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Daily Divergence Dementia Update: Crazy Pills Time
WTF is going on here? Did someone feed booze to the collocated computers? Someone smarter than us please explain this.
Update 1: Let's see where this goes:
Update 2: And now, crazy pills for everyone
Update 3: Someone is blowing up right now
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S&P up nearly 9% in 13 trading days. Given the economic data released and the lack of any fundamental drivers underlying this move, it's clear that the government will do anything in its power to keep 401Ks artificially inflated.
Just another day of unadulterated no volume fed POMO meltups. I believe they are setting this market up for one hell of a correction playing these kind of games. There is no sane reason to monetize debt to buy risk assets, at least not in my mind. Did asshole Ben Bernake wake up one day and say, "I'm going to fuck the dollar to gun the markets." This guy is either a genious or a total dip shit and 99% of ZH readers believe he is the latter......
I pray to Jesus this thing blows up right in his fucking face because thats what he deserves.
If Dr. B. got run over by a bus today, I would not have any pity on him
Who are they gonna sell all their stock to?
Whats up with the builders? Shit, what dour report but up heavy.
1150 by tomorrow morning.
MISSION ACCOMPLISHED
Probably steady going into the FOMC announcement, then the obligatory run to 1150.
I think she peters out at 1150. And for all you H&S chart geeks, that would truly be your other shoulder on the daily chart.
But....Apple will announce that they sold a new iPad to every person on the planet, announce yet another new iGadget and the charts won't matter.
Hope you're right, or I'm gonna be living in an iTent soon.
Aapl is a fruit company and no one in my family will buy a i product tommorrow.
Appl is a magnificent company. They make great products. Their products work. Plain and simple.
magnificent is a low bar these days
Just keep in mind that all H&S patterns have been fakes for over a year now.
Meanwhile, in the world of reality:
“Market measures of risk for peripheral European countries (Greece, Ireland, Portugal and Spain) are at or near danger levels,” El-Erian wrote in an article posted Monday on Pimco’s Web site.
That’s despite “exceptional” support from the European Central Bank, the European Union and the International Monetary Fund, he added.
The ramp can't be from the Obama town hall today because that bombed.
cum hoc ergo propter hoc
Nothing to do with divergence, just with the equity rally:
Buybacks Jump as Companies Borrow for Stock Purchases (Update2)
By Lynn Thomasson and Alexis Xydias
Sept. 20 (Bloomberg) -- Record-low interest rates are stoking the biggest increase in U.S. share buybacks ever.
American companies announced $55.9 billion in repurchases since June, data compiled by Birinyi Associates Inc. show. That adds to $93.5 billion in the second quarter and $108.3 billion during the first three months of the year, compared with $125 billion in all of 2009. Corporations are using debt to pay for buybacks after the average yield on U.S. investment grade bonds fell to an all-time low of 3.70 percent last month, data from London-based Barclays Plc show.
Companies from Microsoft Corp. to PepsiCo Inc. and Hewlett- Packard Co. are taking advantage of low-cost financing, purchasing their stock to boost per-share earnings at a time when the Standard & Poor’s 500 Index trades at a 26 percent discount to its average valuation since 1954. At the same time, choosing buybacks may show executives are too concerned about the economy to invest in new projects or make acquisitions.
“It’s so cheap to do it now in the bond market: issue debt, fix their cost of capital, then shrink the number of shares outstanding,” said James Swanson, chief investment strategist at Boston-based MFS Investment Management, which oversees about $197 billion. “The markets are almost calling for them to do it.”
I love all the rehtoric for the stock buybacks...but insiders are dumping like stocks will be out of fashion tomorrow. They are just buying back their own stocks they paid out to their directors and executives.
Corporate stock buy backs. The new definition for in-you-end-doe.
It beats the headache of hiring and managing new people
Everything is fine. Obama says don't worry be happy. I'm surprised that CNBC has not put on this informercial..I mean town forum before. BUY BUY Buy bitches!
Bernanke's cat is stepping on the "buy button" again. They should put a cage around that keyboard.
This keyboard? Thanks to WB7 for the art work.
HEY! I thought this was classified information.
haha.. that's some good sh!t
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Crazy pills or stop harvest time? Was today's run-up just a couple cycles of stop harvesting by LARGE PLAYERS (...wonder where the money came from...) sweeping the market clean?
If it was, those LARGE PLAYERS must be mind readers... or they read broker order books. Every time I see this, I wonder.
Can anybody say for sure today's rally was a result of buyers ENTERING the market?
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Thanks for such a great post and the review, I am totally impressed! Keep stuff like this coming!...
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