Stocks Surge To Best Day In 4 Months As Warmongery & Tax Talk Trump Debt-Ceiling Doubts

Seriously...

 

Thanks to The White House saying something de minimus about Tax Reform progress (and a little help from Boeing after Trump's warmongery), Nasdaq was the day's best-performer as The Dow had its best day in 4 months...

 

Yeah...

 

Futures show the driver of the actions...

 

Bonds & Bullion were sold post-tax-headline as stocks surged...

 

Most-Shorted stocks surged/squeezed to their best day in a month (after 5 straight down days)...

 

VIX was smashed down below 12 at the open amid Trump Tax chatter...

 

The S&P ramped all the way to the 50DMA (having bounced perfectly off the 100DMA yesterday)...

 

This week's bounce has an odd sense of deja vu all over again...

 

S&P VIX dropped back to 5-day lows but Nasdaq and Russell vol remains elevated...

 

S&P traders are actively hedging with Put/Call Open Interest Ratio at its highest since July 2015...

 

And ironically, there has never been more money bet on volatility dropping (SVXY AUM at record high $1.3 billion)

 

FANG Stocks had their best day in over a month...

 

Treasury yields rose 2-3bps across the curve today with 7Y underperforming...

 

30Y Yield hs now traded in a 3bps range for the last 3 days...

 

Meanwhile, debt ceiling concerns remain high in the T-Bill market....

 

 

The Dollar Index rallied today after Trump Tax headlines...

 

Cable was weakest and Yuan modestly stronger against the greenback on the week...

 

And the 2016 analog is at an inflection point...

 

 

Industrial metals had a bad day after days of surging...

 

 

Crude pared earlier gains after Libya announced security forces reopened a valve that had been closed on the pipeline linking Libya’s Sharara oil field, the nation’s largest according to Petroleum Guard. Tonight's API data will likely drive the next few hours...

 

Gold was down on the day, not helped by a stronger dollar, with some notable vol around the Tax headlines...

 

And finally this 1987 analog is really starting to get spooky...

Comments

GoldHermit Aug 22, 2017 5:08 PM Permalink

Well the real debt is somewhere around $100 trillion. Congress will keep raising the debt ceiling until they reach that level because they have no choice. They will also print tons of money because tax revenues will not begin to cover this. Ask yourself, when is the last time they failed to raise the debt ceiling? I can't think of one.

khakuda Aug 22, 2017 4:36 PM Permalink

On the bright side, if the market had stayed down by the whopping 1-2% it was off the highs, Jackson Hole would have been used to tell everyone that much more money would have to be printed and the rate increases would have to be delayed because of those harrowing, decimating market declines.

Deep Snorkeler Aug 22, 2017 4:34 PM Permalink

An Era of Permanent Prosperity1. low oil price2. low interest rates3. a corporatist President Trump4. algorithmic robot tradingWhat could go wrong? Borrow money and buy, buy, buy.Get your wife pregnant!

adr Aug 22, 2017 4:22 PM Permalink

Since we no longer have an economy where working matters and everyone is chasing everyone else in get rich quick schemes, leading to housing bubbles, stock bubbles, art bubbles, crypto bubbles, and E-bay bubbles, what is the fucking point of this stock market shitshow?What kind of algo bullshit is that in crude at the end of the day? Some fucker had a tractor beam on $47.82 guess somewhere that number was a perfect Fibonacci wave for some Virtu algo.I'd love being an executionor for algo programmers and ivory tower traders, plus Ebay scalpers. Fuck those latino housewives who buy every fucking toy with their nephews dug money and sell the shit on ebay for 400% markup.Did you know there is a $150 bot that will run through Walmart, Amazon, and target's checkout hundreds of times a second to scam order anything. It was used today to buy out the entire inventory of a Nintendo system so a few Ebay whores could scalp hundreds of systems.I really despise the world we live in today.I'd whip Meg Whitman ten thousand times for expanding that wastehole Ebay. I'd actually applaud the entire internet going dark. yeah, we'd lose places like Zerohedge, but to get rid of Facebook, Amazon, Ebay, and the rest of Silicon Valley, it would be a plus.

Barney08 Aug 22, 2017 4:16 PM Permalink

Welcome back my friends to the show that never ends we're so glad you could attend come inside come inside. 200 ppt on the DOW, 1% on the 500. What a complete Joke.

Fooling most of the people all the time.

Grandad Grumps Aug 22, 2017 4:16 PM Permalink

Seriously, not! But we sympathize that you are paid to lie. Life sucks for you.

We all know the made up reasons for market moves are complete bullshit. Price is managed to benefit the few. The only premise is that there has to be a buyer of last resort because since price means nothing unless there is a buyer. Fortunately for the parasitic criminals, they create money out of thin air and can give as much of it as they want to themselves at any time.

No doubt they have no conscience and no doubt, the money they take and value they steal feels just as good to them as if they earned it doing something worthwhile or beneficial to humanity.

.... because they are "richer" than we are and have no interest in fitting camels through needles or making their heart as light as a feather.

Clock Crasher Aug 22, 2017 4:32 PM Permalink

Dow consolidate above and below 22,000Next stop 23,000Number of days  Gold closed higher since the election of SomaSalesMan aka MegaPsyop aka DJT.. still... ZEROLast higher high in Silver... ONE YEAR and counting

Kaiser Sousa Aug 22, 2017 4:06 PM Permalink

“markets”???fucking hilarious…200 point move on the Dow Jones Propaganda Index on the escalation of hostilities in Afghanistan & continuing “hope” & “talk" of the parasites on  both sides of the puppet gallery in D.C. getting together on a tax deal…total fucking bullshit…DEATH TO THE FUCKING MONEYCHANGERS.

D.r. Funk Kaiser Sousa Aug 22, 2017 4:16 PM Permalink

This looked like the (orchestrated) setup with +50dow around midnight. Pretty conspicuous lately. [Maybe the deepstate-aligned Afghanistan announcement gave them a symbolic thumbs up]Then the full trading session uniform straight line increase, of, course. They continue to play both sides, et al The china trade inflammation now, following russia sanction. They continue to elevate the mountaintop. While setting up or KNOWING the breakdown tipping point. It's, obvious. That's all that the index increases are, NOT a beneficial central-bank economy lifting as some propaganda agents lol are trying to condition on. The complete index control and commandeering which I started asserting... almost5yrsago

In reply to by Kaiser Sousa