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"Irrelevant" Greece 'Deal' Sparks Week-Long Stock And Bond Buying Frenzy

Tyler Durden's picture




 

This old clip seems very appropriate... Full Throttle until around 2:00... everyone smiling as the 'boat' surges ever faster... then hubris gets its revenge...

 

Just as we said this morning...

We expect the traditional no volume, USDJPY-levitation driven buying of ES will surely resume once US algos wake up and launch the self-trading spoof programs.

 

And Volume just got worse and worse all week...

 

Some context that Greece doesn't matter... On the week...

  • Nasdaq +4.1% to record highs - best week since Bullard bounce in October
  • S&P +2.3% - best week since March

Trannies and Small Caps disappointed on the week...

 

On the day - Nasdaq started off crazy right after the close as GOOG hit then just squeezed higher to fresh record highs... S&P unch, Dow down...

 

But Small Caps were ugly today...

 

But all the exuberance in Nasdaq is focused in an ever-shrinking number of names...

 

Note that once the short squeeze had ended there was no follow through at all in the major indices... and in fact shorts started gathering pace again...

 

Google had a day...

 

And Netflix had a week...

 

ETSY Soared because Goldman mentioned it in a Google call... and shorts got "Volkwagen'd"

 

  • VIX -28% - biggest drop since Jan 2013

  • Energy Stocks XLE -1.3% - down a record 11 straight weeks to Jan 2013 lows
  • Financial Stocks XLF +2.75% - best week since Feb
  • Greek Stocks (GREK) -8.2% - worst week since January

It is pretty clear who won and who lost from the Greek bailout...

  • China ASHR +0.37% - not exactly the 'recovery' that all that intervention hoped for
  • China FXI +0.17% - first gain in 4 weeks

  • 30Y TSY -11bps - best week since May

And where do rates go next? if the lagged correlation with crude holds up, considerably lower...

  • USD Index  +1.9% - best week since May
  • EURUSD -2.5% - worst week since May

JPY flatlined today... and thus so did stocks. But it has been a one way street for USD strength, everything else weakness this week...

And digging into the details a little more, your daily FX roundup (courtesy of ForexLive):

 

  • Silver -4.1% - down 8 of last 9 weeks
  • Gold -2.2% - down 7 of lats 9 weeks, worst week since March

 

Ugly for precious metals leaves them still massively outperforming Nasdaq since the dotcom bubble...

 

  • WTI Crude -4.3% - 5th losing week in a row... worst 3-week loss in 2015)

 

Charts: Bloomberg

 

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Fri, 07/17/2015 - 16:08 | 6324918 4shzl
4shzl's picture

Don't go near the water.

 

Fri, 07/17/2015 - 16:12 | 6324921 HungryPorkChop
HungryPorkChop's picture

The stawk' market loves Greece.  I think this is about the 189th stawk' market rally based off supposed Greek deals, rumors, meetings, bailouts, restructuring, end of riots, job cuts, tax hikes, elections, etc.  Sometimes I think the stawk' market rallies just because the sun is shining in Greece and its a nice day on the beach. 

Fri, 07/17/2015 - 16:09 | 6324922 SHEEPFUKKER
SHEEPFUKKER's picture

All I see are opportunities......to BTFATH(again).

Fri, 07/17/2015 - 16:38 | 6325026 saints51
saints51's picture

Small Caps just gave you one.

Fri, 07/17/2015 - 16:12 | 6324935 Traderone
Traderone's picture

How could you not love this shit.

Fri, 07/17/2015 - 17:26 | 6325202 nope-1004
nope-1004's picture

Because being human relies on physical realities.... such as day & night, gavity, & seasons.  An illusionary financial system that blows perpetual asset bubbles because of ZIRP puts people in a no win situation because no one can judge natural market dynamics.  When to get in, when to get out, etc...

So everyone just jumps in.  Then, when they all try to get out, .gov will ban selling equities because the rush to exit will be historic.

At least, that's what I've heard could happen.

 

Fri, 07/17/2015 - 16:14 | 6324953 macambaman
macambaman's picture

Jimmy looked so cool...until he tumbled.

Fri, 07/17/2015 - 16:17 | 6324967 Hype Alert
Hype Alert's picture

This whole thing is like watching one of those fail videos where they are dancing on the edge of a cliff.  Just a matter of time, but you still cringe.

Fri, 07/17/2015 - 16:34 | 6325018 disabledvet
disabledvet's picture

Cringe?

At least two of them should be dead actually. Rather heroic in my book.

"I'm okay.

No, you're not okay honey."

Apparently the folks who designed that beautiful boat took "Human Fail" into account.

Fri, 07/17/2015 - 16:22 | 6324982 disabledvet
disabledvet's picture

Didn't they start with seven?

Well...at least they kept the camera running.

Maybe they can find out what happened to Free that way.

So I do find it interesting that interest rates have been doing nothing but going up since Taper was announced "and everyone seemed surprised."

Dollar going to the moon, commodities getting slammed, sovereign defaults...you name it.

None of this is "news." Been going on for TWO FUCKING YEARS NOW.

I do find it interesting that Banking profits have been stellar though.

That says to me "other than what happened to Fred" there does appear to have something of a recovery here.

Fri, 07/17/2015 - 16:20 | 6324973 ebworthen
ebworthen's picture

That's the thing about blowing a bubble, it's just too much fun to stop.

Good thing the blonde fared the best, she's the most bangable one; and hopefully she dumped the bald dope driving the boat and told him to go whack his pud on the nearest street corner - what a douchebag.

Steve Liesman's younger brother?

Fri, 07/17/2015 - 16:29 | 6325001 disabledvet
disabledvet's picture

"Fed Chair Full Throttle" no less.

That guy got exactly what was coming to him. To his credit he was able to stand up briefly.

So indeed it is interesting that we're still talking a rate rise this Fall.

Apparently they weren't going fast enough otherwise they could have completely JUMPED "the second wave."

Fri, 07/17/2015 - 18:10 | 6325295 Ms No
Ms No's picture

They should've thrown that chick in the pink swimsuit and the bald guy overboard.  That little narcissist was unhurt, sat throwing little temper tantrum and never concerned herself with checking to see if everyone was okay.  The guy driving is the classic invincible tool, pretty good analogy all in all.  

The slow motion version is better.  https://www.youtube.com/watch?v=21ij4BtHsxw

Fri, 07/17/2015 - 16:30 | 6325005 Chuck Knoblauch
Chuck Knoblauch's picture

Holy shit, look at that volume!

Wow!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Fri, 07/17/2015 - 16:38 | 6325025 Fukushima Fricassee
Fukushima Fricassee's picture

Fucker was a poor captain but still better than Yellen.

Fri, 07/17/2015 - 16:39 | 6325031 saints51
saints51's picture

I hope silver goes to less than $10 an ounce. I love this shit. Gives the little guys an opportunity to hedge.

Fri, 07/17/2015 - 16:46 | 6325053 Spungo
Spungo's picture

I hate the misleading charts. If you look at the volume chart, you'll see the one on the far left has high volume during the rise, not during the decline. Putting misleading arrows on things hurts your credibility.

Fri, 07/17/2015 - 16:52 | 6325060 1stepcloser
1stepcloser's picture

I bet that Boat's name is "Algos Go No Bid"

Fri, 07/17/2015 - 16:50 | 6325062 Chuck Knoblauch
Chuck Knoblauch's picture

When are the rape rooms opening on Crete?

Boy rooms in Athens.

Fri, 07/17/2015 - 16:55 | 6325074 CunnyFunt
CunnyFunt's picture

The video never gets old, especially at 1:07, when the guy reaches around for his strategically placed sunglasses, breaks one of the tarts' nails, only to have his specs go flying starboard during the wreck.

Fri, 07/17/2015 - 17:05 | 6325118 Seal
Seal's picture

Ya know, if someone's distant relative, in,say, Kenya, knew ahead of the GOOG ramp, they cudda made a bunch on 7/17/15 calls. Just sayin'.

Fri, 07/17/2015 - 17:46 | 6325285 Fuku Ben
Fuku Ben's picture

It's about the future, Madam Chancellor. One where you currently appear to be at odds with your associate in the IMF in taking ownership of what is about to transpire. You could slow down and change direction to another future. Or you can stay on the same course with the same result as the 7 person boat in this post. Managing Director Lagarde's lucky number is 7. Are you sure you want to end up in the same boat?

People can be very frightened of change. Are you a visionary leader that I mentioned in an earlier post might come from Germany? Or will you continue to lead the German people down a very similar historical financial path as the 1930's? Again. You know the subsequent suffering that will result from this course. A visionary leader challenges the status quo. They don't go along for the ride. Especially when they know it will end in a preventable disaster.

I'll quote one of your countrymen "Sooner will a camel pass through a needle's eye than a great man be "discovered" by an election." You could prove this historical quote wrong in many ways. Please reconsider your current course.

Fri, 07/17/2015 - 18:03 | 6325340 R19
R19's picture

Gross negligence?

Fri, 07/17/2015 - 18:20 | 6325402 papaswamp
papaswamp's picture

Hahaha! that's exactly what the banksters will say... " turn the camera off, get rid of these beers.."

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