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Carry Trade Implosion Precipitates Robotic Selling Into Close As 1,055 ES Level Breached
Attempts by carry traders to redeem some P&L after a month of agony crashed and burned promptly, accelerating into the close as the Yen funding unwind killed not just the carry pairs but broader equities. Of particular note is the hurt experienced by AUD longs funded with either USD or JPY.
It is officially time for Goldman to enter the stop losses on its various carry trades. The pain for the (leveraged) BRLJPY trade has now become unbearable.
The market took out the Friday's ES VWAP close and robotic selling panic set in.
This is what a perfectly uncorrelated market looks like. Sarcasm off.
Time to officially bury the Dow 10,000 v2.
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BZLJPY? something just went right over my head :/
My guess would be long brazillian real/short
japanese Yen.
I'm saving my money for Dow 8,000 2.0
bounces aside ... have daydreams of actually buying to actually buy, at DJ ??
let's see ~ 777 INDU - 8.12.82
let's see ~ 666 INX - 3.6.9
will be fun to see where we'll all be buying the INDU / INX (and Sensex) next (in 2015) ... since the ES and YM will long-since have been eliminated (no one's getting paid off below 2780 DJ on short deriv's). welp, only a few years til we find out!
Daedal: 8,200 DJ cash is a pivotal level to close below on the weekly for lame-ass institutional allocators that will beget a bounce, but the 2nd time under will beget blood.
f'ing haste + save button.
good look, TD. thanks for it.
A plethora of issues coming to the surface at the same time.
We just one more to go boom. More tightening by China may send risk assets down the tubes.
It should be BRLJPY. L not Z, as in Brazilian Real, the local currency.
Yea I didn't want to be pretentious and assume that it was a typo -- I gave him the benefit of the doubt that it was some reference to a hip acronym that I didn't quite have the loop to know.
For me, it's not BZL, or BRL, it's just R$. A caipirinha in Osasco costs R$ 2.50 ...
No Monday pump...no dead cat bounce...no short covering...no where else to go except down maybe!
Someone forgot to tell the Fed there's only nine lives.
Uh.....PPT is snowed in. Maybe back Thursday.
Just pull the threads on the comma and final zero. They will be accurate during the next leg of this Bear Market.
Be sure to send one to CNBS, especially Cramerica.
Stocks are for asshats.
I suppose Leo K. and Bob Doll were active buyers - after all as Bob Doll expects the S&P to hit 1250 !!
They said Marla was the foil. I think Leo is.
Wonder if Chief Investment Strategists are held accountable to their forecasts ? Its no wonder that Abby Cohen (GS) and Bob Doll (BLK)are still employed !!
Do we have a short term rally back to 1,100, giving people just one last chance to get out? Or are we in break down mode already?
I told a loved one to get out of stocks when I saw them over the holidays. In classic fashion, the response was, "I just need a little more to get back to even, then I'll sell."
Ugh.
Why Daedal why Dow 8000, why not Dow 4000-4500 ? I mean thats where this thing really needs to be does it not ? And btw Greenspan chimed in saying that he would be worried for the economy if stocks sank further !! I wonder why Alan ? I mean isnt the stock market supposed to reflect the economy and not the other way around ??
TD,
any nice graphs illustrating the money flow (outflow) from the PIGS, STUPID's and related themes?
Does the " for explanation" on that bloomberg terminal explains what's going on in the world based on that charts?
If yes robot-traders have a great future!
DOW 4000 anyone?
Pimps up, Hoes down...
Oops.. Gold's up, Dow's down
Gold Paper followed the Dow.... makes ya think
Was the PPT snowed in today? Or maybe just asleep at the switch.
Welcome back Bear Market... look at the chart.
http://midasfinancialmarkets.blogspot.com/2010/02/welcome-back-bear-mark...
Welcome back Bear Market... look at the chart.
http://midasfinancialmarkets.blogspot.com/2010/02/welcome-back-bear-mark...
Na. They'll just call Dell and turn it around.
http://www.youtube.com/watch?v=FPejYdBM11I&feature=related
Are they going to blame what happens next on Ahmadinejad's claims of a harsh blow to the "global arrogance" for Feb 11?
Yes.
Correction, thats my erection!
Black and gold....and silver up! Hoes down!
LEO must not have bought on the dip today like Friday...
Anyone check out the Commitment of Traders report from last week?
Man, at some point there is going to be too much pain for all those commercial players to bear and then will start dumping their positions that they loaded up on over the last several weeks. Only about 5 more weeks left in the SPH0, I can't believe they will ride this out to the very end. I wonder what that level will be, 1030?
It feels good being short overnight again. The PPT must be on a mandatory vacation since the dems lost MA.
I recently came across your blog and have been reading along. I thought I would leave my first comment. I don't know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often.
Lucy
http://forextradin-g.net
Market is accelerating to the downside. Objective: get prices as low as possible before public liquidation begins. It is fascinating to watch how price action is used to control public opinion/emotion. We're, what, 8%? off the highs of just a couple of weeks ago and most people don't even know the market has corrected. Late day rally Friday was to keep the market decline out of the newspapers over the weekend; to further dealy panic selling. I expect big gap openings ahead; 10%+ down days. Good luck everyone.
This market has support and more counter trend rally looks likely. SP00/DOW downtrend on the daily chart continues.
http://www.zerohedge.com/forum/market-outlook-0