• BullionStar
    05/30/2016 - 21:24
    The US Gold Market is best known as the home of gold futures trading on the COMEX in New York. The COMEX has a literal monopoly on gold futures trading volumes worldwide, but very little physical...

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)...


Your rating: None

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Tue, 03/13/2012 - 16:20 | 2251694 Jake88
Jake88's picture

Not too cryptic

Tue, 03/13/2012 - 16:31 | 2251755 Manthong
Manthong's picture

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

Who'd a thunk it?


Tue, 03/13/2012 - 16:21 | 2251695 Boilermaker
Boilermaker's picture


Tue, 03/13/2012 - 16:21 | 2251696 GeneMarchbanks
GeneMarchbanks's picture

Dimon is beyond insane.

Tue, 03/13/2012 - 16:25 | 2251709 Atomizer
Atomizer's picture

Interesting, Skank of America had the best spike.

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

Tue, 03/13/2012 - 16:23 | 2251710 Id fight Gandhi
Id fight Gandhi's picture

Everyone just programmed to buy anyway.

Tue, 03/13/2012 - 16:38 | 2251783 Implicit simplicit
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.

Tue, 03/13/2012 - 16:23 | 2251711 tickhound
tickhound's picture

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

Tue, 03/13/2012 - 17:17 | 2251946 Silver Pullet
Silver Pullet's picture

You tell 'em, MDB!

Tue, 03/13/2012 - 16:23 | 2251713 Yen Cross
Yen Cross's picture

    .l.'''    Pop off top!

Tue, 03/13/2012 - 16:24 | 2251717 Dr. Engali
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.

Tue, 03/13/2012 - 16:28 | 2251745 Yen Cross
Yen Cross's picture

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

Tue, 03/13/2012 - 16:48 | 2251824 SheepDog-One
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.

Tue, 03/13/2012 - 18:46 | 2252148 Town Crier
Town Crier's picture

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

Wed, 03/14/2012 - 01:33 | 2253104 Orly
Orly's picture

Yes it is.

Tue, 03/13/2012 - 16:24 | 2251719 Bastiat009
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.

Tue, 03/13/2012 - 16:28 | 2251739 SheepDog-One
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.

Tue, 03/13/2012 - 16:42 | 2251795 Dr. Engali
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.

Tue, 03/13/2012 - 16:46 | 2251807 SheepDog-One
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!

Tue, 03/13/2012 - 16:54 | 2251856 espirit
espirit's picture

Like 4 banks undercapitalized?

Bullish beyond belief!


Tue, 03/13/2012 - 16:24 | 2251720 nobusiness
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.

Tue, 03/13/2012 - 16:25 | 2251721 Boilermaker
Boilermaker's picture

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

OK, I give the fuck up.

Tue, 03/13/2012 - 16:28 | 2251740 LawsofPhysics
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.

Tue, 03/13/2012 - 16:28 | 2251744 Atomizer
Atomizer's picture

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

Tue, 03/13/2012 - 16:36 | 2251780 Boilermaker
Boilermaker's picture


Tue, 03/13/2012 - 16:46 | 2251814 dwdollar
dwdollar's picture

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

Tue, 03/13/2012 - 16:26 | 2251724 hmn
hmn's picture

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

Tue, 03/13/2012 - 16:27 | 2251735 Boilermaker
Boilermaker's picture

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

Tue, 03/13/2012 - 16:26 | 2251726 SheepDog-One
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.

Tue, 03/13/2012 - 16:26 | 2251729 Cursive
Cursive's picture

Who says this is not a rigged casino?

Tue, 03/13/2012 - 16:26 | 2251731 rsnoble
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.

Tue, 03/13/2012 - 16:36 | 2251779 gmrpeabody
gmrpeabody's picture

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

Oh well.

Tue, 03/13/2012 - 16:26 | 2251732 Implicit simplicit
Implicit simplicit's picture

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

Tue, 03/13/2012 - 16:27 | 2251734 devo
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.

Tue, 03/13/2012 - 16:28 | 2251742 lsbumblebee
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.

Tue, 03/13/2012 - 16:28 | 2251747 Boilermaker
Boilermaker's picture

US Bank passes...

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

Tue, 03/13/2012 - 17:26 | 2251979 Yen Cross
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!

Tue, 03/13/2012 - 18:16 | 2252086 Atomizer
Atomizer's picture

Special olympic banking awards ceremony 


LOL - needed a good laugh 

Tue, 03/13/2012 - 16:29 | 2251748 monopoly
monopoly's picture

Marketwatch has this headline:

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

To me this reads...it 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.

Tue, 03/13/2012 - 16:43 | 2251799 SheepDog-One
SheepDog-One's picture

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

Tue, 03/13/2012 - 16:29 | 2251750 toros
toros's picture

Is this the crash everyone has been talking about?

Tue, 03/13/2012 - 16:40 | 2251789 Implicit simplicit
Implicit simplicit's picture

Yes. Just stand on your head.

Tue, 03/13/2012 - 16:30 | 2251752 Lady Heather...UNCLE
Lady Heather...UNCLE's picture

...shock and awe...just wow

Tue, 03/13/2012 - 16:33 | 2251764 Lady Heather...UNCLE
Lady Heather...UNCLE's picture

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

Tue, 03/13/2012 - 16:35 | 2251772 SheepDog-One
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?

Tue, 03/13/2012 - 16:33 | 2251767 monopoly
monopoly's picture

LOOK at C.....

Tue, 03/13/2012 - 16:33 | 2251768 SheepDog-One
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 highs...in 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.

Tue, 03/13/2012 - 16:35 | 2251771 Boilermaker
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.

LOL...man, you can't make this shit up.  Funny stuff.

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


Tue, 03/13/2012 - 16:46 | 2251812 Everybodys All ...
Everybodys All American's picture

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

Do NOT follow this link or you will be banned from the site!