Treasury Turmoil Returns As Fed-Flip-Flop Sends Stocks To Record Highs, VIX Below 10

Tyler Durden's picture

Yellen's speaking again... give it all you've got!!


Stocks stalled early on (around 1010ET) thanks to inflation comments from Yellen, but that dip was bid back to the highs...then they took a little spill when Fed's Brainard admitted "asset valuations do look a bit stretched" around 1400ET. Once again the rally-monkeys came out - even as it became clear that GOP will not have the votes for the revised healthcare bill...

Nasdaq up 5 days in a row - the longest streak since May... Early Small Caps weakness was ramped all the way back into green...


Futures show that in general markets went nowhere today...


On the week, Trannies are hovering just into the green as Nasdaq outperforms...


Retail was bid today (best day of the year), because suddenly they're all fixed, and financials were higher ahead of tomorrow's earnings..


FANG Stocks spiked up to a key resistance level then faded to end the day lower...


VIX was clubbed back to a 9 handle once again every time Nasdaq dared to dip red...


Treasury yields shot higher this morning and extended their rise through Yellen's testimony...


With 30Y spiking almost 8bps off the lows to return to unchanged for the week, before bonds rallied into the close...


The Dollar Index slid once again (but saw quite a reversal overnight...


AUD is the best performer among the majors this week (along with the Loonie) as EURUSD remains unch...


Despite headlines of OPEC compliance crashing to six-month lows, WTI had a sudden early bid and that ignited momentum back to pre-DOE levels, back above $46...


Gold rolled over from earlier gains as the dollar rallied this afternoon, but the precious metal closed only marginally lower...


Bitcoin leaked back lower again...

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Kaiser Sousa's picture

remember the good ol’e days when i used to point out that EVERY DAY the fraudulent Dow Jones Propaganda Index, S&Piss, and NasCrap ALWAYS began a v-shaped recovery off the lows roughly around 10:00 am followed by a ramp at 3:30 pm in an attempt to put intra-day highs????

ah, the memories…


Altesh's picture

Good times, good times. I remember after particulary bad days for gold or great days for stocks I thought to myself. "Kaiser Sousa is gonna explode today.". 

Here we are again. Hawkishness is good for stocks and dovishness is bullish for stocks. Hawkishnes is bad for gold because higher rate, dovishness is bad for gold because stocks go higher. Haha, this shit is so broken the only response left is to laugh at it. 

Kaiser Sousa's picture

exactly...its become so absurd ive almost completed by training in ignoring the $ price movements of both of the only forms of REAL money on a daily basis...

this Jedi mind trick shit is a bitch...


LawsofPhysics's picture

indeed, of course talking about "prices" in the absence of a mechanism for true price discovery is a fool's errand.

Jesus was right after all < shocker > soon our cups will run over with the blood of the moneychangers...

"Full Faith and Credit"

BlueHorseShoeLovesDT's picture

Price discovery. In the "market" is the previous days value plus a random percentage

Kaiser Sousa's picture

im just wanting to see if they have the gaul to park the phony paper price of Gold @ $2,017 for the entire fucking week..

no thats some real "trading" and "markets" for ya...


BlueHorseShoeLovesDT's picture

They ran their favorite pattern today.

Squid Viscous's picture

"Ghost to the Post?"

jeez I'm really dating myself...

Altesh's picture

Yeah, hear you. I just buy physical at dips. Made some real killings in physical bullions these last week. Seems the sector is capitulating in some sense. I bet we will see quite a surge in bullion sales this month. Silver and gold bugs seems to come out of the woodwork lately and go like "Here! Take my fiat... gimme dat silver! Here's more fiat... ffs take more, gief dat silver now!". 

Jtrillian's picture

Buzz Lightyear was picked up as the spokesperson for the Central Banks.


BlueHorseShoeLovesDT's picture

I smell a happy ending Friday coming

Two Theives and a Liar's picture

10 more silver eagles ordered today. Always a good day when I can convert green shards of of debt into sound money. 

Cheers to you KS!!

Kaiser Sousa's picture

kool...still waiting on a Gold Maple to arrive from Silver Doctors...

im a fan of those guys but they still havent shipped despite being payed on 7/7...

and i let them know that i aint kool with that...


Dilluminati's picture

I'll await the real discounts ahead, when swirling twirling dollars get evaporated off of balance ledgers and the ETF crowd runs back up the beach away from the next wave, I'll remark.. no bid.. no money.. and buy it even cheaper

That markup of 10% over spot




That means ergo with buyback at:


12% delta

Sooo I'm not an investor until this stuff is at spot $14.75 I'll make an offline list of downvotes and link this..

BlueHorseShoeLovesDT's picture

Every day everything is more valuable than the day before, ain't America great.

veritas semper vinces's picture

jewmerica has reached peak nothingness

D.r. Funk's picture

haha index-programmers couldn't get green tripledigit today


LawsofPhysics's picture

Stop it.  It isn't that the bankers/financiers "can't see it coming".  In fact it is all by design.

Humanity has been here before, get long sharecropping, weapons manufacturers and guillotines...

Dilluminati's picture

Short humanity, detroit, retail, and blue apron

order66's picture

All dumb money. No volume. No breadth.

khakuda's picture

As Fed chair, you either continue to normalize and risk the inevitable stock market sell-off, or you chicken out and watch the asset bubbles continue to build.  If you are a government bureaucrat retiring in February, the choice is clear - do very little and let someone else make that choice.  Bubble ON!

Vlad the Inhaler's picture

Or you could stick it to Trump for all the times he trash talked you.

Juggernaut x2's picture

It's all part of the show just like "The Clintons are good people"

BlueHorseShoeLovesDT's picture

Janet looks a little bit stretched.

-Lael Brainard

D.r. Funk's picture

So, all the "smart people" out there saying how disconnected indexes are from reality or from future economic reconciliation, in an increasing number and breadth (single analyst or expert, plus, bank/institution/bigbank) since mid 2015. 2 identifiable phases, mid 2015 - end 15 Dec 16 - present. Which we get everyday here.


All (?) of these voices are deluded (?)


That's the O_AND_I argument. Emphatically: ”deluded" “they're" "deluded". He could be using the word inaccurately, but so many things about O_and_I don’t make sense. The logic leans much more that the text is what they want you to think, ie a manipulation. Say a rhetorical insertion (say that 3 times fast)


Trying to convince you. that everyone we read about. is deluded. Could be couched and framed as an opinion… but i doubt it.

...can only hope some of you can follow a logic chain...


Stop projecting the shit out of heartily debunking: bullshit



vegas's picture

Another listless, boring day with central planners firmly in control; until the revolution, nothing is gonna change.

Dilluminati's picture

I gotta admit I admire people who tie a bungee cord and jump.

Even the ones that jump out of perfectly good planes for thrill.

But when they go splat, which always happens with risky high level activities.

I shake my head and think Darwin awards.

I'm just outsaving the markets, and have solid proven return rates that meet my spreadsheet illustrations.

But the higher these things go the more lethal and complete the splat becomes.

I admire watching these folks, I do.

Phillyguy's picture

The FED is little more than a US taxpayer ATM, whose main job is to supply nearly unlimited amounts of ultra-cheap money to Wall St. Once this stops the entire stock market is at risk of crashing. The problems that created the 2008 financial crash—multiple tax cuts for the wealthy, job outsourcing, financial deregulation and astronomically expensive wars in the ME have still not been resolved. Indeed, since 2008, the stock market has been propped up by an infusion of > $ 4 trillion of ultra-cheap money from the US FED for stock buybacks and MA deals, or in the words of David Stockman, by an “orgy” of corporate debt. Yellen does not want to upset this financial house of cards. This will not end well.

D.r. Funk's picture

And it's Exactly what permabears said in 11. Backed into a corner, Cornered, Bullets will run out, Kicking the can. BOOM -The-Fuck- BUST

Too-Big-to-Bail's picture

Just sit back and ride the Yellin wave

Juggernaut x2's picture

The only way to win is not to play

max2205's picture

Does anyone here know what is going on?