Stocks Surge As ISM New York Collapses To 4 Year Lows

Tyler Durden's picture

While not a primary macro indicator, the ISM New York's collapse (at the fastest 2-month drop in 4 years) to the lowest in 4 years is yet another indication that the hope the Fed discussed for a recovering economy (and therefore a taper) is an entrely false premise. Business Conditions dropped and expected demand in 6 months cratered from 64.7 to 50.0. This 'bad news' was certainly greeted by the market as good news as taper-off met risk-on...



While the S&P was already moving at the open, the dismal ISM print set stocks on fire...

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NidStyles's picture

On a side note ZH appears to be under attack.

NoDebt's picture

I noticed that, too.  Site is acting as flaky as a bowl of Raisin Bran.

Temporalist's picture

Ricin Bran?  I knew I should have switched my brand of cereal.

Divided States of America's picture

If someone could create a program or virus that can infiltrate the algos and wreak havoc to their order stuffing process, that would be good....I mean I am just curious to see what really happens to the markets when the algos arent there....or if you can make them turn every piece of news into sell orders instead of buy orders. However, I think thats not possible with the ongoing POMOs going on a daily basis because theres always a bid underneath the markets......fuckin markets ramping like no tomorrow again.

Temporalist's picture

"fuckin markets ramping like no tomorrow"

If that were truly the case, if the headlines stated there was no tomorrow, it would be DOW 100,000 by now.

NidStyles's picture

The Ron Paul articles was literally gone from the database, as well as the header simply vanishing and outages of the DB.

NoDebt's picture

Recession with the worlds central banks hammer-down?  Unpossible.

GeezerGeek's picture

Or, perhaps, RECOVERY with the world's central banks hammer-down? Unpossible.

Rainman's picture

Translates to : Failure is uber-bullish !

Temporalist's picture

You could feel it coming...but it's just a "soft patch".  They did say the "recovery" will be "slow" and "take years".  All is well.  This is no excuse to remove the RFID tracker sutured to your colon.

Xibalba's picture

It's not in your colon, it's on the top of your right hand and forehead.  

mayhem_korner's picture



Nice 13:16 reference...

scatterbrains's picture

Interesting that print sensitive gold drops as paper products spike..  does this suggest that more peeps believe the Bernank is able to unfuck this situation than those that think we are doomed? Also noticed the only market that doesn't give a fuck about these numbers is the one that we are soon going to kill each other over..  oil.

NidStyles's picture

In a few years no one and I mean no one will care about oil. They will be too busy trying to find food.

mayhem_korner's picture



Note that buying physical with both hands requires more available liquidity than buying paper gold on margin. 

So moar printing might now mean sell the GLD to knock down the "price" and buy it back physical at a discount with the excess Benbux. 

NoDebt's picture

Oh, the markets give a fuck.  They give a lot of fuck about this.  Weak data like this means no "tapering" and more "Party on, Wayne.  Party on, Garth"


mayhem_korner's picture



Is it redundant to say "fade the taper"?  Would that be like crossing the streams?  Inquiring minds want to know...

Dr. Engali's picture

Yet another gold hit piece on Yahoo's front page..this one from shitholtz:

NidStyles's picture

I called it earlier this morning. I just knew that with the USD doing well another gold hit piece was in the wings. I bet the witch will have some anti-gold comments as well. Something tells me that Peter Schiff will be busy this week.

joshdance's picture

What part of his analysis do you disagree with, and what is your own analysis of gold?  His logic seems very reasonable to me, I would love to hear your counter-argument.

Clycntct's picture

Good News? We don't need no stinkin good news.

Pump it baby.

tecno242's picture

This relationship between poor economic news and market rallies can only last so long.

The FED is getting dangerously close to the day in which the market finally comes to the conclusion that it doesn't matter how much printing the FED does because in the end it will not work.

If we get there... the FED is screwed as there is no going back.

Jake88's picture

The Fed already realizes that QE is useless. They are beginning to realize it is dangerous. Hence the taper talk. Taper talk has nothing at all to do with recovery.

ilovemilken's picture

Any news = good news in this market

Seasmoke's picture

I would like to know the thinking of how this is bad for Gold. This is exactly what I thought would happen and I expected that to be the next big leg up for Gold. I honestly do not care what the price of paper Gold is any more but I find it mind boggling.

ziggy59's picture

Im sure if the ISM was better than expected, same results since its always a Dr. Suess day...A Great Day for UP!

Prince Eugene of Savoy's picture

This market does not need the participation of humans.

NidStyles's picture

That sort of makes it not a market...

mayhem_korner's picture



It's just algos and banksters at this point.  No humans.

Conax's picture

The smug bankers and jolly old rich folks are naught but welfare recipients at this point.

85 billion bennybux a month to keep their asses in the green.

They should bow their heads and abase themselves in front of anyone that works for a living, since they will be the ones paying back this federal largesse for the rest of their tired, sweating, back aching lives.

joshdance's picture

"While not a primary macro indicator" -- enough said.  Nobody cares about ISM NY, so assuming it has anything to do positive with equities movement (particularly when the S&P is well off the lows from the opening print) is pure rubbish.

Jake88's picture

We are going to have a worst case scenario...decline in economy and end of QE. The fed's exit is not about recovery. It's about fear of instabilities created.

mayhem_korner's picture



Fed is not going to exit.  They can't so they won't.  If you believe otherwise, you are delusional.

starman's picture

when your addicted your fng addicted

sbenard's picture

That's two classes of addiction:

1) regular addiction, and it leads to

2) fng addiction


Got it! Thanks! :)

foxmuldar's picture

Its a holiday week. Stocks are usually up over holidays. But wait for the Jobs numbers come Wednesday and Friday. I'm expecting unemployment to tick higher again making it back to back months of weaker numbers. Didn't Bernake claim that unemployment would start to drop faster in the coming months and thus he could ease up on the printing press? LOL 

sbenard's picture


It's because this morning's economic news was SOOOO bad that Wall St is thrilled that the Fed will continue to print even MORE money. In other words, the worse the economic news, the more Wall St likes it! They see the Fed as omnipotent! Central bankers are demigods!

So in this bizarro world, in which evil is good, and good is evil, and many Americans now think of government as god (and therefore, their "provider"), and (thus, since government is god) bad news is also GOOD news... Got it!

Try to figure it all out! Eventually, something's gotta give. And it will not be pretty when the god of this world, falls like the gardens of Babylon and the Tower of Babel.

Babylon the Great WILL fall. The only question... is when! Plan and prepare accordingly!

salimmk's picture


Clowns on Acid's picture

The Fed is trying to make the S&P the new "Snap" card for the middle class.....