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ES Gaps Down Big As 200 DMA Broken, FX-ES Decoupling Arrives

Tyler Durden's picture




 

As expected, support was breached. EURJPY has to follow to the downside for the move to be confirmed or ES will bounce right up as the gap is filled (yes, it is 3pm and decoupling is here).

And decoupling:

 

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Tue, 06/22/2010 - 14:55 | 427352 wagefreedom
wagefreedom's picture

let's see if all that bearish engulfing shit works.... anyway props to Nic Lenoir for making a stand  http://www.zerohedge.com/article/market-update

Tue, 06/22/2010 - 14:56 | 427356 Zé Cacetudo
Zé Cacetudo's picture

Anyone know how to get EURCHF on FinViz?

http://finviz.com/forex.ashx

Cheers.

Tue, 06/22/2010 - 15:01 | 427376 LoneStarHog
LoneStarHog's picture

Suggest using> http://www.netdania.com/Products/live-streaming-currency-rates-foreign-e... <which you can customize with just about anything, and it is FREE!

Tue, 06/22/2010 - 14:57 | 427361 Kamikaze Ben
Kamikaze Ben's picture

PPT broke. Sorry guys can't help the bull here.

Tue, 06/22/2010 - 14:59 | 427366 firstdivision
firstdivision's picture

Last 30 min will be the most dramatic stick save.

Tue, 06/22/2010 - 15:11 | 427399 HarryWanger
HarryWanger's picture

SPX needs to close above 1103.50 area for a successful save. Close above 200 dma and the miracle continues.

Tue, 06/22/2010 - 15:00 | 427373 bob_dabolina
bob_dabolina's picture

Another couple handles on the ES and Ben B/Tim G will be out telling everyone that were all gona' die if we don't get stimulus pronto.

Tue, 06/22/2010 - 15:01 | 427379 Al Huxley
Al Huxley's picture

Not to worry retail investor, pay no attention to the smoke, stay in your seats and enjoy the show, the theater is not on fire, repeat, not on fire.

Tue, 06/22/2010 - 15:24 | 427432 Renfield
Renfield's picture

HEY! I found those books you recommended and started reading them.

Loving them so far...only two chapters into Wall St Stories and just started Livermore. They knew how to write...gonna learn from the masters this week. :-)

(Then maybe I can stop being poor.)

Tue, 06/22/2010 - 15:29 | 427453 Al Huxley
Al Huxley's picture

Glad your enjoying them, they're far and away my favorite books on the markets.  It always amazes me how similar today's markets are to those of 1901.  Says a lot about the consistency of human nature and behaviour.

Tue, 06/22/2010 - 18:45 | 427965 SPONGE
SPONGE's picture

I missed that...

    What books did you recommend? Need some more summer reading.

Tue, 06/22/2010 - 18:53 | 427971 michael63636
michael63636's picture

I read the one about Jesse Livermore.  He was not a master.  He started working about age 15 and did not go to college or know science, math or engineering.  He guessed a lot.  He looked for patterns.  He read the ticker tape, but he wandered in darkness.  Sometimes he was right and went all in with ever increasing bets.  four times he lost it all.  three times he came back.  the forth time he comited suicide.

Tue, 06/22/2010 - 18:57 | 427977 michael63636
michael63636's picture

Best book I've read so far:


Amazon.com: Inside the House of Money: Top Hedge Fund Traders on ... Amazon.com: Inside the House of Money: Top Hedge Fund Traders on Profiting in the Global Markets (9780471794479): Steven Drobny: Books.
www.amazon.com › ... › FinanceFinance & Investing - Cached - Similar

Tue, 06/22/2010 - 15:08 | 427385 Renfield
Renfield's picture

Watching the minute candles now. Absorbing skirmish all right. They've successfully halted the EURJPY fall, but not making much headway off 111.05. It made it below 111 support a couple times before getting beat back. I say the PPT wins this one.

Ah, yes, there it goes. Looks like we'll get happy and green today after all.

ETA: So...what happens next. All Central Banks around the world called to defend EUR, buy it up only gradually and co-operatively so no-one suspects intervention or laughs at SNB again? Red phones around the world ringing even now. China allows CNY to drift up a bit more? Damn tinfoil hat is at the cleaners now when I need it most.

Tue, 06/22/2010 - 15:12 | 427401 London Dude Trader
London Dude Trader's picture

Trichet is probably too distraught about Les Bleus being sent home early from South Africa to pay attention and he's not answering Ben Shalom's frantic calls!

Tue, 06/22/2010 - 15:19 | 427422 Renfield
Renfield's picture

haha that explains it - so far this be the lamest ass rescue I've seen yet this month.

Works for me. Had a little long on EURJPY for just this eventuality and a short pending for the LONGEST TIME on the overbot AUS, which is doing a swan dive and looking lovely in red. Hope Trichet's service gets him out of the pool in time to miss the AUS part of the rescue anyway...or maybe he'll be too drunk to care.

Tue, 06/22/2010 - 15:42 | 427474 London Dude Trader
London Dude Trader's picture

If England loses to Slovenia and is also shipped back home tomorrow expect another 50-handle drop in ESU0 courtesy of GS's prop desk in London! 

Tue, 06/22/2010 - 15:07 | 427391 RobotTrader
RobotTrader's picture

Geithner's Blackberry must be wailing with sirens right about now...

LOL...

 

Tue, 06/22/2010 - 15:09 | 427395 London Dude Trader
London Dude Trader's picture

Next support for ESU0 is at about 1084

Tue, 06/22/2010 - 15:14 | 427408 firstdivision
firstdivision's picture

This is more epic than the final battle in Lord of the Rings, and just as much special effects used (have the markets appear as real as Middle Earth).

Tue, 06/22/2010 - 16:33 | 427627 AccreditedEYE
AccreditedEYE's picture

No, no... if this were Middle Earth I would have far more influence in bending the market to our (ZH) desires... Like sending the Witch King of Angmar to have a meet and greet with the Federal Reserve!

Tue, 06/22/2010 - 15:17 | 427420 Al Huxley
Al Huxley's picture

Sporting defense of 1100 - that's gutsy buying given the pathetic state of the market.  Buyers might wish they raced for the exit instead of defending an arbitrary psychological stop when this is all finished.

Tue, 06/22/2010 - 15:18 | 427421 newstreet
newstreet's picture

Let's all sell the hole here

Tue, 06/22/2010 - 15:20 | 427428 ptoemmes
ptoemmes's picture

I am still not going to stay at the Park City Waldorf Astoria no matter what the close or how many times that freaking ad consumes the ZH real estate.

 

Pete

Tue, 06/22/2010 - 16:50 | 427679 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

What? Are YOU worried?

Tue, 06/22/2010 - 15:20 | 427429 firstdivision
firstdivision's picture

EURJPY is getting pumped like a blowup doll.  Time to close shorts.

Tue, 06/22/2010 - 15:24 | 427439 Al Huxley
Al Huxley's picture

I think the problem is, nobody wants to own stocks right now, so anybody buying to 'support the market' realizes that the pool of suckers available to market them to at a later date is shrinking fast, and they might be left as the bagholders.  Should be an interesting close.

Tue, 06/22/2010 - 15:25 | 427443 Turd Ferguson
Turd Ferguson's picture


At this point, I couldn't give a shit anymore if Benny and Timmy pump the market.

I just want to pump Mandy. Mmmmm, Mandy.

Tue, 06/22/2010 - 15:31 | 427457 firstdivision
firstdivision's picture

Timmay and Bennay are DPing Mandy as we speak...look at the ES get drilled.

Tue, 06/22/2010 - 15:41 | 427473 Turd Ferguson
Turd Ferguson's picture

man, I'd like to rescind my moratorium on drilling her...

I'd drill her deepwater every which way to Sunday.

Tue, 06/22/2010 - 15:51 | 427501 Eric Cartman
Eric Cartman's picture

ES is getting drilled like porn star bent over a kitchen table.

Tue, 06/22/2010 - 15:55 | 427511 Rick64
Rick64's picture

Ya and its all most as fun.

Tue, 06/22/2010 - 19:02 | 427994 Borat
Borat's picture

Sexytime ... with a rubber fist... Hi 5 !

Tue, 06/22/2010 - 15:23 | 427433 Slash
Slash's picture

scottrade down....

 

 

 

nm, back up

Tue, 06/22/2010 - 15:33 | 427459 London Dude Trader
London Dude Trader's picture

Best way to play this is to buy CL puts. CLQ0 is lagging ESU0 and will suddenly plunge once ES crosses 1090.

Wed, 06/23/2010 - 00:26 | 428505 Young
Young's picture

It's always jittery to short crude... One darn suicide bomber, american invasion, or 747 stuck in a building and it goes through the roof...

Tue, 06/22/2010 - 15:37 | 427464 Rick64
Rick64's picture

Jesus Christ! This rollercoaster ride is fun. Short and lovin it.

Tue, 06/22/2010 - 15:39 | 427465 Turd Ferguson
Turd Ferguson's picture

The Shitcan Cometh!

1093 on the ES

Tue, 06/22/2010 - 15:44 | 427476 carbonmutant
carbonmutant's picture

S&P is bouncing off the Upper Bollinger Band for the dailys.

Tue, 06/22/2010 - 15:46 | 427482 Turd Ferguson
Turd Ferguson's picture

You mean this market is trading off of short-term technicals?

After listening to CNBS, I thought "investors" were looking at the improving economic and housing picture and concluding that the worst was over and that they needed to buy more index funds.

Tue, 06/22/2010 - 16:01 | 427528 London Dude Trader
London Dude Trader's picture

Headline just seen on CNBS: DOW ON TRACK FOR BEST MONTH SINCE MARCH. I kid you not!

Tue, 06/22/2010 - 15:46 | 427483 Al Huxley
Al Huxley's picture

So, we need somebody to volunteer to buy into the close to prop the market up - who's up for it today?  Hello, hello, anybody?

Tue, 06/22/2010 - 15:47 | 427489 kingston
kingston's picture

flash crash will come... again!

Tue, 06/22/2010 - 15:52 | 427505 firstdivision
firstdivision's picture

Anyone stop to think if today is a headfake to get people to sell and start to place short positions, just to melt up tomorrow triggering across the board stops?

Tue, 06/22/2010 - 15:55 | 427510 Eric Cartman
Eric Cartman's picture

I hope I did this right. I only bought 1 lot so I guess it ain't gonna kill me if I'm wrong. 

Tue, 06/22/2010 - 15:57 | 427517 Cyan Lite
Cyan Lite's picture

PPT must be too busy playing with the new iOS4.

Tue, 06/22/2010 - 16:07 | 427545 London Dude Trader
London Dude Trader's picture

Yes, I upgraded to iOS 4.0 last night and can confirm it's a long drawn-out process, with a few glitches in the back-up and restore process! 

Tue, 06/22/2010 - 16:07 | 427546 John McCloy
John McCloy's picture

+1

Likely fine tuning the FRBNY Ramp Markets application so they can enjoy cocktails at "Little Branch" and simultaneously do patriotic work squeezing evil shorts and wolf packs.

 

Tue, 06/22/2010 - 16:02 | 427529 -Michelle-
-Michelle-'s picture

Well, that was interesting.  I wonder what headlines the robots were reading.

Tue, 06/22/2010 - 16:02 | 427530 John McCloy
John McCloy's picture

Dylan Ratigan is going to do a segment on "The real worth of Wall Street" coming up this hour.

 

Tue, 06/22/2010 - 16:02 | 427531 Turd Ferguson
Turd Ferguson's picture

Shhh. Don't tell anybody but gold has snuck back up to 1142. Shhh.

Tue, 06/22/2010 - 16:07 | 427548 GS is short Gold
GS is short Gold's picture

Just an ugly unwind of the fake, artificial prop job into opex.

Tue, 06/22/2010 - 16:38 | 427645 AccreditedEYE
AccreditedEYE's picture

Hold strong men, we need to focus on the goal: Strong volume close under 2150 Naz and 1050 S&P. Then we own them!

Tue, 06/22/2010 - 16:42 | 427658 jkruffin
jkruffin's picture

LOL, you gotta be kidding me??  Here is CNBC take:



Is Drop in Home Sales Good News?


  •  
    • Buzz up! 0
On Tuesday June 22, 2010, 4:02 pm

For all of you out there who accuse me of perpetual bearishness, here's a twist: What if the drop in existing home sales in May is a good thing?

Tue, 06/22/2010 - 16:44 | 427667 Dont Taze Me Bro
Dont Taze Me Bro's picture

We'll retest the May lows this week

 

Tue, 06/22/2010 - 16:58 | 427704 A_MacLaren
A_MacLaren's picture

From your finger-tips to the market god's ears!  

Tue, 06/22/2010 - 17:25 | 427768 anony
anony's picture

No we won't.  Word. 

Let's revisit these effortless prognostications in 72 hours.

Tue, 06/22/2010 - 17:30 | 427783 homersimpson
homersimpson's picture

I hope you're right but I'm not counting on it. Too much PPT action going on. An extended smoke break today for them, I'm sure.

Tue, 06/22/2010 - 17:24 | 427765 mynhair
mynhair's picture

Skittles....taste the rainbow.

Gold bugs are gonna get hammered this week.

Tue, 06/22/2010 - 17:34 | 427795 AndItsGone
AndItsGone's picture

The 200DMA rises about half a point a day.

The 50DMA falls about two and a half points a day.

They are 24 points apart.

Train A is leaving Cleveland. Death cross first week of July.

Tue, 06/22/2010 - 18:01 | 427851 Fedex11
Fedex11's picture

All i can say is the charts look like "pooo" sorry kind of childish but fitting imo 

Tue, 06/22/2010 - 19:04 | 427998 Itsalie
Itsalie's picture

the ES has been underperforming EUR/JPY the last 3 days sometimes by as much as 5 to 10 ES points, hmmm, someone forgot to remove an "if-then-else loop" somewhere in the bots software? or maybe carry trade crowd are joining the french (and soon english) soccer team to leave on prolonged vacation? The squids hire some terrific french drop-outs like Toure, so not so surprising these hedgies are feeling gloomy these days

Tue, 06/22/2010 - 19:59 | 428113 juwes
juwes's picture

I posted this early this morning on a different article:

 


"If the past de-(and re-)couples on the 30 and 60 day charts mean anything, then this current gap should be closed in a week.  So I know there are theories galore about price support and dma's bla bla bla.

 

But SKYNET should close the spread in 7 or fewer days. (1070)"

 

gloat, gloat, gloat... but make money first!

Tue, 06/22/2010 - 20:45 | 428220 Fenrisulfr
Fenrisulfr's picture

What is the EUSO exactly?  I looked on Google and Investopedia and neither were helpful.

Wed, 06/23/2010 - 00:32 | 428509 Young
Young's picture

You mean ESU0? It's the currently active S&P 500 e-mini contract.

Tue, 06/22/2010 - 21:07 | 428251 bluebare
bluebare's picture

we've seen this movie before. meltup to month end with profit on recent lows booked.

Wed, 06/23/2010 - 10:37 | 428805 BeerGoggles
BeerGoggles's picture

This trade was about 5pips away from target and then decoupled badly again. Argh.

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