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Blatant Friday Afternoon Decoupling Time
It is 3pm on a Friday - do you know where your unsupervised market ramping, Keynesian lie perpetuating algos are? With their masters long gone to the Hamptons, here come the binary terrorists, and they are so enthused to blow the market up to new highs, that they are providing a lovely opportunity for everyone else with sodium/potassium pumps to smack them down a little, with the daily dose of decoupling. As always - sell stocks, buy AUDJPY and wait for the money to come in. Easy as pie plus you get the extra gratification of knowing you caused some stupid computer a paper loss at the end of the day.
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I set my watch to this debauchery everyday!
sorry to steal so high up on this post... just had a question...
If any of these net short hedgefunds could prove the existence of the PPT, couldn't that be a catalyst for a billion lawsuits against the fed???
obviously, after the PPT was openly discussed yesterday by CNBC, these questions will surely pop up more often.
Nop, when you short the market you actually buy protection against a plunge so by pushing it up they are doing you a favor.
Also, who and what are you going to sue? Banks are the slaves of the Fed so they won't move. Hedge funds live by the mercy of the FED so they also won't move.
You going to sue? I hope you have billions and you have a life insurance so you're wife and kids will get something when you get that accident.
Fed Facing Lawsuits, Criminal Complaints Over Market Manipulation
In addition to valiant congressional efforts for increased transparency, the Federal Reserve System and its cohorts are being targeted with criminal complaints and multiple lawsuits that attempt to shed to light on the central bank’s “bailouts” and its manipulation of the stock market, the precious-metals market, and more.
Some startling revelations have already surfaced, like the fact that under Timothy Geithner, the Federal Reserve Bank of New York set up front companies to purchase toxic assets from various firms. It has also become public knowledge that the Fed handed out hundreds of billions to foreign central banks and trillions to financial institutions. But there is still much more hidden in the shadows, and efforts to expose the secrets are growing.
Fox Business Network announced on April 20 that it was expanding its lawsuit against the Federal Reserve’s secret bailouts. And "The New American" has provided extensive coverage of Bloomberg’s lawsuit, which aims to force the banking cartel to disclose information about its so-called “emergency” lending program, which unconstitutionally and without appropriations from Congress provided trillions of dollars to various financial institutions.
entire article continued:
http://www.thenewamerican.com/index.php/economy/economics-mainmenu-44/3425-fed-facing-lawsuits-criminal-complaints-over-market-manipulation
Fed Manipulations in the Crosshairs
Before the economic meltdown was in full swing, a Florida real-estate developer named William Pitts correctly read the signs pointing toward tough times ahead. In an effort to preserve some of his savings, he bought financial products that would increase in value as real-estate and banking collapsed. It seemed like the sensible thing to do. But though his analysis was correct, his investments went bust — because the U.S. Federal Reserve made them go bust.
Pitts told The New American that in early-to-mid 2008, he became aware that well-respected financial analysts who had evaluated the health of large banks and the real-estate market concluded they were in terrible shape. And it was true. Examining the publicly disclosed financial statements of the big financial institutions also revealed trouble on the horizon.
Based on that information, Pitts sold his stock in large financial firms like Citibank and Bank of America while taking a “short position,” essentially betting that their value would go down. Along with countless others acting on the same information, he also purchased various exchange traded funds (ETFs) that would do well as real-estate’s and the big banks’ fates declined. And it would have been a smart move, Pitts recounted, “but then, a strange thing started happening”: massive cash infusions and major purchases of equities and stocks in both financials and real-estate.
entire article
http://www.thenewamerican.com/index.php/economy/markets-mainmenu-45/3731-fed-manipulations-in-the-crosshairs
I can see them barking on the phone now.
"bad algo...bad!" I told you not to do that until Monday!
LOL - pisani spewing about global bull market, global growth, nothing but blue skies - gets slapped down by nesto saying they will be selling next week
The next stage generally involves sacrificing small animals...
Run Jimbo!
If the markets stop dropping and keep going up, we'll risk to have the mother of all shortsqueezes comming up for us. And if the FED is able to do just that, why wouldn't they be able to let gold crash to?
Because we don't want that and think they shouldn't or will they just do that because they can and we're just ants for them?
The carry trade is fun tell everybody has to make margin calls... then it turns sick fast
BP might get something done this weekend.
That could be THE positive news to get markets soaring on Monday and next week.
No way I'm getting burnt holding shorts over the weekend.
well, that would solve everything and send the S&P to 1250, right?
end both wars, reduce unemployment to below 5%, balance the budget,
clean the environment and bring world peace.
all of those goals are not in the Plan. Get with the program.
Selling A few july puts could get interesting...
You gotta admit though - the way the market has jumped up artificially in the past few days.. that "submit order" button is getting more and more tempting to push.
He's finally giving in DOAH
Time to go short
you haven't heard of sell the news?
The gameplan changed in 2007.
wake up america. its a lebron market
http://www.youtube.com/watch?v=3B_xBWsDpz0
I find it amusing that, even with all of this nonsense going on, the public isn't as gullible as Wall Street believes. Here's a MSM poll on whether people think we've seen the bottom:
http://www.cnbc.com/id/38163812
Right now, 63% think we'll go lower. That's with 11,200 responses. The other 37% don't have any money.
If you want to invest alongside the public go right ahead. Personally, I'll take the other side.
Are you telling me that you would be long in this environment?
I am as they say, all in.
I am as they say, all in.
Good luck with that.
Can someone bring the rest of us up to speed on this one? I'm not sure I get it.
The markets soar on no news. That means there is something big going to happen or the markets are fixed and being pushed up.
Either way: don't fight the money and join the lemming parade.
So go long and dump the shorts.
How seductive. Didn't I see you singing on a rock in the bay, luring hapless MSNBC viewers to their doom?
Yes, sounds great, except I remember once doing that, and suddenly reality decided to intrude, as I knew it could. However, I thought I'd override my brain and join the lemmings buying UNG, and boy did I feel like an idiot getting flushed along with all the other turds.
They at least had a legitimate sense of betrayal and shock, poor creatures. I, on the other hand, felt like a complete ass because I KNEW exactly what kind of chit I was buying, and what could happen, and I did it any way because the irrationality seemed to continue for longer than i thought possible, and "someone" seemed to know something.
Honestly, isn't that the oldest shyster con-man hype in the world?
"Quick, buy this sealed case of crap in a box, they're selling out fast. SOMEONE must know SOMETHING!"
Yeah, what "someone" knows is that a fool and his money are headed for a Reno drive in quickie divorce
Now, if I want that kind of special thrill, I'll just "load da boat" with a pink-sheet Chinese dog-meat stock moving on no visible news, or better yet, take a bath with my toaster.
this volume is just downright pathetic today.
sweet jesus!
I think we all knew this would happen. Another tight range bound day followed by a massive breakout at the end of the day. This is getting to be too predictable.
Re: "This is getting to be too predictable."
Everyone expects them again to mark up (paint the tape) before the close (maybe that's why they will jam the tape in the opposite direction today -- maybe or maybe not?).
dont worry this is part of the "pause" predicted by greenie
What about just buying AUDJPY?
bc the S&P could tank ....and when u do this with say a couple million to arb...
So what ratio are you using?? Buy x AUDJPY sell y S&P ?
I think the correct ratio is 1 ES Futures Contract per 6 AUD/JPY Mini-contracts. These are almost an exact offset in terms of market value in $USD.
depends on what futures u are using or if you are trading in the cash market for the currencies...
assuming futures... the CADJPY is at 85.626 on the board the ES should be at1074... THE AUDJPY 77.14 implies roughly 1075
U will need to determine if you are a hedger or spec margin etc and determine you weight or just use options and be delta neutral etc..
Delta hedging seems a little overkill for this trade. Normally I've just opened a long or short spot forex position and an ES Sep 10 futures position in the opposite direction. Typically the trade is done in a matter of 5-6 hours, once the Asian markets open.
Haven't tried it over the weekend and I don't think I'll bother with that - too many unknowns could jack it around (like the Australian employment numbers from the last decoupling - although we were just lucky to have been in the right direction that time).
"Haven't tried it over the weekend and I don't think I'll bother with that - too many unknowns could jack it around (like the Australian employment numbers from the last decoupling - although we were just lucky to have been in the right direction that time)."
That was just awesome - provided a nice umph to the aud/jpy side of the trade. As I remember that was the only part of the trade that made money. ES kept rising, leaving a loss on that side of it after convergence.
Too late, bought 3 AUDJPY (spot) and bought 2 S&P, exited the two for some drinking money...
1 ES and roughly 600 units of aud/jpy
also CADJPY it works just as good... a carry is a carry lol... fucking algos need turned back on again
Remember that failed concept called The death cross? That was funny. It is now in concept heaven along side with Chia pet and Atomic Rooster.
I heard that Lindsay Lohan's lawyer resigned after her blatant decoupling...
At some point the Judges always step in...
Bullish, me thinks the earnings will be better than expected, and they will be buying the news, not selling it. Let's see over the next few weeks.
I'm bullish as well. With the mid-term elections coming they have to start the ramp soon so why not now? I'm long until proven wrong.
final bell on the obama channel on friday afternoon and heres the pitch - employment situation is actually good, "investors" too gloomy;
white voters seen holding hands with black panthers in philly;
spitting bullish - canucks added 93k jobs - hurry buy everything NOW
whatever else is said, my observation is that Maria is looking about as good as she ever has today. i choose to believe her.
i'm so easy...
obviously not a gulf guy;
No, but I am disgusted with what happened and how the US gvt is handling this mess.
Why not? It could be he saw his inlaws dy in the oil while he was save for the photo opt.
I still don't get why these are so correlated.
People borrow yen on the cheap to buy aussie dollars, so why does the stock market go up?
When it was USDJPY as the carry it was clear as it could be used to buy US dollar denominated stocks.
If it was the interest earned off the carry then that doesn't tally either.
Say you borrow 1mill worth of yen to buy aussie dollars, the overnight interest doesn't equate the the same position in stocks, ie it wouldn't be 1mill worth of stocks.
They are correlated because HFT algos borrow yen(JPY) to buy US stocks with leverage. Thus when stocks go up, the ES futures contract goes up and the value of the yen goes down.
When yen goes down, any yen related currency pair, EUR/JPY, USD/JPY, AUD/JPY tends to go up. But there are many other factors besides the carry trade affecting these currency pairs. The difference with AUD/JPY is that currently the Australian dollar is less volatile than the alternatives (aka EUR and USD are being jacked around due to current politics, QE etc...) and consequently it is more directly correlated to the yen movement alone.
Make sense?
That helps me understand, too, thanks!
Next question, why does borrowing yen make the yen go down?
borrowing is the selling short in essence - get it?
Yes, when the trader/algo borrows yen it immediately turns around and trades (sells) it for some other currency such as USD, EUR or AUD so it can buy stocks in that other currency. This pushes down the exchange rate and consequently the value of the yen against these other currencies.
Nice explanation fellows!
thx
Love the predictability. The move allows me to sell everything at a higher price before the weekend and start clean again on Monday.
A program - a single program, obviously - controls the markets
If GS and JPM and the NY FED were not a part of this program,
they would have shut it down long ago
the whole of our markets now is as illegitimate as Madoff LLC
Yeah, but isn't HAL a nice guy? He was always so polite in the movie... didn't see the end of the movie but I bet all went well.
Did Bernie actually trade anything or was it all a paper shuffle?
More rally next week ?
http://stockmarket618.wordpress.com
http://www.zerohedge.com/forum/latest-market-outlook-1
It is this simple? Buy AUD/JPY and sell ES? the fuck...
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