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'Investors' Panic-Buy Stocks After Confidence Collapse Sparks Biggest Short-Squeeze In 6 Months

Tyler Durden's picture




 

China closes weak... Europe weak... US Consumer Confidence collapses... Energy credit risk increases dramatically... and stocks rip led by Energy in yet another epic short squeeze...

 

We can't help but think this happens...

 

It seems some think China was up last night... sure it was up off the lows... but is this really the backbone of a face-ripping rally in US Stocks...?

 

And Japanese stocks hit a 2-week low...

 

US Stocks traded weaker into the open... but once Consumer Confidence collapsed, Energy stocks went into full short squeeze mode and exploded everything higher...

 

With cash indices all soaring...

 

Getting everything back to green from Friday briefly... before Nasdaq and Small Caps faded back...and then a final ramp to get Nasdaq green on the week!

 

As the big triple short squeeze hit...

 

This was the biggest short squeeze in 6 months

 

Much was made of the ramp in Energy stocks...  best day for Energy sector since Dec 2014...

 

Well we've seen this before... BTFD once, shame on me... Energy Credit ain't buying it...

 

And neither is WTI Crude!!!

 

Yet another breadth indicator flashes red...

 

Treasury yields rose on the day but rallied after the weak confidence data...

 

The USDollar closed higher but once again flipped its regime at the EU close...

 

Commodities all rose on the day with Copper and Crude popping most...

 

WTI Crude tested a $46 handle overnight before its mini melt-up ahead of API tonight...

 

 

Charts: Bloomberg

Bonus Chart: No Corrections Allowed...

 

Bonus Bonus Chart: The Collapse in Confidence Is Not Good News...

 

Bonus Bonus Bonus Chart: You Are Here...

 

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Tue, 07/28/2015 - 16:07 | 6364157 WTFRLY
WTFRLY's picture

Where can we find FEMA coffin futures? Long all day.

Tue, 07/28/2015 - 18:15 | 6364666 wendigo
wendigo's picture

I confess I can't draw any conclusion from these charts. As far as FEMA coffins, they don't have enough. After they use up their small supply, they'll use the oldie but goldie: mass graves a mile long with bodies stacked ike cordwood. Long Caterpillar. 

Tue, 07/28/2015 - 19:01 | 6364853 Doña K
Doña K's picture

Why is anyone surprised?

Remember when the market stopped at 666? That was the message. We control everything absolutely.

And Congress said to Paulson: "How much money do you want?"

Tue, 07/28/2015 - 19:43 | 6365002 Save_America1st
Save_America1st's picture

can'tchya just feel it?  Like static in the air just before a lightning bolt stikes.

 

Pass the popcorn

Tue, 07/28/2015 - 20:59 | 6365325 old naughty
old naughty's picture

"...long FEMA coffins", why, are they renewing orders?

Lightning strikes then...

Tue, 07/28/2015 - 19:54 | 6365034 El Oregonian
El Oregonian's picture

Oh, you mean the shlock market? Where schlocks are destroyed every single day?

Tue, 07/28/2015 - 16:16 | 6364168 g'kar
g'kar's picture

If every little guy got out of the market all at the same time, it wouldn't even show up as a ripple in the farce.

Tue, 07/28/2015 - 17:47 | 6364558 BitchezGonnaBitch
BitchezGonnaBitch's picture

PBOC has much to learn.

Tue, 07/28/2015 - 18:05 | 6364641 g'kar
g'kar's picture

They should start out by watching Star Wars.

Tue, 07/28/2015 - 19:35 | 6364972 fockewulf190
fockewulf190's picture

Indeed. The Dark Side of The Farce is strong.

Tue, 07/28/2015 - 21:02 | 6365340 old naughty
old naughty's picture

Who said that?

Darth Vorder-moar?

Tue, 07/28/2015 - 16:10 | 6364174 Model T
Model T's picture

Not a problerm for me; I covered my latest batch of S&P500 Shorts yesterday; as posted here. That;s the seventh time in a row now; I've sold near a high; sometimes I'm out of the money for a week, but I don't care, and then I cover at a substantial profit. It's the result of understanding what markets are and what they do. The chart postd wtih this article is very good; it shows the programmed selling that comes in at the highs. The rallies are opportunities for the big money to sell out.

Tue, 07/28/2015 - 16:28 | 6364229 CunnyFunt
CunnyFunt's picture

That's awesome!

I won $250 at the roulette wheel last night, and people say the casino is rigged. What the fuck do they know?

Tue, 07/28/2015 - 16:50 | 6364298 Model T
Model T's picture

You seem to have reading problems. This is the seventh time in a row I have done this. I make money every year on Futures Contracts. I pusblish the positions the day I put them on and the day I cover them. When you grow up enough to stop being butt hurt because other people know things that youdon't; you can start studying my trades.

Tue, 07/28/2015 - 16:58 | 6364337 Global Hunter
Global Hunter's picture

I haven't seen you post any of your trades here ahead of time.  I could be wrong, do you have any links to the stories you posted on?

Tue, 07/28/2015 - 17:24 | 6364443 mayhem_korner
mayhem_korner's picture

 

 

"It's not the frequency with which you are right that matters, but the cumulative effect of your losses."

-N.N. Taleb

Tue, 07/28/2015 - 16:48 | 6364290 Model T
Model T's picture

Covered my short Feeder Cattle contracts today @+20,000$ profit.

Wed, 07/29/2015 - 00:49 | 6365881 PlayMoney
PlayMoney's picture

Covered my grill today as i ate one of your feeder cattle.

Tue, 07/28/2015 - 16:51 | 6364303 Model T
Model T's picture

Always interesting to see the little people who hates anyone that can do what they cana't.

Tue, 07/28/2015 - 17:05 | 6364371 Super Hans
Super Hans's picture

It takes money to make money Dad.

Tue, 07/28/2015 - 17:23 | 6364437 Smiddywesson
Smiddywesson's picture

As a general observation, winners talk about their losers, and losers talk about their winners.  If you really are a winner, good for you, but I never post about my winners, primarily because they happen by chance and it messes with my pschology.  That's not hate, that's trading.

Tue, 07/28/2015 - 18:37 | 6364771 ThrowAwayYourTV
ThrowAwayYourTV's picture

I still wouldn't want to be you. No matter how much money or how much stuff another person has, I would still rather be me where I am right now with what I have right now. :)~

Congrats on the good day! Now go out and buy the ole lady a new pair of boobs with that 20K.

Tue, 07/28/2015 - 18:52 | 6364815 JoWazzoo
JoWazzoo's picture

QQQQ

Tue, 07/28/2015 - 19:55 | 6365025 Praetorian Guard
Praetorian Guard's picture

Model t would love to have you over at.  Www.gunsgrubandgold.com with your charts and investment savvy. All are welcome!!!

Tue, 07/28/2015 - 19:58 | 6365064 tarabel
tarabel's picture

 

 

I'm still not voting for you, Hillary.

Tue, 07/28/2015 - 16:10 | 6364176 KnuckleDragger-X
KnuckleDragger-X's picture

If I see a large white rabbit, wearing a vest and carrying a watch pass by, I'm shooting the bastard......

Tue, 07/28/2015 - 16:45 | 6364280 negative rates
negative rates's picture

What if one passes by and you don't see it? laughers of stocks perhaps??

Tue, 07/28/2015 - 17:06 | 6364377 Super Hans
Super Hans's picture

I so wish I could find my way out of this rabbit hole!  If you kill him we might be stuck!

Great post!

Tue, 07/28/2015 - 16:11 | 6364177 behind the curtain
behind the curtain's picture

The safest place for your money in a controlled market .. is in the controlled market.  Everyone is too big to fail.

Tue, 07/28/2015 - 19:48 | 6365017 fockewulf190
fockewulf190's picture

Wow! Really? In that case, I think I´ll gather my, and all my relatives entire life savings together, margin it up 5x, invest it all in a domestic copper miner I so love, and rub my hands together over and over while I stare at my computer screen and daydream about how life is going to be as an insanely rich man.  I´m just too big to fail!   What could possibly go wrong?  Know anybody who needs a part-time job?  I have a few fields that need to be plowed. I just don´t have time for that kind of work anymore.

Tue, 07/28/2015 - 16:12 | 6364179 Tribulation Blues
Tribulation Blues's picture

Read the Obama Antichrist prophecies.... America is about to go over the cliff into a deep abyss!

http://revelation12.ca

Tue, 07/28/2015 - 16:13 | 6364183 Keltner Channel Surf
Keltner Channel Surf's picture

“10:15 Tuesday morning”        from   “10:15 Saturday Night”       by  The Cure

10:15 on a Tuesday morning
And the Dow rips past yesterday’s high
And I’m seeing that the CCI stinks
But the Dow rips
Rip rip rip rip rip rip rip rip …

Waiting for the closing bell to ring
And I wonder:  should I fade this swing?
And I'm crying for price discovery
But the Dow rips
Rip rip rip rip rip rip rip rip …

It's always the same

Tue, 07/28/2015 - 16:14 | 6364185 FreeShitter
FreeShitter's picture

Still have a little more time before the heebs pull the lever.....Sell at 18k buy the dip(s).

Tue, 07/28/2015 - 16:24 | 6364218 g'kar
g'kar's picture

lol

Tue, 07/28/2015 - 16:14 | 6364186 Rainman
Rainman's picture

nice ...a Turbo Tuesday mixed with a shot of triple bonus chart in case we ddn't get enough doom. Cheers.

Tue, 07/28/2015 - 16:16 | 6364188 Kaiser Sousa
Kaiser Sousa's picture

just what the doctor has ordered in the past...

nothing like a low volume stair step ramp to erase all the months losses on the heels of the FED bullshit gathering to "set things a' right"....

DEATH TO THE MONEYCHANGERS.

Tue, 07/28/2015 - 17:02 | 6364352 Winston Churchill
Winston Churchill's picture

And tThe Yellen dump on PMs overnight tonight, just for old times sake.

Tue, 07/28/2015 - 16:16 | 6364190 EHM
EHM's picture

shorts prevent markets from going straight down. But don't tell China.

Tue, 07/28/2015 - 16:19 | 6364202 Baby Eating Dingo22
Baby Eating Dingo22's picture

Bonus chart says this can go on for another 35 years

 

Tue, 07/28/2015 - 16:29 | 6364231 Tinky
Tinky's picture

Give or take 34.

Tue, 07/28/2015 - 16:19 | 6364203 roisaber
roisaber's picture

At this point in the absurdity, I think the only safe things to say are tautologies. So, this shit will go on until it stops.

Tue, 07/28/2015 - 16:20 | 6364204 Thisisbullishright
Thisisbullishright's picture

And VIX was smashed and tortured lower like nobody's business!!!

As usual my UVXY fund evaporates into nothingness...

 

Tue, 07/28/2015 - 16:23 | 6364205 Bastiat
Bastiat's picture

Nothing "(funny)" about that poor bastard passing out face first into a rack of iron dumbells.  Jeezus.

May be appropriate though . . .

Tue, 07/28/2015 - 16:29 | 6364230 Rainman
Rainman's picture

this is Darwinism in action.

Tue, 07/28/2015 - 16:27 | 6364225 Jacksons Ghost
Jacksons Ghost's picture

Remember that article yesterday on ZH, you know, the one that said "That's All Folks".

Well, I got news for you, they have unlimited Fiat and don't plan to let this shit show go down while they still have any in the gun. They can buy everything and are.

Short this shit show at your own peril.

Tue, 07/28/2015 - 16:30 | 6364235 g'kar
g'kar's picture

Another article also showed that they only dump that fiat into a handful of stocks to pump the whole index. Brilliant scam artists for sure.

Tue, 07/28/2015 - 16:40 | 6364268 Soul Glow
Soul Glow's picture

You don't get it.  Fiat has huge diminishing returns because it is being created ad infinum.  DJ 17k and 18k was months ago.  If you think this is a buying oppurtunity put your $$$ where your mouth is and BTFD.

Tue, 07/28/2015 - 17:45 | 6364548 BitchezGonnaBitch
BitchezGonnaBitch's picture

Perhaps, but don't forget there are loaded guns behind the fiat. There's confidence for ya.

Tue, 07/28/2015 - 16:39 | 6364259 Soul Glow
Soul Glow's picture

Kevin Henry is doing coke off of a hooker's tits right now saying, "I'm da best!"  Funny thing is DJ 17k looks pretty weak when 18k was taken out over 6 months ago.  Poor little guy and his POMO desk are running on fumes.

:(

Tue, 07/28/2015 - 17:30 | 6364459 RaceToTheBottom
RaceToTheBottom's picture

I believe there is an economic principal "eventually an erection goes limp".

Tue, 07/28/2015 - 17:44 | 6364541 mayhem_korner
mayhem_korner's picture

 

 

I'm sure I don't want to know where you 'read' that one.

Tue, 07/28/2015 - 16:55 | 6364321 Panic Mode
Panic Mode's picture

Shit, I have run out of pop corns.

Tue, 07/28/2015 - 16:58 | 6364336 cpnscarlet
cpnscarlet's picture

COMEX gold says, "Eh, just another normal day."

I am unreal, but I control reality - COMEX gold.

Tue, 07/28/2015 - 17:00 | 6364343 Fun Facts
Fun Facts's picture

The FED is better at manipulating the stock market than the BOJ, mainly because they are much better liars.

Tue, 07/28/2015 - 17:10 | 6364383 I Write Code
I Write Code's picture

Investors named Janet.

Tue, 07/28/2015 - 17:11 | 6364391 Smiddywesson
Smiddywesson's picture

After a complete collapse in basic materials, the market has one stong up day in...oh look, basic materials, and all of a sudden it's over and time to load up on social media, right?

 

Somebody has to hold the bag.

Tue, 07/28/2015 - 17:13 | 6364394 Super Hans
Super Hans's picture

 

That fucker came out of nowhere!

https://www.youtube.com/watch?v=Qkyuq-m-aGs

Tue, 07/28/2015 - 17:23 | 6364434 Super Hans
Super Hans's picture

My old macbook pro pre unibody is starting to over heat as usual. ;I have to place ice packs under it if I stream anything. I rebuilt the whole thing. Upgraded memory to 6GB and replaced the hard drive with a 240GB SSD. I also changed out the keyboard, because I killed it when I got Schilitzed and spilled some of that high gravity on it. I would like to replace the mother board. They say it can't be done. Not so sure.

Tue, 07/28/2015 - 18:19 | 6364708 wendigo
wendigo's picture

You must love tinkering with your computer. 

Tue, 07/28/2015 - 17:29 | 6364471 EndOfDayExit
EndOfDayExit's picture

We will slowly get S&P500 down to around 1700 as they start hiking rates. But no worse than that, at least for the next 1-2 years. So much for the "crash".

Tue, 07/28/2015 - 17:31 | 6364479 RealistDuJour
RealistDuJour's picture

Odd, API and Cushing report draws... no mention by Zero?  All I can says is "$47 handle".

Tue, 07/28/2015 - 17:47 | 6364562 Chuck Knoblauch
Chuck Knoblauch's picture

Chinese fear porn sparks US rally.

What a surprise!

Good job ZH!!

Tue, 07/28/2015 - 18:15 | 6364681 ThrowAwayYourTV
ThrowAwayYourTV's picture

Suck.Squeeze.Bang.Blow.

Suck.Squeeze.Bang.Blow.

All together now! Suck!!!!!!! Squeeze !!!!!!!! Bang !!!!!!!! Blow !!!!!!!!!

Oh Shit! It's making money? Sell! Sell! Sell!

Oh Shit! It's Selling! Buy ! Buy! Buy!

What do you mean I bought a Dead Cat?

Sell! Sell! Sell!

Tue, 07/28/2015 - 18:16 | 6364690 Peak Finance
Peak Finance's picture

This is the "Fed will delay rate increases until 2016" Rally. 

We get the memo Wendesday.

Big players got the memo today

 

Tue, 07/28/2015 - 18:45 | 6364800 Fed-up with bei...
Fed-up with being Sick and Tired's picture

Has to be it!

Tue, 07/28/2015 - 18:53 | 6364826 Crocodile
Crocodile's picture

The FED may need to "save face"; so perhaps a .1% increase to test the proverbial waters.  The real financial collapse and supply shortages will happen in the Q1 2016 with many more major tremors in between imo.  There likely won't be another Presidential election.  Obama said in 2009 that it feels good to be king and the most recent comments indicate he plans to stay.  Add to that all the mechanisms are in place to support Martial Law;so now all that is needed is the scapegoat(s)...that should not be hard to engineer on multiple fronts.

--------------------

You are correct about the inside memo, but the short squeeze was easy to see coming.  I believe by Friday we will be approaching 18K on the DJIA, then rinse & repeat.

Wed, 07/29/2015 - 03:50 | 6366059 g'kar
g'kar's picture

Nice summation and I agree with all of it.

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