham-Blighbly Scandal, Dodd-Frank Scandal, Ratings Companies Scandal, Sub-Prime Scandal, Ninja Foreclosure Scandal, Rehypothication Scandal, Global Financial Scandal caused by Wall Street, JP Morgan Whale Scandal, Pallets of Money falling off trucks or Electrons in Pentagon, Torture, Rendition to Secret Prisons and Foreign Prisons, 12 Year war in Afghanistan, US Soldiers Guarding Poppys, $10 Trillion in Defense Spending in 12 years, WMDs in Iraq...
I've lost my Perspective on what is possible.
+100 teethvillage!
dupe
delete, sorry
Bravo Jim Bullard .... mission accomplished!!
S&P futures pushed up another 5 points right after the market close. Typical manipulation, seems to happen everyday, but it was more exagerrated today because of the light volumes.
Yes it happens every day, and its not just S&P. It's coordinated globally. Someone is really really desperate.
I am suprised that this is the first time for such a divergence. Treasury bond yields have dropped for 35 years while equities have mostly gone up. Check the chart. Looks like a big X.
NO!!! THIS IS SPARTA!!!
This is one step beyond Sparta...this is Madness.
http://youtu.be/N-uyWAe0NhQ
Those pretty charts are represent fraud,,which is nowheres near as fun as Madness.
OF course it's CB intervention. From where I sit I observe between 1 and 3 buyers representing 65-90% of all buys driving the indice up. Only buying when sellers pause, shooting through 3-4 levles in futures. German futures daily pushed up out of regular trading hours. Question is why they are so desperate to push it up exactly in the same manner they pushed S&P up in March/April 2009. Any sane investor aiming for long term return of capital just abstain from buying under circumstances like this. Another question is why there is no official comment regarding this behaviour from those who are very quick to officially comment desperation on the downside.....
This is one BEAUTIFULLY-managed market...GREAT, ain't it? Ayn Rand must be smiling from above.
JANET YELLEN, IN AN ATTEMPT TO PROMOTE INFLATION (DIAMETRICALLY OPPOSED TO THE FED MANDATE) NOW MUST COUNTER ACT FALLING OIL PRICES, OR SHOULD I SAY THE RETURN TO NORMALLCY AFTER A CARTEL CENTRAL PLANNING EVENT CALLED OPEC FELL APART..
YOU SEE JANET, YOU CAN BE BIGGER THAN THE REAL MARKET ... FOR A WHILE. DO YOU SEE WHERE YOU ARE HEADED?
JANET YELLEN, IN AN ATTEMPT TO PROMOTE INFLATION (DIAMETRICALLY OPPOSED TO THE FED MANDATE) NOW MUST COUNTER ACT FALLING OIL PRICES, OR SHOULD I SAY THE RETURN TO NORMALCY AFTER A CARTEL CENTRAL PLANNING EVENT CALLED OPEC FELL APART..
YOU SEE JANET, YOU CAN BE BIGGER THAN THE REAL MARKET ... FOR A WHILE. DO YOU SEE WHERE YOU ARE HEADED?
2.93. its sad when your world crumbles. hope to see you on the other side.
Crack-up boom coming... ?
Madness? Nope.
Come...I'll show you MADNESS!!!
http://youtu.be/GJ2X9SANsME
If you gave me the ability to print an infinite amount of fiat to buy stocks with even I could make the market graph look much the same.
Excellent video here by Grant williams on the consequences of all this madness. A must watch
https://www.youtube.com/watch?v=MdOaLsEVPeA
The Belgians must be buying.......
none of this shit has made any sense for the last several years.all the relationships when it comes to money are out of whack and have been.i was on the floor in the s&p options on 10/19/87. when you see down ticks 10 handles at a time you will then see real fear.guys would keep the bare minimum in their act.
when the time comes bonds will collapse,the stock market will vaporize and gold will find its true value. the big problem will be to collect.everyone thinks they will be able to charter a plane to new zealand with their american expess card when the time comes.
One of the Tylers needs remedial arithmetic lessons.
Am I the only one who thinks comparing a Price to an Interest rate is illogical?
There is an INVERSE relationship between Bond Prices and Bond yields. http://www.investopedia.com/university/bonds/bonds3.asp
Yields go down when Bond prices rise. That's why money moves into Treasury bonds/bills during stock market declines.
The correct chart would show how bond prices are actually inceasing along with stock prices.
Readers might start to wonder if BT*ATH is causing money to leave the stock market and move, quietly, to the safety of Government Bonds?