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ES Upchannel Holding On For Now... On Consistently Low Volume

Tyler Durden's picture




 

With everyone now agreeing fundamentals are completely irrelevant, the only things that could possibly matter are charts. And in this particular case, the key one on an ultrashort term momentum-driven basis likely is the ES upchannel as seen on the chart attached. Every time the support barrier is approached, a few hundred blocks appear our of the woodwork to preserve the self-fulfilling fantasy. Yet, it is getting increasingly more difficult to validate the phantom buying. Keep an eye out on this channel in the next few hours/days.

 

 

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Tue, 07/27/2010 - 16:00 | 490878 firstdivision
firstdivision's picture

How much money had to be printed to keep this market up today?

Tue, 07/27/2010 - 16:20 | 490926 Bankster T Cubed
Bankster T Cubed's picture

a shitload

these bankers are such f***ing crooks

Jeezus

Tue, 07/27/2010 - 16:00 | 490879 RobotTrader
RobotTrader's picture

Once again...

They were chasing the cheap hookers today..

Fannie, Freddie, and Ambac

LOL...

Tue, 07/27/2010 - 16:20 | 490927 carbonmutant
carbonmutant's picture

That looks like a risky trade...

Tue, 07/27/2010 - 16:22 | 490932 traderjoe
traderjoe's picture

Dunno why anyone would play with the GSE's...

Tue, 07/27/2010 - 18:59 | 491148 Instant Karma
Instant Karma's picture

I wouldn't read too much into it. Just some summer fun with the big boys giving the market a lift, in effect, reversing some technical damage. We be in no man's land now so get out of the way come the fall.

Tue, 07/27/2010 - 16:07 | 490893 Cursive
Cursive's picture

That anyone could seriously deny that the FOMC's hand is not behind the ES purchses is beyond my comprehension.  At the retail level, most people can't explain the details, but they viscerally know that it's a manipulated ponzi and that's why the retail investor is long gone.

Tue, 07/27/2010 - 16:13 | 490906 Cognitive Dissonance
Cognitive Dissonance's picture

The Fed (and company) doesn't need to issues denials of its 'Hand of God" manipulations because there are plenty of God's creatures (think Bob Pisani) ready to rush in and explain to anyone and everyone that it's all just summer doldrums or MF money chasing performance or whatever they want to say. Because no proof is required to talk up the market or explain an up market.

But of course, anyone who claims that the "Hand of God" is in play is beaten into submission because we don't have signed and notarized documentation from the "Hand of God" admitting to the manipulation.

Besides silly rabbit, the "Hand of God" is too busy right now with that little ole innocent BP spill in the GOM to mess with something as insignificant as the world's economic system. Get real boy.

Tue, 07/27/2010 - 16:20 | 490925 traderjoe
traderjoe's picture

CD, haven't you heard? The oil spill is fixed. Nothing to see there. You can move on to the next 24-hour news cycle item.  

Tue, 07/27/2010 - 16:31 | 490954 Cognitive Dissonance
Cognitive Dissonance's picture

OK. Let's see what I can pull out of my hat now that I'm out of rabbits.

Did you see the depressing jail cell poor old Lindsay Lohan's locked up in. I mean, say it ain't so Lindsay, say it ain't so.

http://www.usmagazine.com/celebritynews/news/pic-see-lindsay-lohans-depressing-jail-cell-2010207

Tue, 07/27/2010 - 16:42 | 490974 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

Lindsay Lohan, now that is a true hooker!

Tue, 07/27/2010 - 17:48 | 491061 faustian bargain
faustian bargain's picture

lol...she's going to spend 14 days there. She could hold her breath that long.

Tue, 07/27/2010 - 16:36 | 490963 lettuce
lettuce's picture

hooray! it is fixed! say, why does this lump underneath my rug keep growing every time that risk is apparently removed from the market? should i take a look under the rug and see what's unde.....naaahhh.....

Tue, 07/27/2010 - 16:29 | 490935 dead hobo
dead hobo's picture

I'm starting to think bigger. Yes, the Fed is playing a part but the big picture needs to be reviewed.

You have the US govt running massive deficits in perpetuity, each year of which will require utterly massive debt to sell so that said deficits can be financed. Low interest rates are an essential requirement to make this adventure as affordable as possible and still keep up the appearances of the possibility of repayment with dollars that have value.

You have competition from industry for available funds for purposes such as business expansion and economic recovery. Europe had various needs for funds for whatever it is that Europe does. This creates conflict. If the US can't sell debt cheaply, even to the Fed, it's screwed in both the short term and long term.

I'm thinking not the FOMC, but Homeland Security. To me, it looks like it's in the national interest to keep the recovery, such as it is, looking like it's going along while not allowing other countries to profit from US financial infrastructure weakness. I think it's a much bigger picture than we have been assuming. BB plus a phalanx of spooks are working this market.

Tue, 07/27/2010 - 16:33 | 490961 Cursive
Cursive's picture

@dead hobo

"JasonT" introduced me to Elgin Groseclose's "Man and Money" yesterday.  Some of your thoughts about the pervasive spread of the FRB's tentacles echoed from reading the foreward to "Man and Money" last night.  A PDF of the book is available from mises.org.

Tue, 07/27/2010 - 16:51 | 490990 dead hobo
dead hobo's picture

I downloaded the book and it looks like a fast read, remarkably for this site.

Personally, I think that people are as smart as they need to be, but always shortsighted. When smart people get together and try to pull a fast one, they get tricky and use distraction as a tool. Right now, the Fed is the tool of choice for distraction and probably a tool of design. I am just starting to think the Depression we are in, thanks to Wall Street, idiot Bushies, and Greenspan, is being fought using weapons of State, not just the Fed. The purpose is to manage interest rates and keep other countries off balance to the point they can't exploit US infrastructure weakness. HFT is a 'useful idiot' in this plan. Homeland Security is calling the shots.

 

Tue, 07/27/2010 - 20:52 | 491269 New_Meat
New_Meat's picture

Hobo, have you been leaving hobo marks at the back fence entrance?  Now you are telling all of the ZH hobos where to find next meal?

Thanks,

- Ned

Tue, 07/27/2010 - 16:49 | 490992 SheepDog-One
SheepDog-One's picture

YEP Cursive! Max Keiser says the fake markets achilles heel is silver manipulation...well the REAL Achilles heel to me is the fact that people just arent that damn DUMB! When a casino is discovered to be totaly rigged, no one ever goes back in! 

SURE they can rig the market and scam it indefinitely, however theyve killed the golden goose! Retail investor GONE!

Tue, 07/27/2010 - 16:10 | 490898 dead hobo
dead hobo's picture

It takes a lot of skill to color within the lines like they do. Anyone else would look like a scribble.

Tue, 07/27/2010 - 16:10 | 490901 TooBearish
TooBearish's picture

Ty the fundamentals are great !  Awesome earnings with great guidance 1140 spoos!  Why so glum?

Wed, 07/28/2010 - 01:34 | 491524 Al Huxley
Al Huxley's picture

Awesome! 25 points upside (at best) with maybe a 200 point downside risk.  What a great bet!

Tue, 07/27/2010 - 16:30 | 490907 Rick64
Rick64's picture

Why no post on the ES-AUD/JPY correlation ? Decoupling.

Tue, 07/27/2010 - 16:16 | 490917 ReallySparky
ReallySparky's picture

When is this going to blow up?

Tue, 07/27/2010 - 22:10 | 491367 Borat
Borat's picture

Easy one. Thursday and Friday. You can start the blow up count down
3 - initial claims
2 - ISM
1 - GDP
Flash Crash

Wed, 07/28/2010 - 01:36 | 491525 Al Huxley
Al Huxley's picture

When all the bears fully throw in the towel, and the bulls are doing victory dances in the street.  My favorite mid-term indicator is the $NYSI (on stockcharts) - its saying another 2 weeks upside in this market at least, before any rollover occurs.  I can't go long in this environment, but I don't expect much from the short-side until the NYSI rolls over.

Tue, 07/27/2010 - 16:23 | 490934 john_connor
john_connor's picture

Of course the ascending wedge from 7/20 was broken, which implies a fall to 1050-1055 in short order.

It was all about the Yen today keeping prices propped.  AUD looks ready to fall out of a big ascending wedge.

Tue, 07/27/2010 - 16:26 | 490942 RobotTrader
RobotTrader's picture

Unreal moves in anything and everything that pays a good yield.

 

 

Tue, 07/27/2010 - 21:43 | 491336 nmewn
nmewn's picture

FTR...shhhh.

Look at the volume starting at the end of June.

Disclaimer...I have a small position since January.

 

Tue, 07/27/2010 - 16:27 | 490946 Clampit
Clampit's picture

Off topic, but does anyone else find this URL odd:

http://www.google.com/explanation.html

That's all the famed creators of "why do i fart so much" and "when did you stop beating your wife" need to subcategorize explanation.html? Maybe the anti-semites have something ...

Tue, 07/27/2010 - 16:28 | 490950 sodbuster
sodbuster's picture

Volume is so light, we're missing an "m" in volume in the title.

Tue, 07/27/2010 - 16:32 | 490959 Rick64
Rick64's picture

lol

Tue, 07/27/2010 - 16:31 | 490956 Sancho Ponzi
Sancho Ponzi's picture

OT: Check out WAT today, with quarterly earnings to be released tomorrow. What a freaking sham.

Wed, 07/28/2010 - 01:38 | 491526 Al Huxley
Al Huxley's picture

Shorting AAPL at 270 looks like it might be a good idea...

Wed, 07/28/2010 - 07:46 | 491665 Eric Cartman
Eric Cartman's picture

Shorting AMZN now is a good idea.

Tue, 07/27/2010 - 16:40 | 490970 walküre
walküre's picture

Ben: Shit, we're running out of shorts to squeeze

Tim: Let's NOT mess with the employment numbers this week and take it down a notch

Ben: Yeah, that's worked well in the past. Give 'em a dose of reality.

Tim: Market will buy it back and the shorts think they're vindicated.

Ben: Win Win!!!

Tim: Then of course we come in and ride this thing higher and getting our squeeze to 1140.

Ben: Ok, good plan. Tell the Don.

Tue, 07/27/2010 - 16:55 | 491000 I Ching
I Ching's picture

BEAN: Yes – they really are lunatics! This madness is contagious, it's becoming universal. Unless somebody does something, we're lost...

GUSTER: Yes, but not one of us has a gun! How could anyone have foreseen this! Such a respectable company! And now we're getting closer and closer to death every second! Death on all sides – it's enough to drive you out of your mind!... It's shocking that at this stage of civilisation our lives are in the hands of such people. I just can't believe I'm here on this locomotive....

ACT II, The Crazy Locomotive 1923, Stansis?aw Ignacy Witkiewicz, translated by Daniel Gerould & C.S. Durer

Tue, 07/27/2010 - 16:59 | 491010 traderjoe
traderjoe's picture

Maria B. (CBNC) just cut off another guest when they started talking depression. She stumbled at first (getting spoken to in her ear by producers?) then asked a follow-up question then went to a break. 

Tue, 07/27/2010 - 19:01 | 491154 Dismal Scientist
Dismal Scientist's picture

Maria looks tired. And confused (or is that shellshocked). Am told she's definitely mutton in person, how long before even CNBC can't airbrush away the truth...

Wed, 07/28/2010 - 01:40 | 491527 Al Huxley
Al Huxley's picture

Surely CNBC can find some hotter talent to cover this bullshit.  Its not like there's any educational or experience requirement.

Tue, 07/27/2010 - 17:35 | 491044 Leo Kolivakis
Leo Kolivakis's picture

ONYX Pharma -  multiple myeloma results, Phase II trial. Impressive response rate in advanced cancer cases:

 

Tue, 07/27/2010 - 22:43 | 491404 Sherman McCoy
Sherman McCoy's picture

Another brick in the wall - of worry. I love these pieces! Makes me want to push my position. You know it's summer, right? and most of the buyers in the middle east(where you send money everytime you fill your tank) are on holiday, right? You might check the emerging market indices rather than wasting your time on moribund U.S. indexes. That's where the action is, and its B-E-A utiful!

Wed, 07/28/2010 - 01:44 | 491528 Al Huxley
Al Huxley's picture

Good hint.  Of course my worry is that if reality (say 'the impact of mortgage defaults on bank earnings') starts to be realized in the US, then all the markets will fall, and the hottest markets will fall the hardest.  FWIW, I've never seen a successful recovery out of a break as hard as occurred in May, although this kind of fake-out is common.  Maybe this time will be different, but I've been hearing 'this time its different' since around 1990, and so far, its never actually 'been different this time'.

Good luck to you Sherman, maybe this time will be better for you than back in 88/89 (or whenever that book occurred)

Wed, 07/28/2010 - 07:48 | 491669 Eric Cartman
Eric Cartman's picture

Does anyone know what upper chart indicator Tyler is using on this chart? Are those EMA's?

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