Volumeless Stocks Test Record Highs On Downbeat Data

Last week's message to TPTB... (appears to have been heard loud and clear)...

 

Another day, another rally on even weaker volume (with UK and Japan away on holiday) and shitty data... Spot The Difference...

 

Who could have seen this coming?

But the best news is twofold: volumes continue to be lethargic with both the UK (May Day bank holiday) and Japan closed until Thursday (Golden Week), while the bulk of the S&P500 has now exited the stock buyback quiet period. As such, ignore record equity outflows - all the matters is that corporate CFOs, flush with brand news bond issuance cash, will tell their favorite Wall Street trading desk to buy stocks at just the right inflection point sending the market surging just as shorts once again test the downtrend and the 50 DMA.

after China's dismal data, Germany's surprise, and US Factory Orders printing weakest YoY growth run since 2008...

 

Small Caps spurted higher at the open - thanks to Gartman's suggestion of shorting - but the excitement faded back as the day wqore on...

 

Social Media never bounced...

 

And Shale plays stumbled on Einhorn but that was an awesome opportunity to BTFD!

 

Credit markets remain less exuberant...

 

Treasury yields ended the day higher once again with the selling poressure coming (once again) during the US session

 

(even as Bunds sold off during the EU session)

 

The dollar closed modestly higher with EUR fading 0.5% - note just how dead USDJPY was - with Japan on Golden Week...

 

Chaos in commodities early on left gold and silver up, crude and copper down

 

From the 8amET "moment" - once again...

 

Some context for Silver's move...

 

Charts: Bloomberg