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Market Barely Breaks Streak Of 6 Consecutive Declines , As "Buy AM, Sell PM" Trading Turns Chronic
Equity markets did not disappoint today in their automaton pattern today with the 4th day in a row of buy the morning dip and sell the afternoon rip. Gold was stable (as was the USD) and the S&P 500 rotated back to their reality at the close. Treasuries were notable underperformers today. The Dow just inched into the green, breaking its 6-day losing streak.
The S&P 500 e-mini futures continues to trade the same pattern...
while Gold and the USD held steady as stocks tried and failed - but notable Treasuries leaked higher in yield...
Across credit and equity correlations were generally high but credit (which outperformed today) remains significantly less sanguine on the week. HYG was red on the day but HY (CDX) was better (as were stocks which popped back up to VWAP into the close after hours)...
But the credit complex is a mess of technicals right now. The HY credit index is extremely cheap (wide spread) relative to its intrinsics. Single-name CDS in HY are in aggregate cheap (wide) of bond spreads. HYG is very close to its NAV once again but is considerably ahead of stocks over the last month or so. And perhaps the most amazing thing of the day - JNK's volume surge. Before the open this morning a $760mm block went through well above market - given the huge short-interest that has built, we assume it was some forced buy-in but asking around - no-one seems clear. What we found fascinating was the Maginot line at $39.5 in JNK as each time we have crossed it - volume surges!
And JNK Short-Interest...
It would appear that there was a desperate need to get back to VWAP at the close today (which can only mean one thing from below - someone had large orders to sell and sure enough average trade size picked up significantly). At the same time as that after-hours ramp, we saw VIX get crushed - first gapping up from under 19% to over 19.5% and then the ramp was fueled by what seemed like massive vol compression as we gapped down to 18.8%.
And VIX's day was full of gappiness...
Charts: Bloomberg
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PPT to DOW's rescue! Squeaking out a green day.
Market leaves streak in your shorts.
What is this "market" you speak of?
http://www.urbandictionary.com/define.php?term=market
What is this "hair" you speak of?
The Market of Central Bank Fantasies and Bernanke Wet-Dreams...duh.
All hail our committee and be thankful to the PPT for preventing those evil speculators and shorts from disrupting the carefully choreographed show.
you forgot "the new paradigm of bond yeilds going down with lack of demand", but yes I guess if you want to count on something, count on manipulation.
nice little magic spike there at the end to get it green... that's natural, I'm sure
Hilarious from CNBC "Dow snaps loosing streak." Dow only 20 higher. More like flat as in a bounce on the way down.
Sorry but liquidity is the only thing that is going to float all boats and kill those shorts.
What the hell happened to the VIX at the close? At 15:59, spot VIX was at 19.54 and rising. At 16:00 VIX was 19.01.
Nice manipulation there, Mr. Bernanke.
Ah...now the truth comes out. Sorry Mr. Bernanke, instead it was J. Dimon that techno manipulated the VIX at the close so that his super computers could dump long equity inventory from 16:00-16:17...before the JPM Downgrade story came out. Got it.
Nice fucking markets! Thanks for saving them, Ben.
At what point do these criminals start turning up swinging from some lamp post somewhere? Seriously...just brazen criminal activity in the markets day after day.
Something went wrong today, the Fed is pisssed at todays poor excuse of a rally
- tomorrow the gloves come off , serious green or they will lose face with investors.
Don't forget, long last 10 minutes
OT: Jim Grant's on CNBC now!
Dollar at 80! Bullish!
The dollar at 80 compared to a basket of other crap fiat.
The headline on CNBC....THe Market Snaps a six day losing streak.
The markets are like watching Battlebots. Watch out for ALGO_5EB5216, that's an ornery one.
They dumped buy orders at the start of the market, pushing market way up, but not enough to keep pushing it up, so then the markets started falling back. But the PPT folks allowed NASDAQ to fall into red territory just to show it could happen a few times, then back it went up, but not too far up, then gave up trying generate enough buy orders to overcome massive selling at the end. The main emphasis was on the DOW and S&P. Who cares about NASDAQ when there's AAPL.
CSCO dragged it all down, counteracting the hopium injection this morning.
Wait a minute. Yesterday, CNBAPPL said that it was sell in the morning and buy in the afternoon.
Stocks Trim Losses Yet Again: Is the Morning ‘Amateur Hour’?
“Amateur hour is 9:30 to 10:30,” said Michael Murphy, a hedge fund manager with Rosecliff Capital. “Smart money trades later in the day. Risk is definitely to the upside here.” There’s an old Wall Street maxim that the so-called dumb money trades early and the smart money comes in later. Trading by that phrase has made one quite a bit of money this week.
http://www.cnbc.com/id/47358931
All the BTFDipers have used all their purses on these intraday rallies, but they have run out of buying power. Every rally now is weaker than the last.
I see dead Dippers!
I smell blood!
Ladies and gentlemen, there's a shit storm coming.
It became a national security issue, MUST CLOSE GREEEEN!!!!!!!!
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