Bonds, Bitcoin, & Bullion Bid But Dow Bounces Back To Another Record High



The S&P (orange) managed to scramble back into the green on the week but Small Caps (dark red) and Nasdaq (green) remain red. Trannies (blue) knee-jerked higher (on airlines) at the open but faded all day... The Dow hit a new record high (thanks to WalMart and Boeing)


VIX was smashed at the last second to get the S&P green for the week...


As a reminder - last week's unrelenting meltup happened with China closed...


After ramping all last week, FANG stocks sank for the 2nd day in a row (with China back - are you seeing a theme yet?)....


Airline stocks jumped again today...


Spanish stocks (ETF) bounced after Puigdemont declared a deferred independence...


Treasuries - open after yesterday's Columbus Day close - leaked lower in yields...NOTE the bid at the European open and at US open but then selling pressure once Europe closed...


Notably, overnight saw something very unusual in corporate bond land.

With spreads at post-crisis lows...


TRACE said that there were no client and/or affiliate trades of $5m or more in IG long bonds in the hours prior to the NY open. tt is the first time in recent memory that this has been the case. Of course, this follows Columbus Day in the states (bond market closed), and may be related to the market being closed in Japan on Monday for Health and Sports Day. China holidays had ended Sunday.

Did Central Banks kill the US corporate bond market too? Certainly seems that way!


The Dollar Index dropped for the 2nd day in a row (again now that China is back from Golden Week)...


EURUSD rallied overnight into the Catalan leader's speech, but rolled over on his 'deferred independence'...


Dollar weakness helped push Gold higher...


And Bictoin soared back above $4900!!


WTI/RBOB rallied onthe day ahead of tonoight's API data.,..


And finally... "you are here"



Clock Crasher Tue, 10/10/2017 - 16:07 Permalink

2 weeks ago I wroteConsolidate Dow 22,000 then strong move to 23,000I think this is front running global hyperinflationYou aint seen nothing yetThe worse the real economy gets, and its going to get a lot worse,  the more outrageous equities valuations were going to seeDow P/E ratio is going to take out the dotcom highsGold Silver have A LOT of catching up to doJNUG me

Clock Crasher Cognitive Dissonance Tue, 10/10/2017 - 16:36 Permalink

Just consolidating the Monday holiday rip higherMiners are driven by GSR but not 100% of the timeI expect to see days of Gold falling + GSR rising and miners rising anywayIt's like professional sports, the refs make a bad call and know it and then make it up later in the game with another bad call just in the opposite directionVolume is still high in the mining sectorThis end game is going to take decades to play out

In reply to by Cognitive Dissonance

Keltner Channel Surf Clock Crasher Tue, 10/10/2017 - 16:34 Permalink

Well, you've got experience with stuff like JNUG, but it's worth noting it tends to top the 'Most Volatile ETFs' list, not something that retail 'investors' should mess with, instead a vehicle purely for traders.Was happily in JDST through 2:00, just started dabbling in levered junior miners (after finding the indices a bit flighty lately, or horizontal, nothing in-between).  Found I was able to port over the intraday mean-reversion techniques I've been building for 5+ years and, surprisingly, it trades much 'cleaner' than indices such as RUT or QQQ in that regard.  (And the near mirror images with DUST and NUGT tells you machine control is absolute, which is a positive.)The trick is to trade only half your standard position (you'll still get double a similar trade with TQQQ or TNA), be adept with bracketed OCO orders, and don't stray far from your screen, knowing when to hold and when to yank down your PTLO to capture the bootly before it retraces in 20 sec. what you sweated hours to get.  Fascinating instruments ...

In reply to by Clock Crasher

Clock Crasher Tue, 10/10/2017 - 16:17 Permalink

Cheap money allows listed companies to borrow said cheap money and buy back their own shares.  Less supply of shares means higher stock prices.No one trusts goverment debt and all those trillions have moved away from the bond markets and into stock markets.Goverment debt has been doing very very well because the primary debt dealers have been using hundreds of Trillions in derivatives to put the toxic interest rate derivative swaps on their balance sheets, giving  the appearance of solvency thus keeping all the baby boomers 50/50 stocks/fixed income.They will lose on the fixed income and lose on the equities when they go to spend it after its too late and commodities have all priced in insolvency.

D.r. Funk Clock Crasher Tue, 10/10/2017 - 16:24 Permalink

What's amazing is time and time again a populace is lulled into believing wall st 1) has their best interest 2) learns from mistakes ha 3) lessens corruption, greed, and swindling over timeBears described a lot of those things years ago, "You can pretend for awhile, But crap is only going to accumulate again, And by the way the result will be even bigger bullshit than last time"Easy money and debt. stupid fucking supposed wise elder babyboom generation

In reply to by Clock Crasher

Clock Crasher D.r. Funk Tue, 10/10/2017 - 16:32 Permalink

Another keeping the stock market from falling is the babyboomers.The ones that are part of ZH get it (kind of sort of..) The ones that don't or won't aren't selling.Selling completely would mean paying 50% ordinary income tax on their life savings.  They would rather watch a stock market crash of 50% and hold all the way through and never sell than pay the equivalent to the IRS.Gen-X and Millennials won't be thinking of selling until they are old and grey.All the bears have been eliminated.There is no one left to sell into this market.

In reply to by D.r. Funk

Barney08 Tue, 10/10/2017 - 16:12 Permalink

Kolanovic appeared on CNBC late in the day. Instead of asking him about anything important they queried him on the price of bitcoin. Of all the things to possibly worry about in the market they ask him about the price of bitcoin?

There is zero risk factored in the market right now. It is simply NOT present.

Sleep bitchez!

D.r. Funk Tue, 10/10/2017 - 16:14 Permalink

Very reminiscent the old cliches that they "couldn't even have -20". Where a few years ago it was clear there were days -emanating- the level of manipulation, where a -20 dow would have been fine but you could see a lot of work being done to close -5 dow.Over and over and over and over as many, many, many commenters on here, noted. "amazing that they couldn't even let this thing be down by 25"i.e. yesterday: it had to be -13 dow, heaven forbid -22i.e. today: had to be +70, +50 wasn't enoughdeath to the banksters

Father ¢hristmas Tue, 10/10/2017 - 16:24 Permalink

Nuclear war?  Bullish.Mass shooting?  Bullish.Spanish civil war?  Bullish?Harvey Weinstein is a rapist?  Bullish.Guy slips on a banana peel?  Bullish.The economy is fundamentally sound.  Dow all-time highs are proof that America is stronger than ever.We need some common sense, bipartisan legislation on strict, draconian gun control because who the hell needs a gun when the economy is doing so well?Stawk prices have reached what looks like a permanently high plateau.  Not only will this bull market end well, it will never end.  It will go higher and higher. Forever.#MAGA #Hot air balloon cellphone towers. #Tesla flying cars on Mars #NFL players forced to wear stilts #No kneeling #Tesla car battery electrical grid for Puerto Rico #Handcrafted cars #tmosley using Bitcoins to buy pizza & hot dogs on the dark web

seattleslewsz Tue, 10/10/2017 - 16:42 Permalink

The only analysis on ZH that is correct at any time is from the Shep Wave analyst groups.  A lot of bears on here keep trying to call the top in stocks and for years now been wrong. I do not undestand how they could have any money left to trade with by this time. 

HominyTwin Tue, 10/10/2017 - 16:55 Permalink

Did I not tell you effers that TSLA would gap up? Negative WSJ report last week and covered here on ZH wouldn't mean shit! Wish I had the balls to sell more puts. See how fucking crazy this market is? I think Tesla is bullshit, but here I am making bullish trades on it. Fucking stupid. I did try shorting it last fall, and well, you could imagine how 'profitable' that was.

silverserfer Tue, 10/10/2017 - 17:04 Permalink

1987- Allan Greenspan FED chair + actual organic trading being conducted2017-insane clown posse FED chair+ HFT market maker algos. The market is what we say it is bitches thanks to Fundermentals (TM) 

Anteater silverserfer Tue, 10/10/2017 - 18:05 Permalink

U.K. housing stock worth record £6.8 trillion - more than the value of all the gold in world.So if BRICS magically go back to gold, as thegoldbuggerers like to pretend, and if BRICSbuy up 100% . of . the . gold . in . the . world, so that the price can never go higher, ha,ha,they'll still hold less than 10% of GWP and lessthen 3% of GWD, which would basically insurethat all the world economies would collapse, if payments had to be made in physical gold,so they would inflate it away with fractional-reserve toilet paper, aka GLD and COMEX.Wait, that's what they're doing right now!!Your PMs will never be worth more than whatyou can get in an eBay/Etsy dark alley in LA."Do you have the coins?""Show me the cash first!""Here, take a look ... FFFFT, FFFFT"Your head and hands end up in a burn barrel.And your family will think you deserted them. Do you really want to pay a +35% premium?

In reply to by silverserfer

Father ¢hristmas Anteater Tue, 10/10/2017 - 19:07 Permalink

They are not going to listen.I have tried to tell them that the situation they are salivating for, in which precious metals would be used as a preferred medium of exchange post-economic collapse, would also be in an environment of hyperinflation.  Their pissant stacks would buy about a week's worth of groceries.America does not even have the gold reserves necessary to import the raw materials necessary for societal function in a hyperinflationary scenario.Then you have the guys who believe in decentralized exchanges of cryptocurrency in the event of this economic implosion.  They might be even dumber than those who are g'ing for Au and Ag, if they are true believers and not just inflating a speculative vehicle for personal gain.The future is famine and starvation and tribal warfare/bloodletting giving rise to global enslavement.

In reply to by Anteater

Silver Savior Father ¢hristmas Tue, 10/10/2017 - 20:31 Permalink

It does not work that way. In hyper inflation the value of metals go up with the rest of the hyperinflation and if you have most of your wealth concentrated in the metals as an asset class then you are well ahead. Yeah things will cost more and metals will be able to buy more.But I am not salviating over the hyper inflation phase because it's short lived. I am looking forward to the reset and metal revaluation into the new currency. No matter what it's all about those metals! So you have every right to invest in a bunch of paper assets and have it all go to zero value if you wish.Crypto may turn out to be junk so use it today to make more money and buy more precious metals with it before it's too late.

In reply to by Father ¢hristmas

silverserfer Anteater Tue, 10/10/2017 - 19:34 Permalink

your concept of how gold is exchanged is very naieve. Also the competetion for physical gold is very tightly controlled by rothschild central banks 1st, china/russia 2nd, then the Brics. Brics banks get their local supply to play with in ordrer to have a little international weight. There is one thing in common, they all want it and it is the basis for the exchange rates between their local currencies. Fiat if for the slave class. Their price control mechanisms are well oiled and working well. The flow is mainly from mining, not induviduals. It pegged to oil and cost of production.    What many fail to realize is that there will be an agreedupon revaluation of gold proce due to asset bubbles. Gold will be revalued, and we will likely have the same situation as we have now. The ratio of gold to other assets will be lower is all. Those in power have the gold and when they decide to destablize market it wil be to their benefit and they will be holding they gold reserves in order to retain power and benefit the most from it. 

In reply to by Anteater

Silver Savior Tue, 10/10/2017 - 20:39 Permalink

I think it's funny that some people still don't believe in precious metals despite the fact everything is going to hell around them. That's the public school system for ya. Have to either learn about metals as money on your own  or be dumb. Being dumb appears to be the easier way out right?

SRV Tue, 10/10/2017 - 20:56 Permalink

Gold is ready to be hit tomorrow...Gold up today combined with The HUI (Gold Miner Index) being down almost 2%... normally a levered (3x) bet on gold.This is a message for the gold traders... Jamie likes to have a little help when hitting gold hard and the speculators always oblige.We'll see... unless Trump decides to hit Rocket Man overnight...