Late-Day Stock-Buying-Panic Brings Record Highs On Trump Tax Plan Hope

Hope is a strategy...

 

As Bloomberg notes, Treasuries fell and the dollar gained as talk of a tax-cut outline on lawmaker’s desks by September 25 revived hopes for the "Trump trade" amid speculation President Trump is adopting a more bipartisan approach in dealings with both Houses of Congress. Revival of the President’s fiscal agenda overshadowed inflation data that showed producer prices for August rising less than economists’ estimates. Oil advanced after the International Energy Agency said demand will climb this year by the most since 2015 while the S&P 500 Index headed into the close little changed after closing at an all-time high a day earlier. Gold headed for its 4th consecutive losing session as investors favored riskier assets.

Small Caps outperformed on the day amid hope for tax reform (more domestically-oriented) as Trannies underperformed...NOTE the sheer panic-buying algos to get Nasdaq and S&P green into the close...

 

But of most note was the utter desperation to get the S&P green...

 

It appears AAPL's buyback machine kicked in towards the close...

 

Financials managed to scramble back to their 50DMA...

 

While stocks are reaching record highs, VIX remains well off its record lows (for now)...

 

Bond yield continue to catch up to stocks...

 

Treasury yields backed up further, erasing all price gains since August FOMC Minutes release...

 

The Dollar Index rose for the 3rd straight day...

 

Notably today's shift looks like USD catch up to Bonds' weakness...

 

 

This is the biggest 3-day gain in 9 months...(biggest spike since the Dec rate hike)

 

Bitcoin tumbled further overnight but bounced back modestly this afternoon...

 

Gold prices fell for the 4th day in a row, mirroring USDJPY once again, with a slight bump on Mueller headlines probing social media...

 

Crude jumped after a big build? to one month highs...

 

and RBOB dropped after a big draw?)

 

...but copper was worst, extending its recent weakness...

 

Crushing Gundlach's favorite indicator...

 

Comments

D.r. Funk Wed, 09/13/2017 - 16:10 Permalink

Today's programmed outcome, clearly, was all green indexes at close. djia was dragged and held in place, boosted in final hour to help the other two laggingspy as is the case often lately, almost precisely mirrors naznaz had 3 definable forced-pumps, 10am & 355 surges, 1130 slower subroutine for about an hour and a half[add vix suppression]F u fedproxy controllers, F u bullshit manipulators, As I said 4.5+ years ago the indexes are programmed, youre not getting some of us to flip/capitulate/reverse in the lol 9TH INNING lol

D.r. Funk Clock Crasher Wed, 09/13/2017 - 16:29 Permalink

re: yesterdayYour comment ended up corroborating some or a couple longterm theses, for me. Corroborating/vindicating. Some permabears believed and stated Engineered Collapse for boombust #3 (stated several yrs ago). It's pretty clear the road is to: econ/global econ collapse. The aggressive manip, vindictive manip, at overbloated bleeding valuation etc. You put it in more concrete terms yesterday. Numbers, timing, timeline. etc.So Btw To Everyone: Permabears said "engineered collapse", 6+ years ago

In reply to by Clock Crasher

Clock Crasher D.r. Funk Wed, 09/13/2017 - 17:06 Permalink

Thanks.  I don't know about engineered.  I like this quote from Dr. Jordan Peterson "It's not that the institution was too big too fail.  It's that they were so big they had to fail."I don't know where all of this is going or when.  With my limited knowledge we have to assume a few eventual outcomes regarding equities. Hyperinflation with a crashing stock market, this according to a prediction made by John Williams from Shadow Stats.  Or Hyperinflation with a rising stock market.  Or credit cycle unwind resulting in stock market obliteration. There is so much artificial intelligence, so much liquidity, so much complacency, so much market rigging, so much apathy its impossible to tell exactly whats going to happen next. I do get the feeling like every time we form a technical top we unexpectedly get a ATH rally that sends shorts to the grave yard.. without fail, without end. 

In reply to by D.r. Funk

yogibear Wed, 09/13/2017 - 16:16 Permalink

This is the same as being under Obama.Always gaming stock prices .Just BFD!!!The usual afternoon boost higher!Same as it has been for 8 years. 

adr Wed, 09/13/2017 - 16:23 Permalink

Another day, more bullshit.Question?So oil was trending down to $40 regardless of drawdowns before the hurricane, yet after the hurricane inventory builds sent oil up 10%. How does that make sense?Of course it is just your standard 45 degree algo buy line off the low. I guess there is a lot of resistance at $51 that should start the next downtrend to $40. Why? Well why the fuck not?Death to Wall St.!!!!!

Lizardking Wed, 09/13/2017 - 16:26 Permalink

Market can't sell off on negative news and any positive news puts it right back at the highs within days. Dangerous to be short right now, you want to be short when there are obvious reasons to buy stocks. Don't short when there are no reasons to buy stocks. Bears are fighting the tape, all it takes is a hiccup and they jump back on the sell side. Wait for 26K on the DOW! It's coming, so obvious based on market movement at this point. What will drive DOW higher? Bank stocks thanks to third interest rate hike in DEC as planned according to FED guidance of three rate hikes this year.

John Law Lives Wed, 09/13/2017 - 16:37 Permalink

"Late-Day Stock-Buying-Panic Brings Record Highs On Trump Tax Plan Hope"This is ad hoc reasoning at its best (or worst).  The DJIA has rallied well over 4,000 points since November 4, 2016.  It ain't still rallying now because of hopes for some tax cut plan.  For that matter, where the FVCK is the Obamacare repeal?                                                                                                                                                                                                                                                                                                                                                              DJIA_FUBAR