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"Denied" Greek Rumor Sparks Stock Buying Panic As Bonds Near Death Cross

Tyler Durden's picture




 

Volatility is contained... just like this...

The biggest driver of today's panic buying fiasco was rumors of a German compromise which were quickly denied (but the machines forgot to sell on the denial)... EURUSD gave back all its gains but US equity traders are far more intelligent and held...

EUR vs ES

 

A squeeze already had us rising before the rumor...

 

On the day, Trannies underperformed and the S&P had its best day in a month

 

Notably, from the spike after the Greek rumor headlines,. stocks went nowhere...

 

Since Friday, Trannies remain the red but today's excitement lifted the rest into the green on the week (and year)...

 

The reason for today's ramp - simple - recover the losses from Payrolls... (on no volume)

 

Volume was weak but everything traded very technically today:

  • AAPL closed back above its 50DMA (bouncing off 100DMA yesterday)
  • S&P 500 closed back above its 100DMA and 50DMA
  • Dow broke above the 50DMA but closed below (losing 18,000 into the close)

The VIX ETF VXX hit a new record low today... (biggest 2-day drop today in 2 months)

 

Mission Accomplished:

 

The USDollar weakened again today, led by a surge in JPY on the back of Kuroda's idiocy...

 

Treasury Yields rose once again (up 7 of the last 8 days)...

 

Based on Long Bond yields, it appears 30Y bond prices are about to experience the Death Cross...

 

The weaker USD enabled some strength in the commodity space...

 

Crude oil prices soared on the back of record production in US, record production in Saudi Arabia, looming Iran supply, and the weakest demand grwoth in China since 1998... because inventories dropped and that's all the machines comprehend...

 

Airlines love higher oil prices now...

 

 

 

Charts: Bloomberg

Bonus Chart: RCA - The Netflix of The 20s

 

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Wed, 06/10/2015 - 16:13 | 6183775 Boris Alatovkrap
Boris Alatovkrap's picture

Boris is love colorful porno-GRAPH-y, but better illustrate value of money with short story...

Two salesman is drive for long in car, must is use bathroom for solid refuse, but in countryside, is no cannot find. Finally, one is stop car get out and go behind tree. Come back in smiles. Other is quandary... ask how is to clean up? Is use dollar! Other is ask to borrow dollar. Go behind tree, come back covered with sh¡t. Other is ask what is problem!? Other is say, you can do better with 3 quarter, 2 dime, and nickel!

Wed, 06/10/2015 - 16:59 | 6183978 The man with po...
The man with pointy horns's picture

Boris, is your English getting worse or are your jokes getting funnier?

Wed, 06/10/2015 - 17:06 | 6184004 Boris Alatovkrap
Boris Alatovkrap's picture

More you are drink, funnier is Boris!

Wed, 06/10/2015 - 17:15 | 6184026 Say What Again
Say What Again's picture

Boris,  Please to not change your face and style.   Forward and backside too, we wait for Borris message with breath that has bait.  Where does the vodka hide?

Wed, 06/10/2015 - 17:20 | 6184042 dimwitted economist
dimwitted economist's picture

Fuck Yeah! simply a Very STRONG u.s. Economic Recovery underway!! Go ahead and RAISE THE FUCK OUT OF THOSE RATES!!!!! (soon)

Wed, 06/10/2015 - 16:13 | 6183777 FreeShitter
FreeShitter's picture

Death to the money changers. Its that simple.

Wed, 06/10/2015 - 17:06 | 6184003 THX 1178
THX 1178's picture

Might as well take out the Romans while were at it.

Wed, 06/10/2015 - 16:17 | 6183785 Keltner Channel Surf
Keltner Channel Surf's picture

“It's the End of the Market as We Know It”      by R.E.M.

(To conserve space, here’s just the first 60 sec. of the tune)

Oh great, it starts with a head-fake
Squids and whales, big annual gain, Dennis Gartman is afraid
Eye of a hurricane, look at the markets churn
Algos serve their own needs, don't buy liquidity creeds

Pump it up a notch, add speed bumps, stop, go
Laddered structures clattered with fear of rates, hike rates
Wires and fibers represent the biggest firms
If the market‘s for sale, it’s a combat site

Left VWAP, ramping in a hurry with the algos breathing down your neck
Week by week, pundits baffled, pumps, measured drops
Look at that low volume -- it’s fine, then?

Uh oh, quote overflow, cancellations, common crimes
But it'll do, if you save yourself, you serve yourself
Exchanges serve their own needs, look at your account bleed
Tell me how to capture any doin’ it right -- right?
They’re unpatriotic, diabolic – but I can’t fight
This rally’s out of sight …

It's the end of the market as we know it
It's the end of the market as we know it
It's the end of the market as we know it
And I feel like shit

Wed, 06/10/2015 - 16:33 | 6183864 ParkAveFlasher
ParkAveFlasher's picture

TALENT

Wed, 06/10/2015 - 16:15 | 6183788 freewolf7
freewolf7's picture

18000 Nice landing.

Wed, 06/10/2015 - 16:22 | 6183819 Rainman
Rainman's picture

oddly back to the level breached in Nov. of '14 ...... the first Fed ' no printing ' month.

Wed, 06/10/2015 - 16:22 | 6183807 coulous
coulous's picture

.

Wed, 06/10/2015 - 16:19 | 6183809 coulous
coulous's picture

Golden cross , no death cross. 30y bonds

Wed, 06/10/2015 - 16:23 | 6183810 coulous
coulous's picture

.

Wed, 06/10/2015 - 16:21 | 6183815 i_call_you_my_base
i_call_you_my_base's picture

Someone phoned in a dow 18K demand.

Wed, 06/10/2015 - 16:21 | 6183817 JustAboutThatAc...
JustAboutThatActionBoss's picture

Dont forget about the Hindenberg that was triggered today too!!

 

Its appropriate since the Germans are about to blow up Greece

 

HINDENBERG!

Wed, 06/10/2015 - 16:25 | 6183832 stant
stant's picture

If bonds had hindenberg omens it would look like one of those survalence blimps crashed into the Capitol building

Wed, 06/10/2015 - 16:26 | 6183839 H H Henry P P P...
H H Henry P P P Paulson's picture

I forgot the rule of thumb for rumor denials.  When a rumor is denied, does it mean is really is true, or no?

Wed, 06/10/2015 - 16:32 | 6183859 Bill of Rights
Bill of Rights's picture

236 point DOW rise on nothing, rediculous .

Wed, 06/10/2015 - 16:42 | 6183898 BeaverCream
BeaverCream's picture

Nothing?  I mean did you see the weather today, it's beautiful...get with it brah.

Wed, 06/10/2015 - 16:42 | 6183899 H H Henry P P P...
H H Henry P P P Paulson's picture

They take their cues from Glengarry Glen Ross.  Lie, cheat and steal... all in a day's work.  They can try their best to prop this wheelbarrow of manure back to all-time highs, but if we reverse these gains tomorrow, that will only tie in well with the support the SP500 broke a couple weeks ago.

Wed, 06/10/2015 - 16:53 | 6183947 Baby Eating Dingo22
Baby Eating Dingo22's picture

Greece was not the spark, Greece was the excuse

Greece "happens" 3 x's daily

If Greece was the spark, the denial should be the cold water

The spark was technical support being threatened

Wed, 06/10/2015 - 16:56 | 6183970 taketheredpill
taketheredpill's picture

RCA ticker chg VXX

Wed, 06/10/2015 - 17:09 | 6184013 firewire888
firewire888's picture

IMF and World Bank will have to tell Fed start qe4 soon.   If 10 year yield gets to 3, qe4 is certainty. 

Wed, 06/10/2015 - 17:21 | 6184047 Ploutos74
Ploutos74's picture

Everyone knows Greece's gonna get 'saved' and everone's wants to join the action at just the right moment.

Everyone but ZH of course who sorted Greece and is about to get its butt whooped. Sell I say.

Wed, 06/10/2015 - 17:27 | 6184059 Ajax_USB_Port_R...
Ajax_USB_Port_Repair_Service_'s picture

Who needs Prozac when you've got LOWVXX. Life is good here in Hidden Valley. Pass the ranch dressing please!

Wed, 06/10/2015 - 18:16 | 6184241 Soul Glow
Soul Glow's picture

That Kevin Henry is so hot right now.

Wed, 06/10/2015 - 19:22 | 6184462 adr
adr's picture

How the fuck is Netflix worth $670?

I bet the Chinese umbrella company actually has more real profit.

Wed, 06/10/2015 - 19:27 | 6184477 harrybrown
harrybrown's picture

while all this greece saga goes on, what are they not talking about.....

Wed, 06/10/2015 - 19:38 | 6184523 fremannx
fremannx's picture

Rising yields have been expected here for a long time. No surprise. Yields will continue to rise as the coming deflationary depression widens globally and the vortex begins to suck every economy into the abyss.

http://www.globaldeflationnews.com/10-year-u-s-treasury-index-yieldellio...

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