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The 20 Point S&P Channel

Submitted by Tyler Durden on 01/19/2010 13:25 -0400

Buy at 1,127, sell at 1,147, turn on reversion algos, throw in some momentum kickers, rinse, repeat, watch the money come in. For the truly creative ones, go long the crappiest companies in the world, and wait for a short-interest covering spree following the most recent Goldman upgrade. In other news, the SEC is concerned about efficient markets.

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Tue, 01/19/2010 - 13:35 | 198363 dvsteenk

So does this market keep going up because of intermittent short squeezing, caused by the overnight uplifting of indices or individual stocks by manipulating futures or ETF's? Anyone mining intraday data to uncover who's behind it?

Wed, 01/20/2010 - 00:29 | 199007 Anonymous

Seems to be others who believe that futures data is being manipulated at night.

http://www.marketoracle.co.uk/Article16602.html

Tue, 01/19/2010 - 13:36 | 198369 Dehrow

This is like free-sex for everyone.

Tue, 01/19/2010 - 13:45 | 198377 lizzy36

SEC is not concerned about efficient markets. Rather the SEC wants to APPEAR concerned about efficient markets.

After all they do have a $1B taxpayer funded budget.

Tue, 01/19/2010 - 13:44 | 198378 SV

Tyler - You wouldn't happen to mean the slum-traders that are working over the bankrupt GM stock that made the FT today? And they attribute it to the assumption that people are naive that it's "worthless". Far from it - they know EXACTLY what they are doing with the casino.

Tue, 01/19/2010 - 14:22 | 198418 Chopshop

well said, TD.

how come no one ever asks about the folks who actively feed "sticker-symbol stories" to Bloomberg / AP bots who "report" them.

Tue, 01/19/2010 - 14:40 | 198434 lizzy36

To amuse:

"The strong 2010 rally ahead of earnings season has
investors wondering if 4Q EPS expectations have gotten too lofty and if
companies will be able to beat by enough to keep the rally going," BofA's
David Bianco writes. "Our view is that 4Q EPS will be impressive, especially
at non-financials; and because this quarter is likely to be among a long
string of rising quarterly S&P 500 EPS yet ahead, we encourage buying through the season as we expect the S&P 500 to approach 1200 as reporting concludes."

Tue, 01/19/2010 - 14:51 | 198445 ShankyS

Possibly setting up another measured move up.

Tue, 01/19/2010 - 14:56 | 198450 Anonymous

Of course it's going up. No reason to stop this train now.

Tue, 01/19/2010 - 14:59 | 198451 huggy_in_london

So if you tell enough people "this market's heading to 1200" i guess these muppets all sit there and go "1200 ... but its only 1147 now ... i better buy"... and it goes there.

And the cycle of stupidity is repeated.....

Tue, 01/19/2010 - 15:08 | 198462 Anonymous

Earnings , PE ratios? Traders don't give a fuck. They are in, They are out. The GS HTF machine makes it easy to treat stocks like Hookers. Today's market says don't marry a stock. The Four Fs rule applies to stocks. Find em, Feel em , F*** em, Forget about em.

Tue, 01/19/2010 - 16:19 | 198578 quant-this

I disagree, remember that the more sophisticated algos have memory and so the market has an upward bias (if market is AR(1), AR(2) AR(3) then the bias looks positive, if it is ARMA based, it looks positive as well). Unless the order books turn decisively negative in skew you will most likely see buying of dips across strategies.

Tue, 01/19/2010 - 16:52 | 198621 ATG