229 Billion Reasons To Squeeze The Market
Submitted by Tyler Durden on 07/23/2009 - 11:58
The bond vigilantes (and PIMCO which just loves the short end) will be happy to see this. And the equity market will need a higher point to drop from as $229 billion in capital is reallocated.
The Market X-Files: July 23 Edition
Submitted by Tyler Durden on 07/23/2009 - 11:19
The curveball: Now VIX is directly correlating with stocks. Last time that made sense was, well, never, even though it happened just over a week ago. The Black Swan reverse migration is the market melt up this time around.
Lime Brokerage: "The Next 'Long Term Capital' Meltdown Will Happen In A Five-Minute Time Period."
Submitted by Tyler Durden on 07/23/2009 - 10:21"Lime's familiarity with high speed trading allows us to benchmark some of the fastest computer traders on the planet, and we have seen CDT (Computerized Day Trading) order placement rates easily exceed 1,000 orders per second. Should a CDT algorithm go awry, where a large amount of orders are placed erroneously or where the orders should not have passed order validation, the Sponsor will incur a substantial timelag in addressing the issue. From the moment the Sponsor’s representative detects the problem until the time the problematic orders can be addressed by the Sponsor, at least two mintues will have passed. The Sponsor’s only tools to control Sponsored Access flow are to log into the Trading Center’s website (if available), place a phone call to the Trading Center, or call the Sponsee to disable trading and cancel these erroneous orders – all sub-optimal processes which require human intervention. With a two minute delay to cancel these erroneous orders, 120,000 orders could have gone into the market and been executed, even though an order validation problem was detected previously. At 1,000 shares per order and an average price of $20 per share, $2.4 billion of improper trades could be executed in this short timeframe. The sheer volume of activity in a concentrated period of time is extremely disruptive to the process of maintaining a “fair and orderly” market. This shortcoming needs to be addressed if the practice of Naked Access is going to be permitted to continue; otherwise, the next “Long Term Capital” meltdown will happen in a five-minute time period."
Barack Morpheus Preaching To Americans To Believe Whatever They Want To Believe
Submitted by Tyler Durden on 07/23/2009 - 08:17Zero Hedge presents Obama's take on healthcare reform as represented by popular movie culture. Mr. President, just as an FYI, the blue pill was (is) the wrong choice.
Morhpeus: This is your last chance. After this, there is no turning back. You
take the blue pill - the story ends, you wake up in your bed and
believe whatever you want to believe. You take the red pill - you stay
in Wonderland and I show you how deep the rabbit-hole goes.
As an aside: is America doomed to promote policy and relate to a mass audience only by anchoring to widely symbolic film narrative such as "The Matrix", "The Big Lebowski", and "Fight Club"
Frontrunning: July 23
Submitted by Tyler Durden on 07/23/2009 - 07:54- US Initial Jobless Claims (Jul 18) W/W 554K vs. Exp. 557K (Prev. 522K, Rev. to 524K)
- "If there's a blue pill and a red pill, and the blue pill is half
the price of the red pill and works just as well, why not pay half
price for the thing that's going to make you well?"- Obama (Washington Examiner) - Zero Intelligence trading closely mimics stock market (New Scientist)
- Jonathan Weil: Accountants gain courage to stand up to bankers (Bloomberg)
- Obama's Fed Risk Regulator plan fading as lawmakers back council (Bloomberg)
Daily Highlights: 7.23.09
Submitted by Tyler Durden on 07/23/2009 - 07:53- ADB: East Asian economies may have 'V' shaped recovery.
- Asian stocks rise on yen; merging market stocks hit 10-month high.
- IMF says China has room for more fiscal stimulus through 2010.
- Iceland formally applies to join EU, faces talks on fishing rights.
- Japan's export fall by smallest margin in 6 months as recession eases.
- Weaker yen sends Japan stocks higher for seventh straight session of gains.
Porsche CEO Steps Down- VW Merger To Happen
Submitted by Travis on 07/23/2009 - 07:49Porsche and VW can not stop playing "Dynasty," finally "do the nasty" and merge.
Man Lives Without Money... Could You?
Submitted by Travis on 07/23/2009 - 07:15This man has managed to live without money... Could you?
Morgan Stanley's Stephen Roach: "A Rude Awakening"
Submitted by Tyler Durden on 07/22/2009 - 19:09The Vice Chairman of Morgan Stanley Asia destroys any last germinating green shoots.
"Green shoots are a very simplistic way to look at the world." Why is it no surprise that Fed Chairman Ben Bernanke came up with it.
Deep Thoughts From A 0.925 Batting Average
Submitted by Tyler Durden on 07/22/2009 - 17:24CG: Hey Zero Intelligence whatchu got?
ZI: What I got is GE is in discussions to swap out its equity stake in CNBC with a 100% investment in Wall Street Pro.
Sprott: "It's The Real Economy, Stupid"
Submitted by Tyler Durden on 07/22/2009 - 16:12Anything that starts with "We are now in the early stages of a depression" is a must read.
Robotic VWAP Regression Never Fails
Submitted by Tyler Durden on 07/22/2009 - 15:36
VWAP consistently at yesterday's closing price. T-1000 sells 100 GMCR shares to C-3PO, who promptly forces a margin call on Johnny 5. The latter covers by buying from WOPR which fries a vaccum tube and sets HAL9000 off on a short covering rampage before killing all the drunk traders at the NYMEX.
USD/JPY Poised To Break Down
Submitted by Cornelius on 07/22/2009 - 14:42Falling long yields and some fun head and shoulders action in the mix
The Commoditization Of America V3, Or 1:1:-1Correlations
Submitted by Tyler Durden on 07/22/2009 - 14:39
Fundamental analysis at its best.
Charlie Lets Zero Intelligence Have It
Submitted by Tyler Durden on 07/22/2009 - 13:41Charlie, Charlie, Charlie.
