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Aggressive Push To Ramp Stocks Higher Via AUDJPY Provides Today's Convergence Arb
A major campaign is in process to attempt to push stocks higher via the AUDJPY, whether in cooperation with the BOJ and FRBNY, and Europe close or not, as the spread between the ES and the AUDJPY suggests that stocks are materially lagging (10-15 ES points). The trade right now, which takes advantage of Mr. Sack's generosity with taxpayer capital, is to buy ES and sell the AUDJPY as broken market provide numerous convergence opportunities.
Also, validating that the bond market is in perfect sync with carry, and that stocks are, for now at least, lagging the funding flow, is the ES-Butterfly divergence.
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Challenger, go with throttle up....
Roger, going with throttle up....
Sir, we reached coffin corner
That works on so many levels ...
Merideth Whitney coming up on bloomberg radio.
Seriously, bloomberg radio's ads are only public service announcment and ads for themselves.
I have not heard an ad from a private company yet.
Just service announcments telling us not to drink and drive and not to do drugs.
Fat chance of that.
Zimbabwe 2007???...
And Ben will be the Farmer.
Res Ipsa Loquitur-
"Intel maybe kind of sums it up if you want to look at why the market is up," said Stephen Massocca, managing director at Wedbush Morgan in San Francisco. "The economy stinks, but at this point, is that discounted in the market that the economy stinks? And have stocks gotten too cheap?"
http://www.marketwatch.com/investing/stock/INTC
I would like to ask for help explaining the "funding flow" of the AUD/JPY carry trade.
I understand the carry trade, in principal that traders buy AUD financed by selling JPY and earn interest in the process. What I don't understand (and can't figure out) is how does this trade fund US equities? I'm at a loss after searching high and wide.
Thanks.
Yeah, you'd think that in converting to USD to buy the ES, the USD would get stonger as AUD is being converted to USD but no-one's ever bothered to explain that.
Been watching the SPY this AM since opening. I was amazed by the slide down and the minute by minute pump up. I don't understand all the correlations in the market, but did this push the market up or direct "buying" of S&P by the PPT? Anyone, I would really like to understand just how badly they manipulate. Appreciate it.
with "markets" like this, the global economy is doomed, mankind is doomed
The devastation of this ponzi unwind will be the biggest the world has ever seen. Nothing comes close.
Please. What is ES? as in "the spread between the ES and the AUDJPY"
ES is the mini S&P 500 futures contract.
http://www.unitedfutures.com/emini.html
WOW! I can't believe they could be so blatant. In this past year and a half, I really learned that people in charge of the world are fucked up.
That's his real middle name isn't it? Ben Blatant Bernanke?
Shalom is just for show, as in Shaloming the world he has it all under control?
Playing a dangerous game "hide the Shalomi"
From dictionary.com
sociopath a person, as a psychopathic personality, whose behavior is antisocial and who lacks a sense of moral responsibility or social conscience.
Thanks for that.
and 99% reading zh today positioned short..bear trap! new highs coming for sp500 in next 9 months
If so, then you better have a handle on your actual versus nominal return, Mr. Dumass, because it isn't going to happen just on earnings and without serious currency push.
Sure, quite possible. If your market strategy is capitalizing on bear traps and that's the only thing going for your market, then you've got nothing.
Name me one stock where you'd put your longs in now and honestly tell me you can sleep at nights.
New highs...that is so laughable. Welcome to 2007, we hope you enjoy your stay.
<disclosure> Yes I am short, but in the way of puts that I can assure you are doing great</d>
if so then you better buy some guns and ammo because only a hyperinflation can drive this farce to new highs
and hyperinflation = chaos
As soon as they stop wasting their money by the end of the afternoon, everything will drop as fast as it went up.
Our money. As soon as they stop wasting OUR money.
There, I fixed it for you.
What is amazing to me, is how their manipulation drives entire markets higher across all sectors and around the world.
This wipsaw action this morning has me more freaked than the flash crash on May 6th.
Yesterday, I lamented for having closed my shorts because the downward pressure seemed to continue. Today I would have been royally fucked.
Last year and into this Spring it was exciting to trade miners, small caps, new miners and anything in the commodity sector. Played the short sector during the summer and have nothing to brag about.
Just where exactly would I put my money going forward? There's no direction within the community, and even when you think you've found a trend the reverse happens.
Where to put your money? Pay off all of your debt first. After that, keep it close to home.
The "market" needs a massive correction & fix, to ever work again the way we would prefer. But, it's not our game anymore. It may never be fixed.
Find and enjoy some simple pleasures in life. All this may take a while.
Debt is paid.
But wouldn't it be better to have max. debt and make min. payments waiting for debt to blow up?
Of course the debt would be used to buy tangibles like PMs, a tractor, heavy machinery for the land, seeds, power generators, fuel storage, livestock etc.
I've played it very safe up until now and being in cash and no debt is freaking me out! I could handle min. payments on thousands of debt for the next 10 yrs. Are interest rates coming anytime soon? Unlikely.
I have the same question. No debt but I could handle a shitload. Why not lever up to the hilt, buy some real shit, and sit back and wait? Decisions decisions...
+1
Their manipulation is increasingly dramatic and blatant. These are "death throes". However, the scale is big, so it can still take some time for this to "come to a head" (could even be months or a year or two).
Follow the principle of "maximum pain": They will burn shorts, and longs, and even both. Literally, their "profit" from these transactions (skimmed from anyone still trying to play) are fed back into the mathematical recycled pool for future market manipulation.
Of course, even Vegas learned you have to let the sucker win sometimes. The Fed isn't that smart.
Sorry. Nowhere. Under the mattress, and then tangible items.
Great post.
Stuff the matress and DON'T smoke in bed..
/ES buy volume is dropping, so those in early this morning are enjoying the hell out of it. I would not be surprised by a significant selloff this afternoon, and a finish at the pivot.
you don't have to be short to be a bear just have eyes and a brain
My luck, while sweating a long trade had to make a booze run and sold at a minor profit b4 roadbound. Come back home and cursing at the monitor, for a 1 point lift while gone.
you don't have to be short to be a bear just have eyes and a brain
Ya gonna bet on that???
They only have so many bullets they can fire though, ultimately the markets will go where they want to go.
Just hold on to any shorts, we'll be down closer to 1000 by middle of next week, mark my words.
1062 looks to be holding firm on the upside, I've just added to my shorts, made fool that I am!!
Priceless... What happens when the shit cracks. Will the exchanges halt trading and null all orders executed through the crash?
The Lack of Money is the Root of All Evil.
- Mark Twain
It's called the Friday SHORT SQUEEZE!
Ok Leo, if it was a proper short squeeze shit would've gone up diagonally. Right now the market is behaving like a yoyo... While enjoying it, Me, and I'm sure others, have powder for more shorting. So get ready when your stocks get a proper hammering to their heads.
"...if it was a proper short squeeze shit would've gone up diagonally"
You will have to wait till next Friday to see the Mother of All Short Squeezes!
And why is that now?
What do you think is going to happen if NFP surprises to the upside? Let's wait & see, but it could be very busy next Friday.
The shorts are not the problem Leo, the blatant manipulations of the markets are.
The markets and the economy cannot heal while these recurrent interventions distort reality.
Says who? Get used to distortions, they will become the norm (unfortunately).
Yea sure Leo, the 'shorts' are perpetually just sitting there waiting to get screwed once again as usual. Youre a real moron Leo.
The difference between a Bull market and a Bear market.
by Biff Malibu
3rd Grade
In a bull market, stocks go up little by little with violent downward spikes to flush out weak longs and grab shares on the cheap.
In a bear market, stocks go down little by little with violent upward spikes to flush out weak shorts and sell shares at higher prices.
Thank you.
I like the definition
True enough Biff.
In the 2008 move down, some of the biggest daily moves were UP, albeit driven by events such as a 'surprise' interest rate drop (i.e. the move occurred just before the announcement. Hmm, surprising, that. Cyniclal, me?).
DavidC
DOW up 100, HA HA HA HA
Price of gold on Sep. 10th, 2001, the day before the horrible terrible Osama bin Subcontractor attacked us because he hates our Freedom Fries: $271.50. Current price of gold: $1,243 - up 358%.
S&P 500 on Sep. 10th, 2001: 1,093. Current S&P 500: 1,058 - Down 3.%
This does not take into account the dividends that one would have gotten from owning the stocks but I doubt that it would make much difference. “Current” price as of 11:41 AM Aug. 27, 2010)
Gold up 358% stocks down 3%
Comrade peasants, we have been at war with the horrible terrible Islamo-fascists for almost nine years. Show me one war in all history without an increase in commodity prices or without an increase in the desire for gold, just one.
gold is up 457% by those numbers
Check your math.
"Show me one war in all history without an increase in commodity prices or without an increase in the desire for gold, just one."
http://upload.wikimedia.org/wikipedia/commons/e/ea/WarOriginalLineup_01.jpg
ok, well, except for maybe the dude on the right
Uhhh .... After looking at the picture of those dudes I think the price of at least one commodity must have gone up ... hemp.
that these markets are totally manipulated by a corrupt central banking cartel is simply totally fucking obvious
Bernanke put strike rolled up to SPX 1040.
central bankers have brought our economies to ruin
they all belong in prison
Sorry for repost, but AUD/JPY, although in a Bearish confiration longer term, has room to get to 77- 78 without violating the upper end of the Bearish Pennant from mid May. That means SPY = 109 - 110.
Don't adjust your glasses, RISK ON!
central bankster pumps on
you'd have to be a total moron to not see it in all its raging inglory today
The real reaction (cue sound of toilet flushing) to the release of Bernanke's speech was quickly reversed by the manipulation bots. There would/could not be anything more humiliating or destabilizing to the powers that be and the Ponzi than if the markets were to dump terribly while Bernanke was reciting his "What I did during summer vacation" 3rd grade report to the Economists Class of 2020.
...or maybe the market is finally waking up...
So which one is it Leo? Is the market manipulated, as you have readily agreed is the case, or is the "market" waking up, which implies a natural and efficient market is recognizing an imbalance and is filling it?
Market is efficient? HUH?!?! They manipulate it all the time, but you have to recognize that the game is rigged and ADAPT!
I get the impression we're talking past each other. Of course I recognize the market is rigged and I have and do adapt to that reality. I'm not a permabear by any stretch of the imagination. I trade reality.
So maybe I need to understand what you mean when you say "the market" because when I speak, I talk about the market as being a price discovery mechanism and manipulation as external forces subverting price discovery.
That bounce was at a technical level without a doubt. But the fact that the market flushed so rapidily to that level (1040 S&P) only to come to a screeching halt without even any over shoot, speaks volumes about manipulation. Once the bounce was in place, then "the market" piles (back) into the obvious trade. Same thing going on at 1060 S&P.
CD: given that market is rigged.
Do I stand pat with PMs or ratchet up my Visa and buy more PMs? Any guesses as to whether being debt-free is a good move, or sucker play at this point?
May I suggest that what you're really asking is this. Should you take a chance on being even more contrary than you currently are to the consensus belief system, however fantastical the consensus might be to you. Should you wade deeper into the middle of the river, where the current is strongest and the greatest risk lay. If this is so, I will give you some advice some might be dissatisfied with.
The best investment is the one that allows you to sleep at night, not the one with the most potential for present or future gain or even future safety, which is what PM's might be able to offer later. Remember that being too conservative can be just as disturbing to your sleep as being too aggressive.
I suspect that whatever pressure you may be feeling to do something now is clouding your view and vision. Just because you feel a sense an urgency doesn't mean it's real nor that it should be acted upon. Look inside and understand what's causing the itch and your answer will be found. These final acts will play out over a much longer time frame than you currently think possible. Don't paint yourself into a corner based upon assumptions that are not completely understood by you.
CD, you know I respect your opinion so take this at face value.
What I was REALLY asking was, is taking on debt to acquire more PMs a smart play, or is staying debt-free the best move, given that I expect hyperinflation.
I'm already stocked with a year of food and gargantuan amounts of ammo, full water tank, etc.
And what I was saying was the way to determine the answer to the question is this. Could you sleep well after you maxed out your credit cards to buy PMs? What if the Ponzi holds its head above water for two or three more years and you're sitting with maxed out credit cards you can't service? Could you sleep?
Ya that was tanya hardings mistake. She spent too much time training with 2 knees and wasn't adaptable enough.
nobody likes you, Leo
In the meantime, the future tax base is shrinking. US is looking like Japan more and more...
"The U.S. birth rate has dropped for the second year in a row, and experts think the wrenching recession led many people to put off having children. The 2009 birth rate also set a record: lowest in a century."
http://hosted.ap.org/dynamic/stories/U/US_MED_BIRTH_DECLINE?SITE=FLDAY&S...
Amnesty, errr path to citizenship should help that.
Sell EUR/CHF at new lows - get your head handed to you. Sell EUR/YEN at new lows - get your ass handed to you. Buy Cocoa at the highs(that was a good one) - jump off 44 WALL. Fade ZH - have a great weekend.
Six 2P moves in the SPX over the last ten days. Closing in on the 52W lows. Area of a potential neckline. Working on what that may mean ...
bounce to 1080 then 980?
What a joke. Today's chart should be framed and circulated at Tea Party meetings.
Within a matter of minutes markets shoot up over 1% and stay there for the rest of the day.
It's completely orchestrated.
If a crash happens, it is by the same people for the same purpose.
Today we needed the "lalalala" backdrop, next week maybe the "uiuiuiui" backdrop.
All depends on where TPTB think they need to manipulate the sheeple.
Truth needs to be spread and TPTB must be unmasked for all to see. Only chance of getting rid of the cancer is to cut it out.
As first suggested on Thurs 26th, further upside for DOW/SP500 is expected.
http://stockmarket618.wordpress.com
Grand Stupor-cycle, EWT & your blog both suck
Question for the experts out here for future reference:
Apart from there being a spread futures trades why do i need to stick to ES ?
What if i bought SSO instead of ES ?
I am newbie to futures trading so any input is appreciated.
End of day, post Euro close yen pairs scare me... The bat phone to Tokyo is only a heartbeat away and there is no liquidity anywhere to counter balance the pump. When any currency on a 15 minute chart cannot retrace back to the 23.6 fibo on the move of the day that is a one way train... EJ hit near its 23.6 , not the AJ...
Question: What is the actual ratio of real liquidity in the FX in EURJPY as compared to AUDJPY? 5:1 liquidity ratio? ty
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Die of cancer, you motherfucking spam-bot BITCH.