Xi & Zuck Save The World - Stocks Soar, Bonds Ignore

Tech regulation? meh... Trade Wars? Pffff... Economic data weakness? ha...

 

China's Xi sparked the overnight bid in US equity futures which hovered around the cliff-edge from last Thursday's plunge for the rest of the day...

 

Cash markets drifted largely sideways from their gap open until Zuck started speaking then everyone got excited...

 

Small Caps are back in the green year-to-date, joining Nasdaq as Trannies remain the laggards...

 

All on the back of yet another huge short-squeeze

 

Facebook ripped higher as soon as Zuck started speaking...

 

FANGMAN stocks all surged again today but NVDA and AMZN remain red in April still..

 

Banks extended gains on the day but note that all the gains were overnight and in fact bank stocks ended below their open...

 

Bonds were not buying the equity market exuberance at all...

 

Treasury yields were mixed on the day with the long-end outperforming (unch) as the short-end sold off (2Y +3bps)...

 

Breakevens jumped back to yesterday's highs as real yields fell...

 

30Y Yields tested down towards a 2 handle once again...

 

And the yield curve flattened further with 2s10s back below 50bps...

 

The Dollar Index fell for the 3rd straight day to 10-day lows...

 

Cryptos bounced today, with Ethereum up 11% since Friday's close...

 

Despite Ethereum suffering a death cross today...

 

Dollar weakness has helped spark commodity strength but crude stands out...

 

WTI/RBOB and Energy stock prices soared for a second day...

 

Finally we note that 'soft' survey data has collapsed in recent days as hope tumbles back to 'hard' data's reality...

Comments

D.r. Funk Tue, 04/10/2018 - 16:04 Permalink

Still Up Next: the O.I.G report

Still coming

Still: the next trigger test

Until then the big-fat De-Clining 50 day moving avg awaiting any accruing increases
 

BandGap D.r. Funk Tue, 04/10/2018 - 16:54 Permalink

1.2 million documents means something big, and spider-web like. Probably went through a case of Sharpies connecting the dots.

No sense trying to blackmail anymore or hold the stock market hostage, and innuendo is out the window. With the sacking of Trump's lawyer's office the gloves are off. Team Trump will wait long enough for it not to look like retaliation. Trump is already laying the verbal/twitter groundwork for the believers in the group. Hannity must have a permanent boner these days and Ingraham just told her sponsors to pound sand over the Hog bullshit.

Cage match time. All go in, one leaves.

In reply to by D.r. Funk

Keltner Channel Surf Tue, 04/10/2018 - 16:04 Permalink

“This Alarming Plan”     from  “This Charming Man”     by  The Smiths

Structured vehicles, credit plays so desperate
Will markets make a fool of me yet?

While in this charming bar, this alarming plan:
Why tamper with convexity when stocks will soon run out of steam?

I would short RUT tonight, but I haven’t got a dime to spare
This man said it’s gruesome that someone so clever should dare

A pumped-up hedge fund toy that sailed right into space
He said:  ‘Don’t fade the swings’
He knows so much about these things

I would short RUT tonight, but they say I wouldn’t have a prayer
This man said he knew some who tried this last year, so beware

La-da-da-da-da-de-da      This alarming plan

A plumped-up momo ploy that always will retrace
He said ‘don’t pull its string’
He knows so much about these things
He knows so much about these things

Kaiser Sousa Tue, 04/10/2018 - 16:06 Permalink

“Just get it back above 24,000 and hold it there this time will you!”

- Jerome Powell -

“Sum Ting Wong"

so “they” want u 2 believe that Xi-Jin Ping

supposedly channeling Rodney King

with that “can’t we all get along” thing

while idiotically continuing

that tired propaganda theme

"Kudlow sees trade war tensions easing"

sent the Dow Jones Propaganda Index soaring

up 500 points Tuesday morning???

yeah, right…and absent ABSOLUTELY NO POSITIVE MACRO-ECONOMIC NEWS/DATA WHATSOFUCKINGEVER…

“technically" speaking, if ur Ameridumb enough to buy that bullshit then there is unquestionably “Sum Ting Wong” with u…

DEATH TO THE MONEYCHANGERS.

Ps: i heard Donald Chumps Zionist boss told him to "get busy already..."

MAGA mother fuckers!

LawsofPhysics Kaiser Sousa Tue, 04/10/2018 - 17:35 Permalink

^^^this.

Call it what it is, a casino. With the cost of "money" to those in the banking and finance sector still being damn near FREE with NO risk, NO real work, and no real collateral requirement the "price" can be whatever the fuck they want it to be.

Who will be the next "Lehman"?  will stocks rise or drop in price? The casino is still open motherfuckers!

Place your bets!

In reply to by Kaiser Sousa

LawsofPhysics Kaiser Sousa Tue, 04/10/2018 - 17:35 Permalink

^^^this.

Call it what it is, a casino. With the cost of "money" to those in the banking and finance sector still being damn near FREE with NO risk, NO real work, and no real collateral requirement the "price" can be whatever the fuck they want it to be.

Who will be the next "Lehman"?  will stocks rise or drop in price? The casino is still open motherfuckers!

Place your bets!

In reply to by Kaiser Sousa

Endgame Napoleon LawsofPhysics Wed, 04/11/2018 - 09:10 Permalink

All of the capital is in the hands of a few in the business class at the top, mostly creating jobs overseas. Otherwise, it is in the hands of dual-high-earner, non-job-creating, glorified “working parents” in the top 20%. They combine two high-paying, low-risk jobs under one roof that, in past eras, would have been spread out over nearly twice as many households, creating much bigger middle and upper-middle classes.

As it is, the dual-high-earner parents can afford $500,000 to $800,000 homes in posh zip-codes, lake homes, 15 excused and lengthy vacations to Europe for busy-working parents per year, home renovations galore, private schools for all the kiddos, fine dining with the former college buds and stock market betting on American-owned and foreign-owned companies.

Most of those companies employ primarily low-cost labor in non-racially-diverse Third World countries or welfare-aided citizen and noncitizen workers in womb-productive households in the USA who have spousal income that covers rent, or they work part time in single-earner households for rock-bottom wages, staying below the earned-income limits for a multitude of monthly welfare programs that cover everything from rent to groceries, along with refundable EITC child tax credits up to $6,431.

If you subtracted out the government jobs, the majority of which go to parents with spousal income as well, the employment scene would be even more incredible. It would force more so-called working families to give a crap about the wider economy, though. 

In reply to by LawsofPhysics

khakuda Tue, 04/10/2018 - 16:08 Permalink

With the mind blowing amount of debt/stimulus being pumped daily the only question is how high it all goes before the party is over.

Peak Finance Tue, 04/10/2018 - 16:09 Permalink

Bought Crypto's on the exchange

Sold Crypto Stocks on the bounce and reduced exposure there. Was nuts holding all that penny shit like EPAZ BTSC BTCS etc. so I sold 75% of it.   Still holding BLOK 

Got stopped out twice on those Dow drops! 

Overall a good day 

Will be selling oil credit Wednesday I think 

Keltner Channel Surf Tue, 04/10/2018 - 16:17 Permalink

Trading 301:  “Windfall” days and the Ubiquitous ‘Vacuum Flash’

‘Windfall’ days happen when news or an ‘important’ speech causes a huge gap in overnight futures that continues the carnage post-open, crushing those caught flat-footed, but without universal follow-through.  In these cases, the day session will be driven more by repeated sawtooth waves of stop-outs rather than high-volume “everything’s changed” paradigm shifts and, as such, will likely have tightly-trailed stops and constant re-buys (to keep coming at the stops all day), meaning VERY skittish trading.   Like today, these situations are less an ‘everyone on the bus’ event, and more similar to when a cat keeps a mouse alive so he can have a bit of fun.  Some will find benefits from using shorter-term triggers (charts), very hard with the sudden spikes, or wider stops with smaller positions sizes, on such days.

So, what do I mean by “vacuum flash?”  A sudden giant-sucking-sound quick reversal that happens VERY quickly, then often bouncing just as quickly back where it started, a round-trip often completed within 15–20 min, causing tight-trailers to get stopped out.  We saw a few of these today, at around 11:40 then again just after noon (the second one actually slicing through stops at the day’s low in SPY before bouncing.)

The mechanism driving this process isn’t hard to imagine:  a) traders, especially those entering the prior day, have more by 11:30 than they usually get in a whole day, and either close out early or raise their trailing stop very tight to avoid a pullback that would add another hour to their pre-lunch nail-biting;  b) No real conviction behind the move means after stops at a given level are poked, any directional surge can quickly lose its tumescence, and with no laddered buys waiting, we're sucked to where orders are finally large enough to bounce.

Purely an algo follow-through, perhaps egged on by pre-FOMC shenanigans, days like this can be tricky to trade depending on your chart time-frame, position-building strategy, stop levels, etc.  Tight stops will be hit on such days, but wider stops with late ‘chasing’ entries increases risk, always a trade-off.

Happy Trading.

FUDruckers Tue, 04/10/2018 - 17:13 Permalink

So sick of hearing about death cross propaganda, bs made by fear mongering cartels. The reason it is way down is from FUD and FUD alone in these last 3 months. Crypto is not the same stocks. If we could go a month without bs maybe the TA would work.

agcw86 Tue, 04/10/2018 - 22:10 Permalink

Perfect entertainment for the distracted, clueless sheeple. I think it is MORE AWESOMER! (credit Mike Adams). Don't worry, go back to sleep, that click you may hear will just be a round being chambered next to your head, but what could happen?