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Stocks & Bonds Surge, Recouple Post-Payrolls
Reminiscent of the "QE Trade", stocks and bonds are surging and the USD dumping this morning as yet more terrible data spurs 'hope' that The Fed will stay lower-er for longer-er and lose all credibility for good. The Dow is now 350 points off Friday's lows (even as oil collapses) on nothing but disastrous data and Treasury yields are 5-6bps lower than the late Friday pop highs. The USDollar is down an impressive 0.75% since Friday as Crude hovers just above a $42 handle.
Today's rally in bonds and stocks has recoupled the long-end and the S&P post-payrolls...
As stocks surge off Friday lows... just like they have a few times now...
and while Energy stocks are now in th egreen for the day, we remind 'traders' and machines that they are trading at 27x fwd multiples...
This is the biggest drop in the dollar in 5 weeks.
Credit is less exuberant...
Charts: Bloomberg
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While Putin plays legit War Games in the Artic with Russia's Nuclear Submarine fleet as Crude falls 4.5%
http://hedgeaccordingly.com/2015/03/putin-puts-russias-northern-fleet-on...
The Big Boys who rig the markets must be taking Fridays off to decorate their missile silo bomb shelters in the Midwest, far away from the usual MIRV targets on the East and West Coasts.
Just buy the DAX in the European morning, go and play golf for the day and then come back and rake in the massive gains
Algo fest time. US all by itself. Time for the fuckery and awesomery of why Team America is the fucking best!!!!
Yep, just look at the bounce after today's opening, no manipulation there, nope, nope, nope, just sunshine and unicorn pee everywhere....
No volume market easy to manipulate.
WWIII will doubtless signal a breakout for unheard of record highs.
Meanwhile...Obozo has one limp wrist on the wheel and the other hand down Reggies pant front.
As the rest of us all bask in the glow of our recovery!
USSA!
So if the dollar is down, why are PM's down, too. Makes no sense. Markets are all fixed!
FedRes meeting this week,what else do you expect ?
Plenty of more downside to come. Once we break the triple digit barrier in gold, we look forward to $800 and then $500.
All is well.
I'll climb out on a limb and say $500 cannot happen. There simply isn't enough gold supply to do that. Yes, I know ETFs set the price but that connection would break at $800.
Not only can $500 happen (170,000 tons of supply out there) but its not the end point. We may see a bottom under $100.
Common sense must be hunted down and killed whenever it raises its head. Wouldn't want the herd to become suspicious after all.
Drop in Gold from recent Peak @ $1900 corresponds with +25% rise in Dollar Index, so seems to still be related. If/when US$ implodes will be real test. Still, PM selling pattern at illiquid times remains so still appears (as ZH hammers point often) that someone is trying to sell as badly as possible (i.e. obtain the worst possible price for sale...drive price down).
US Govie bonds also seem to be acting correctly. Lower inflation, lower commodity prices, crappy growth prospects equals lower yields (until/unless QE4 is mentioned, QE-start kills bond rallys and QE-end allows bond rally resumption).
Looks like we might get another Hindengurg Omen today! Hope we have enough people LONG now.
Interesting
the volume on all these indexes are abysmal.
the dax is the biggest fucking joke, up 25 percent and march is nowhere near over. i remember in 2013, the first full the year of qe 3, i believe the s&p was up 34 percent the whole year. the dax looks like it will be up over 100 pct the way this bs is ensuing.
also, the nikkei, whenever its ''down'' its down by like 9 pts.
this shit all over the world is becoming insane. something never seen in my lifetime
And never will again.
Don't worry everything is grand. BLS will show jobs ADDED in oil and gas industry for March. Student debt will be forgiven and all sovereign debt will be paid back. Its time to invest in Australian and Chinese real estate. I hear you can get a nice one bedroom one bath "house" in Sydney for around $800,000.
The outhouse was $800k, the house was prolly 10m.
Fed conjures up 250 billion as down payment for a Russian Intervention.
She's breaking up Jim. I'm giving it all she has Caption.
Often algos trace out an 'arc of possibility' before a major Fed blather, marking best/worst cases, then end up somewhere in between just before the announcement. Will be interesting to see if we get those 'best case' highs today, or if the lunacy makes it til Wed @1:45. Even more annoying for bears -- the more sensible machines are pre-Janet, the more the post-presser pop could be if she comes thru.