Dow Opens Above 26,000 After Fastest 1000-Point Surge In History

Well that escalated quickly...

Having surpassed 25,000 at the open on January 4th (surging from 24k to 25k in a record 23 days), The Dow Jones Industrial Average has opened today above 26,000...


Crossing that 1000-point gap in a record-smashing 7 trading sessions...


And more accurately, this is the most-aggressive rise in The Dow ever... triple the pace of the 24k to 25k advance

Hat-makers cannot keep up...

Interestingly, as US equities are opening notably higher after their day off, VIX is also significantly higher...

Additionally, bonds are bid alongside stocks...

The S&P is now less than 50 points away from Goldman's year end target of 2850.. at this rate it will hit that by week-end.



hedgeless_horseman 24Richie Tue, 01/16/2018 - 11:01 Permalink


the Fed showed a $200 billion reduction

But you should see the 100s of billions of increase from the ECB, BOJ, SNB, and EMs.…

According to Citi's analysts, the answer is that although both the Fed and ECB are scaling back their balance sheets, the increase in EM FX reserves recently, with Chinese FX reserves doing the majority of the heavy lifting, has largely offset all of this. This is highlighted in the left-hand chart below. In fact, as the right-hand chart shows, on a rolling 3 month basis FX reserve purchases by EMs have largely offset all of the implied downward risk impulse from the past year.

The "race to the bottom" has been replaced with "global synchronized diving".  

In reply to by 24Richie

VZ58 hedgeless_horseman Tue, 01/16/2018 - 11:13 Permalink

Bingo! That is all anyone needs to know today. And let's add that the fundamental valuation of your companies has never changed despite everything going up. Of course who needs to consider this when buying stocks today? It's all AWESOME and it will never end. All my neighbors are 95%+ in stawks. Next its all Bitcoin. WooWee!

In reply to by hedgeless_horseman

canisdirus 3-fingered_chemist Tue, 01/16/2018 - 09:55 Permalink

He may never. The only players are either old right now or people in white collar jobs. Everyone else won’t touch it, especially a young person that bags groceries. Their stagnant wages are barely enough to buy food, they can’t put any of that into overpriced stocks.

When you hear this, they’ll be buying with borrowed money like in the 1920s and paying the interest with gains. They could do it profitably right now, mind you, they just don’t realize it yet.

In reply to by 3-fingered_chemist

3-fingered_chemist Tue, 01/16/2018 - 09:39 Permalink

Fed would have surprised the market with a interest rate increase by now if this was a normal market. This is unhealthy. But it's not, and the Fed can only sit on its hands in order to not blow up the deficit and interest that eats up annual revenue for the Federal Government. 


Cloud9.5 Tue, 01/16/2018 - 09:40 Permalink

The back story of resource depletion and overshoot can be ignored as long as the fiat system functions. We live in a system that has no constraints.  The artifice that is the Federal Reserve makes it impossible for those in the club to ever suffer the consequences of a contracting economy.  Literally nothing matters.  Immigration, an aging demographic, unemployment, spiraling debt, off shoring of production, exponential growth of government, the destruction of the middle class, none of this matters when insolvency can be cured with a mouse click.

We all know how this ends.  It ends with the death of the dollar.  What follows that is social chaos and political collapse.  Buckle up boys and girls.  Look to your personal security.  In the process do not overlook your stores of beans and rice.


Wise Gold Tue, 01/16/2018 - 09:43 Permalink

Shepwave traders were right on the stock targets.   how fast Gold broke 1330 from Shlepwave's buy signal in December.  Keep it up guys. 

Cautiously Pes… Tue, 01/16/2018 - 09:53 Permalink

Attention all passengers....attention all passengers.

The Captain is recommending that you get your last minute song requests to the band playing on the promenade deck now.  The aft end of the vessel, sticking up from the water line, is causing the ship to list a little, so please hold the handrails as you move about enjoying the tunes.

That is all.