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Brian Sack: Meet Selling Interest
The man in charge of the Fed's Market Group has had an easy life so far: he has been able to delegate the vaporware levitation of the market to the HFT and the PD crew for the most part of 2010 (with that notable May 6 exception). And when those two fail there has always been either State Street, which has been happy to pull borrow on demand, and of course POMO, which so far worked like a perfect confirmation bias charm. Until now that is - ever since the QE2 POMO buybacks were launched, there has been a perfectly inverse correlation between Fed market interventions and the stock market. In fact the only day the market surged last week was when there was no POMO. This has not gone unnoticed by the stat arbs. Which is why one wonders whether today's double POMO shotgun is not about to backfire. The poetic justice of a second flash crash on the only double POMO day would be beyond words. As a reminder POMO #1 start in 5 minutes and ends at 11am Eastern. We will closely track the market's performance during both this and the next one in what could be a confirmation of a major POMO regime change.
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U.S. Dollar going absolutely apeshit.
Poor Peter Schiff must be scratching his head, wondering how he got it so wrong.
Big race to the bottom for everybody...
Said the man who lost everything shorting gold.
Or not...
don't be so negative on gold, in fact be very very careful shorting here. word is the comex is not going to be able to meet december deliveries... True? I wouldn't make a short bet.....that's taking your life in your hands. or putting it in JPM's hands so to speak.
negative?
Last night I was thinking how the "front running POMO trade" over the next 8 months was just too overly simplistic. Too good to be true.
A book I read along a time ago, maybe by Peter Lynch, or one of the 'Market Wizard" series talked about this idea that a bubble market was not ready to end, until "last investor and his Aunt" had piled into the market.
I starting to feel the same way about gold market as of late. This idea that "the masses are always wrong."
The gold trade seems to popular and fronting running the POMO seems to simplistic.
Tyler's got it right, this is not going to go unnoticed, and this might be the start of a sprint for the exit.
If I traded which I dont, I think a good arb position would be short S&P and Short Gold until the end of the year.
Theres my 7 cents on the table.
Not really negative on gold. He is pointing out that Schiff has made plenty of money on gold. The point could have been better illustrated with a year or a five year chart of gold, perhaps, but the point stands.
I'm pretty sure at this point that Robotrader is posting from his grandmother's basement, having been so consistently wrong on his whole philosophy. He is losing purchasing power every day, even as his hindsight stock charts show boners as he fails to replicate or beat the performance of gold, much less silver.
Great title
How can it be. After trillions in bailouts/backstops .... Waterworld,MadMax,12Monkeys,.....
Jay - Z with his euro's Lol'
http://www.youtube.com/watch?v=0O3USgkwiJA
Poor Robo scratching his head wondering how he got his oil call so wrong. How is the LA city bus system these days?
After briefly threatening $3.00/gal. for the 10th time in the last 18 months, gasoline prices are once again crashing back down again.
Today, you can buy gas all day long at $2.93.
http://www.losangelesgasprices.com/
I am now in my 4th year, enjoying my 2006 gas guzzling truck which I bought when the Peak Oil crowd was going crazy, predicting $200 oil.
What do you, a pro trader, own a gas gussling truck for? Cruising the gay western bars?
Oh, well gas is over $3 here RoboT, but Im sure youve found the 2 minute chart which best confirms your pre determined outcome for the day.
A 2% retail price fluctuation in gasoline is considered "crashing" by you?!
Wow. Robo, I'm losing respect for you faster than the EUR is dropping.
Watch out for the haters driving their shitty Kias.
SUVs FTW.
Dont hold your breath there RoboT, the dollar is just as shitty if not more shitty than the other fiat currencies. All youre seeing is a cause/effect benefit rally extremely short term.
Your seeing a breakdown in the euro long predicted since her inception.
Read more: http://network.nationalpost.com/np/blogs/tradingdesk/archive/2009/03/12/was-milton-friedman-right-about-the-euro.aspx#ixzz16h3zGFux
i dont really call this prediction....these Illuminati bankers had planned things long time back....crash the DOllar, EURO , Yen and introduce the World Currency....prominent economists like Krugman and Friedman ddefintely must have known this beforehand....this is not prediction by some genius....they knew it because it was designed that way.....just look how precise and prganzed these people are....All dominoes starting to collapse at the same time...OH COME ON....ita not as if Greece defaulted in 2002 and Ireland in 2011...all starting at the same time .....Wow.
Oh and by the way RoboT just in case you were wondering....yea...we also have charts we can see whats going on too.
If your assessment range lasted longer than a week or two, people wouldn't junk you so much..
USD still targeting 115
http://stockcharts.com/charts/gallery.html?%24usd
So? By the time it gets there, it won't buy half of what it does today.
It's funny. During big currency moves we have like today, gold stays even in the "strong" currency, no matter what it is. This equates to a ratcheting action that has been pushing up the price of gold across all currencies. The USD could be targeting 5000, but that wouldn't matter, because its real purchasing power has evaporated. It's just that it didn't evaporate as quickly as certain other currencies.
+1 Tmosley.
In EuroLand:
Gold 1043.87 (record high) up 14.93 on the day. Gold up 34% YTD in Euros.
Silver 20.77 (record high) up 0.63 on the day. Silver up 73% YTD in Euros.
PM Bugs worldwide simply despondent about their investment decision. lol
Reports out of Switzerland sight (cite) caravans of Germans streaming across every day to buy physical gold and silver.
How them solars treating you, Robo? Need solars to perform. Increase Ag demand.
I guess you don't follow schiff very closely.....he's come out mutliple times explaining he was wrong on the short term moves of the USD and didn't expect people to be so dumb to think it's still "safe". The big surge in 08 was from people demanding dollars and getting out of risk assets. He even put it in print (that he didn't see that big surge coming) in Crash Proof 2.0....
Schiff will be proven right over time.
The 3 pm to close hour of trading today and tomorrow will be one to watch. It could be a classic from almost any perspective.
Meaning what exactly?
Thank goodness, I was worried the stock market might actually go down !
The Bots are set up for a run to 1153 area on the ES (z)
Brian's has not got enough fire power to deal with the orders being put through...
Could today be the day Harry Wanger doesn't eat a handful of magic mushrooms and yammer on about the resiliant consumer?
I wouldn't bet on it any more than I would short the stock market in dollars.
Some people just don't have any sense.
it's cyber monday - he might be shopping....hmmmm gold?
As I mentioned before, he's more gambler than trader. This guy endlessly touted the joys of going Yahoo long until it crapped out. And I thought he was humbled in May - obviously not.
Sitting in the airport waiting for my flight actually. Heading to a huge consumer event in Minneapolis - I'll give you a first hand account of how strong the consumer is after this week. Leading into it, we've had the best November in company's history. So, yes, from what I'm seeing right now, lots of consumer strength.
wait until you see the result of CYBER MONDAY
Will 497 RLX 604 target flip?
http://stockcharts.com/charts/gallery.html?s=rlx
'HUGE consumer event in Minneapolis'...hmmm....looking at the events schedule for Minneapolis I dont see any huge consumer event scheduled there. Maybe its just a gig at the Holiday Inn dark bar?
Since you extrapolate your awesome business to the rest of retail america, please discuss what you are in the business of selling.
Unicorns? Skittles? Flying monkeys?
NASDAQ down heavy, but they're still pumping amzn, nflx, aapl been a tad negative.
Look at 10 year chart of NFLX and CRM. Looks like TZOO did.
I really want to ride the burrito shack down cmg.
That ranks up high on my WTF meter.
255 CMG targeting 434, lol
http://stockcharts.com/charts/gallery.html?s=cmg
Why the disparity between the SP index and the SPY today?
The SPY is the primary market manipulation tool of hedge funds and long only funds. It has to do with "creation units" in combination with HFTs. The SPY is supposed to track the S&P...but the criminal syndicate known as Wall Street uses it for purposes other than those in the prospectus.
And the S&P Mini, allows for everyone in town to step up and place a bet.
I would love to understand the relationship of these SPY creation baskets and HFTs vs. the actual S&P 500. I am not sure I wrap my brain around it. I am confident that someone is gettin screwed badly.
There are guys working on Wall Street that cannot "wrap their brains around" the coming ETF crisis. Oh, it is coming. As for who loses....Average Joe, of course.
Criminal Syndicate....Wall Street.
Anyone playing the "Peak Oil" or "Crashing Dollar" story must be experiencing "perma-gloomer's remorse".
Instead, they should have loaded up on AMZN, NFLX, and other high-beta e-commerce plays, and they would have been fully insulated from worries about PIIGS, currency gyrations, etc.
Just in this year alone, they could call it a day, sell out, and be up 300%.
Seems like the tech stock mania cannot be killed.
Playing the crashing market theory. Oh, BTW Oil is up today because peak oil lives
Whatever, AMZN GOOGLE pumpmonkey... you must be pukin up blood....look at gold go! And poor ol bubble equity markets...RIP.
Netflix has announced plans to bail out europe
Some of the funds (think EU Ph.d's ;- ) are using these as part of an FX view
But oil is up at 84. Doesn't this confirm your thesis that price dictates geology?
Yeah, how'd that turn out for you last time? It wasn't that long ago. Just ten years.
Fucking moron.
fck netflix robo,
got L I B R A R Y ?
I wonder if Vegas allows for betting on who will get asassinated this year?
I would put a few nickles on Steve Jobs, and Obama, simply because Biden was really the man choosen to represent the interest of the elite.
I wouldn't bet though unless the payout was like, 400 to 1 or something near that?
People I would like to see get "offed" this year?
Uh, geez the list is way to long for this shoryt post.
Brian Sack looks like a Muppets character.
There is the money from the POMO going straight into SPOOS!!
DB ...ouch, what's going on there? i'm still short DIS against 37 (thank you t.s.a.) and GM traded at a new low but still above 32. IBM below 141 for a few hours and i'm backin' the short truck up to tha loadin' dock. if MCD holds 77 i like it long. comments ?
DB in free fall
http://stockcharts.com/charts/gallery.html?s=db
DIS targeting 51
http://stockcharts.com/charts/gallery.html?s=dis
IBM targeting 196
http://stockcharts.com/charts/gallery.html?s=ibm
MCD targeting 108
http://stockcharts.com/charts/gallery.html?s=mcd
GM maybe headed south for the winter
http://stockcharts.com/charts/gallery.html?s=gm
where do those "targeting" numbers come from? don't see 'em on those charts.
DIS broke its uptrend started in october, if it breaks 36, next stop is 34. i have a stop loss at 38. IBM has a double top around 147, with support around 141; below 141 i want to be short. MCD has bounced off 77 four times now, but can't get through 80, so i like it long here, but below 77 and i'm out.
Wow, anyone know why the financials have shot up? Is this what POMO money's being used for? Squeezing the financial shorts?
By the way, looks like I nailed the Portugal analysis from about 1 month ago, eh?
“The Fed has been using Q.E. to give banks to a subsidy for credit losses, but it’s not getting you much more bang for the buck,” Mr. Whalen said.
http://dealbook.nytimes.com/2010/11/29/whalen-why-qe2-is-a-problem/
Thanks. I know about that. I'm just wondering if the SEC has begun to push broker dealers to call back their financial shares loaned to shorts as they've been known to do when things start to get hairy.
LOL right. Thats not even constitutional
oops, double post. sorry
lol. Like that's ever stopped anyone from outright market manipulation.
When all's said in done, in a few years time there'll be another pecora comission http://en.wikipedia.org/wiki/Pecora_Commission which will show just how corrupt the system has begun.
The SEC isn't going to tell BDs that they can't borrow money at 3% in the stock loan market but must borrow at 4% broker's call rate from Chase
GS has been strong all morning. maybe they bought some of those credit default swaps that benefit from the crashing euro and those piigs going under because they sold bonds that no one knew about, except the underwriter.
GS targeting 224
http://stockcharts.com/charts/gallery.html?s=gs
where does that 224 num come from? a case could be made that GS is still in the uptrend started in september; drawing a line through 135.79, 142.54, and 157. maybe it's finding support on the 50 day m.a. around 157. from the chart i would take a shot on the long side, with a stop loss at the 200 day m.a.
Wow, anyone know why the financials have shot up? Is this what POMO money's being used for? Squeezing the financial shorts?
By the way, looks like I nailed the Portugal analysis from about 1 month ago, eh?
FAZ still going up
Pride goeth before the fall
Stop it!
I've seen both Chumbawamba and Cheeky Bastard vanish from this site because the "enlightened ones" nagged them to death becasue they thought that they knew best.
There is more than one road to travel and I for one appreciate Robotrader's posts.
So?
.
I believe nobody can force another to quit/stop posting/frequenting on ZH. Its a choice.
More from C Whalen:
"I expect that the Obama Administration will eventually, reluctantly be forced to invoke the powers under the Dodd-Frank law and restructure the top-three U.S. banks. This will be near-total losses for equity holders and haircuts for creditors, "
http://blogs.reuters.com/christopher-whalen/2010/11/18/standing-on-the-brink-of-a-fresh-financial-start/
Oil's price is only somewhat weakly relevant to production prospects. Y'all sneer at economics as a discredited sscience, and then want to worship at the altar of a "law" that economics declares is a law. Supply and Demand.
Who said that was a law? Other than Economics.
More critically, with at this point the majority of China's future oil transactions non public, why think you have any visibility into price?
Price is VERY relevant to someone investing the money needed to convert reserves into production.
I think most folks sneer at STUPID economic theories completely disconnected from reality, not all economics.
Yes I agree that price discovery is difficult when there is opacity in the market - any market, and China is a big player on oil/energy markets.
NONE of this means that supply and demand isn't how the system actually works however.
My block in Manhattan is about to request a bailout inspired by recent developments.
We believe that the Fed will finance the bailout to avoid the embarrassment of a piece of prime New York real estate broadcasting unglamorous news to the world.
Got 'X' ?
POMO cash going directly into supporting the zombie banks and NFLX today it appears.
Yes. Load up on food water and Netflix.The three necessities in life
Ooo and restaurant reservations.
I see no harm in attaching 1.6 billion market cap to a company that makes 2 million a quarter in revenues. Such a low barrier to entry and all.
http://www.wikinvest.com/stock/OpenTable_%28OPEN%29/Data/Net_Income_To_C...
It was me!
I've just junked Mosley, Tough Guy and Sheepdog for making bitchy and unconstructive comments where they put down those who are willing to share their opinions, whether right or wrong.
Now, I've got work to do...
Good for you. The assinine bitchiness on this site is one of the reasons why I don't follow the comments sections too closely any more.
Why dont you two go have a group hug!
I'm not sure if a lie is the same thing as an opinion.
I'm learning fast that in this new, visual world, the scale of a chart can be used to peddle any lie way better than the statistics it is based on ever could.
ORI
http://aadivaahan.wordpress.com
Daddy Benanke, please can I have a flash crash? POMO flavour would be so nice. I promise I'll work hard and study for a PhD when I grow up so that I too can make lots of money in my very own office.
But tell me daddy, would you recommend I go for Xerox, Ricoh, Canon, Sharp or maybe a Kyocera copier cos I'll sure need it to be heavy duty, reliable and durable to make as much money as you are? Mummy will be so proud of us both in 15 years time.
By the way daddy, can your helicopter fly us out of the country in an emergency? It's just that...I keep having these nightmares about these Asians kids jumping me after school. Do you reckon I should see a shrink about this? Perhaps you can come with me too. It might do both of us the world of good.
POMO means the boss in finnish language, the man with the pen in his hand who gives the orders..so POMO rules and I am (finnish)ed quite like this latest up run..
hoping for the next flashcrash
anything new from the cablegate
I always read Brian Sack as: 'Brain Sack'
anyone else call brian's office after seeing that screen shot?
These POMO actions smell of desperation. Imagine what'll happen once rates start to rise and bonds and stocks start to sell off.