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Bonds Down, Dollar Down, Crude Down, Service Economy Down... Stocks Up
If The Fed/ECB's plans were to shake out some of the extreme positioning in markets, it is succeeding but they are losing grip on any control of this chaos... (apart that is for the mickey mouse equity markets)
For the 3rd day in a row, stocks exhibited a similar pattern...
The new normal - liquidity ramp to infinity as time approaches 16:00 $ES_F pic.twitter.com/hK1PmmpOU9
— Eric Scott Hunsader (@nanexllc) June 3, 2015
But once again the story of the day was the utter carnage in the FX and bond markets...
US Treasury yields are up 20-24bps this week with more carnaging happening after ECB's Draghi mentioned inflation forecasts and expects more volatility
This leaves US Treasury yields all higher post-QE3
Side note - what exactly is going to happen to mortage apps after this collapse?
Lots of excitement about higher rates and financials... better hope 3rd time is the charm for decoupling from credit...
Bunds were crushed... 10Y Yields hit 89.7bps! up 42bps from Monday lows! German bond yields are now the highest since Oct 2014
The Dollar was clubbed like a baby seal once again all on tyhe back of EUR strength...
EURUSD has risen by almost 3% (almost 400 pips) in the last 2 days - the biggest surge since March 2009!
And this time the commodity markets also suffered...
With Crude very unhappy about the opngoing rise in production (no matter how many times CNBC proclaimed the inventory draw)...
But stocks just "stayed the course" with Trannies outperforming on the day...
A glance at futures shows the volatility that the day-session masks...
Since Friday, all indices are now greem...
As Stocks and Bonds decouple further...
Charts: Bloomberg
Bonus Chart: Some context since the end of Jan...
Bonus Bonus Chart: JPMorgan reports Clients have not been this net short Treasuries since 2006...
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Alright gentlemen, what seems to be the problem now?
I'm disappointed that there weren't more Since Lehmans ©.
... and they want us to abandon CASH and only trusting their Digi-Dollars and Digi-Euros?
Fuck 'em
When they actually ban cash, the underground economy will grow exponentially and include everything not just "contra"band. Even the cops will take cash bribes and offer protection from TPTB for cash.
How stupid and complacent do these fuckers think we are? There's a limit as to how far the people are willing to go with the fascists.
Clearly we haven't reached that point.
Most bullshit.... Since Lehmans!!!
Ya, I'd say at this point the black market economy is establishing itself in many areas already. I have a little smile every time I conduct a transaction outside of their prosperity vacuum.
But the question remains.... What seems to be the problem gentlemen?!?
..."propsperity vacuum"..
Is that "Ebay"?
Oh yes, that and many others! You can usually distinguish them by their large squarely constructed buildings and colourful, easy to identify symbols. They work great. Simply install one in any community and it immediately begins to siphon all of the propsperity from the area. im thinking about getting one.
Stocks up for the win!
“Year of the Crash” from “Year of the Cat” by Al Stewart
On a morning from a Chandor movie, in a market many start to fade
You go strolling through the crowd like Peter Thiel contemplating a trade
She comes out of the sun in a Greek dress cut like a waterfall in Spain
Don't bother asking about deflation, she'll just tell you that she came
in the Year of the Crash
She doesn’t hear your last suggestion as she locks up your trade in hers
And you follow till your sense of proper hedging completely disappears
By the Bloomberg wall in her broker’s hall
there's a hidden tranche she leads you to
“These days”, she says, “I feel my risk just like a shiver running through me"
In the Year of the Crash
She works her plan so coolly
And her eyes are as large as the spreads in Lisbon
She wears Fibonacci and Bernoulli
So you go long, to find what's waiting inside . . .
Well, the bottom comes and you're still with her
And the big alpha hedge funds are gone
And you've thrown away the choice and lost your nest egg,
so you choose to stay long
But the financial strains of the day remain in the challenge of the ESM
You know someday you're bound to fade her,
but for now you're going to stay
in the Year of the Crash
Home prices nee to come down bigtime!! At least a 30% correction.
"Nothing to see here folks - move along." (Officer Brady)
Just don't Buy Gold or Silver.... DON'T DO IT BITCHES!!!!!
And yet, surveys among investors are showing greater allocation (=trust) into Gold than bonds or equities.
Maybe the reason why paper gold is on sale is that investors are actually buying the phys en masse. The demand for phys does not necessarily affect the paper price as long as there's nobody shouting it from the rooftops.
Mortgage applications are down beacuse everyone is rich and are all cash buyers. Nothing to see here.
i was a tad slow on the draw
Face melting treasury short squeeze in 3.2.1......
I'm trying to recall "the great recovery of 2007-08" as well.
Russian market got slammed and they hit Ukraine hard today. Yes that includes the ruble.
The Yen has been annihilated over the past week too so I'd take the sell off in the dollar with a grain of salt.
Big rise in refined product inventory. No wonder everyone is so terrified of Tesla.
Those who PRINT will own that what's printed. SO THE FUCK WHAT?
Can't print gold...
home sales don't care about rising interest rates (all cash investors ... to the moon, alice!)
in any case, MBA weekly mortgage index down 7.6% (week over week)
https://www.mba.org/2015-press-releases/mortgage-applications-decrease-i...
A primary bear market has been signaled on June 3rd for US bonds, as explained here:
http://www.dowtheoryinvestment.com/2015/06/dow-theory-special-issue-us-b...
Now the odds favor further downside for US debt and the USD (as the EUR is in a primary bull market)
10 yr yield will hit 1% before we're done
recession/deflation at hand
Thats only after a 30+% stawk correction, but yes I agree in theory
@Kaiser Sosa - I need the balloon comment. Do it everyday stocks are up. It is a comment from Zh I never forgot along with " all your children belong are us".
USD COLLAPSE. GOLD ROCKETS HIGHER. ...... CRICKETS.
this market is the erection that has lasted longer than four hours.
Since the end of 2009/beginning of 2010 it has been clear to the enlightened investor that, regardless of the economy, the only thing that would keep our collective ass out of the mangler would be a strong stock market.
The rich, both big and tiny, were subliminally invited to join this conspiracy of the willing.
When we see selloffs in everything but stocks, we know that whatever was sold, was sold to raise money to buy stocks.
It's as simple as that.
the stock market is FAKE... it's all about FREE "MONEY" from the Fed at 0% this shit will End. (someday... )
Double post..
Are financial stocks up because they have proven they can rig the markets illegally, make massive profits from it and pay rounding-error type fines for it? As the economy crumbles, they will be the ones left with a business plan in place to profit from it as the rest of the world goes up in flames. Sounds like the stocks to own...
Fuck all this bullshit.
Silver down 1.5% and not even mentioned.