Bonds Up, Stocks Up (Just)

Tyler Durden's picture

Equity markets drifted from an unch open to the overnight post-BoJ highs - albeit in an 8 point range and low volumes once again, before giving it all back in the last few minutes - as it dumped to VWAP (again!!). In other 'real' markets, Treasuries rallied - led by the long-bond playing catch up, the USD sold off on the day - aside from a post-BoJ recovery higher which was dissolved into the US day session open, Gold/Silver/Copper inched higher as the USD weakened but Oil continued its post-QE ritual sacrifice - now down 5.5% from pre-FOMC (back under $92) as the Saudi's promise more supply and the IEA build was heavy. Credit markets underperformed - but we suspect this was pre-roll moves and is not too signal-prone. Some standouts in the unreal world of our efficient equity markets, JCP's remarkable rip-and-dip, AAPL's rapid devolution from record highs to VWAP and an unch close at the last minute on huge volume, and QCOR's multiple-halt day ending down 48%. VIX (fell modestly) and the S&P 500 are back in sync and tracked each other all day. After the day-session close (small green), S&P futures drifted further down and ended practically unchanged - on a heavy volume push.


The S&P 500 e-mini futures crossed their entire range in the last 15 minutes after the day-session to close near the lows of the day-session...on heavy volume - we supposed more pre-OPEX, pre-Index-reweighting shenanigans...


on a slightly longer-term basis, it seems a 50% retracement of the post-FOMC spike on Friday is acting as resistance for now...


Commodities drifted higher (on weaker USD) but Oil just dumped again...


Across asset classes, bonds outperformed, stocks seemed to play catch up to gold then reflexively fall back to the USD...


VIX and ES are back in sync, with late day weakness evident...


Equity markets remain notably out-of-sync to risk-assets in general as today's Treasury strength and oil weakness dragged CONTEXT (our risk proxy) notably lower... (note how they stayed in sync thru the BoJ news but diverged as Europe got going...


Charts: Bloomberg and Capital Context


Bonus Chart: JCP had quite a day!!! From the discovery of cold fusion to H2 same as H1 sadness...

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ACP's picture

Looks like the Fed's "naked short only" desk has a direct feed to the CME.

slaughterer's picture

World economy is dying.  No QE can save it.  

WhiteNight123129's picture

Nope, not at all, financial assets are dying slowly but that is what is needed to bring income to debt higher. Financial assets stagnating, nominal wages and nominal prices up = deleveraging. Fischer is criticizing Bernanke for raising inflation expectations. Inflation expectations and inflation are the same thing. Fischer dissendent against Bernanke is all theatre, they manipulate markets like true masters, and now they can safely unclog the cash sitting on corporations balance sheet and with the rich by unleashing stagflation while avoiding crack-up boom. Beware financial assets owners this is your swan song, today is the 1937 peak in the stock market post 1933 printing, and the swan song of bonds what follows is erosion of purchasing power of stocks and bonds, with higher commodities and financial assets sold to get back in the circulation and converted into wages. Crack-up boom has been avoided, short the 30 years.


chump666's picture



They are the dumbest, clueless a-holes you could ever wish for, that and they think they can steer a rudderless boat.

chump666's picture

Pretty much.

BoJ print job is the last gasp.  All major central banks are all in now.

brokenclock's picture

Sorry off topic  but i need to rant a little. 


Are you kidding me the  gold standard of CFO from goldman sachs of which all should be like. Viniar was there top risk manager. What did he really do besides watch his firm take on so much risk they almsot went belly up without taxpayer money. Really, the Gold freakin Standard.  He is a moron who watched his firm almost implode under his watch. CNBC was ranting agian about how repsected he was in the industry.  CNBC has no backbone. Brainwashing at it's finest.

Now CNBC is talking about HFT and how it's completely ruining the market. Really, wake the heck up....

Thank god we have this site. So ahead of it's time with people who have the balls to expose the truth 2 years ahead of these media retards.



q99x2's picture

Markets attracked VWAP like a dead man to gravity. Nothing but anemic algos left in the poison pool.

tawse57's picture

Adobe shares down after hours - apparently 7 billion people just got fed up with Flash wanting to update every other sodding day! (Slight exaggeration but you know what I mean)

lolmao500's picture

And now the US escalates the Asian powder keg with this :

Alaska’s fleet of F-22 fighter jets and their elite pilots have been deployed to an airbase in the Pacific U.S. territory of Guam, according to officials at Joint Base Elmendorf-Richardson in Anchorage.

Just fucking brilliant! Now just watch, they'll say it was all planned long ago... SURE IT WAS.

And oil is being smashed because Israel will bomb Iran on Yom Kippur... to lessen the short term effects of such a strike or for insiders/traders to make more profits....

Sutton's picture

Weird action.  Something crazy is coming soon.

RobinHood73's picture

I cant help but feel that WALL STREET is doing its utmost to rig the system to favor the status quo into this election. The 3-pronged way of doing this is to push bread and circus through 1. AAPL (Everyone can be a WINNER!!!) 2. OIL price declines (wow thats nice!) and 3. QE Infinity (great for my 401(k)!!! I can pay for Jimmys college for 1 more semester YAY!). Wall Street cannot get it any better than what they have already attained: FREE MONEY FOREVER. It simply doesnt get better than this. WALL STREET has a huge, huge interest in seeing Democrats re-elected . Their businesses depend on it. Can you imagine if the Fed was actually reigned in ? The Mark-to-Market consequences for the banks? They would,like ,actually have LOSSES!

lasvegaspersona's picture

Through August ZH was waiting for the September 15 to 25th period because that is when there were critical sales of IT and Spanish bonds. So far I have not read a single article on ZH that tells us how all that is going (other than a comment that Spanish yields were over 6%) Are we no longer concerned?

HaroldWang's picture

Throw in some cyber terrorisim at JPM and things really start looking fun!

max2205's picture

Java hold the coffee

Cult_of_Reason's picture

HYG flash crashed before the close.

DavosSherman's picture

Priced in gold this shit is all down 83% since 1999

slaughterer's picture


Haager's picture

That's nothing - should have placed a bet on FB this week...

element115's picture

I love ZH, but I cannot help myself from reading RoboFaders comments over at Wall Street Bears.


What a fucking ass clown!

roadsnbridges's picture

Need a bonus chart of S having ignition just as the iCrapple download was available.

orangegeek's picture

Gold is up, Markets are up, US Dollar is down and oil is down.

SP500 is doing its rise on lower volume again.

Will be interesting to see if this holds through earnings season - early October.

Lin S's picture

Trying desperately to sell a second (inherited) residential property.  I keep dropping the price and althought the property is turn-key mint, no takers so far.

I *was* hoping I could sell quickly and use the proceeds to establish a position in PMs.  I used to have one, but I got wiped out pretty bad in a divorce 2 1/2 years ago.

Now my old debts are paid off and gone but this property is like an Albatross: it just isn't selling.  Looks like I am running out of time, and won't be able to ever return to my old position in physical PMs.

I am sad... = (