Stock Bulls Rejoice At Weak Wages, Cohn Exit, & Global Trade War

Spot the odd one out: Dow +700pts, USD Index unchanged, 30Y Yield unchanged, Gold unchanged.

Here's one way to look at this week...

or another...

No matter which you prefer, the stock market overwhelmingly endorsed a lack of wage growth, the start of a global trade war, and the exit of the last globalist from The White House...

From last Friday's open, it's been one way...

Who could have seen that coming?

Fresh record highs for the Nasdaq.

As Bloomberg  points out though, don't be fooled by Saturday newspaper headlines which scream: "Booming Job Growth Sends Nasdaq to Record High." Back in the financial pages there will also be a story worrying about the narrowness of the rally. An equal-weighted version of the Nasdaq 100 is not making a record high today, which only widens the gap with the modified cap-weighted index since Donald Trump's election.

Just five stocks account for half of the 7.4% rally from the February 8 low to today's all-time high in the Nasdaq 100. The five - in order of point contributions: Apple, Amazon, Microsoft, Alphabet and Intel. Another way to look at it, 25% of companies in the index fell since the trough.

Investors rushed into safe-haven FANG Stocks (up 6.9% on the week)...

This chart from BofAML might suggest why - 2018 has started with the fastest inflows into tech stocks since the crisis...

It seems bank stocks don't care about rates not moving or about Gary Cohn leaving The White House!!

 

The Dow closed at its Fib 61.8% retrace of the Feb-Flop... NOTE how The Dow is finding serious support/resistance at these key levels...

 

Today did not appear to be a short-squeeze as "Most Shorted" stocks flatlined as indices ripped higher...

 

VIX flash-crashed to a 13 handle intraday, perfectly tagging the 100DMA at 13.31, before bouncing back but still closing notably lower on the week...

Bloomberg notes that it appears an options trader dubbed the "Elephant" is responsible for the flash-crash as he returned to close out a portion of a March three-way trade. About 121.6k March $25 calls were bought for 25 cents, potentially closing a portion of a trade from Feb. 2 when ~526k were sold for 62 cents. Separately, 60k May $60 calls appear to have been bought for 15 cents vs open interest of ~6.1k.

Treasury yields ended marginally higher on the week with the long-end outperforming...very narrow range for the week.

This is the 11th day in a row that the 10Y yield has closed with a 2.8x% handle.

 

Despite all the exuberance in stocks this week, the dollar index ended unchanged...

 

While the dollar was unchanged, cryptocurrencies collapsed on the week with Bitcoin down 20% - one of its worst weeks in years...

 

Bitcoin ended back below $9k... but NOTE the heavy-volume dumps at the European close each of the last three days...

 

Gold ended the week unchanged, crude was lagging into this morning but ripped higher to close green...

NOTE - WTI's big moves were all around the 11ET time (EU close)

 

Bonus Chart: No one should be surprised by today's disappointing-wage-growth-driven rally - it is the norm!!

Bad news is good news again... oh and Goldilocks is alive again.

Comments

Traderone Fri, 03/09/2018 - 16:03 Permalink

Note to self- Do NOT read Zerohedge during trading hours, it is just Doom and Gloom Porn. The only thing that stopped this market going higher today was the closing bell. 

Keltner Channel Surf Fri, 03/09/2018 - 16:04 Permalink

Before a departing Fed Chair passes the baton to the next victim, it’s customary that they sing a duet at their final FOMC meeting together:

“I Taught You Babe”       from    "I Got You Babe"     by Sonny & Cher

{Yellen}  They say we're dumb and we don't know, we didn’t find out until we left Zero
{Powell}  Well I suspect all that's true, 'cause you taught me, and baby I taught you

{Yellen/Powell}   Babe, I taught you babe, I taught you babe

{Yellen}  They say that doves can’t pay the rent, ‘cause nothing’s earned, the money’s all been printed
{Powell}  I guess so, but we don’t have any pot, so I’ll check to see what other drugs we’ve got

Babe, I taught you babe, I taught you babe

{Powell}  I felt empowered back last spring, I got you to bear tapering
{Yellen}  And now I’m sad, the 10-YR’s down, but if I get scared, QE’s always around

{Yellen}  Don't let 'em say “too low too long” 'cause I don't care, with ZIRP you can't go wrong
{Powell}  Then merge your dovish plan with mine, there ain’t no hill the S&P can’t climb

Babe, I taught you babe, I taught you babe

{Jay}    I taught you to blunt demand      {Janet}   I let our balance sheet expand
{Jay}    I got you to talk for me               {Janet}   I got all the hawks with me
{Jay}    I taught you to diss the Right      {Janet}   I taught you to hold rates tight
{Jay}    NIRP’s a tool I won't let go            {Janet}   They say it’s ‘cool’ below Zero

I taught you babe  ...

ZoroAustrian davatankool Fri, 03/09/2018 - 16:11 Permalink

It's a fuckin riot, really.  Nothing but big banks and FANG, that's all they know how to buy, like even more narcissistic screen addictions and financial scammery is what the world needs.

Their stock market is up multiples of the rest of the world on decades of twin deficits, they produce nothing (exception: see above), and now all we hear is how tariffs are going to make the rest of the world suffer?  Exceptional nation, indeed.  Exceptionally delusional.

In reply to by davatankool

Kaiser Sousa Fri, 03/09/2018 - 16:05 Permalink

as a reminder from yesterday

"i expect 500,000 service sector jobs in 2morrows BLS BS NFP report…"

off just a tad - right...

so glad that in less than 6 months Ameridumb is back to full employment!!!

 ......................./´./)

....................,/¯../

.................../..../

............./´¯/'...'/´¯¯`¸

........../'/.../..../....../¨¯\

........('(...´...´.... ¯~/'...')

.........\.................'...../

...........\.............. _.·´

............\..............(

..............\.............\

...............\..............\

................\..............\

.................\...............\

DEATH TO THE FUCKING MONEYCHANGERS.

 

Blankfuck Fri, 03/09/2018 - 16:06 Permalink

Its been one Awesome day! Thank you FED RESERVE FUCKERS AND BANKTARDS!  KEEP THE DEBT RISING AND PONZI PRINTER GOING 24/7 AND WE WILL HIT DOW JOKE INDUSTRIALS 100,000!

MONEY.. MONEY.. JOBS.. JOBS, FREE FOR ALL!

Quivering Lip Fri, 03/09/2018 - 16:12 Permalink

After Amazon drinks everyone's milk shake (and then they came for the bankers and the insurers.....). I'm sure we'll see 100k service jobs added monthly by the BLS

Rise Of The Machines Fri, 03/09/2018 - 16:30 Permalink

Stock bull market turns 9 years old, another 6 months and it will be the longest bull market ever. When it finally blows the FANGS will be hit hard as that it where all the money has been sucked in.

GoysRUs18 Fri, 03/09/2018 - 16:30 Permalink

Hey Tylers !! Feel free to re-post the "Goldman says . Buy the dip is over " post another time .. Feel free to chime in but heres the reality .. You are and have been part of the group you claim to expose or be against. Maybe just laying off the record long vix post or the "there is no liquidity" post. Nah.. The more we see those the more one goes long. Feel free to address your loyal followers . It be welcome

weliveinamatrix Fri, 03/09/2018 - 17:58 Permalink

I wonder how many people here believe the way I do. Those who control most of the world, are satanic lucifarian control freaks..So what are they doing?  They obviously dont care about human life. They want most of us dead, and the rest to be controlled like the borg.  So what do they do?  1. obamacare, so that they own our health. Raise the stock market as high as they can so everyone is in, therefore, slaves to the bankers who will crash it when they are ready...Talk DOWN gold and silver and manipulate the price, so the sheep will not invest. I dont know about where crypto is going, I bought a little litecoin, but IF it is against the banksters, we should support it maybe.  GMO is still strong, vaccines and chemtrails are still strong, silver/gold manipulation is still strong, Nafta has not changed, TPP has not changed, there is NO evidence of blacks having low unemployment, the tax cuts went mostly to corporations, the amount of jobs added is a farce,....need I go on?   Anyway, they are planning for a big fall, but I dont know when..Could be months or even years. But its not too far away. CNN still has the same liberal viewers, FOX has their viewers, censorship is still going on, ...please let me know ONE thing that has changed...Its a matrix, and they want total control, or the rest of us dead...