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The Credit/Equity Disconnect Is Now Complete: All Financial CDS Are Wider
No one needs to look at stocks to know how JPM, and the other TBTFs are doing. After all they are now firmly in the clutches of the HFT/Citadel/FRBNY pump machine. Yet a glance elsewhere confirms that all correlations between stocks and credit are terminally broken. To wit, note the following CDS spreads as of moments ago:
- JPM 85/88 (+4)
- MER 184/189 (+6)
- MS 170/175 (+5)
- WFC 105/110 (+6)
Be careful trading financial stocks: JPM's earnings were actually very bad, and so far only credit has figured it out. Equities, being traded now exclusively by Fed-frontrunning retards and virus-infested robots, are a little slow.
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virus-infested robots
Spent too much time pumping trashy stocks.
was today a fed day. this is crazy. we gap up, we never gap down. I only see stuff like this on fed days.
By the way ZH promised to post the fed days the day before. I didn't see one yesterday.
anyone know a link to these days!!!
I am pisse3d because I know every fed day is used to jomp the market past a new resistance level. I want this links!!!!!
All you have to do is type in Federal Reserve Permanent Open Market into a search engine:
http://www.newyorkfed.org/markets/tot_operation_schedule.html
Apparently HFTs don't have time to be concerned about details like who holds titles to which houses.
looks like there are a lot of temp. freeze on stock trades. I already have 3 times 2 minute freeze on my screen.
1. They are manipulation the market again
2. I should pause some porn downloads
...
Strange day...
You are never going to get that SEC job with that attitude.
Who are you with? I get the exact same thing with TD Ameritrade.
Keytrade
I thought she complained about the slow-downloading porn :-)
JPM stock rose higher today, due to HFTs (which hold no positions overnight) and Fed-frontrunning retards, but mostly due to Fed front-running retards.
Do not worry, the Fed will make a few calls and get that reality checked back into unicorn land.
Lets not forget -
"The next release of the approximate purchase amount and tentative outright Treasury operation schedule will be at 2 p.m. on October 13, 2010."
POMO...POMO...POMO...
Something for the machines to get excited about....
On days where the banks aren't buying with their POMO crack the FED is probably buying directly.
TD: Daddy needs a gold thread, please. We are within $5 of the intraday high of last week. Lots to talk about.
Woo Hoo! We got a nice pop! I did a weapons upgrade yesterday and it's paid for already!
Got to keep the stock up before Jamie does his block trade....
Looks like Skynet decided to counter the shorters ambush into a frontall attack. John Connor IS TOAST I TELL YOU!! TOAST!!
As pointed out by another website...people (and algo's) only read headlines and short snippets. They don't want to take the time to read deeply into the nuances of the situation. This is the downfall of this country. We rush too much and don't take the time to read, understand and think (ZH crowd excluded of course).
The article which says "What HAS changed is recent years is that fewer and fewer people have hours to spend luxuriously leafing through old news in magazines."
http://www.businessinsider.com/heres-why-i-dont-read-businessweek-even-though-bloomberg-has-made-it-great-again-2010-10#ixzz12FNCyShS
This one of the main reasons the US is being left in the dust...we are dumbing ourselves down because we are in a hurry.
can you just give me the bullet points of that article :-)
Too long, didn't read...
Yeah, you had me 'til "As"...
Fucker Extraordinaire David Tepper unloaded his entire JPM position at the open and thanks all the CNBS viewership and assorted suckers for their $upport.
Look for JPM to close below $38 today.
To a robot, what is a stock? Answer: a 1-4 letter symbol with a price that goes up and down.
Ummm, wrong...
Answer: a 1-4 letter symbol with a price that only goes up.
It's hard to disagree with your themes and observations. The role many of us play is to make money so we must do so even if holding our collective noses.
CDS is smart money into instruments which are thinly traded. In an environment like this run by policy and not fundies, it is difficult to say when the fundamentals take over, and whether or not the policy succeeds under a given time frame. A CDS short can be patient so just like Ireland and the rest of the PIIGS, policy trumps the real for now and may even feed back to become real ...
This seems like as good a place as any; for those who have not seen it, "Quants: The Alchemists of Wall Street"
http://www.youtube.com/watch?v=ed2FWNWwE3I
Please post more doom and gloom the market seems to love it.
Hey, been meaning to ask, wr--are you the same whiskeyrunner who follows EEStor?
My net wealht increases after visit at bullion dealer.
Price=nice but ounces is what really counts in the end.
Has the silver stockpile really gone,too bad for the shorts.
Thinking about buying some extra silver rounds just too
help them a little more.
Tyler, when should we buy equities? Then I'll know when to sell LOL.
Wow look at that vertical move in gold! What just happened to cause that?
Short sqeese Physical killing papermarket
Starting to look like it, isn't it? That seems to be the most plausible explanation, especially when "experts" start publicly calling for the government to sell "it's" gold.
Could be how nicely JPM is putting the final nails into the banking sector coffin...too. Not that anyone outside of ZH really sees the guy with the hammer.
How do you punish a Robot?
http://www.enterprisecorruption.com/
Nice.
I need to get the password from Reinhardt to get my free copy, should be a great book!
The die has been cast. Ben has decided on inflation. Hyperinflation does not scare him. As such, in a rare event, I'm thinking the bond market will be proven wrong, and stocks and gold have been correct for the past 18 months. So $1 bn buys a loaf of bread? Ben will have $1e55 stashed away for himself. He'll be fine. Plan accordingly.
up 9.5 on the /es. another day, another chance to buy,buy,buy.
It's on...1367
It might be interesting to see what happens to JPM a little after 2 pm today. "Come on and take a free ride, (free ride)! Come on and take a free ride (free ride)! Come on and take a free riiiiiidddddeee!
Don't tell me the shorts have finally been suckered into covering.
It must be extremely frustrating to Tyler who provides all of the important information about the economy etc. only to discover that the market doesn' care at all about the condition of the economy.
According to Ben Bernakruptcy the stock market IS the economy.
it IS the economy when it's up, but not when it's down.
This article claims European investors are more bullish now than they have been in the last 9 years:
http://www.moneyandmarkets.com/european-investors-havent-been-this-bullish-in-nine-years-40368
Cramer must be smiling from ear-to-ear right about now.
FYI, VXX = FAZ
ahhh FAZ. To buy or not. Its April '10 lows $10.78 a share. Now its $12.01 per share. Its week of Sept 18, 2008 highs: $2,018 a share. All Wall Street has to do is cough/spew forth one big sacrificial lamb (LTCM, Lehman, Bear et al)... surely they have somebank they can throw to the wolves?
It was never actually 2,019; its had a bunch of reverse splits due to all levered ETFs eventually gearing towards 0.00
How about trading Brasil,Chile,Colombia banks?
DERP DERP DERP buy! DERP DERP DERP buy! DERP DERP DERP
Tyler, there was a paper written a bit ago about how CDS liquidity risk increases substantially in deteriorating conditions, thus limiting the true worth of a spread as a market indicator.
Anyway, good info.
Really this is a great post from an expert and thank you very much for sharing this valuable information with us.
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