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What Do Stocks 'Know' That Gold, Treasuries, And The USD Don't (Again)?
The last few minutes of the European day ended with a resplendent surge in stock prices in the face of sideways to wider credit markets and deteriorating sovereign and FX markets. Not to be outdone, US equities remain in a world of hope of their own today having disconnected shortly after the US day-session open as Treasuries, Gold, and the USD have all moved in a more derisking mode. Also, despite S&P's 0.6% gain, VIX has just pushed higher into the green for the day.
Equities (blue) on their own in hope...
and relative to a broader set of risk-assets, stocks also look somewhat alone again today...
as markets attempt to orchestrate a squeeze, we suggest that the recent notes on FX and Credit positioning being considerably less short than perhaps most believe will temper any squeeze even on good news.
Chart: Bloomberg
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Nothing. What is current short interest? No volume ramps into the summit.
i think stocks know hopium is king.
Equities are Sheep, Bonds are the Sharks, Follow the Sharks so you do not get eaten.
The markets are caught in a catch-22.
1) If stocks stay high, then by definition stocks are high
2) If stocks go down, then Ben will print and the markets go high again, then by definition stocks are high
How can stocks go down with this catch-22? The only way is if everyone “believes” Ben will not print, but no one believes that.
Seriously, can someone explain this to me? For the life of me I can not figure this one and my head hurts trying.
Don't bother trying to interpret the play by play of an Algo driven universe that reads CNBC twitter feeds.
It literally could be up because some one "thumbs up" lunch in Tokyo. there is nothing backing the paper or the equities.
FWIW - rumors circulating in the markets and in the Saudi press about the Saudi military canceling leaves and mobilizing. Again - just rumors at this point - some speculation that either the King has died or could be in connection with Syrian/Iranian tensions.
Chatter of "Saudi Forces on full mobilization after Turkish Pres tel call to King Abdulla of imminent strike on Syria.
http://twitter.com/#!/ahmed
http://twitter.com/#!/fiatcurrency
If I find out more and/or confirm these rumors, I will post at my blog:
http://thespiritoftruth.blogspot.com/
At this point I'm seeing nothing to corroborate the rumors and the tweets are hours old. Looks to be baseless, especially since Turkey has indicated it won't take direct military action in response to the loss of its jet.
Squeeze before the crash. Rob the sheeples before the plunge. Wash, rinse and repeat.
The dollar’s connected weakness adjoin adopted currencies agency their alien appurtenances and casework amount added and our exported appurtenances and casework go for less.
jogos online
If you buy stolen goods you don't get to keep them after the verdict.
So do all of his investors get to keep their gains?
Why?
Stocks are smoking it without the h.
They are like a nodding junkie,dozing,then jarking awake.
Straight delusion(ol).
Does this mean that even the speculators/gambers are going to safe haven heaven?
The Ponzi Sense...
what if your whole qtr. depended on rumours?
oh, and please ignore the failed auction(s).
Big volume in grain trades this morning
Drought? I don't think we are done with the deflationary collapse just yet, but eventually commodities will take off again, well at least unless the population continues on it's current trajectory.
Someone got on the phone and said, "Duuude! I need a stock ramp or I'm in big doodoo over here."
Voice on line replied, "No prob, brah! Haha, that's what I get the mo-neyz fo'."
[laughter, champagne corks popping]
It is also interesting to note that silver has been much more volatile in the last month and half since the Shanghai Precious Metals Exchange has opened.... I honestly think this moment in PMs is akin to a Tropical Storm brewing in warm Gulf waters before it becomes a Category 5 Hurricane and wreaks havoc.
I see Silver passing the psychological $50 mark by October when Bernanke decides to heat the wheels on his keyboard again. Gold to 2000 as well.... If you read the research from Gsachs, JPM, and Barclays they all agree gold is going much higher by Q4 (consensus is around 1900 an ounce).
Obamacare is overturned tomorrow
seems like pure distraction fodder...
Yes, overturning Obamacare will enable US citizens to spend less on private health insurance and more on the important things like Ipads.
Will no-one think of the insurance companies?!
Bonus padding + frontrunning of the Obamacare reversal. Sad state of affairs in this "market".
Stocks work in 11000111111000000000 way
I think the algos/banksters are controlling what is going up (pulling in retail) and what is going down (scaring off retail) this nanosecond and will do the opposite tomorrow or Friday in a nanosecond and thus hypothecate mid year bonuses.
remember, GS did say SELL SELL SELL!!! S&P DROPPING DOWN!!
Muppets unite:
Nothing to lose but virtual fiat...
Stocks know the plan is to inflate stocks. The others are on their own.
and oil:
http://leadenhallst.blogspot.co.uk/2012/06/sp500-vs-oil.html
probably bernanke next move?
the US tricked the ME into over-producing their reserves - so that the US could save theirs. now, the time has come to unleash new technologies that will drive the price back down to $40 - so that there can be enough cash flow to satisfy debt service and other financial obligations. the ME has been played like a fiddle.
I actually believed that 25 or 30 years ago..., back when I thought our elected officials had a brain. Wrong on both counts.
That sounds so stupid..., let me amend that.
I actually believed that 25 or 30 years ago..., back when I thought our elected officials cared about the voters. Wrong on both counts.
Good - no need for military bases and drones over there anymore to protect the black gold. Thank God.
Who cares what gold's price is. If you can exchange fiat for it you are on the winning side of trade. In a normalized market even the Fed states that the rate of inflation target is 2%. We all know that is a lie. Debt ceiling hike in another month or so. War with Syria and Iran on the horizon. Debt weight crushing countries. All roads point to fiat expansion. To invest in anything else at this point is complete insanity. Keep 20% of cash in gold/silver so you can weather the manipulation. Other than that get your powder ready. The collapse is coming.........it's a certainty. Just a matter of timing. Only an addict is playing this game. Trying to time this is just as ignorant. Pull your cash and enjoy your family and good eats with no stress in peace. If you are prepared, the rest will happen when it happens. Love versus fear is the battle on earth and the heavens. Which do you enjoy?
Good Luck.
Very well said LongBalls!!! we are in the 9th inning of the historic corruption/debt bubble that is going to pop sooner or later. I think sooner...
long Gamma trades
They know that the Bernank has his eye on Zynga.
Staring at this market, about the only thing I can say is that "I should have been a pair of ragged claws, scuttling across the floors of silent seas."
Stocks may know T+3 settlement makes today the last day of end of month/quarter window dressing:
Twitter RichCash@RichCash8
http://richcash8tradeblog.blogspot.com/
Great observation. This is nothing more than EOM market gaming. Central Banks are running the show. All you ever hear about now is QE this and QE that. Investing is becoming less and less about a companies market stance and profitability and more about liquidity injection.
i love stocks. I love.... carpet!
i love lamp!!
Hilarious.
Goldman and Citibank both recommended shorting ES at last week's lows.
King World News trumpeting the "End of the World" day in, day out.
Richard Russell predicting "Mother of All Tops" screaming to subscribers to get out of stocks.
Meanwhile, the retail investor has already sold their stock funds and continue to pile into bonds.
And the Dow is still above 13,000.
Are you a robot from the past?
He is a robotic lemming from an alternate universe in which debt slaves worship in gloomy temples of The Church of Statist Central Planners before idols of Ben Bernanke made out of paper mache and their own blood.
RT,
What's hilarious is your lack of reading skills. Dow is still BELOW 13,000.
Silly you! Never let petty things like facts get in the way of a good servile bootlicking!
Market is always efficient in the short term and inefficient in the long term. If you want to make money you should follow the people who know best, Paul Krugman, Stiglitz and have faith in the US dollar currency because the US is exceptional. The eras of sovereign bond defaults in the US are over thanks to the significant progress made with the printing press. If we have troubles paying for the debt, we can trust the foreigners will help the US by carrying a lot of US dollars. After the 2000 Tech stock bubble, and the real estate bubble, now some people who believe into ridiculous theories of default and all sorts of catastrophe have been piling up Gold as a result. They do not learn, Gold is not an investment and is a speculation, Warren Buffet is here to protect you, do not buy Gold. Your money is safe with the Treasuries because the printing press will always prevent a default. The retail investor is smarter this time, while it is true that retail investors made mistakes by pushing up tech stocks, and then the real estate, this time they are smarter and not getting fooled into buying Gold, they are pushing up the Treasuries but it is working this time around, look how much money they are making. It is working much better than teh Tech or Real estate episode, the retail investor is right, there is ABSOLUTELY no doubt about the currency integrity of the US dollar. RobotTrader you make an excellent point and I am wondering why the brilliant MDB has not yet made the point already about your excellent comment. It is time for people to be serious and stop spreading baseless rumors that the US government is insolvent. Enough of that, those times are definitely over, we have learnt from the past. As for Europe, no need to worry, the politicians will do the right things as they always do, we have progressed tremendously thanks to their stewardship. Where would be today without their wise guidance?
This comment is dedicated to MDB, for the wisdom he is spreading.
What would the index look like if American International Group, General Motors, and Citigroup were still on the component list?
shhhhhh...you're not supposed to bring that up.
Cisco and Travelers replaced GM and CITI, Kraft replaced AIG
Cisco - Up from 14 to 17
Kraft - Up from 21 to 38
Travelers - Up from 30 to 62
GM - Down from re-entry 34 to 20
C - Up from 10 to 26
AIG - Up from 7 to 30
Wrong numbers for C and AIG; they had "price adjustments". Both are down since being replaced.
Maybe war?
Down days show bigger volume than up days on the SP500. Not a sign of strength.
http://bullandbearmash.com/index/sp-500/daily/
Let them play their games. I have no interest in any of them and am quite comfortable with my defenses.
Useless numbers with no relation to anything real
Nothing!
Just stocks do not know that they do not know (or worst, maybe they think that they know), while Treasuries, Gold, and the USD and least know that they do not know.
What Do Stocks 'Know'...
They know who thier daddy is. Big sugar daddy, Ben.
Looking more and more like Daniel Estulin is right when he says the plan is to take stocks to their '90s highs before crashing the market.
I have simply reached the point where I am grateful every morning I wake up and find we still have intact markets. Every additional day of normalcy, no matter how fake it is, is appreciated. What is coming is not going to be pleasant no matter how prepared we are.
http://www.todayszaman.com/news-284837-syrian-government-allows-terroris...
Syrian government allows terrorist PKK to raise its flag in Syrian town
TURKEY'S RESPONSE :
https://twitter.com/#!/MahirZeynalov (Turkish journalist with Today's Zaman. Blogging on Mideast, Turkey, Israel, Syria, Iran, Southeast Asia, US foreign policy. Former LA Times correspondent.)
Two of our correspondents are reporting that Turkish army is currently sending huge reinforcements to Syrian border in Hatay.
"greatest short squeeze in history" is "taking the dollar higher." and equities.
As I see it:
1. Pump (this week) to SCOTUS on HC, get us to.......
2. 4 July week low vol. pump so Big Boys can get short
3. 7/9 tumble begins to 1170 around the opening day of Jack-ass-son Hole, which gets us to......
4. QE 3, which gets us to ....the 2nd Tuesday in Nov., after that......
5. ?????/