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Credit And Financials Underperform As S&P Holds 1300
US equity markets went sideways to higher after the European close on low volumes and minimal support from broad risk drivers in general (with SPX bouncing off 1300). HYG tracked ES (the e-mini S&P 500 futures contract) higher as it tried to get back to unchanged (during an afternoon of notably smaller average trade size until the close which suggests covering by bigger players). HY and IG credit markets were not as ebullient as stocks and into the close HYG sold off relatively well to catch back down with HY's weakness on the day. Treasuries, credit, FX, and commodities all closed near the middle of the day's range while ES managed to get back near its highs (with volumes down 15% from Friday and near the lowest of the year so far). Financials underperformed once again (as Tech was the only sector in the green by the close). Treasury yields helped support some of the rally in the afternoon in US equities as 30Y shifted from -11bps to -5bps by the close but overall Treasuries outperformed (stocks should be down more on a beta basis given bonds move). JPY was the outlier today, stronger vs USD by 0.46% from Friday while elsewhere in FX, the USD (+0.4% from Friday) lost some of its gains against the majors after the European close with EURUSD back above 1.31 by the close. Gold (with its pending death cross to match SPX's golden cross) just outperformed its commodity peers (with oil close behind) though they all lost ground as USD strengthened with Copper and Silver underperforming. VIX gained about 1 vol from Friday but leaked lower by around 1 vol from its opening peak above 20.
Stocks (blue) outperformed with the late day volumeless surge the key once again. HYG rather notably (green) sold off into the close (and has been an interesting tell when it has done that recently for risk appetite).
Treasuries managed to sell back (yields increase) after the European close and were the main driver (correlation-wise) of stock strength - though FX's move kept CONTEXT more anchored. The curve flattened with 30Y outperforming but managing to get back above the 3% yield mark right at the close.
A small rally in oil (-0.6% from Friday) and slow leak in FX carry (AUDJPY more than EURJPY) did help CONTEXT a little but the correlation between 10Y and its curve balanced CONTEXT while helping ES rally. Correlations dropped off precipitously into the close.
The USD strength seemed to put a little high beta juice into the sell off in commodities today with only a small comeback in the afternoon as the USD limped lower. Gold outperformed (holding around $1730) as everyone anxiously awaits the Death Cross to occur (with whimper not a bang we suspect) later this week.
Charts: Bloomberg and Capital Context
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Treasuries and TIPS seem to be where the profits are lately.
Treasuries are like sheep pens. A final holding place before the slaughter.
LOL! No paper is "safe". Get physical assets for all your paper ASAP. Oh yeah, bitches!
SP at 1300 is beyond miraculous. Fuck man SP above 900 is pure delusion....at these levels if we could bottle the hopium hot air we'd make profits to the power of infinity times snake oil.
Yep, one of the most amazing dead cat bounces ever
...must be the record amount of steroids this bloated pussy has been pumped with
I am long 30 year treasuries and 3X short the S&P with 96% of my assets. They are just about to print big time. Come and get me !
Did anyone say Golden Shower yet?
OH you havnt heard!
Facebook is coming in baby, revalued at 75-100bn what kind of fucking bullshit is that?!
As Zero say's this is the most amazing dead cat bounce i have ever seen..
Stay short, have faith!
"Take off is optional, landing is a must"
MUST... HOLD... 1300... (or probably "air pocket" to 1200)...
That would "suck" for THE JANUARY EFFECT (to drop 50 points before tomorrow)... Some algo knows this somewhere... I could give a FF...
Lighten up, Francis... (I couldn't resist) ;->
http://www.youtube.com/watch?v=0OnpkDWbeJs
if any of you... HOMOS... take out 1300 to the downside... I'll kill you!
Good one!
I am sure the Great Chairsatan will do all he can to keep it pumped.
Am taking it down! Fuck you
I was just flumuxed at how we went sideways when EU and commodities got hit. I think gold and silver will be the tells 3 years from now. We will all look back and see the correlations were way off on treasuries and market.
DJIA was off 6.
Really? 6? Are we the only ones paying attention or is someone going to tell me this is priced in. From what starting point? We are up for the year and pretty much flat to slightly up since this really got interesting last year.
Just a guess here, but "flumuxed" might be too big a word for you.
You make me feel bad about myself. I have a public school education for god sake and a lack of patience to copy and paste for spellcheck purposes.
Flummoxed.
There - fixd.
OK - green arrow for revision.
"I have a public school education"
Try to make the best of it.. a lot of us were abused as kids, too.
"Public school education" is a contradiction in terms to me. They should call it what it is - "state-sponsored indoctrination."
Home-schooling is the way to go.
It's good that all of us government schooled citizens were raised by parents with the common sense to not allow us to become indoctrinated.
The state, in it's infinite wisdom, is still trying to sort that one out ;-)
I'm hoping it will move decisively higher. We'll see.
S&P 500 priced in gold isn't holding anything.
Holding?
"Now there’s another thing I want you to remember. I don’t want to get any messages saying that we are holding our position. We’re not holding anything. Let the Hun do that. We are advancing constantly and we’re not interested in holding onto anything except the enemy. We're going to hold onto him by the nose and we're going to kick him in the ass. We're going to kick the hell out of him all the time and we're gonna go through him like crap through a goose.
There’s one thing that you men will be able to say when you get back home. And you may thank God for it. Thirty years from now when you’re sitting around your fireside with your grandson on your knee and he asks you what did you do in the great World War II, you won’t have to say, "Well, I shoveled shit in Louisiana."
PATTON~Opening Speech
Can somebody tell Spada Capital that they need to sell more SP500 futures to get things going.
Time to sell gold for short-term gains, or short it for a strategic trade.
No red, but I completely disagree! Never sell your gold!
Unless you are a trader, which now that I recall, you are. So in your case go ahead and trade!
NO WAY I am selling my gold! Maybe a bit at $5000. Maybe a bit more at $10,000. Maybe a bit more at $20,000. The rest goes to my kid (or better yet: grandchild/ren)!
I have physical gold, but from a trading perspective I'm looking at shorting for a short-term drop. I was vociferously short gold @ 1900 and than I picked some up @1540 back on the 29th of Dec. which you can see here from my comments www.zerohedge.com/news/es-bounces-200dma-and-total-chaotic-disconnect-en.... And now it's time for me to go short again.
I hope everyone here disagrees with me because that means there's a consensus and the consensus is almost always wrong.
hmm..I dunno bout that trade. Not feelin it like at 1900
I may be wrong... But i think it's WAY premature to think (in USD terms), of numbers like $5,000, $10,000, or $20,000...
It's probably more realistic to think of it in terms of things you "price in your head" today (in dollars) & transact accordingly...
Put another way... Let's say there is a plot of land that someone wants to sell for $20,000 today that you have your eye on... Right now... (in gold ounces)... You're more than $18,000 distant from the seller...
Most likely... In the process, gold will go up in value in whatever is the most ubiquitous NEW CURRENCY (& perhaps the seller might find himself short of any hard currency and be willing to exchange for less)...
In any case... My guess is that it'll be very unlikely that in sometime in the future you'll exchange an ounce of gold for $20,000 (of today's dollars) and buy that land for that price...
It's a semantic argument... And i understand the "grades" of value (that you indicated), are merely your best offering on what VALUE you place on your holdings (TODAY, priced in TODAY's DOLLARS)...
Nevertheless...
month end push on no volume. Seems like nothing can bring these indexes down. Each day some EU member just has to say any minute now and the market forgets all the bad news just reported
End of the month tape painting, Ben in there furiously all afternoon via proxies.
Super Bowl prop job. Must.have.happy.football.ad.day.
Gold outperformed (holding around $1730) as everyone anxiously awaits the Death Cross to occur (with whimper not a bang we suspect) later this week.
dewd, you're showing a nine year chart of gold with the 50/200 moving averages. don't loose any sleep over the scary death cross. it's not likely to occur. here's a 3 year chart. sleep tight and if you decide to panic over the death cross, fine, sell gold, there's plenty of buyers when it goes on sale.
stockcharts.com/h-sc/ui?s=$GOLD&p=W&b=5&g=0&id=p09012986312
tyler agrees with you
you just don't agree with him! l0l!
he thinks we might get it, but it will be a "whimper"
he's not too freaked, but he knows leonardo can handle a paint brush here for the gipper
i think...
Ha! :-)
Slewie... The "Leonardo's" (of this tape), are more like "fingerpainters"... But I guess they get the job done in a pinch... Here's a video of them HARD AT WORK...
http://www.youtube.com/watch?v=MR_X6GunOlQ
I thought the death cross was for 200/50 DMA not 200/50 period MA. Using weekly as the period doesn't paint the correct picture.
phony ass paper markets....u can keep all that debt coupon dollar denominated "Pampers"...ya'll mother fuckers had better keep stacking that's all i know......
(Reuters) - Less than one year after silver's breathtaking collapse from its record-setting rally, investors are again snapping up coins at an unprecedented pace, suggesting the white metal could leave gold in the dust.
Even before the U.S. Federal Reserve's promise of further stimulus rejuvenated interest in precious metals last week, U.S. retail investors were already buying up freshly minted coins in droves, undaunted by last year's painful volatility. Gold coin sales, while rising, have been far less robust.
At Dillon Gage Metals, a leading U.S. precious metals dealer, dollar sales of silver and gold products reached parity in January for the first time in its history - even though bullion costs 50 times more. Some hedge funds are now interested in silver coins, a top executive said.
Rival Blanchard & Co said it was selling now more 500 one-ounce Silver American Eagle "Monster Boxes" than ever. Last week, one client bought 17 of the $18,500 boxes at once -- a more than $300,000 purchase, said vice president David Beahm.
http://www.reuters.com/article/2012/01/30/us-silver-physical-demand-idUS...
real money bitchez!!!!!!!!!!!!
I'd love to believe holding silver and gold is the answer. But, I know you'll never be allowed to use it to purchase anything in the USA. You better ship it somewhere you want to live in a few years and hope you can keep it safe. When the US goes down you won't be allowed to leave with any precious metals and you won't be allowed to bring it in anywhere either. Unless you happen to be a 1% net worth individual.
I'd bet on Southeast Asia. Vietnam, Laos, Cambodia. Places where the globalist influence hasn't manifested itself as the dominant culture yet. Screw Africa or South America. You'll be killed before you can ever use anything of value.
you've obviously never been to south america
I review last weekend's Barron's at my blog (I also write about and other stuff too). Want a look? If so please send me a gmail at my name, promise to behave, and I will send you the link. I ask ZH-ers to do this because I am trying to keep the spammers and bots from getting through the gates.
Get ready for the big India and China buy up of the USDs.
We need this volatility back.
Also goodbye Greece.
Bad vibes
The market was able to hold 1300 because of the PPT. PPT in the house!
Netflix officially doubled off its low today. That was a fucking insanity trade, 100% gain in one month. In July people would have called you insane for buying a $300 put, let alone a $75. In December you would have been insane for buying a $100 call.
Seriously they added a record amount of free trial subscribers and that causes the stock to skyrocket? The market couldn't even be admitted to an insane asylum for the fear it would make all the other patients look sane!!!
That guy over there thinks he's George Washington.
"Who's that other guy?"
That guy invests in the stock market, thinks half the S&P will double in value by March.
"Fuck, maybe that guy over there is George Washington."
How many times can these SOBs jump the General Lee over the gorge with the appearance of no frame damage?
Their making their way, the only way they now how. That's just a little bit more than the law will allow.
S&P is the Oligarch's pet dancing girl; she has to stay happy or else the Oligarchs lose their nightly kicks, vital to their hubristic mind set, barbaric zeitgeist, feeding ugly day's work digging into each other's blood n guts.
"Oh S&P you are my nightly american dream that I be rich and powerful; Don Corleone, Bugsy Siegel, Mayer LAnsky. I don't wanna end up like Alberto Anastasia, shaved clean, head n all!"