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Brutal Short Covering Massacre Sends Market Soaring Just In Time For NYSE Shorts To Hit 2011 Highs

Tyler Durden's picture




 

With market volume below abysmal levels, and with market breadth at the highest in what appears ever, many are wondering how it is possible that the S&P could move by about 70 points in one week. Simple. As the chart below shows, NYSE short interest for the week ended June 15 was the highest in 2011, at 13.5 billion shares, a jump of 333 million share in two weeks, which certainly persisted into the second half of the month, just in time for the market to realize that with QE2 ending, and nobody left to buy bonds, rates have nowhere to go but up. The net result is one of the most epic short squeezes in recent history, coupled with one of the most rapid moves out of bonds and into equities, and if judging by the 5 Year bond, the most rapid ever. What the message from all of this is, aside from the fact that higher interest rates are supposed to somehow be better for the economy, is that the entire market now has adopted a HFT modus operandi, where nobody even bothers to discount, and all the action is reactive. We are not sure about readers, but the fact that the market has lost its most fundamental feature - discounting - is just a little troublesome, if not surprising. Such is life under centrally planned capital markets.

 

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Fri, 07/01/2011 - 15:25 | 1419846 lolmao500
lolmao500's picture

And gold/silver getting wiped out.

Fri, 07/01/2011 - 15:29 | 1419864 MrBoompi
MrBoompi's picture

Gold and silver getting wiped out?

Last time I looked I hadn't lost one milligram!!!

Fri, 07/01/2011 - 15:45 | 1419927 Pinktip
Pinktip's picture

DOW is moving tick for tick inversley with USD.......02c

Fri, 07/01/2011 - 16:11 | 1420058 coppertop
coppertop's picture

They make excellent door stops

Fri, 07/01/2011 - 18:31 | 1420360 HungrySeagull
HungrySeagull's picture

Me neither. In fact the lower pricing makes for another big buying spree.

Now July 15th at close will be a total cremation of Paper gold and silver.

Fri, 07/01/2011 - 16:04 | 1420008 JW n FL
JW n FL's picture

The last time I checked there were monster boxes laying around all over my office floor (home office floor).. I gave up trying to stick everything in the safe.. so unless you know something I dont I would assume it is still laying there.

Fri, 07/01/2011 - 18:33 | 1420365 HungrySeagull
HungrySeagull's picture

Working on my first monster, one coin at a time. Don't wish to run into the 10K and above reporting to IRS at this time.

Once the first 500 is sold, I will grab the Monster the same day.

Fri, 07/01/2011 - 16:05 | 1420028 He_Who Carried ...
He_Who Carried The Sun's picture

This does not make sense as Monsieur Bernank pointed out that the FED will remain the greatest buyer of Treasuries as they announced another 300 billion package on June 27 i.e. QE3.

Fri, 07/01/2011 - 22:24 | 1420702 SMG
SMG's picture

Alot of paid trolls on here today.   For some reason Zero Hedge is being targeted more than usual.  There's always trolls on here, but for some reason they seem more active with this latest move in the equity market.   I wonder why they are trying to ratchet up the psychological pressure in the last few days.

Zero Hedge is a great site, and is more about truth than any other financial site on the internet.  While the equity market is going up,  I don't think anyone could say any of the markets right now are about truth.

All the Tylers are doing a great job giving us the truth as best they can.  They are not perfect and I am sure have made many enemies who seek revenge.  Thank You for your efforts!

Sat, 07/02/2011 - 10:09 | 1421145 homersimpson
homersimpson's picture

Yea it's sure getting wiped out *rolls eyes* Trolls speak for "I was short silver/gold and I lost my left nut in the last year."

$1500 and $3x gold/siver prices.. whoo.. some wipeout.. considering where they were at a year ago (or less).

Fri, 07/01/2011 - 15:25 | 1419849 RobotTrader
RobotTrader's picture

Tyler, post a chart of the compression trade, seems like it is way out of whack right now.

Fri, 07/01/2011 - 15:34 | 1419898 101 years and c...
101 years and counting's picture

2nd that.

Fri, 07/01/2011 - 15:54 | 1419992 LawsofPhysics
LawsofPhysics's picture

Don't start making sense now Robo.

Fri, 07/01/2011 - 15:26 | 1419857 Clowns on Acid
Clowns on Acid's picture

When there are negative real interest rates in US, then the concept of "discounting" gets skewed, indeed perhaps reversed.

Centrally planned, effectively priced controlled (interest rates) economies never report an inflation problem until it is too late. Alternatively shortages create socio-economic violence.

Thanks Obama and your pack of left wing facsist jackals !  

Fri, 07/01/2011 - 16:08 | 1420043 banksterhater
banksterhater's picture

excellent post

Fri, 07/01/2011 - 16:31 | 1420104 NotApplicable
NotApplicable's picture

Well, who really needs to discount when The Bernank is gonna monetize every financial asset at par anyway?

Of course, he can't really stop the downward flow through Exeter's Pyramid, let alone reverse it, but he's damn sure gonna try. After all, Greenspan claimed to have done it when he stated that they had fiat behaving like gold (of course he never mentioned how, or how well).

Fri, 07/01/2011 - 16:36 | 1420117 Central Bankster
Central Bankster's picture

+1

Fri, 07/01/2011 - 15:27 | 1419859 pat53
pat53's picture

Shorting is a losers game. Da Boyz have all the same info, when they see shorts piling in they jam the market higher and obliterate them, over and over....gotta love it  LOL

Sat, 07/02/2011 - 11:47 | 1420345 Bananamerican
Bananamerican's picture

don't junk Pat...

It boggles my mind how many ZH'ers still show up crying in their short beer after 3 YEARS of outright manipulation! W T F R U Doing!?

From comments below:

"Look, I'm not bitching. I was the chump that somehow thought that once QEII ended the markets would start to act like free markets. I admit that I am a sucker. But I'll say this, I'm about as depressed as I have been in years. First for allowing myself to be the pigeon, second, for the massive loss I took...."

Sat, 07/02/2011 - 10:11 | 1421146 homersimpson
homersimpson's picture

Yea I'm sure it was for most of 2008.. Going long is a losers game, because the loss bulltards will take is greater than any gain they'll get..

No bulltard can sell their worthless stock faster than a computer.

Fri, 07/01/2011 - 15:30 | 1419865 SheepDog-One
SheepDog-One's picture

Theyre piling out of bonds into equities? That is the dumbest thing Ive ever heard....bubble jumpers will get creamed! How the hell are you going to jump INTO equities which only have been supported by massive QE, right when QE ends? That cant be whats going on, I dont believe it. But I do believe 'full retard' is in the rear view mirror at this point, whatever is worse than 'full retard' I really dont want to see.

Fri, 07/01/2011 - 15:42 | 1419913 A_MacLaren
A_MacLaren's picture

SD-O:

Think about the relative size of the bond market versus the equity market.  It doesn't take much of a move out of bonds and into equities to slam equities upwards.  Yields have spiked and bond prices are plummeting over the last 5 days. 

Who wants to hold bonds that are going to get massacred as yields soar without Ben's POMOs and Chinese buyers?

The money has to move somewhere.  Its not going into commodities, whether you believe it should or not.

Think about it.

Fri, 07/01/2011 - 15:56 | 1419980 SheepDog-One
SheepDog-One's picture

I am thinking about it, and having a real hard time believing this line that bond dorks are selling bonds due to worry, and piling into 100 P/E stocks at a damn near QUADRUPLE top...at the end of QE? If that makes any sense to anyone, then good luck to em.

Fri, 07/01/2011 - 16:11 | 1420041 groovin123
groovin123's picture

Never underestimate the replacement power of equities within an inflationary spiral.

 

It is what it is, <shrug>.

 

 

Fri, 07/01/2011 - 17:47 | 1420293 whstlblwr
whstlblwr's picture

Or never underestimate power of threat of RP presidency. Can imagine both R and Ds don't want market down. RP easier then. I bet June's down market give RP more votes in poll, all scared shitless. Even Jon Stewart ignore Ron Paul as candidate.

Here is link of what happen in trading room. Easy to see how could be lots short for squeeze. And if Obama want higher market he gets.

http://www.guardian.co.uk/business/2008/may/03/stockmarkets.investing

Sat, 07/02/2011 - 02:18 | 1420863 baby_BLYTHE
baby_BLYTHE's picture

Larry LeiBowitz, John Steward's brother, is president of the NYSE.

John Stewart is a cheerleader for the status quo establishment!

Sat, 07/02/2011 - 12:08 | 1421212 snowball777
snowball777's picture

Which you can sell for? A fistful of hyperinflated fiat currency!

Win?!

Fri, 07/01/2011 - 16:15 | 1420074 Havana White
Havana White's picture

Retirement accounts with multiple choice.  'Water seems okay in stocks again.  I'm thinking we move about half from the bond fund into the balanced fund."  "Smart, honey.  Yeah, do it."

Fri, 07/01/2011 - 20:19 | 1420533 The Fonz
The Fonz's picture

I agree S.Dog, we have been getting fooled about flows a lot lately. According to a article Buzzsaw posted it looks like businesses have been doing stock buybacks to the toon of about 2 billion a day as well, if I understood correctly. I cannot sort out where this money is coming from and going to. I did however get destroyed going short, it looks like I am out of the fight for a while.

Fri, 07/01/2011 - 16:09 | 1420049 banksterhater
banksterhater's picture

good point, so a blowoff top is in the cards, .02

Fri, 07/01/2011 - 15:29 | 1419866 Lone Mad Minute...
Lone Mad Minute Medic's picture

And ZH has played it's part in setting the table for the short squeeze.

Fri, 07/01/2011 - 15:28 | 1419875 SheepDog-One
SheepDog-One's picture

I dont believe now, and never did believe that short squeezes have powered up the bubble equities 40%+. And even if that was true, then its about over anyway, so good luck with more short squeeze powered super rallies. 'Full retard', AKA Pat53, in the rear view mirror.

Fri, 07/01/2011 - 15:30 | 1419884 pat53
pat53's picture

LOL, you are a fucking idiot...you don't a clue about whats really going on do you  !??  LOL

Fri, 07/01/2011 - 15:40 | 1419907 SheepDog-One
SheepDog-One's picture

No I know exactly whats going on, a giant scam that morons have come to accept as the 'new normal' that being total manipulation of all markets.

Fri, 07/01/2011 - 15:46 | 1419951 trampstamp
trampstamp's picture

enlighten us Pat? Would be good to hear what you think since noone really knows what goes on behind the curtain. Not even rich countries.

Fri, 07/01/2011 - 15:33 | 1419878 slaughterer
slaughterer's picture

Thank you ZH for setting up the short squeeze by encouraging the expectation that the ISM would print below 50, and that money markets were freezing up, and printing countless negative things about Greece.  Very good work, you have lined the pockets of your enemies.

Fri, 07/01/2011 - 15:36 | 1419890 SheepDog-One
SheepDog-One's picture

Pretty hard to make predictions in the rigged mafia casino. I dont act on any of Tylers 'info', I wouldnt touch any of this garbage today with a 10 foot pole. Pretty bad when you have to come up with a new worse level than 'full retard' because thats already been passed by.

Fri, 07/01/2011 - 15:45 | 1419908 plocequ1
plocequ1's picture

Be patient Mr. Sheepdawg.  22 minutes till compression chart 

Fri, 07/01/2011 - 20:25 | 1420542 The Fonz
The Fonz's picture

I would have to agree in this instance with the fellow above. I was too drawn in by ZH's negative outlook. Tyler only makes one mistake consistently, his timing is too early, and he does not communicate this in his efforts to destroy the banks. I see many people with what I have come to call a "will for the market" where a person hopes and believes something that may or may not be correct but fumbles the timing due the bias naturally filtering out the counterstory. Also Reggie has that problem, and so did Turd. So did I.  Time to learn a hard lesson, fortunately lessons this expensive STICK.

Fri, 07/01/2011 - 21:10 | 1420618 tarsubil
tarsubil's picture

Whatever. I haven't been here long but even I realized the market could go either way depending on some cock sucker's whim. I shrugged at buying the top and seeing a consistent down trend but I figured it is only worthless money so WTF do I care? Can't take it with me. This rally is just fucking bizzarro. Just look at the charts. It is just bizzarro. At least to me. I'm new but still. I avoided some painful losses by sticking with it but it could still go either way. Too many arbitrary and secret whims fighting unpredictable events of reality. Blaming ZH for losses when they scrape up muck no one else (shills on both sides) wants to talk about points to a lack of personal responsibility.

Fri, 07/01/2011 - 21:33 | 1420637 The Fonz
The Fonz's picture

I don't blame ZH for the mistakes I made. I think I note that in the post above. However even as I have made a mistake ZH also makes the mistake of overwealming bias, that does not always serve well its own intrests.  If I am to take responsibility for making choices, so too does ZH take responsibility for giving advice. I do not blame ZH for my losses, however factually speaking by reading ZH is THE reason I went short. It is always my responsibility for what I do and choosing the best voices to listen to. ZH is the best voice to listen to, and it can become even better than it is.

Fri, 07/01/2011 - 22:19 | 1420693 tarsubil
tarsubil's picture

Yeah, my post read too critical of you but it was meant to be more general. Or I jumped the gun on my response. Sorry about that.

Fri, 07/01/2011 - 22:21 | 1420695 Girl Trader
Girl Trader's picture

td does not blog for the purpose of telling you what to trade. he gives you extremely high quality macroeconomic and financial information. you must make all trading and investing decisions. You are responsible for your decisions.

Fri, 07/01/2011 - 22:40 | 1420721 mcguire
mcguire's picture

ZH is not about trading advice!!!  it is about WAKING UP!!!  it is the Red Pill of Finance... 

Fri, 07/01/2011 - 22:40 | 1420722 mcguire
mcguire's picture

ZH is not about trading advice!!!  it is about WAKING UP!!!  it is the Red Pill of Finance... 

Fri, 07/01/2011 - 15:40 | 1419912 qussl3
qussl3's picture

Enemies?
Which firm's research gets the most airtime here?

Fri, 07/01/2011 - 18:01 | 1420312 Nathan Muir
Nathan Muir's picture

People like you crack me up.  Took a bath today and want someone to blame huh.  Perhaps when the market tanks and you get caught long you can start trolling cnbc.com?

Fri, 07/01/2011 - 15:51 | 1419964 10kby2k
10kby2k's picture

ZH jumps on every shred of negative evidence and promotes it as the trigger that will cause the crash. If ZH doesn't moderate some they are becoming the anti-cramer/ludlow...the know it all that represents the other extreme....and does not posess an open mind. This post is going to go over real well.

Fri, 07/01/2011 - 16:07 | 1420021 treemagnet
treemagnet's picture

Not from me - I don't agree with you, but I'm all for lots of opinions.  I think the degree to which Ben's willingn to go to keep pushing the limits of comprehension around here (and the responses to each fraud) so it appears to some that ZH is too one-sided.  And no I didn't junk you.

Fri, 07/01/2011 - 16:25 | 1420102 10kby2k
10kby2k's picture

It is my opinion that each individual number and action isn't one big conspiracy to hold up the house of cards. Irrationality and markets can be unexplainable.....and those that try to explain every action/movement may be foolish.

Fri, 07/01/2011 - 15:28 | 1419874 Temporalist
Temporalist's picture
Munger Says Bankers’ ‘Megalomania, Insanity’ Fueled Bubble

"“The bubble in America was caused by some combination of megalomania, insanity and evil in, I would say, investment banking, mortgage banking,” Munger, 87, said today at a conference in Pasadena, California."

http://www.bloomberg.com/news/2011-07-01/berkshire-s-munger-says-wall-st...

Fri, 07/01/2011 - 15:33 | 1419881 SheepDog-One
SheepDog-One's picture

Bubble? What bubble? Bond dorks are piling into equities like crazy, simply cant be a bubble.

Fri, 07/01/2011 - 15:31 | 1419888 slaughterer
slaughterer's picture

The only thing that saved me today was being long the "Chinascam" stock that ZH raised to attention this week via MW: SPRD. 

Fri, 07/01/2011 - 16:31 | 1420111 NotApplicable
NotApplicable's picture

I would say, takes one to know one.

Fri, 07/01/2011 - 15:34 | 1419882 treemagnet
treemagnet's picture

Why bonds into equities with interest going up?  WTF, somebody explain.

Fri, 07/01/2011 - 16:14 | 1420052 buzzsaw99
buzzsaw99's picture

Yields going up means that t-bond prices are falling. Apparently the fast money crowd feels that equities and hy corporates will do well in an end of the world scenario. lulz

Fri, 07/01/2011 - 15:38 | 1419899 SheepDog-One
SheepDog-One's picture

OK so say its all short squeezes...Tyler can you give us any idea of WHO these shorts are who line up day after get to get anally raped and robbed to drive +200 point rally days, and then step up to go short and do it all over the next day? What banks or funds are these, who are these guys?

Fri, 07/01/2011 - 15:38 | 1419901 AldousHuxley
AldousHuxley's picture

don't short against the FED.

Fri, 07/01/2011 - 15:42 | 1419917 SheepDog-One
SheepDog-One's picture

Well somebody with huge endless funds has been short the FED big time if we are to believe Tylers data, all time record high levels of shorts for over a year now who keep stepping up to the plate like Charlie Brown to get the ball innevitably pulled away at the last second, day after day? Do you really believe that? I have a hard time believing it.

Fri, 07/01/2011 - 17:24 | 1420240 Rynak
Rynak's picture

Well, even though i consider the stockmarket for now mostly useless for non-banks/hedge funds, if there was one rather safe assumption, then it was that the market WILL in the midterm go down..... QE3 or no-QE3, doesn't matter... If anything, i'd say it was the only someway safe bet one could make. So, it would not surprise me, if that bet was attractive to quite a few (and in fact, i've made that bet myself, but only virtually. And yup, it theoretically paid off - got out half the way up again.... no point in fighting a horde of lemmings).

What i do not fully understand yet, is why people had such a quick finger with covering their shorts. The article supposedly explains it, but i don't understand it. Or maybe that is actually the point *shrugs*.

Fri, 07/01/2011 - 17:51 | 1420301 Rollerball
Rollerball's picture

What's the opposite of Zero Hedge?  Answer:  100% Hedge.  Get it?  

Fri, 07/01/2011 - 16:37 | 1420094 buzzsaw99
buzzsaw99's picture

never short a dull market

don't short the hole

don't fight the fed

 

Don’t go to bed with no shorts on your head

Don’t do it

Don’t do the crime if you can’t do the time

Keep your eye on the sparrow

When the ir spread gets narrow

Don’t roll the dice if you can’t pay the price

Don’t do it

Don’t run your feet down a dead end street

Don’t do jpm dirt or you’re gonna get hurt

Don’t do it

Don’t run away ‘til you hear what I say

Ain’t gonna fight with no squid in the night

Won’t do it

How high can it fly with the volume so low?

I’m gonna go where the cold FX wind don’t blow

Fri, 07/01/2011 - 18:07 | 1420323 butchee
butchee's picture

Best Baretta reference ever!!!! thanks Buzzy

http://www.youtube.com/watch?v=5HNWhVXcjV8

Fri, 07/01/2011 - 15:34 | 1419902 Frankie Carbone
Frankie Carbone's picture

I got anihillated this week. My DXD bloc of options just got blown out of the fucking water. 

So bad that I'm not going to try to salvage the pennies on the dollar that they're worth. I figure it's "pray for a miracle time", hoping that a retracement will bring up their delta value enough where I can settle with a 40-50% loss. 

I never in my wildest dreams expected the market to wipe out 2 months worth of losses (or gains for my situation) in a mere 5 days. 

Someone riddle me this: Why is the market taking the stairs down and the nitro powered elevator up? This defies the history of the markets. Why are folks blowing their loads over shitty economic news? 

I am the pigeon that I rail against. I truly thought that having the fundementals on my side would result in a winning trade. 

I'm done. This retail trader is out. 

Fri, 07/01/2011 - 15:43 | 1419923 treemagnet
treemagnet's picture

I think its rocketing up 'cause the Benny knows its on vapors - that same ICE piece TD did the other day - The Shalom can't have redemptions.  I too got bloodied with the VIX not realizing the game was rigged - about a year ago today in fact, when the black swans and clouds of death spelled certain disaster - then later (fuck!) I found ZH and learned how I got played - I just never knew Ben would/could do the shit he has/will.....

Fri, 07/01/2011 - 15:45 | 1419926 qussl3
qussl3's picture

Tyler laid it out pretty plain.
Thin markets, lopsided weak shorts, dealers came and raped them.
Greek "resolution" just gave them the cover to do so.
ISM was just the kicker, we were actually shaping up to have a flatish day till that report.

Now earnings MUST deliver, else the dealers will be short into them anyways :)

Fri, 07/01/2011 - 15:42 | 1419931 SheepDog-One
SheepDog-One's picture

Who are these shorts who keep stepping up day after day to get screwed over?

Fri, 07/01/2011 - 15:50 | 1419957 pat53
pat53's picture

That would be you dumbass !!

Fri, 07/01/2011 - 15:48 | 1419962 SheepDog-One
SheepDog-One's picture

You think Im a market shorter? Youre an idiot!

Fri, 07/01/2011 - 16:05 | 1420016 Frankie Carbone
Frankie Carbone's picture

Me for one. Hedged my silver with a fat block of ZSL calls and made a killing. Guess where that killing went? 

95% went into DXD calls. The other 5% I just spent at Walgreens buying a case of Prep-H to stop the hemmorhaging from my freshly raped ass hole. 

My only position now that's playing out are puts on LQD and I'm tempted to pull them and buy more gold. 

Look, I'm not bitching. I was the chump that somehow thought that once QEII ended the markets would start to act like free markets. I admit that I am a sucker. But I'll say this, I'm about as depressed as I have been in years. First for allowing myself to be the pigeon, second, for the massive loss I took. 

I freely admit it's my fault. Freedom in America means that if you have the money, you're free to rig the game. Shoulda listened to more folks. 

 

 

Fri, 07/01/2011 - 16:23 | 1420081 Boston
Boston's picture

Timing!

What happened LAST year when QE1 ended, on 3/31/10?  Momentum (or whatever) carried equities up for almost 3 more weeks.  Then in late April, things started breaking down.

I was also surprised that it took this long.  But now, second time around, I'm not surprised at all.  

Another bearish point: last year, it was much more plausible to expect more monetary (eg. QE) stimulus and fiscal stimulus (eg. tax cut, spending increase), should the economy and/or markets tank.  Well they did start tanking, and BOTH forms of stimulus emerged---QE2 in Aug and the tax/spend deal in Dec.

This year, it's less likeluy that either type of stimulus will be whipped out, at the first signs of trouble.  Ultimately, they will (IMO), but only after severe pain hits......eg. stocks down 20%+ and economy actually double-dipping.

IMO, critical for success is patience and therefore the elimination of all short-term bets.  They'll crush you.

 

Fri, 07/01/2011 - 17:52 | 1420303 rocker
rocker's picture

Well said Boston. Rinse and repeat is working well. When it does't work, don't fight the tape. Wait for the reversal. Hence Patience.

Fri, 07/01/2011 - 17:59 | 1420307 treemagnet
treemagnet's picture

Its done with.  Let it go.  Learn from it.  Don't beat yourself up....cause your not the first or last.

Fri, 07/01/2011 - 23:55 | 1420558 Obadiah
Obadiah's picture

This is the type of comments I come here to see.  Honesty.  Isn't it sweet, and oh so rare.

Good luck to you Frankie, I think you should go grab the book "Win Every Battle" changed my life for the better.

Sat, 07/02/2011 - 09:54 | 1421136 fiddler_on_the_roof
fiddler_on_the_roof's picture

You should have listened to me. Go long Gold now with lots of leverage, 6 months down the line - you may get a chance to recoup your loss.

Fri, 07/01/2011 - 15:45 | 1419928 SheepDog-One
SheepDog-One's picture

I quit the crap 2 years ago, and swore to only stock PM's. There are no fundamentals, only an insane total control 3rd world rape room called 'the exchanges'. 

Tyler has been saying for over a year theres record high short interest...am I really supposed to believe these shorts step up daily to get raped over and over again, then will do it again Monday? Who are they, which banks or funds keep shorting and losing, I;d like to know!

Fri, 07/01/2011 - 15:45 | 1419950 treemagnet
treemagnet's picture

I have a dirt bag competitor that has stayed in business like a whore offering endless specials.  The amount of time it takes for a clever small businessman who should shut down down is amazing once they decide to play every hand.  Going on 2.5 years, though really, really close now.  Ben's just a big dirt bag, thats all.

Fri, 07/01/2011 - 16:37 | 1420133 NotApplicable
NotApplicable's picture

Amount of time = amount of credit

Fri, 07/01/2011 - 20:53 | 1420601 StychoKiller
StychoKiller's picture

Yes, getting in the ring with the Battle-Bots can lead to injuries and/or dismemberment -- do the only rational thing left:  Buy and hold Physical PMs.

Fri, 07/01/2011 - 15:43 | 1419936 pat53
pat53's picture

Dude, since when have fundamentals mattered? If you want to make money just BTFD ! The bigger the dip the more you go long, its as simple as that. TPTB bait the shorts in time after time, and they fall for it every time, then just ram the market up to new highs and feed off the dead bopdies of the bears.... couldn't get any easier   !

Fri, 07/01/2011 - 15:50 | 1419958 SheepDog-One
SheepDog-One's picture

Go for it! DUDE!

Fri, 07/01/2011 - 15:48 | 1419966 bigwavedave
bigwavedave's picture

you answered your own question. your retail. 

Fri, 07/01/2011 - 16:11 | 1420033 Boston
Boston's picture

Sadly, this could be a good contrary indicator.  A few more knock out blows like this, and the top (the real one) could be in.....

 

Fri, 07/01/2011 - 20:45 | 1420589 The Fonz
The Fonz's picture

"Your retail"

 

I am retail. I understand the traps laid for me. I understand I am being robbed. Do you understand that I am your ally?  Do you understand that a person observing that nearly all routes to saving money are being closed cannot intellegently choose NOT to take a risk in the markets? No job, no prospects, living in a van, no way to save. People like me come here, and I can assure you I am not a fool... we are the allies that are needed to bring this market down and to teach what is happening one on one to everyone in our circle of friends.  The large investors and speculators cannot ultimatly bring the msg that I can, the message that must be understood by everyone in order for societys ideas to shift enough to allow us to heal our nation.  I became homeless due to finance, I understood that this was where I had to fight, and so I shall.  Do not belittle me, or others like me, you need our help. I may not understand what is happening as well as an experienced trader, but unlike so many in our society I am in the right place, learning and fighting, and sacrificing what little I have to do so. I am a retail investor, and I deserve respect, and perhaps even guidance.

Fri, 07/01/2011 - 20:56 | 1420603 StychoKiller
StychoKiller's picture

The only guidance you need:  Buy and hold Physical PMs -- let the droids fight over the market corpse(s)!

Fri, 07/01/2011 - 22:25 | 1420703 Frankie Carbone
Frankie Carbone's picture

+1

Fri, 07/01/2011 - 22:38 | 1420686 Frankie Carbone
Frankie Carbone's picture

@ BigwaveDave. You know, before you gloat over your condescending and might I say shitty snide putdown let me remind you that you professional traders are but a drop in the bucket when it comes to the general population. If you want us retail guys to bail, to get out of your sandbox, then you lose allies that you desperately need. 

Keep treating us like second class citizens, ostracizing us with your holier than though attitude, and shut us out. 

Then, what? We say fuck it and just drop out. And you're left to get fucked in the ass on your own with even less folks that give a shit about your plight than you had before. 

 

You should be THANKING retail folks like us for at least trying, and at least giving a shit about the corruption and lawlessness. Instead, you pump up your own petty insecurities with putdowns of others. 

I asked for advice, and the rest of the folks here were generous, open, cordial, and willing to accomodate. You just act like a prick. 

Asswipe. Go fuck yourself. 

To the rest of you folks. My sincere thanks. 

 

I do want to thank all of you guys. I was two years into managing my own account when I found Project Mayhem and Tyler's excellent writings. 

I though I knew it all. I quickly realized that I didn't know jack shit. Hell, I still don't know jack shit but I bet I'm more astute than 99.999% of the population. 

Thing is, in here, I'm a small fish experience wise among an ocean of trophy gamefish. So I'm humble enough to realize that I have a lot of learnin' to do. Lesson learned. 

But man, when you get fucked by something like this, you guys know from experience how fucking infuriating it is. 

Fri, 07/01/2011 - 16:11 | 1420042 nodhannum
nodhannum's picture

There are no fundamentals anymore.  Just centrally controlled planning.  I have out for four years with the exception of a gold coin now and then.  Wouldn't touch this with a 20' pele.  I will say that moving about one third of my funds to the Australian and Canadian dollars about two years ago has worked out well..especially today.  I refuse however, to pick up pennies, or nickels or dimes in front of a bernak-geither steamroller.

Fri, 07/01/2011 - 16:56 | 1420174 Solid Gold Bubble
Solid Gold Bubble's picture

"I never in my wildest dreams expected the market to wipe out 2 months worth of losses (or gains for my situation) in a mere 5 days."

"I truly thought that having the fundementals on my side would result in a winning trade."

Is anyone else, like me, reminded of silver?

Fri, 07/01/2011 - 22:29 | 1420705 Frankie Carbone
Frankie Carbone's picture

I've seen the market implode in that time. Just never in my 5 years of trading seen it go up this violently on such shitty news. That's my point. 

My condolences on silver. On a hunch, when I saw the 2nd margin hike, I figured some nefarious shit was up. I struggled with it, thinking that it wouldn't work. Then decided to to liquidate several thousand ounces of silver near the top, and drop a dozen ZSL calls down. It paid in spades. 

To be honest, it could have just as easily went against me. I LOVE silver in the long run. So much so that I bought it back at 36 ish on the physical market. The surplus got pissed away on those DXDs. Lesson learned. 

Sat, 07/02/2011 - 07:51 | 1421073 jdrose1985
jdrose1985's picture

Think of all the precious time you lost in your failed attempt to gain something for nothing.

Give something for nothing and empty yourself of everything holding you back from being truly "zero hedged".

That's profitable.

Sun, 07/03/2011 - 06:55 | 1422337 mophead
mophead's picture

I'm done. This retail trader is out.

With so many posts like this one, seems like we are headed for a massive selloff.

Fri, 07/01/2011 - 15:38 | 1419919 slaughterer
slaughterer's picture

The market is not even taking profit on itself before  a 3-day weekend.

Fri, 07/01/2011 - 15:43 | 1419939 qussl3
qussl3's picture

Noone actually bought anything today, its mostly algo abck and forth marking it up in between.

Fri, 07/01/2011 - 15:41 | 1419929 treemagnet
treemagnet's picture

This is the money shot, next comes the sobering reality.

Fri, 07/01/2011 - 15:44 | 1419942 SheepDog-One
SheepDog-One's picture

Yea I believe thats right, we've left full retard in the dust. Now IF they plan on QE3 in any form, fear and panic have to come back in here because +200 DOW days sure wont work to cause demands of more QE from anyone.

Fri, 07/01/2011 - 15:58 | 1419991 Boilermaker
Boilermaker's picture

Actually, I'd take the other side of that arguement.

If they're willing to display this level of out-right in-yo-face fraud then they are desperate enough to do literally anything. 

We're down 5 touchdowns with 0:30 seconds to go in the 4th quarter.  All the trick plays and retarded schemes come out now.  The problem is that the FED has the power to simply keep adding time to the clock.

I would say we're only seeing the beginning of truly outrageous pumping and propoganda.  I would say it even gets more extreme from here.

Fri, 07/01/2011 - 16:08 | 1420019 SheepDog-One
SheepDog-One's picture

Well the arguments have been laid out, now place ya bets. I have in PM stores, just like the Chinese, Russians, and most other govts have.

Quadruple top, Boilermaker.

And they HAVE to do something to save bonds, none of which is good for equities. 

Good luck.

Fri, 07/01/2011 - 20:50 | 1420596 mick_richfield
mick_richfield's picture

the FED has the power to simply keep adding time to the clock

No, they don't.

What do you suppose it means when they start spending money ... like there's no tomorrow ?

Fri, 07/01/2011 - 15:46 | 1419932 n00b tube
n00b tube's picture

I remain 100% short SPY and will not cover at a near 90% loss. The faster and higher S&P spikes, the more violent the pullback will be. My JUL11 options may expire worthless, but that's moot at this point; I'm already well beyond the point of no return. I dare the markets to keep rallying. Let the fucktarded sheeple panic into the top. Bonds into equities? HERP DERP

Fri, 07/01/2011 - 15:48 | 1419941 slaughterer
slaughterer's picture

They are pumping it for a close above 1340. 

Fri, 07/01/2011 - 16:02 | 1419995 SheepDog-One
SheepDog-One's picture

Thats what Im laughing my ass off about, 'bonds into equities'?? Give me a break! Either thats not true at all or theyre retards.

I think its just outright desperation, they have to pump because any equity selloff with steam causes a huge panic which the algo bots would fry tubes over and lose it totaly. I also dare them to keep ramping markets, go for it idiots!

Fri, 07/01/2011 - 15:48 | 1419935 LawsofPhysics
LawsofPhysics's picture

The retail trader is long gone.  I sold paper gold in November (keeping all physical, acquired from 1994 to present).  Anyone who lived through the 70's saw this one coming.  Although what is now happening is unprecedented, especially in light of energy costs.  In the 70's we made a deal with the middle east (by force- maybe again), but then again they had easy to get oil and we also had wage inflation.  This is not the case now.

Market manipulation by professionals.  Hence, why so many want to go pro.  I'll take the bump through July and buy more physical in August.  Thanks.  Maybe some more paper, remember investing is no good without exiting and turning your "investment" into more hard assets that will help you live better or survive.  Land and gold remain my store of value and the only real hedge left.  This is indeed the beginning of the last big party, hedge accordingly.

Fri, 07/01/2011 - 16:02 | 1420004 decon
decon's picture

I agree totally but will amend the hedge slightly, land with water and gold.

Fri, 07/01/2011 - 15:48 | 1419943 monopoly
monopoly's picture

I have said it time and time again. Shorting this manipulated broken market is asking for a wipe out.

0

Fri, 07/01/2011 - 15:49 | 1419953 SheepDog-One
SheepDog-One's picture

So who are all these dumb shorts with so much money who keep stepping up to get whipsawed day after day?

Sat, 07/02/2011 - 10:35 | 1421154 Mad Cow
Mad Cow's picture

I'm going to venture a guess that it's the same entity with unlimited funds. ;)

Fri, 07/01/2011 - 15:48 | 1419969 CrashisOptimistic
CrashisOptimistic's picture

You guys are talking like it's 2000.  It's not.  There are no humans moving the markets.

It's all computers reading headlines and seeing Greece disappear from the radar screen.

Greece took it down.  With it removed from prominence, back up it all goes.  Purely from computers.  With this level of volume, there is no point in imagining investment committees at institutions made a decision to "attack shorts".

That's just silly.  It's all the Euro news AND . . . the news that the Fed would NOT try to unwind the toxic paper it tried a few weeks ago.  The computers have been programmed to react to that news.

Fri, 07/01/2011 - 15:50 | 1419975 Boilermaker
Boilermaker's picture

AHHHH, yea, Right in time for the 4th of July weekend.  Jesus Christ, everyone will just be downright fucking giddy discussing epic ramp up in their 401(k) accounts and how we are all saved from the perils of depression.

I'm sure it's not orchestrated or otherwise driven by attempted blatant propoganda.  The massive volume and huge retail participation puts that to rest.

In all seriousness, can they really just jackhammer this thing daily by triple digits?  They'll just get a bigger hammer of optimism until everyone believes that rainbows, puppy dogs, and gum drops are the abound again?

I'm the most skeptical a-hole that I know regarding this phony shit and even I would HAVE NEVER thought they would simply resort to this level of absolute bullshit.  I guess I stand corrected.

Enjoy your optimism dogs and suds this weekend.  They'll be back on Tuesday to prove it wasn't just a dream by sucking off the market for another hundo.

Fri, 07/01/2011 - 15:51 | 1419979 Robslob
Robslob's picture

Tyler used to be one of these (institutional) guys right?

Fri, 07/01/2011 - 17:13 | 1420236 jaffi
jaffi's picture

Which Tyler?  Tyler is actually quite a few different people, they all post under the same name.  

Fri, 07/01/2011 - 15:52 | 1419981 qussl3
qussl3's picture

Im most curious to see how much of that short interest was wiped out over this week.
In light of a clear global slowndown, and nothing but inventory buildup in the US, we are going into possibly a disappointing earnings season at near the highs of the year.

Its a perfect setup if the big boys wanted to get short.

Interestingly, if memory serves there has only been 1 instance in the last 20 years where the years range did not dip below the flatline, considering where we are today its hard to believe that this would once again repeat.

Betting on a drop but always set a max pain and out.

Wacky week.

Fri, 07/01/2011 - 16:02 | 1420000 Jack Mehoff
Jack Mehoff's picture

Discounting implies efficiency, this market is anything but.

TPTB are appeasing to the masses, essentially giving them free cash via the stock market. How can you complain that the economy is tanking if your 401K is up like crazy?

The FED is playing a loosing game, juggling more and more balls. Eventually, you just can't keep up and something will break sooner or later. 

Fri, 07/01/2011 - 16:00 | 1420009 SheepDog-One
SheepDog-One's picture

Thats been the main point all along, placate the 401K brigades at all costs...$4 trillion of ETF holdings there, got to keep em calm till the shearing and slaughter.

Fri, 07/01/2011 - 15:59 | 1420005 SheepDog-One
SheepDog-One's picture

I think theyre just sending Sheeple-merica off to the 3 day drunken BBQ fest in a stupor of calm, hillariously to celebrate their 'INDEPENDANCE'....huh whaaaaaa? Send em off to drunkfest with a nice glorious all-is-well 200 point up day, all is truely well in BK-merica....well probably not next week it could be real ugly for bubble equity dumbasses, but for this weekend, all is well.

Fri, 07/01/2011 - 16:06 | 1420032 treemagnet
treemagnet's picture

probably want the folks to pop off all those fireworks instead of making things that go boom on their own.

Fri, 07/01/2011 - 16:04 | 1420007 monopoly
monopoly's picture

Good weekend all. This is beyond words. Good job Bernank...until it implodes.

Fri, 07/01/2011 - 16:15 | 1420072 banksterhater
banksterhater's picture

behead Him

Fri, 07/01/2011 - 16:07 | 1420020 Cult_of_Reason
Cult_of_Reason's picture

Last time we had such market short covering rally was in Fall of 2008 (yet another proof that these short covering rallies on low volume often have nothing to do with the actual economy -- most people who bought that 2008 rally lost money in the following months)

Fri, 07/01/2011 - 16:07 | 1420036 bill1102inf
bill1102inf's picture

As usual, they need to get it as high as possible before the next batch of bad news takes it down...

Fri, 07/01/2011 - 16:17 | 1420067 Bam_Man
Bam_Man's picture

This is hardly new. The market did a great job of "discounting" in October 2007 when the Dow was above 14,000 and the S&P at 1575.

These "markets" have been nothing more than electronic casinos since 9/11/2001 - if not even earlier.

Sat, 07/02/2011 - 07:33 | 1421064 jdrose1985
jdrose1985's picture

1933

Fri, 07/01/2011 - 16:18 | 1420069 banksterhater
banksterhater's picture

I sold and left maybe $500- $1K on the table, I'm a small trader, was up to $45k invested, and cut it to $12K, I have to protect all pricipal, we're 60, this is a parabolic move,. being up $200 today on only $12K is ok, I'm not chasing IBD crap.

RSI is around 85 and full stochastics must be both near 97, next Friday is jobs, it will suck, based on initial claims, I doubt ISM is the only predictor, .02

Fri, 07/01/2011 - 16:30 | 1420103 foxman
foxman's picture

What goes up will come down and you don't have to hit the exact top or bottom to make $$$.  The next few months will include many stumbling blocks for both the market and the economy.  Until and if there is a breakout over previous highs, the trend is down.  Heck, the NASDAQ has been in a downtrend since 2000.

Fri, 07/01/2011 - 16:19 | 1420082 slewie the pi-rat
slewie the pi-rat's picture

amidst the hum-drum of the "sell in may & go away" the summer rally begins.  troublesome fundamentals and discounting yield to the solstice and beyond. 

nobody knows why, but i think it is caused by really big tadpoles. 

Fri, 07/01/2011 - 16:41 | 1420135 SwingForce
SwingForce's picture

FUKKERZ!!!

Fri, 07/01/2011 - 16:56 | 1420177 PulauHantu29
PulauHantu29's picture

"Everything is fine," my real estate agent told me...."RE only goes up."

Little Booyaah.

Fri, 07/01/2011 - 16:56 | 1420178 Bansters-in-my-...
Bansters-in-my- feces's picture

What a fucking joke,the DOW is up ,like 600 points in a few weeks,....on BAD NEWS... and bad economic conditions.

What a PONZI....

If you have friends that DON't  know what is going on in the markets....make sure you do your best to let them know what you do...

Democrats,Repubs....it don't fucking matter....the Bankster steals from you's all.

Fri, 07/01/2011 - 18:20 | 1420346 rocker
rocker's picture

Thanks bansters-in-my-...   The politics shit is just that.  Who's the bigger shitster. RepubliCons or Democraps.

It's the Banksters who run the show.  If you miss this point. The media is doing it's job well against you.

Turn the TV off and read Zero Hedge. One would learn useful info here. Otherwise answer the KY add. You'll need it.   

Fri, 07/01/2011 - 17:13 | 1420231 Waterfallsparkles
Waterfallsparkles's picture

The Market has been Nationalized.  Just like the FED ownes Aig, Gm, Fre, Fnm, and many of the Banks thru Warrents.

Very simple. The Fed owns it all and controls it all.

Fri, 07/01/2011 - 17:13 | 1420233 Waterfallsparkles
Waterfallsparkles's picture

The Market has been Nationalized.  Just like the FED ownes Aig, Gm, Fre, Fnm, and many of the Banks thru Warrents.

Very simple. The Fed owns it all and controls it all.

Fri, 07/01/2011 - 17:17 | 1420235 Waffen
Waffen's picture

What if, ZeroHedge is now the mainstream "mark."

What if, we are way ahead of the curve (because of the internet) and this thing could go to Dow 20,000?

Lastly, if the public doesnt know the market is rigged, we are in a depression and the dollar is worthless, does it matter?

TPTB hold all the cards and we are fucked, unfortunately for some of us we are aware of the matrix... I want my blue pill. :(

Fri, 07/01/2011 - 17:20 | 1420248 Waterfallsparkles
Waterfallsparkles's picture

Bennie Bucks must have pulled a rabbit out of his hat.  Something that only insiders like JPM, Gs, C, Bac knew about.

Fri, 07/01/2011 - 17:38 | 1420278 BoNeSxxx
BoNeSxxx's picture

I give up... I am totally out of the market so I only care with passing interest anyway... But WTF???  NOTHING (and I mean NOTHING) makes sense in the market today.  PMs move with the DOW on one day, against it the next, with the dollar on one day, against it the next... coupled, de-coupled...

There is a lot of disagreement among ZHedgers today on what this all means -- and for good reason.  

However, we are uniformly in agreement that, whatever it is, it's "Beyond Fucktard"  

Fri, 07/01/2011 - 17:44 | 1420286 Dr. Engali
Dr. Engali's picture

There are a lot of stupid shorts. Who in the hell shorts a market being supported by the largest hedge fund in history. Don't get me wrong. I think the market is fucked and should be shorted. But you will just have your ass handed to you. Bernankenstein will do whatever it takes to support this market.

Fri, 07/01/2011 - 17:46 | 1420297 MiningJunkie
MiningJunkie's picture

I had a SUPERB week! Unloading FRN's to buy copper and the E/S just when the hedgies all turned black bearish was a great if not lucky move! Everyone was short going into Bye Bye QEII and as usual, Mr. Market fucked it all up. Too funny.

Fri, 07/01/2011 - 18:09 | 1420322 random shots
random shots's picture

"The market is fucked up..." "fundamentals does not support the markets...". What you armchair speculators need to realize is that 1)It has ALWAYS been like this, not just the last three years and 2) Your "rational thought" has been conditioned to either see rainbows and unicorns (CNBC) or Mayan 2012 doomsday scenarios (ZERO Hedge peanut gallery). The true answer lies somehwere in the middle.

Congress will always be bought...lobbyists will get paid...and corporations will own us. Get in line or start the fucking revolution but for christsake stop bitching.

 

 

 

Fri, 07/01/2011 - 18:43 | 1420371 Rynak
Rynak's picture

An overwhelming amount of data says, that it has NOT always been as it is now. Not in that intensity. You're suffering from binary thinking yourself. Corruption and insane stockmarket behaviour, is not an on/off switch.

Fri, 07/01/2011 - 21:33 | 1420639 Obadiah
Obadiah's picture

Get in line or start the fucking revolution

+100

Fri, 07/01/2011 - 19:02 | 1420405 caerus
caerus's picture

i may be wrong, but i'm looking for for a nice doji on the ESU similar to the ones on the EGC on 5/2 and the ESI on 4/29...then short

Fri, 07/01/2011 - 19:19 | 1420443 Loan Gunman
Loan Gunman's picture

If someone had followed Jim Cramer's calls since March 

2009 they'd be up a nice chunk of change.  We've all 

played...hate to say it.

Fri, 07/01/2011 - 19:56 | 1420499 MFL8240
MFL8240's picture

Jim Cramer is an insider and professional trader.  His call on the market is purely on a liquidy basis.  You can do that yourself, just watch what the fed says and do the opposite.  He is no genious, he just plays the game.  had you bought Gold and Silver you would have been better off thans stocks because you would have owned something of value not just more worthless paper.

Fri, 07/01/2011 - 19:52 | 1420492 HileTroy
HileTroy's picture

The manipulation is just too funny. But that sweet 9.1% unemployment rate says it all.  Snap!!!!  I know if we will only report on the poor bastards who are getting cheese from the goberment that makes the unemployment rate look much better.( this is a soft patch) The guys that had companies or the poor bastards that have run the 100 weeks of unemployment don't count. That's genius....... wait that's what there doing so all the other guys eating cat food and living under a bridge are not Un-Employed.

Soo  coupled with the New Godzilla home land (Tokyo is fucked when he wakes up) , fire, floods, tor- naders and a rocking good hurricane season makes for a rock n good soft patch.  O wait I forgot our European friends going bat shit crazy along with our A-rab friends and there peaceful revolution. That is some rocking bullish news.

O ya and our poor dumb ass politicians only get a long week end and have to sit and look at each other and say No cuts in gov no tax raises.

This is bizarre-0 world but it makes for interesting reading  what am i missing.

I say lets get this party started!!!

Hey but Kramer say " They know nothing"

Clasic

 

Well on the sarcastic note Happy 4th  God only knows how many more there might be.

 

Beer and hotdogs all around !!!!!

 

 

 

Fri, 07/01/2011 - 20:16 | 1420528 Loan Gunman
Loan Gunman's picture

I have bought gold and silver, for years.  Makes sense 

and we all know what happens when we do something

that makes sense.  

Fri, 07/01/2011 - 20:51 | 1420602 sabra1
sabra1's picture

it gets confiscated?

Fri, 07/01/2011 - 20:31 | 1420567 taca
taca's picture

All of our handbags are priced between wholesale fashion jewelry with a money back guarantee if you are not 100% satisfied with your purchase. We also offer you FREE UPS Ground shipping on all orders over

Fri, 07/01/2011 - 21:44 | 1420645 karzai_luver
karzai_luver's picture

send me a thousand. NOW!

 

Fri, 07/01/2011 - 22:50 | 1420730 dwdollar
dwdollar's picture

You guys should take it easy.  This is the biggest Ponzi of all time.  If you think you're going to find the exact moment it cracks, your kidding yourselves.

Sat, 07/02/2011 - 00:02 | 1420803 Frank N. Beans
Frank N. Beans's picture

it's cool having the last comment. good night everybody.

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