Market Summary: FOMC Snoozer Followed By Premature Exuberation

Tyler Durden's picture

As gold loses its 200DMA once again (along with Silver weakness) as the USD rallied post FOMC and stocks were starting to limp lower, Jamie saved the day and the stock market had that most embarrassing of affliction - premature exuberation. While it seemed to have come as a shock to some that banks passed the stress test, the market's reaction (given only recently markets were worrying over NIMs, trading revenues, and real estate) was incredulous. The US majors were all up 6-7% (apart from Morgan Stanley which managed a measly 3.8% on the day!). With XLF now up more than 37% from its Oct11 lows, financials remain the major outperformers in this rally and we note that credit markets are missing the fun - the last time JPM stock was here, its CDS was trading 25bps tighter. Credit and equity moved in sync and tore higher on the JPM news. Gold (and Silver) which had been falling managed a decent bounce into the close while the USD closed at its highs post FOMC as did Treasury yields as for the first time since the 2011 bubble popped, the NASDAQ closed above 3000 (thanks in large part to AAPL's 3% rally over $568).

US Major financials post FOMC (red arrow) and post JPM (green arrow)...


and Commodities suffered further (but did bounce notably into the close)...

As stocks and credit resynced in a rip higher on JPM (green vertical arrow) after leaking off after FOMC (red vertical arrow)...


In other news, there is a rumor floating around that just to prove how healthy the banks really are, Jamie Dimon has told his Fed subordinates to return Mark to Market accounting, which has been dead for nearly 4 years.


What's that?

Sorry... Rumor denied.

All is well though - apart from the fact that the credit market in financials does not seem as prematurely exuberant as stocks (yet)...


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Jake88's picture

Not too cryptic

Manthong's picture

Strategically placed "stress tests" as stealth "policy".

Who'd a thunk it?


GeneMarchbanks's picture

Dimon is beyond insane.

Atomizer's picture

Interesting, Skank of America had the best spike.

Correction: 2nd best spike. Eyes are getting tired :(

Id fight Gandhi's picture

Everyone just programmed to buy anyway.

Implicit simplicit's picture

The real reason for the mule jacked- off  high:

In a surprise joint effort decision by the Federal Goverment and the  Federal Reserve, it was announced that all the millions of people on food stamps can now use their cards to buy stocks. In addition, the millions that have dropped out of the work force can now have jobs as Federal stock brokers that will take over empty Post Office space.

tickhound's picture

Marking to Market is a barbaric tool used by subversives to undermine healthy economies. 

Yen Cross's picture

    .l.'''    Pop off top!

Dr. Engali's picture

Stocks limping lower? What fucking market were you watching. All I saw was Ben hand me my short position on a fucking stick.

Yen Cross's picture

Snap that stick in 1/2 and share it with your neighbor!

SheepDog-One's picture

Stocks limped lower when today....fell a bit from DOW +120 down to +100, where it then shot up another +100? 

Only 5 more trading todays like today and all stock markets are well above their all-time full retard record highs.

Town Crier's picture

It's like playing chess with an opponent who can make his own pieces, as many as he wants.

Bastiat009's picture

Three days ago, the world witnessed a major sovereign debt default, which I was told would be the end of the world.

SheepDog-One's picture

In reality, never any better news than 'Greek default', equities up over 4% since then. The next time someone tells me that a country is in danger of defaulting and that will be a 'major catastrophic event', I'll just laugh in their face.

Dr. Engali's picture

But did Greece really default ?That is the question. It seems to me the bankers made out pretty well in that deal.

SheepDog-One's picture

Well yea like I said the next time Im presented with great worry over some impending financial default, I'll just laugh in the face of whoever is saying it!

espirit's picture

Like 4 banks undercapitalized?

Bullish beyond belief!


nobusiness's picture

Jamie's Buddies in the S&P 500 pit must be pissed.  Doesn't he know all good news must be released after hours so only the pro's can participate in the ramp up.  The etraders are supposed to provide the exit in the morning.

Boilermaker's picture

BAC, MS, C, BBT, JPM...all PASS a RUN FOR THE BOMB SHELTER 'stress test'...

OK, I give the fuck up.

LawsofPhysics's picture

I gave up long ago and placed some bets on the devils I know.  Now I will thank the devil for those profits and be happy, not greedy.

Atomizer's picture

In the near future, if the banking misfits ask for another bailout-- We can tell them to get bent.

dwdollar's picture

Someone will be bending over... yet again... but it won't be the bankers.

hmn's picture

Will anyone FAIL the stress tests?  Aren't they therefore irrelevant?

Boilermaker's picture

LOL...yea, sure.  You had better wake the fuck up.

SheepDog-One's picture

Apple bullshit now up $100 every week average? This is just full retard, I wouldnt touch any of it with money I found lying in a ditch.

Cursive's picture

Who says this is not a rigged casino?

rsnoble's picture

More like premature ejaculation. What a fucking joke.  If today didn't scare the last of the shorts away I don't know what would.  Like I said before they'll  have half the population in tent city at DOW 36k lmao.  I'm curious if we'll have a fed reversal tommorow however I won't be shorting as everytime this market loses ground you get your ass smoked the next day.  Someone on gave me shit about not having balls when I told them I wasn't shorting 1000 points ago, how did that neuterization work out for ya?  Be me guest.

gmrpeabody's picture

Ya..., I got the same treatment. Now what was his name....

Oh well.

Implicit simplicit's picture

The stock market capitulated early on just a hand job from the FED. Wall street is immature.

devo's picture

Due to election, this year will be good for stocks, bad for PMs. Next year reversed.

Stocks risky at these prices given oil issues and credit/FED propped profits. I'd do neither and keep powder dry.

lsbumblebee's picture

I guess gold was back to being a safe haven asset today. I think I'll buy this dip and hope that tomorrow it will be a risk asset again.

Boilermaker's picture

US Bank passes...

LMFAO....Like handing out trophies to everyone at the special olympics.  Everyone's a winner.  Everyone.

Yen Cross's picture

 South Park is awesome! +1 for Boiler Maker ( bourbon in a shot glass) full of beer, at a Perdu/ Ohio State game!

Atomizer's picture

Special olympic banking awards ceremony 


LOL - needed a good laugh 

monopoly's picture

Marketwatch has this headline:

NASDAQ RETAKES 3,000 for the first time in 11 years.

To me this has taken 11 years to get back to 3,000 in the Nasdeq. How those tech stocks working for the long haul? Amazing how the media twists everything.

Nothing has changed. And markets move in strange ways. I have not changed course in years and it is working out just fine here.

SheepDog-One's picture

To me it reads- 'Markets now manipulated back to previous ridiculous bubble top now what are we gonna do?'

toros's picture

Is this the crash everyone has been talking about?

Implicit simplicit's picture

Yes. Just stand on your head.

Lady Heather...UNCLE's picture

...shock and awe...just wow

Lady Heather...UNCLE's picture

...a week ago the market visited 1340...a week ago!! 56 points in 6 trading days...unfucking believable!

SheepDog-One's picture

And during that week, the 'unthinkable event' happened too Greek default! Actually turns out defaulted nations are GREAT news for markets!

Can you believe how everyone was SUCKERED big time over that fraud?

SheepDog-One's picture

So whats in store for tomorrows open then, at least +100 on the DOW? That puts us within a measely few hundred DOW points of all-time record bubble top a recession.

Something real shitty is about to happen, you can feel the way the shit clings to the air.

I dont like this particular matrix at all, I want out fuck this.

Boilermaker's picture

4 banks fail (or as CNBC say...didn't necessarily pass) the 'stress test'.

The rest will still have actual 5% capital ratios AFTER a halved stock market, 13% unemployment, AND a 12% drop in home prices., you can't make this shit up.  Funny stuff.

UPDATE:  C, STI, ALLY, and MET fail...LOL, right.  Penalty:  can't raise dividend.


Everybodys All American's picture

Yeah, I would love to see how in the hell they simulate that ... complete bs.