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Could a newbie like myself maybe have a little explanation from one of the more experienced members here?
Here is all you need to know: http://en.wikipedia.org/wiki/Market_manipulation
ETA: To sum up, as the Euro goes, so goes the SP500.
The "market" seems to ignore any fundamental data (e.g. very poor initial claims report) and instead only trades on the technical relationship of the EUR/JPY currency cross to the SPX equity index. It's a consequence of the carry trade where money is borrowed in low-yielding currencies (e.g. Yen) and assets are bought in higher yield currencies (dollar denominated equities). The unwind of the carry trade caused the indiscriminate selling in 2008/2009 and will again, probably soon.
Also, cursive, I'd add that the HFT programs only know what they know, and right now, they trade on the correlations you described above. Until those correlations don't hold, and the Terminator is destroyed and the moment is safe again, until the next, higher level Terminator is deployed... and we have to fight again.
It's recursive, basically.
+10
Couldn't get cleare than this.
Couldn't get cleare than this.
Cursive do you feel that maybe this time it can be continued forever or until they can somehow manipulate the fundamentals and then allow the carry trade unwind. I keep waiting for equities to reflect fundamentals but see no end in sight.
Haha! Sometimes, rather than making technology fit a flawed business practices, we have to modify the business practice to properly use the technology. Reverse social engineering so-to-speak
That could work here.
/facepalm
@Onehunglow
They can't hold it forever and the fundies will not improve. This is the best the fundies will be for some years.
Patience, grasshopper, patience. Most EW people are looking for a pullback to 1070 before a run to as high as 1178/80. I think we're in a tough resistance zone here and any reach to the 1140/50 area will be a brief intraday affair and we'll see a hard reversal from there. Bottom line, I believe the 1220 high is in and it's all down hill rollercoaster ride from there (we're in Act 1 of that drama). BTW, is Onehunglow your Wu Tang name? :D
I am looking a chart : if as you say S&P will max out at 1200, then DXY should be 100 at that instance.
That will be the peak(of S&P * DXY) I expect by around Dec 2010. I could be wrong, but this is how I am positioned. From then on, the product of S&P*DXY is downhill, as I see.
Thanks Cursive. LMAO Wu Tang Clan R.I.P. Ol' Dirty Bastard
I concur....The FXY is moving above its 200 day moving average.
I won't presume "experienced member" but the loss of confidence in paper currency translates into secular demand for hard assets, namely gold.
Euro falling against Swiss Franc as gold jumps. Presumably, people are moving their wealth out of euros and into gold.
which is then held in Swiss banks
Well, why didn't somebody just say so. Why does a conclusion have to be extracted like a sore tooth! JFC! Make some comment on what all this crap means in the initial post. It's like getting information out of my wife...
All these senseless moves in the markets these days (mostly going up on awful news) will all be corrected in another meltdown in the near future. Obviously, there will be no reason given for the melt-up given the horrendous datapoints and there will also be no reason for flash crash 2.0, whenever it happens.
I'm by far not as knowledgeable as many here but my 2 cents on this. This mantra I hear repeated from alot of floor traders on CNBS and even my father's broker.
"With higher or no recovery in employment we will have zero interest rates for some time."
If I could borrow millions for nothing and have my computers churn stocks to make me more millions even billions I'd keep it going as long as I could.
You have to remember we are seeing alot of bottomline growth as companies shed jobs their former employee's get government checks to go out and keep shopping. So for now bad news is sorta good news. Once this stops I agree we will see a massive correction/meltdown.
If all these are "senseless moves in the markets" then why post them? What's the point?
Are we supposed to draw some sense from nonsense? Is that what our markets have come to?
Yeowsers. In case anyone missed the BP gaffe about walruses, the media jumped all over it. The real problem is that media forgot that manetees look like walruses and manetess actually do live in the soon-to-be-sterile gulf.
The BP Chairman standing in front of the White House commenting that he cares for the "small peoples" was even better. And it wasn't a translation error. Far from it. It wasn't even a Freudian slip. It was the truth spoken to the cameras by a different species of aristocrat that uses that term all the time in private.
OK, maybe it was a translation issue. He meant to say "little people" not small people.
Yes, it was a translation issue. What sounded like "little People" was in fact "llillepeebol" which is Swedish for "Slave".
My bad. I'm just a rumor mongering ass-hat. :>)
Short people got no reason
To live
They got little hands
Little eyes
They walk around
Tellin' great big lies
They got little noses
And tiny little teeth
They wear platform shoes
On their nasty little feet
Well, I don't want no short people
Don't want no short people
Don't want no short people
`Round here
Excerpted from Randy Newman's song "Short People"
As far as BP's stock goes, I'm happy to be one of the short people.
Perhaps in the low 20's I'll flip and go long.
I like it, I like it! :-D
Your avatar may be the new BP poster child you know...
That came to me on the way to my work.
http://www.cafepress.com/+cursing_fish_dark_tshirt,238415126
So I have been whoring them out on Craigslist now as well. Perhaps someone will find me as funny as I find life.
Yep. There's a tornado bearing down on the house and Auntie Em and Dorthy are inside playing house (NYSE) with Ken (EUR) and Barbie (USD). Reality is for suckers.
You forgot the best one out there: AAPL. Onward and upward as if everything is A-OK.
People will ditch their homes before they ditch their IPhone, Mac, and IPads. It keeps going up because people continue to buy their stuff no matter the economic environment.
HW,
Ive been watching AAPL for a few months now, have been waiting to start adding some shorts. Today it hit a new intraday high at 272. When I saw Steve Jobs on the cover TIME magazine thats when I knew that AAPL glory had been reached. Go and tell your average person that your betting against apple, the darling of America, and they will look at you as if you have lost it. The mainstream indicators are there, all we need now is time.
May start adding my first shorts soon, still waiting for it to go higher. Ideally, I would love for it to go even more parabolic to $300 per share so the crash back down to the low 100's would be swift and neat.
Couldn't agree more. I have yet to find a single person say anything negative about the stock. Reminds me of 2008 when it first hit $200 after the launch of the first iPhone.
I love how people say, "gold is only worth something because other people think it is also." Duh. What the hell is the value of a growth stock then?
What if Apple installed the 5G iphone if a 20oz gold ingot? How cool would that be. 24ct of course.
Better yet, to cut down on cost, they could just hollow out an ingot from Ft. Knox and paint the remaining tungsten with gold spray paint.
I'm there with you..actually before you. I have steadily been building an AAPL short position with common and options. Aside from the fact that Europe is s..l..o..w..l..y turning into a war zone and iPads will be used more to beat gov. officials over the head rather then multimedia, let us not forget what a massive component AAPL is of nasdaq and all ETF's associated. HFT is all over this thing... when either sentiment or momentum or both turn down, it will be a fun ride down.
The darling of America.
"Apple Admits Child Labor & Sweatshops Used to Build iPhones"http://humantrafficking.change.org/blog/view/apple_admits_child_labor_sw...
So certain are we, why not pile on the longs and make money on it both ways? I love the 'ill short it when it gets to xx level' posts. Classic.
Agree: Steve Jobs bubble stock. Who needs iPads and iPhones? No one.
To all above hating on Apple. It continues to go up because they are kicking financial ass. Look at their numbers. Look at their sales. Arguably the best and most innovative company in the world and people want to short it. Go for it, you will get steam rolled based on their sales and numbers. I'm pretty damn negative on the world economy, but shorting the one company that is able to fight the current because they have superior products is stupid. If you think the Android phone is going to take away market share enough to hurt the stock, fine, at least that is a decent argument. Nobody is making that argument though.
Yes, I own a shit load of Apple stock and own a Mac.
@Iamamaniam: It might be the best-run tech company in the world. But do you buy an iPad when your baby's stomach is growling so loudly you can hear it in the next room? Tech is a luxury market, and luxury's about to get a whole lot more expensive.
I would agree if I knew anyone who was buying this stuff that had a kid they could not feed. Apple's business is not slowing down, sales are increasing. And I definitely don't recommend people buying luxury tech items in lieu of feeding their children.
Focus on the macro. Apple is growing because of increased market share, not increased market depth. They're taking a bigger slice of a shrinking pie which means their growth momentum will plateau after they've increased their market share as far as they can, then their revenues shrink along with the rest of the economy.
Totally agree, not planning on holding forever, but there is 900M (read that somwhere) pc users; china loves the IPhone, as will other countries without significant market share. Plenty of room for growth over the next few years anyway. Who knows after that.
Yeowsers. In case anyone missed the BP gaffe about walruses, the media jumped all over it. The real problem is that media forgot that manetees look like walruses and manetess actually do live in the soon-to-be-sterile gulf.
You missed the fact that all the oil companies disaster plans had the same gaffe.
They all had copied the same report!!!!!
Yeowsers. In case anyone missed the BP gaffe about walruses, the media jumped all over it. The real problem is that media forgot that manetees look like walruses and manetess actually do live in the soon-to-be-sterile gulf.
You also missed the fact that the disaster plans did not discuss animals that "look like" walruses...they discussed walruses.
Love the ES at the moment. Drops then flys back up. Almost like someone threw a super bouncey ball off a building.
Heres a good summary of it all
Fed Manipulations in the Crosshairs
http://www.thenewamerican.com/index.php/economy/markets-mainmenu-45/3731-fed-manipulations-in-the-crosshairs
Alex Newman Reveals Fed Manipulation & Bernanke's Trillions
http://www.youtube.com/watch?v=53e_DFoZU1w
great link, much thanks!
BP should be charged with 'Crimes Against a Manatee'
+1 Excellent.
+ 10. "BP's crimes against a Manatee..." brilliant levity for a sick world.
Market is shot here, USD will likely rally back and SPY drop to 110 today.
The idea that Gold is anything more than another speculative trading vechile is stupid as the Govt. has confisicated personal gold holdings in the past and will do so in the future when its in their best interest. You can't hide your gold from big brother or your neighbor with a big gun. He who controls the guns, controls the gold and makes the rules.
Tyler, your page doesn't display correctly in firefox (latest version). The charts are covered up on the right side by the "zero hedge team" graphic. This happens for all posts that have charts posted in that same placement.
Expand the width of the window, if you are full screen then you need to get a new monitor!
Reduce type size and put on glasses will work, too. Use the Zoom function to go smaller.
All well and good, but how about moving the login boxes to the other side of the page? Font size I have to use places them over article content in their present location.
Cheese-eating , watch making , money laundering suckers
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