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Volumeless VIXtermination Fuels Stock-Buying Frenzy To Record Highs
There can be only one clip for today...
Because it's all about the fundamentals... and funnily enough the day when consensus GDP hopes collapsed also..
And volume doesn't matter...
Futures give us a glimpse at the dip-buying euphoria that began early on...
But cash indices just would not stop... Small Caps ripped as AAPL pumped Nasdaq higher
With shorts squeezed even more... (2nd biggest rise in "most shorted" stocks in 4 months)
As VIX collapsed (this is front-month futures smashed below 15)...
Crucially SPY took out its December fat finger spike highs... freeing any long lost longs remaining...
But credit was nmot happy with rising rates - so how are you CFO muppets gonna fund yr cheap buybacks noiw?
Treasuries were sold aggressively... roundtripping Friday's gains...
Even as Bunds were "managed"... the smallest range since Gross and Gundlach spoke..
The dollar soared over 1% on EUR and CAD weakness... This is the best day for the Dollar in 2 months... worst day for EUR in 2 months (notice this is a complete roundtrip of Friday's losses with Swissy well offered
The Loonie had its worst day in 4 months against the USD today...
Despite the USD strength, Silver and gold gained on the day, copper lost ground but crude was a financialized joke...
Trade those "fundamentals"...
So - to summarize - US stocks soared relentlessly on no volume to record highs as traders monkey-hammered VIX futures lower... on a day when Bunds were well managed but TSYs traded out of control, FX markets were carnaging and commodities whipped up and down like a whore's drawers...
Charts: Bloomberg
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Everyone knows assets are at their best value at 930 and 1130.
I was like in awe
Like awe fuck.....again?!
When volume returns to the market it will be panic selling in volumnes never before seen, at which point they'll just stop all sell orders. the market for an hour or two. Upon reopening the selloff will continue as the word has spread and everyone is trying to liquidate positions. Soon for many equities there are no more buy orders and the prices enters free fall. The market will be halted again. Janet Yellen will fire up QE4 every with something stupid, like $120 Billion in asset purchases per month. The selling will reverse into panic buying by institutional investors. The American sheeples will think the problem is solved and panic buy as well.
It will be the death of the USD.
What manipulation????
No, its a fraud and the weak will get hurt as they always do.
I can hardly wait till we reach Nirvana and I can check into the Utopia Hotel&Spa......
We can always use the Libor ticker. Err ICE
http://www.fedprimerate.com/libor/
“Everything is Free” by Gillian Welch
[CHORUS]
Every trade is free now, that's what they say
Profit that we used to make, gotta give it away
Flash boys hit the big score, they figured it out
They we’re gonna trade anyway, even if it doesn't pay
I just bought the breakout, hope it goes far
But the damn thing changed, down to a pin-bar
I should get a real job, I’ve done it before
Never minded working hard, but never past 4
[Repeat CHORUS]
Every day I wake up, should I go long?
But I don’t need a trading floor, I just work from home
Let those old-school TA books gather dust on the shelf
If you wanna beat machines, gotta do it yourself
‘Cause every trade repeats now, that's what I said
Now I gotta listen to each word from the Fed
Someone hit the big score, I figured it out
But I'm gonna do it anyway, even if it doesn't pay
Cmon, why is everybody waiting for a reset when the possibility exists this could go on FOREVER, right?
.VIX was nearly 3% higher but VXX was ass pillaged over 3% lower....What the FUUUUUUUUUUUUUUCK!?!
I asked a question below about this. Agree VOIX should be up! How are they keeping it down. Is it just massive shorting by Fed and compadres?
they have to roll into front month contract at a huge loss, the "VIX" can stay at 12-14 and these things will go to zero...or thereabouts pretty quickly
you need to understand VXX/UVXY it's a sucker's bet unless for a very quick trade, seems tempting but it sucks trust me!
Agree th Squid. If you don't know what contango is, then stay away from these things. I know all too well, and I still get my hands burned every now and again.
Only a MASSIVE inflation can explain an equity...and dollar....move such as this.
Sorry but Statisical Theory cannot be this wrong.
The only explanation can therefore only be that "the number itself" (meaning the "value" of the underlying instrument..the dollar) is fast becoming quite dear.
Passage of TPP would appear to be the kick off to this disaster actually.
The biggest export of the USA is food.
The move higher in GIS has been nothing short of amazing.
KO as well.
If gasoline prices hit 50 bucks a gallons in SoCal that might "grab a headline." So far nary a word on the explosion higher to 4 bucks save on the Web.
Food prices will be right behind if gasoline prices start soaring.
And food riots as well...
I really wonder if all this borrrowing and stock buy backs on cheap money is a warning sign of future inflation expectations ahead. A very good read here:
http://thecrux.com/warren-buffett-is-quietly-preparing-for-inflation/
Wall Street is not stupid...they know who and how this "recovery" has been paid for.
They extend the credit...and indeed have gone so far as to provide the liquidity.
TRILLIONS in DOLARES.
The bankruptcy of the entire coal industry is the answer?
It's not like the energy bill is going lower...
The header's showing a particularly flattering picture of Mr Yellen. Imagine having to look at that boat race every working day , let alone waking up to it every morning.
Still her expert Financial and Economic skills make up for her ugliness. s/c
Who the hell needs macro data, when you have activist CB's predetermining and supporting stock price valuation. C'mon, get with the program.
Sweet. My new "long" silver position is doing just fine.
sold some today back to Gainesville, so its going much higher
keep these type articles coming; SPX 2500 by end June for sure
The Last Two Times This Happened, Stocks Crashed
Investors Are Trapped In A "Twilight Zone", BofAML Warns Of Looming C.R.A.S.H. Risks
Dan Ariely: Why The Next Market Downturn May Quickly Become A Full-Blown Panic
Final Pillar Of Bull Market Showing Cracks?Don't stop now - ROCKIT!!!...
https://www.youtube.com/watch?v=GHhD4PD75zY
So - to summarize - US stocks soared relentlessly on no volume to record highs as traders monkey-hammered VIX futures lower... on a day when Bunds were well managed but TSYs traded out of control, FX markets were carnaging and commodities whipped up and down like a whore's drawers...
Nice one Tyler. i am still giggling about the whores drawers comment. I had to share.
Honest question. VOIX should be up. I've been trying to figure out how they keep pressure on it. Straight out shorts using sub-accounts? Money straight from the Fed? Appreciate an explanation. I know its the Fed just can't figure out how.
Past commodities trader.
I would say central banks is how. Not just the FED but all working together. They use the citadel as Zerohedge reported a while back in Belgium. I am sure there are other front hedge funds backed by central banks to move markets where they decide for the day. We just do not know of them. The central banks control the government, therefore make the laws. This means the bank knows every loophole and every way to hide itself. The only evidence we see from the central banks is price action.
I dont understand this article (link below) I'm missing something. I thought it was always like this?
Maybe someone else can comment on it? Stock Market Valuation Exceeds Its Components' Actual Value.
Boomberg Article.......
Nobel Winner’s Math Is Showing S&P 500 Unhinged From Reality
Feels like it's getting close. Keep an eye on high yield bond market along with the German bund. Pimco (BOND) should also be the bear story of the year. Not sure how long they can keep their price up. Weekly high yield bond charts do not look good.
Bond Crash + Market Crash + Gold Launch = Stagflation Economy. Watch for it.
Maybe it's just wishful thinking, but today felt to me like a blow-off top. I'm ready for this farce to go ahead and collapse already.
"grind up top" = a new high almost every day in Mr. Yellen's Borscht Belt Emporium
How long do you think it's going to take for the majority of the population to catch on?