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Volumeless Stocks Test Record Highs On Downbeat Data
Last week's message to TPTB... (appears to have been heard loud and clear)...
Another day, another rally on even weaker volume (with UK and Japan away on holiday) and shitty data... Spot The Difference...
Who could have seen this coming?
But the best news is twofold: volumes continue to be lethargic with both the UK (May Day bank holiday) and Japan closed until Thursday (Golden Week), while the bulk of the S&P500 has now exited the stock buyback quiet period. As such, ignore record equity outflows - all the matters is that corporate CFOs, flush with brand news bond issuance cash, will tell their favorite Wall Street trading desk to buy stocks at just the right inflection point sending the market surging just as shorts once again test the downtrend and the 50 DMA.
after China's dismal data, Germany's surprise, and US Factory Orders printing weakest YoY growth run since 2008...
Small Caps spurted higher at the open - thanks to Gartman's suggestion of shorting - but the excitement faded back as the day wqore on...
Social Media never bounced...
And Shale plays stumbled on Einhorn but that was an awesome opportunity to BTFD!
Credit markets remain less exuberant...
Treasury yields ended the day higher once again with the selling poressure coming (once again) during the US session
(even as Bunds sold off during the EU session)
The dollar closed modestly higher with EUR fading 0.5% - note just how dead USDJPY was - with Japan on Golden Week...
Chaos in commodities early on left gold and silver up, crude and copper down
From the 8amET "moment" - once again...
Some context for Silver's move...
Charts: Bloomberg
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When does CONgress have to deal with the budget ceiling again? How much more will the taxpayer be paying in interest now?
tick tock...
Probably the next time they need some bullshit spending riders passed or start thinking we have too many freedoms.
I think we all know by now there is NO budget ceiling. Sky's the limit. Hell there's really no budget. There is no fiscal responsibility what so ever.
You're right. And do they really even need a budget or a ceiling when they hold the philosopher's stone of modern financial alchemy?
Congress is a circus show, they've handed the reins to the economy and nation over to the FED.
And your hypothesis is that this can occur without any signifcant consequences?
Bold call.
Soon and 20 TRILLION is coming our way.
LMFAO!! Great point. March 16, 2015 was the deadline - and not a word about it since then.
Isn't gubbamint just the best?
i like how they round tripped Silver and Gold right back to the lows of the day in the last hour of trading of the CRIMEX...40 cents...
yeah, right...thanks again asshole MoneyChanger fucks....
http://www.kitco.com/charts/livesilver.html
"This Charming Man" AKA “This Alarming Plan” (Full version of earlier Smiths parody)
Structured vehicles, credit plays so desperate
Will markets make a fool of me yet?
While in this charming bar, this alarming plan:
Why tamper with convexity
when stocks will soon run out of steam?
I would short RUT tonight, but I haven’t got a dime to spare
This man said it’s gruesome that someone so clever should dare
A pumped-up hedge fund toy that sailed right into space
He said: ‘don’t fade the swings’
He knows so much about these things
I would short RUT tonight, but they say I wouldn’t have a prayer
This man said he knew some who tried this last year, so beware
La-da-da-da-da-de-da
This alarming plan
A plumped-up momo ploy that never has retraced
He said ‘don’t pull its string’
He knows so much about these things
He knows so much about these things
unusually _________ weather... we "al rokered" some folks
For the curious, the Dow passed 18,000 for the first time on December 23, 2014 .
correct, but so long as the "market" goes up and down the bankers and financiers can keep skimming, not to mention all the free money (ZIRP) they still have access to...
... that non-refundable 2/20 is a beautiful con huh ?
one of many. Tell your friends to jump in, they don't want to be left behind now right?
One of those annoying "tweener" days: we didn't ramp convincingly toward highs on SPY, DIA or QQQ, or hit the 50 DMA on IWM, nor did we roll over after a morning 'bull-trap' ramp, as bears would have preferred. Thus, no one's very happy today, except 2-min chart algos.
Speaking of volume, nobody has satifactorily explained the anomaly of a market consistently hitting new highs on steadily falling volume. You hear descriptions of the market behavior using phrases like "bubble", "blow off top", "parabolic rise", "irrational exhuberance". Those things can only happen on rising volume. Can you show me a bubble with this kind of decline in volume? In my view it's a robotic diagonal rise because of Fed interventions, not a bubble. I think that a few years ago, traders figured this out. It's moving up on the lack of exhuberance. Can't end well.
Good point. My view is: few defined benefit funds are net sellers, given the dearth of alternatives to meet their actuarial bogies and belief slow econ data pushes rates hikes into mid-2016 or later, though their Graham & Dodd backgrounds also precludes major “new high” buying. At the same time, mandatory defined contribution buyers, such as 401(k) funds, can easily chase each other higher early and late each day given volume levels and predatory algos sniffing them out. The lack of conviction at highs draws in shorts, then after big down days, the former inst. group feel comfortable nibbling and create V-bottoms, thus the annoying trading ranges.
The debt clock is at $18.2 trillion now and climbing.
Will that clock fit on my wrist?
Such a conundrum... market highs on heavy volume is because, and I use the term while gagging, "sheeple", are rushing in... BAD... refer to the China articles. Market highs on low volume is because it's, and I also use the term while gagging, "TPTB"... BAD...
No wonder people don't make money because of Zero, it's got people sidelined whether you're coming or going!