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Stock-Buying-Frenzy Continues Amid Longest VIX "Losing" Streak Since 2011

Tyler Durden's picture




 

Today in stocks, summarized...

 

Before we start, this is perhaps the most important chart that no one is talking about...

 

As The longest VIX Losing Streak Since 2011 lifts stocks...

 

Markets ramped overnight (as shown by futures), stumbled a bit on weak EU data, then rallied on weak EU data (lol) then dumped on crude's invbentory build only to be ramped on VIX smash...

 

The bounce occurred as S&P and Dow touched unchanged on the day...

 

Post-Payrolls, Small Caps remain the big winner and Nasdaq the laggard (but they are all up notably)...

TS CASH WEEK

 

VIX was smashed to the lows of the day after Europe closed to send stocks back ramping towards the day's highs...

 

S&P 500 briefly broke its 50-day moving average and traded as high as 1999.31 before fading back...

 

Biotechs gained around 1-2% today as the slumping sector triggered a 'death cross'

 

Spot The Difference...

 

But financial credit markets remain notably more worried...

 

GoPro NoMo... Looks like Camera-On-A-Stick will not be The Next Big Thing after all.. but but but social media.. content...

 

YUM Yuck... biggest drop since Oct 2002... as Death Cross strikes...

 

As Digicell pulled its IPO yesterday, Pure Storage (the biggest VC-backed IPO of 2015) was ugly...

 

Treasury yields rose 3-5bps, pushing everything 2Y yields back above pre-payrolls levels...the european selling, US/Asia buying pattern remains in place

 

USD drifted sideways all day (still weaker post payrolls) as AUD strength continues to stun...

 

Commodities drifted higher early on but gold & silver were slammed going into the open and crude dumped after DOE inventory data...

 

Crude's exuberant ramp is routed...

 

Why did Oil drop? Well apart from the production surge and inventory build, this is why...

In his 30 years of trading, commodities king Dennis Gartman has seen all types of markets. And now he says he's the most bullish he's ever been on crude oil.

"If you watch the term structure in the futures, you've seen the contango narrow. Crude is no longer aggressively bidding for storage as it was it was six or seven weeks ago," said the Gartman Letter Editor Tuesday on CNBC's " Fast Money ." "I think you've seen the lows."

Oil and energy stocks decoupled this afternoon..

 

Silver remains the biggest winner post-Payrolls...

 

This is silver's best 4-day run since August 2013 - with a break back above the 200-day moving-average...

 

Charts: Bloomberg

 

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Wed, 10/07/2015 - 16:14 | 6641365 Soul Glow
Soul Glow's picture

KEEP THESE SUCKERS IN THIS MARKET!

- Lloyd Blankfein's morning call to his desks

Wed, 10/07/2015 - 16:17 | 6641390 Dr. Venkman
Dr. Venkman's picture

Deutsche Bank just took a nice hit. This earnings season is coming up Millhouse.

Wed, 10/07/2015 - 16:22 | 6641430 venturen
venturen's picture

So Bad News? That is great...that means the market can go up...Peak Ponzi. Yellen is the new Maddoff

Wed, 10/07/2015 - 17:02 | 6641708 Muh Raf
Muh Raf's picture

It's most probably Cryan getting out the bad news early so it can't be attributed to his shift. Nothing new there. 

Wed, 10/07/2015 - 16:18 | 6641393 Kaiser Sousa
Kaiser Sousa's picture

Fake ass manipulated fucking Fraud Markets...

tell me again - what exactly was the positive macro-economic data points that justified another vertical ramp as soon as "rat central" New York opened and also justified a v-shaped ramp off the lows (YET AGAIN..) all the way into the close???????

FUCK OFF WITH THAT BLATANT BULLSHIT...

oh and the sideways jig of the only 2 forms of REAL MONEY right at the phony paper prices of $16 and $1150 was really entertaining as welll....

DEATH TO THE MONEYCHANGERS.

 

Wed, 10/07/2015 - 21:09 | 6642547 techpreist
techpreist's picture

Silver is $16? Where can I buy this silver at $16?

Wed, 10/07/2015 - 16:18 | 6641397 ebworthen
ebworthen's picture

The overseas data lines must be running hot, all that binary funny money zipping around the globe!

Wed, 10/07/2015 - 16:18 | 6641403 KnuckleDragger-X
KnuckleDragger-X's picture

 Nothing like a clean, honest market... Wish we had one.....

Wed, 10/07/2015 - 16:23 | 6641440 venturen
venturen's picture

Grandpa what's a market? Is that where the central planners direct things?

Wed, 10/07/2015 - 16:18 | 6641404 we built this city
we built this city's picture

All that talk about crisis and meltdown and market is 6% off ATh

 

Vix is well under 20 

 

Hyg is soaring

 

So far Zh predictions are like the VXX- tanking - collapsing 

Wed, 10/07/2015 - 16:21 | 6641423 JoeySandwiches
JoeySandwiches's picture

Still patiently waiting for this epic market reversal to come...

http://cdn.makeuseof.com/wp-content/uploads/2014/10/skeleton-using-compu...

 

Seriously, though, I think it's gonna happen soon enough. It's just the waiting now.

Wed, 10/07/2015 - 16:20 | 6641414 TheSecondLaw
TheSecondLaw's picture

Same ol'same ol'.  Until the markets fall 50-60%, globally, and the TBTF banks fail and cannot be saved, and until fiat blows up, it's all just noise.

Wed, 10/07/2015 - 16:22 | 6641425 BandGap
BandGap's picture

Oil got Gartman'ed.

Pure gold.

Wed, 10/07/2015 - 16:22 | 6641431 Keltner Channel Surf
Keltner Channel Surf's picture

“I’m Waiting for the Fed”        from  “I’m Waiting for the Man”       by  The Velvet Underground

I'm waiting for The Fed
Twenty-six SPY calls in the red
Up to resistance, but no new highs
Feel sick and dirty, more dead than alive
I'm waiting for the Fed

“Hey, white bull, what you doin' uptown?
Hey bull, you pushin' our short stops around?“
Oh pardon me sir, it's furthest from my mind
Lookin' for Dudley -- he’s a dear, dear friend of mine
I'm waiting for the Fed

Here he comes, we’ll soon be in the black
“Good” bad news, he spins to Hilsenrath
He's always early, he's never late
First thing he learned is that they always take the bait
I'm waiting for the Fed    (ah, work it now)

Too many unknowns, and three Chinese scares
No one can pin them down, it’s like grasping air
The give us words -- they’ll be data-based
I guess that means that we all still gotta wait
I’m waiting for the Fed

Babe, don’t spike the dollar, or you’ll get my calls stopped out
I won’t feel good till you roll more QE out
Today looked good, I feel oh so fine
Until tomorrow, we could turn down on a dime
I'm waiting for the Fed   (walk it home)

Wed, 10/07/2015 - 16:53 | 6641653 jump_mutha_fukah
jump_mutha_fukah's picture

Good job KCS.

Lot of relentless push going on in the RUT. We are aweful close to overbought on the 4hr though and a pretty good ways out from that 50dma. Also looks like we are at the top bound of a downward channel. Nothing is screaming at me of a breakout from here....at least not before filling that gap between Friday and Monday....looks like Tysons grill.

Wed, 10/07/2015 - 17:02 | 6641702 playdoh
playdoh's picture

+1 

Wed, 10/07/2015 - 17:50 | 6641936 Keltner Channel Surf
Keltner Channel Surf's picture

Would be a better sign of a bear if we could turn down w/o RUT smacking the 50 like the other indices.  Overall it's going as we expected, except for pure daytraders the intra-day action today was horrible, looks like silly smaller shorts getting ambushed in bursts, and I'm afraid we'll have another China-based 300-pt down open, complete with a 1:45 2-min VWAP spike the only good entry.  C'mon, algos, just because we hide in cash at night doesn't mean you have to lock us out of the fun :)

The fact that 2000 SPX almost exactly coincided w/ 50MA is classic, you can't make this stuff up . . . unless you're one of Dimon's Demons.

Let the RUT games continue, Russell ninjas should know we've seen it all, think an 8-pt TNA smackdown day might be overdue, their sense of humor is rather dark, and dry ...

Wed, 10/07/2015 - 16:23 | 6641433 CarpetShag
CarpetShag's picture

Great teaser pics! Bring back the bearded Yellen!

Wed, 10/07/2015 - 16:28 | 6641479 ghostzapper
ghostzapper's picture

In his 30 years of trading, commodities king Dennis Gartman has seen all types of markets. And now he says he's the most bullish he's ever been on crude oil.

 

Do we even need to say to sell calls?

Wed, 10/07/2015 - 16:32 | 6641517 adr
adr's picture

I bet he is just as bullish on coal.

Wed, 10/07/2015 - 16:43 | 6641593 ghostzapper
ghostzapper's picture

And the call on copper is forthcoming.

Wed, 10/07/2015 - 16:41 | 6641582 Jackagain
Jackagain's picture

Fartman is an even bigger contrarian indicator than Cramer. He's hoping sucker money will come in so he can clean up more shorting oil in 2 weeks. Of course though he really could be this stupid....

Wed, 10/07/2015 - 18:23 | 6642056 TheReplacement
TheReplacement's picture

The man bats a thousand and you think it could be stupidity?

Wed, 10/07/2015 - 16:28 | 6641484 RealistDuJour
RealistDuJour's picture

I read the first chart and absolutely shut down and came straight to the bottom to comment.  I couldn't care less what the rest of the charts are trying to show if you start with such a misleading chart.

 

From that "bottom" on the first chart, the s&p surged up to just about 2100 by year end.  How anyone could imply the world is ending from a chart taken so out of context makes me ignore the rest of whatever bias they'll inevitably be trying to show in the rest of their mouthbreathing rant.

Wed, 10/07/2015 - 16:31 | 6641511 adr
adr's picture

NEED MOAR DEATH CROSSES!!!!!

Death is amazingly bullish. Maybe somebody has to try and program the concept of death into the algorithms. They don't seem to understand the meaning of the word.

Wed, 10/07/2015 - 17:14 | 6641764 playdoh
playdoh's picture

LOL, Death X = Long entry :)

Wed, 10/07/2015 - 17:38 | 6641881 CarpetShag
CarpetShag's picture

Death = half a dozen HFT algobot vapor ramps followed by a couple of flash crashes.

Wed, 10/07/2015 - 16:31 | 6641513 ghostzapper
ghostzapper's picture

As part of the planning for the implementation of Strategy 2020, the Management Board will recommend a reduction or possible elimination of the Deutsche Bank common share dividend for the fiscal year of 2015.

Yup, load up fellas it's all good they only axe the dividend when things are SO AWESOME they need that free cash flow to jump on other opportunities!

Wed, 10/07/2015 - 16:52 | 6641636 yogibear
yogibear's picture

 While unemployment increases the Fed spews more BS.

Much more Fed printing stimulus because it's the only thing they have. 

If all the printing they did, didn't work maybe a lot more will work.

Wed, 10/07/2015 - 16:53 | 6641652 ASACJon
ASACJon's picture

Welp, we did a full Fib retrace to 1995, in fact a few cents higher.

I have to admit, I timed my short wrong, but then most of the gamble is on to what degree the PPT will enter in. Obviously they have entered at a few key points, namely when the Dow plunged 1000+ points on open.

Even one of the CNBC traders opined on Monday that none of this makes sense. So what does Fight Club think: pump and dump or are they taking his bitch to new levels of faux highs?

Frankly I'm done ready to sit out the rest of the year.

Wed, 10/07/2015 - 18:26 | 6642065 TheReplacement
TheReplacement's picture

I think you are behind the curve here.  Most are sitting out and have been for quite a while.  The only thing worse than being too early is too late.

Wed, 10/07/2015 - 16:56 | 6641668 dragoneyes74
dragoneyes74's picture

This is the kind of price action you often see in the ES before a breakout.  FOMC Minutes tomorrow.  Looks like it wants to test the 8-month breakdown around 2034.  I would think a sizable pullback would follow.  

Wed, 10/07/2015 - 17:12 | 6641755 playdoh
playdoh's picture

I'd guess beware of a big fake move tomorrow. Options writers like to toy with markets - OE comes early with 5 Fridays this month, and FOMC minutes may give them a useful mechanism to get everyone wrong-footed ahead of Oct 16th ;)

Wed, 10/07/2015 - 16:59 | 6641683 ChargingHandle
ChargingHandle's picture

This this is a dead cat bounce and makes no sense whatsoever. Hiring is in the toilet, manufacturing is in the toilet, yet algos push everything higher. 

Wed, 10/07/2015 - 18:35 | 6642092 TheReplacement
TheReplacement's picture

You've been here a year and half and are restating the obvious that was being restated even a year and half ago.  It's all about the CBs and the flow.  The worse things get, for real, the better it is for "the market" because everyone knows the CBs will not let this bubble burst.  The other half of the reality coin is that "the markets" really only reflect the inflation of currencies these days.  Instead of wheelbarrows of marks you have stocks that are priced at many multiples their real value - inflation.  Since it is all just numbers in the ether it hasn't had an obvious affect on the real work mark$. 

Still, it is a curious thing.  ISIS captured a half a bill $ in dinars, physical currency, in Mosul.  How many US cities have banks that hold that much cumulative cash? 

Wed, 10/07/2015 - 18:53 | 6642152 HopefulCynical
HopefulCynical's picture

I misread that as HIDING in the toilet; I thought you meant the dead cat. Thanks for the (unintentional) laugh.

Wed, 10/07/2015 - 18:28 | 6642075 BurningBetty
BurningBetty's picture

Where is Bane??? Bane! Get the hell in there an fix this shit!

Wed, 10/07/2015 - 19:55 | 6642344 RadioFlyer
RadioFlyer's picture

All good news, S&P should RIP hard in the morning like a 16 year old after a wet dream.

Wed, 10/07/2015 - 20:09 | 6642371 luna_man
luna_man's picture

 

 

I reckon the CRIMINALS, began "QE4" without informing the peon...

 

as usual, the last to know

 

 

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