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What Do Stocks Know?

Tyler Durden's picture




 

That high-yield credit, crude oil, Treasuries, and USDJPY do not...

 

 

Charts: Bloomberg

 

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Tue, 02/10/2015 - 14:23 | 5767357 Pig Circus
Pig Circus's picture

Phucking Pig Circus... Phucking Shit Show.

Tue, 02/10/2015 - 14:24 | 5767372 wallstreetapost...
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Stocks know that they "are the ONLY game in town"....  soooo confident.

Tue, 02/10/2015 - 14:27 | 5767386 max2205
max2205's picture

NY Fed desk is open for bizzzz 

Tue, 02/10/2015 - 14:29 | 5767402 Pinto Currency
Pinto Currency's picture

 

 

Stocks know that they haven't turned on the gas yet.

Tue, 02/10/2015 - 14:33 | 5767418 spastic_colon
spastic_colon's picture

EU stock market last half hour closes remind me of something???? Oh yeah, the last 6 years of US closes.....and to think EU QE hasn't started yet.

Tue, 02/10/2015 - 14:40 | 5767457 Soul Glow
Soul Glow's picture

Imagine how many trillions of dollars and euros it is taking to prop stocks up.

Tue, 02/10/2015 - 15:09 | 5767629 Save_America1st
Save_America1st's picture
The Economic Collapse Blog: 

 

If You Listen Carefully, The Bankers Are Actually Telling Us What Is Going To Happen Next

 

By Michael Snyder, on February 9th, 2015
Tue, 02/10/2015 - 15:12 | 5767649 free_as_in_beer
free_as_in_beer's picture

"Then he showed those men of will what will really was."

Tue, 02/10/2015 - 15:35 | 5767769 xtop23
xtop23's picture

"And then poof,..... your money's gone."

Tue, 02/10/2015 - 15:27 | 5767742 timmeh
timmeh's picture

i was sure i already had seen everything.. that crazy ramp came from absolutely nowhere. 0.8-fucking-% in 5 minutes. i mean, WTF?!

Tue, 02/10/2015 - 14:36 | 5767438 Groundhog Day
Groundhog Day's picture

stocks know the power of the printing press and the use of leverage

Tue, 02/10/2015 - 15:16 | 5767666 noben
noben's picture

I'm slowly coming around that "Stock DO know" -- in the aggregate and time-averaged sense. Their limitation is that they cannot front-run economic earthquakes and Tsunamis, but are otherwise PDG.

To use an analogy from a cool TV show "Brain Games", it turns out that The Crowd is actually remarkably good at guessing how many Jellys are in a glass jar. Although the individual guesses varied greatly (from several hundred to several thousand), the Average of all the 20 guesses was within 1% of the Actual number. Astonishing!

Lesson: You can go broke faster by betting against the Fed and Wall St, than you can by betting with them. The 'Trick' that most people here miss, I think, is to hedge your assets enough -- to survive and outlast any downturn during the time-frame that you may need to cash in. Put another way...

The Tylers and the owners of similar blog sites might be getting comfy or rich with permanent Doom, Gloom and Boom, but the rest of us aren't. I favor Perspective, Balance and Hedging. But to each his own.

Tue, 02/10/2015 - 14:37 | 5767439 Traderone
Traderone's picture

 Still short eh?

Tue, 02/10/2015 - 16:29 | 5768110 Babaloo
Babaloo's picture

That's not 30 year yield.  That's 30 year price (the exact opposite of yield.)  And those two things should be going in opposite directions.

Tue, 02/10/2015 - 14:23 | 5767362 walküre
walküre's picture

Pub cos with 4 food trucks and $100,000 net income have $100 million valuations.

Pretty much sums up what stocks "know".

The 1% has currently nowhere else to put money.

Tue, 02/10/2015 - 14:28 | 5767393 max2205
max2205's picture

Oil is the new silver 

Tue, 02/10/2015 - 14:38 | 5767444 MrSteve
MrSteve's picture

And we all know how to make a small fortune in silver!

Tue, 02/10/2015 - 14:52 | 5767527 zhandax
zhandax's picture

Start with a large fortune?

Tue, 02/10/2015 - 17:03 | 5768313 nailgunnin4you
nailgunnin4you's picture

Start with a large fortune?

You Sir, just won at zerohedge.
Tue, 02/10/2015 - 14:52 | 5767519 MisterMousePotato
MisterMousePotato's picture

My read of the article was that chucky cheese trucks, inc., had -$900,000 net income on a million dollars of gross income, which is even more absurd.

Tue, 02/10/2015 - 15:59 | 5767902 walküre
walküre's picture

You're probably correct there.. why not lose close to 200% of what you're making?

Somebody is buying the stock anyway.

Tue, 02/10/2015 - 14:23 | 5767363 saints51
saints51's picture

The machine will need more football,grammy's,tv shows and ISIS beheadings.

Tue, 02/10/2015 - 14:24 | 5767367 order66
order66's picture

"buybacks" -drink

Tue, 02/10/2015 - 15:02 | 5767589 ebworthen
ebworthen's picture

Yup, and that anyone left in the middle class with a 401K/IRA has it in a stock index fund run by vampire clowns like TIAA-Cref, Fidelity, and CALPERS.

Tue, 02/10/2015 - 14:24 | 5767369 Tsar Pointless
Tsar Pointless's picture

10 BTFD
20 If 10=BTFD, then BTFD

Tue, 02/10/2015 - 14:26 | 5767379 Soul Glow
Soul Glow's picture

So take the opposite side of the trade.  Got it.

And for anyone that says ZH isn't a data site!!

Get to trading, bitchez!

Tue, 02/10/2015 - 14:28 | 5767397 Keltner Channel Surf
Keltner Channel Surf's picture

They know Hilsenrath and Liesman have over 2 1/2 hours til the close, plenty of time for a Fed quote should we take out the lows.

Tue, 02/10/2015 - 14:29 | 5767399 LawsofPhysics
LawsofPhysics's picture

I am sure yields will catch right up...   ...any second now...

Tue, 02/10/2015 - 14:30 | 5767401 pound the vix
pound the vix's picture

They know that earnings season is over and that corporate stock buy backs are starting up again now that the quiet period has ended.

Tue, 02/10/2015 - 14:30 | 5767409 Gypsyducks
Gypsyducks's picture

Step 1.  Buy Every FUcking Offer

Step 2.  Buy double on any downtick.

Step 3.  Show the margin clerks your nailgun.

Step 4. PROFIT!!!

Tue, 02/10/2015 - 14:48 | 5767495 stvitus
stvitus's picture

When the even the margin clerks are staring down the nailgun...

3x bullish.

Tue, 02/10/2015 - 14:54 | 5767538 DetectiveStern
DetectiveStern's picture

I'm a big fan of the ZH nailgun comments. For the full ZH stylee...

 

We nailgunned some folks BITCHEZ.

Tue, 02/10/2015 - 14:31 | 5767413 BullyBearish
BullyBearish's picture

They know who owns them and what will be done to support their escalating prices

Tue, 02/10/2015 - 14:32 | 5767417 ArtOfLife
ArtOfLife's picture

If stocks are ALWAYS decoupling, maybe that means that they don't move in tandem w/ oil, yields and the USDJPY?

Tue, 02/10/2015 - 14:33 | 5767421 pragmatic hobo
pragmatic hobo's picture

... frbny ...

Tue, 02/10/2015 - 14:37 | 5767441 TheRideNeverEnds
TheRideNeverEnds's picture

They know the free money train has lost its brakes and are in a holding pattern till the next QE program is announced.

Tue, 02/10/2015 - 14:39 | 5767445 lasvegaspersona
lasvegaspersona's picture

We have saturated almost every device capable of storing wealth. Lots of people have tried to put something away for the future but the vehicles have all been driven up in price. Gold should be the go to wealth asset but in today's gold market one gets only the promise to deliver gold in the future unless one is willing to hold physical.

Soon these things we use use will drop in price as the central banks hesitate to print. When they are finally forced to print the assets could explode higher.

The problem the world has now is that there is not a good stable store of value for the masses (that they can see.)

Tue, 02/10/2015 - 15:14 | 5767657 bracemaker
bracemaker's picture

What do you mean? I'm currently 24% in Beanie babies and 15% Pogs, depending on if there is a major snowstorm going on.

Tue, 02/10/2015 - 14:40 | 5767458 Glass Seagull
Glass Seagull's picture

 

 

"Stocks" (read:  "Pelosi's grandkids' trading accounts") are aware that EU will blink on Greek issue and will smash higher on the back of the official announcement (early morning pop was just an appetizer).

 

"Losing" is not in Nancy's grandkids vernacular.

Tue, 02/10/2015 - 14:42 | 5767465 Osmium
Osmium's picture

Stocks don't "know" anything.  The algos are programmed to get the DOW back above 18k no matter what it takes.

Tue, 02/10/2015 - 14:49 | 5767502 madbraz
madbraz's picture

you mean the criminals who participate in a cartel and agree to buy and sell from one another through an algo and that rightly assume that there is no police to control their illegal activity?

Tue, 02/10/2015 - 14:58 | 5767567 StupidEarthlings
StupidEarthlings's picture

Yeah,...ya know 'stocks'.

Tue, 02/10/2015 - 14:48 | 5767499 Quinvarius
Quinvarius's picture

Stocks knows where their bread gets buttered.  It has nothing to do with the economy.

Tue, 02/10/2015 - 15:02 | 5767588 Oldwood
Oldwood's picture

I used to believe that stock prices were important because they were an indicator of a larger economy, maybe a leading indicator. What we are forced to realize is that stocks have decoupled from any true economic data and are an economy of their own, dependent not upon business or weather or anything other than those gamblers willing to place a bet on the table. These gamblers will stay at the poker table of the sinking Titanic if they thought they had a winning hand. Rational thinkers would be better off predicting our economic future by tossing bones or reading tea leaves. The hucksters are selling the game and our government is using the gaming results as a cover for their failing policies.

Tue, 02/10/2015 - 14:50 | 5767506 LukeCV
LukeCV's picture

They know nothing´

Tue, 02/10/2015 - 14:50 | 5767507 q99x2
q99x2's picture

You have to wait for the singularity before FED software will "know" anything.

Tue, 02/10/2015 - 14:50 | 5767509 Edward Morbius
Edward Morbius's picture

Stox "know" 60 billion euros a month, levergaed 30x, will juice them even higher, much higher.

Tue, 02/10/2015 - 14:52 | 5767525 madbraz
madbraz's picture

if you are already leveraged 30X, there is a limit to the additional leverage you can take.  besides, each central bank takes the risk - this is not the slam dunk most think, particularly at these nosebleed valuation levels.

Tue, 02/10/2015 - 14:51 | 5767514 Atomizer
Atomizer's picture

Wall street is echoing Global Climate change math models. This is a completely inverted chart when $USD hit $0.72 cents and crude hit $145/bbl. No manipulation here, move along kids. Rubbernecking fraud is politically incorrect.

 

NorthConnex road tunnel contract signed only days after US$ 150-200 oil price warnings in Davos

Love the smell of receivership in the morning.

Tue, 02/10/2015 - 14:52 | 5767523 Fred Hayek
Fred Hayek's picture

Smells like . . . penury.

Tue, 02/10/2015 - 15:07 | 5767616 Atomizer
Atomizer's picture

Haven't heard that word in ages. Well said.

Tue, 02/10/2015 - 14:51 | 5767517 Fred Hayek
Fred Hayek's picture

Does being the Fed's choice of the asset whose value the Fed wants most to inflate mean you "know" something?

Tue, 02/10/2015 - 14:53 | 5767528 prefan4200
prefan4200's picture

Stocks don't know shit.  It's not what stocks know that high-yield credit, crude oil, Treasuries, and USD/JPY do not know.  It's what they know that stocks do not know.  Stocks are fucking retarded right now.

Tue, 02/10/2015 - 14:55 | 5767534 nakki
nakki's picture

Judging by the fact that a company with 4 food trucks selling grilled cheese has a market cap of $100,000,000, I'd say the market knows how to absolutely fleece people out of fiat.

Tue, 02/10/2015 - 15:45 | 5767824 Mike Honcho
Mike Honcho's picture

Word on the street: there is a corn dog stand conglomerate about stick out, if you catch my drift.

Tue, 02/10/2015 - 14:59 | 5767565 JuliaS
JuliaS's picture

Stocks, charts and stats are all algos. They don't mean anything. It's thousands of computers playing chess with eachother and here we are cheering for transistors, or placing bets on when the next blue screen of death's gonna pop up. Meanwhile something tells me that we could have a plague wiping out the entire human population overnight, and there'd still be a DJIA and S&P number the next day, the day after that an so on. Computers would just be bouncing autogenerated headlines amongst eachother until their premium Wall Street grade backup generators run out of plutonium or rats eat though all the fiberoptic cables.

Tue, 02/10/2015 - 15:03 | 5767578 Squid Viscous
Squid Viscous's picture

bunch of hedge fund geeks that have to go home to their nagging, ugly, cunt wives/boyfriends - having fun goosing the "market" from 9 - 4 pm ...?

 

what did I win?

Tue, 02/10/2015 - 15:03 | 5767593 stvitus
stvitus's picture

Here's what stocks know:

You buy when there's blood in the streets.

I don't know about you. I don't know about Wall st. But I know that in my neck of the woods, the streets are Nightmare on Elm Street (the part where Johny Depp forgot to never sleep again).

When there's blood on Wall st., you BTFD.

When there's blood in every other street in the country, you buy that Fucking Dip because don't fight the Fed; the Fed has our back; insert bullish meme ________.

In short, QE Bitchez.

Tue, 02/10/2015 - 15:12 | 5767645 Clowns on Acid
Clowns on Acid's picture

Stocks know... its that Yellen doesn't know. Well of course she knows but like Bernanke who begat Yellen and Greenspan who begat Bernanke, ... they pretend not to know. They all have an innate talent to do this.

"Cause when its just oxygenated fiat that is doing the buying... it just doesn't matter".

Your physical being is being subjugated by digital digits, preventing your metaphysical being from development.  It is a requirement if the digital digits are to be effective.         

Tue, 02/10/2015 - 15:26 | 5767729 Carl Spackler
Carl Spackler's picture

This is a silly question for a headline. 

Raise your level of play, Tyler Durden! 

Obviously, many posters here know the answer... The U.S. eqities markets know they are backstopedp by the Fed's monetary policy.

 

Nothing to see here.  Please disperse.

 

 

Tue, 02/10/2015 - 15:38 | 5767788 Shizzmoney
Shizzmoney's picture

The 3:30 ramp is now the 2:30 ramp

Tue, 02/10/2015 - 15:41 | 5767801 lemarche
lemarche's picture

They know that there are loads of retail shorts to be squeezed...

Tue, 02/10/2015 - 15:50 | 5767853 Madcow
Madcow's picture

So long as Gov-Co can continue buying securities at increasing rates with tax receipts from the "future" - everything is going to be okay.

Tue, 02/10/2015 - 15:54 | 5767882 durablefaith
durablefaith's picture

Are we seeing the meltup model where stock index become store of wealth?

Tue, 02/10/2015 - 16:02 | 5767915 astoriajoe
astoriajoe's picture

I think stocks knew that it was 10:45 and time to go up.

Tue, 02/10/2015 - 16:13 | 5767990 gmak
gmak's picture

Equities ride the short bus among asset classes. It always takes them to realize that they have gone off the cliff and are running on air. The trillions of free money flowing towards them doesn't hurt either.

Tue, 02/10/2015 - 16:25 | 5768078 The worst trader
The worst trader's picture

More free money coming

Tue, 02/10/2015 - 16:47 | 5768231 jim249
jim249's picture

The markets know that the Fed has their back and can never correct more than 2% at any given time. The markets are safer than money in the bank!

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