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Fed Withdraws $1.5 Billion In Liquidity Via Reverse Repo, Stocks Predictably Turn Negative

Tyler Durden's picture





 

In confirmation that the market is nothing more than Fed liquidity game, the sudden drop in the S&P back to the red is driven by the just completed reverse repo. As this is the opposite of a liquidity ramp, the amount withdrawn is apparently directly impacting stocks. And today's amount was a doozy (at least by historical standards): the $1.5 billion withdrawn may well be a record for recent reverse repo operations. The $1.5 billion was roughly equally split between USTs, MBS and Agencies. The weighted rate was 0.215% on USTs, 0.226% on Agencies, and 0.237% on MBS. Total amount submitted was $3.64 billion, implying a 41% hit rate. The only thing that matters is that the Fed actively withdrew liquidity today. Should the market close red today it will be pretty clear what is going on: Monday and Wednesday: POMO days, and huge gain, Tuesday - no POMO, today: Reverser Repo (negative liquidity): market down. It is all so transparent at this point. And yes, there is a POMO tomorrow. We can't wait for the Fed to extract as much liquidity via reverse repos as it injects via POMOs - then the confusion will be total and complete as the Fed becomes a pulsating neutron star of liquidity.

 


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Thu, 10/21/2010 - 13:59 | Link to Comment arm50
arm50's picture

operation twist!

Thu, 10/21/2010 - 14:01 | Link to Comment John McCloy
John McCloy's picture

 

Dow looks like Space Mountain. The entire market now is 100% grafted to the Federal Reserve.

Ben..you can never exit the markets and the further in you push the more impossible it becomes.

Thu, 10/21/2010 - 14:04 | Link to Comment DB Cooper
DB Cooper's picture

My thoughts exactly - exit strategy impossible - circling the whirlpool faster and faster.

Thu, 10/21/2010 - 14:07 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

Less circling, more like in-and-out...

We can't wait for the Fed to extract as much liquidity via reverse repos as it injects via POMOs.

Thu, 10/21/2010 - 14:08 | Link to Comment mikla
mikla's picture

While I agree with both of you, everyone should *also* take this as an explicit warning by the Fed:  "Don't mess with us, we can take it out any time we want."

When Correlation is *perfect*, there's no debate about what your action will cause.  (IMHO, the Fed is probing to try to understand the amplitude of the "market" response.)

Thu, 10/21/2010 - 14:11 | Link to Comment John McCloy
John McCloy's picture

True but players become more reluctant to enter the game the more they realize how nationalized the stock market has become.Then the next thought of someone being skeptical is.."What if the Federal Reserve encounters an event that prevents them from stemming the bleeding regardless of the actions taken"

Thu, 10/21/2010 - 14:14 | Link to Comment DB Cooper
DB Cooper's picture

Agree.  But now that they have broken an real market the amplitude is going to increase - maybe that's what they seek.

Thu, 10/21/2010 - 14:28 | Link to Comment Oso
Oso's picture

my thought as well, testing the water.  Sufficed to say, they have proof positive.

 

think about what just happened though.  SP lost 1.6% hi/lo off a roughly $10.6 Tril market cap.  with a $1.5bl reverse repo, the market lost 100x the extraction (controlling for some stops and such that went off) safe to say market is leveraging over 50x, no sweat.

 

 

Thu, 10/21/2010 - 14:34 | Link to Comment Oso
Oso's picture

they also extracted on Monday, same day of the massive POMO - wtf is going on??

 

http://www.newyorkfed.org/markets/omo/dmm/temp.cfm?SHOWMORE=TRUE 

Thu, 10/21/2010 - 14:48 | Link to Comment John McCloy
John McCloy's picture

Just another 999 Billion left to repo out. So Ben when is the last time you landed a Modified Supersonic 777 on a runway like this in the middle of the ocean without even being able to slow down?

http://www.slide.com/s/lRIl5gqu7z-sai1tJKRKG6Yjo9CfNPLP?referrer=hlnk

   I think they are nervous about how much garbage they bought that is losing even more value daily and the ass kicking that MBS will get when housing takes a cliff dive again because of fraudclosure.

Thu, 10/21/2010 - 15:33 | Link to Comment Spirit Of Truth
Spirit Of Truth's picture

From a contrarian stand point, if that even works anymore, almost all market participants are on one side of the trade.  In fact, this is historically unprecedented in that there has never been a situation where returns have been guaranteed by the Fed through printing money to prop up asset prices in a desperate reflation strategy.  Nevertheless, any unexpected countertrend movement will be amplified massively, a point reinforced by the leveraged positioning used by hedge funds like Goldman Sachs that are causing a 50X response to pomos and repos.  

The critical question IMHO, is what could take control from the hands of Helicopter Ben?  How could there be a sentiment shift that can't be manipulated by Fed policy?

 

Thu, 10/21/2010 - 15:38 | Link to Comment mikla
mikla's picture

The critical question IMHO, is what could take control from the hands of Helicopter Ben?  How could there be a sentiment shift that can't be manipulated by Fed policy?

IMHO, you're asking the right question.

IMHO, there is no possible solution.

I completely agree with your comment -- everybody is on the same side of the trade, that's why we see such an amplified reponse.  However, there's no way out of this.  Even if we got half-and-half on each side of some "big trade", the reality is that we will unwind this worldwide derivatives market (measured in the $ quadrillions), that Greece will default, that nation-states will be unable to deliver to their boomers what was promised.

It's like saying, "What's the solution to keep the ponzi going?"  I seriously doubt their ability to put it off day-by-day, but fundamentally, it's still a ponzi.  That's why there's no solution.

Thu, 10/21/2010 - 16:21 | Link to Comment There is No Spoon
There is No Spoon's picture

what could take control from the hands of Helicopter Ben?

The currency market and sovereign debt market. Debt buyers will demand higher yield for U.S. Treasurys which will result in a spike in the dollar as shorts cover like crazy. Short dollar trade is way too overcrowded and can cause a massive selloff in the stock market since, as you said, almost all market participants are on one side of the trade.

Thu, 10/21/2010 - 14:11 | Link to Comment SheepDog-One
SheepDog-One's picture

Excellent thread, exit strategy DOES NOT EXIST! Pump and dump to retail is a total fail. Theyre trapped with no way out so next up is massive false flag diversions that will make stock markets and FED asset list the last thing on anyones mind. Prepare yourself.

Thu, 10/21/2010 - 14:46 | Link to Comment unwashedmass
unwashedmass's picture

whats fascinating is the "overlooking" of the gold/silver stocks on the POMO days, and on a day like today, the nuking of the sector. this has been going on for months......everything is allowed to participate EXCEPT those naughty, naughty stocks that can possibly show even the dimmest retail investor what Ben and his boys are doing.......

i mean, they aren't just manipulating the market...they are manipulating sectors and selecting "marquee" names to try and get retail in....

which has not worked, so now what? now what?

Thu, 10/21/2010 - 14:58 | Link to Comment Randall Cabot
Randall Cabot's picture

Lighten up, dude, the fed can string this along for years, they're just backdooring a bit of a pullback to counter the strong earnings so QEII can be pushed through with minimum pushback.

Other than that:

GO PHILLIES!!!

Thu, 10/21/2010 - 14:44 | Link to Comment RaymondKHessel
RaymondKHessel's picture

If only pension funds were smart enough to buy gold after mr irrational exuberance made his proclamation !!!!

Thu, 10/21/2010 - 14:50 | Link to Comment RaymondKHessel
RaymondKHessel's picture

The answer is quite obvious remember "what is the purpose of POMO?" to pump.

Eventually every pump leads to...

A dump.

And like a military exercise we have ourselves a test dump (mainly for statistical purposes).

This data will be used for impact analysis over a series of dumps.

The news is all bad. QE2 is happening as congress is inept and FED is all-powerful.

My suggestion.. Hold your gold and silver buy more under 1250 and 21.50 respectively. Prepare to move to an ideal location after maxxing out all debt for cash. And ultimately move to Helsinki for a few years or Canada.

Thu, 10/21/2010 - 14:01 | Link to Comment LongShortSally
LongShortSally's picture

This must be the grand experiment Ben referred to in his speech.  Unbelievable.

Thu, 10/21/2010 - 14:01 | Link to Comment the not so migh...
the not so mighty maximiza's picture

They can create or distroy at will.  Man what a free market.   O what a feeling. 

Thu, 10/21/2010 - 14:02 | Link to Comment mynhair
mynhair's picture

So, buy?

Thu, 10/21/2010 - 14:02 | Link to Comment 99er
99er's picture

Chart: SPX

Hey Ben. POMO this.

http://99ercharts.blogspot.com/2010/10/spx.html

Moron.

Thu, 10/21/2010 - 14:03 | Link to Comment IdiotInvestor2
IdiotInvestor2's picture

"a pulsating neutron star of liquidity" !!?!! :-) Beautiful.

Where do you get these similes ? Are you one of those Physics Ph.D turned into a quants ?

Thu, 10/21/2010 - 14:04 | Link to Comment homersimpson
homersimpson's picture

NOOOOOO.. NOOOOO..  THIS CAN'T BE.... NOOOOO.. PLEASE UNCLE BEN - PROP UP THE STOCK MARKET.

Wow. Let's hope for a few more days like this. Or months.

Thu, 10/21/2010 - 14:04 | Link to Comment firstdivision
firstdivision's picture

It will making profiting from the Fed as easy as turning on a light switch.  Go long at EOD for days when they withdraw liquidity (day before POMO), and go short at EOD on POMO days.   

Thu, 10/21/2010 - 14:04 | Link to Comment Iam Rich
Iam Rich's picture

Heh...first read through the topic saw..."pustulating neutron star of liquidity".

Thu, 10/21/2010 - 14:05 | Link to Comment Ivanovich
Ivanovich's picture

Can someone tell me why they would do a reverse repo when they're doing pomo and yapping incessantly on QE2?  Is there a technical reason they would do this?

Thu, 10/21/2010 - 14:10 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

At first, orgasm may be achieved simply by insertion.  As time passes, an in-and-out cycle is required.

Thu, 10/21/2010 - 14:14 | Link to Comment Ivanovich
Ivanovich's picture

Cute, but I'm genuinely serious.  Why would they do this?

Thu, 10/21/2010 - 14:33 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

I don't know.  Maybe they are playing with the average duration of the portfolio?  Maybe they had to get some real shit off the books before someone sees it?  Maybe the counter-party has figured out the value of the MBS, and they want them back in exchange for crappy FRNs?  And they threw in some USTs for cover?

Maybe it is only, "...part of our operational readiness program," and they just want to make sure the joystick still works when they pull back on it?  Lord knows their game controller has been getting a work out.

Thu, 10/21/2010 - 14:51 | Link to Comment Ivanovich
Ivanovich's picture

Appreciate the response.  I was just curious, because it smells of inconsistancy.

Thu, 10/21/2010 - 15:05 | Link to Comment cdude
cdude's picture

Controlled ejaculation. Late next week would be the PERFECT time for the "DOW HITS HIGH FOR THE YEAR!" HL to cum out. That way the story would still be fresh enough for a weekend media blitz just befor the elections

Thu, 10/21/2010 - 15:54 | Link to Comment unununium
unununium's picture

Depends on who you think is really in control.  Personally, I still expect an epic crash before the election.  You know, to show how badly Obummer has ruined the economy.

Thu, 10/21/2010 - 14:59 | Link to Comment Phat Stax
Phat Stax's picture

It was a test.  They have been testing "tools" all year for when they will be needed.  Earlier they paid 1% to certain banks for parking their deposits with the Fed.  This was seen as a possible alternative to trying to influence (raise) the lending rate which will be harder since their balance sheet is so large.

Thu, 10/21/2010 - 14:05 | Link to Comment barliman
barliman's picture

Kabuki!

What will the evil overlord Bur Naki do next? How will peasant traders respond as he pulls the strings behind the scenes?

BWAHAHAHAHAHAHAHA!!!!!
(deep sinister laugh from offstage)

Suddenly a figure steps into the spotlight center stage ...

Barliman

Thu, 10/21/2010 - 14:34 | Link to Comment barliman
barliman's picture

... a large conference table of "bankers" (dressed in expensive suits where all pockets are overflowing with bonus cash - there is so much it makes them look like puffer fish) turn all eyes to the figure that just stepped into the spotlight.

BUR NAKI!!!!! (played by Robert Deniro in a tuxedo)

He holds a maple baseball bat in his hands and begins to take practice swings as he paces around the table and speaks:

"You know this business of ours is all about teamwork. Everybody on the team has a role to play. Some of us are coaches, some of us are fielders or playing the bases. Somebody is supposed to be giving all they got pitching (eyes the GS representative across the table). And occasionally, one of us has to take one for the team."

He stops behind the BAC representative and raises the bat over his head ....

Barliman

Thu, 10/21/2010 - 14:36 | Link to Comment barliman
barliman's picture

... am I being too subtle so far????

Thu, 10/21/2010 - 21:05 | Link to Comment StychoKiller
StychoKiller's picture

And it's going, going...pop fly!  Caught by the right fielder.  We now go to extra innings.  The sacrifice fly failed to bring home the winning run.

Thu, 10/21/2010 - 14:41 | Link to Comment barliman
barliman's picture

Or maybe the Ministry of Truth is your preference:

Adami: Weakness In BofA Is Telling You Something

http://www.cnbc.com/id/39779193

Barliman

Thu, 10/21/2010 - 14:07 | Link to Comment John McCloy
John McCloy's picture

     Now that I am thinking about it does anyone else think that the Fed is more concerned with Fraudclosure than they are letting on? Maybe Ben now that he realizes he failed to reflate housing and the danger imposed by a halt in foreclosures wants to get some of that Toxic garbage he sopped up with taxpayer money. Maybe he is cleaning up the crime scene before the hearings and reknewed calls for a Fed audit as surely the politicians must take a peek at what he is holding eventually.

Good luck Ben..

Thu, 10/21/2010 - 14:58 | Link to Comment snarkolepsy
snarkolepsy's picture

"Maybe Ben now that he realizes he failed to reflate housing and the danger imposed by a halt in foreclosures wants to get some of that Toxic garbage he sopped up with taxpayer money."

It should be obvious to everyone right about now that he failed. All the housing numbers for September are coming in Dismal. Roughly 30% drop from last Sept. Even in Austin at 27% drop.

September was before the halt.

Thu, 10/21/2010 - 14:08 | Link to Comment prophet
Thu, 10/21/2010 - 15:01 | Link to Comment Phat Stax
Phat Stax's picture

A most excellent avatar dude!

Thu, 10/21/2010 - 19:43 | Link to Comment prophet
prophet's picture

Thank you, benji Phat Stax.

Thu, 10/21/2010 - 21:07 | Link to Comment StychoKiller
StychoKiller's picture

Ever check out "Dysfunctional Family Circle?"

Thu, 10/21/2010 - 14:09 | Link to Comment Iam Rich
Iam Rich's picture

By the way...where is the schedule for these operations?

Thu, 10/21/2010 - 14:09 | Link to Comment Gimp
Gimp's picture

Welcome to the United Socialist States of America.

Free Market my cornhole. Let's see how they  unwind this mess.

Thu, 10/21/2010 - 14:12 | Link to Comment SheepDog-One
SheepDog-One's picture

Operation- 'Make FED the Ultimate Bagholder' damn well complete!

Thu, 10/21/2010 - 14:13 | Link to Comment T Rex
T Rex's picture

Ben, if I may say, the reverse thingys kick ass.

Thu, 10/21/2010 - 14:19 | Link to Comment treemagnet
treemagnet's picture

I concur

Thu, 10/21/2010 - 14:13 | Link to Comment AccreditedEYE
AccreditedEYE's picture

LOL!! Harry, where did your rally run off to?

Thu, 10/21/2010 - 14:13 | Link to Comment treemagnet
treemagnet's picture

Why the reverse POMO?  Anybody....Buelller....I don't get it, but want to-whats the purpose of amping this thing up only to back it down?

Thu, 10/21/2010 - 14:16 | Link to Comment T Rex
T Rex's picture

Getting some well deserved respect from the longs.

Thu, 10/21/2010 - 14:19 | Link to Comment His Dudeness
His Dudeness's picture

4 play

Thu, 10/21/2010 - 14:23 | Link to Comment scatterbrains
scatterbrains's picture

pretty sure the reverso-popo is just to try and push the dowside momo in the pm's while it still looks pretty on the charts.

Thu, 10/21/2010 - 14:17 | Link to Comment Bartanist
Bartanist's picture

So, apparently there is no intention of re-creating Main Street trust in the (non)markets.

That too was a feint.

Thu, 10/21/2010 - 14:18 | Link to Comment notadouche
notadouche's picture

I am just a ball of yarn and the government is a giant cat.

Thu, 10/21/2010 - 14:21 | Link to Comment mynhair
mynhair's picture

+catnip

Thu, 10/21/2010 - 14:19 | Link to Comment prophet
prophet's picture

Dollar correlation at historic levels too.  POMO, TOMO, dollar, EUR/YEN.  Watch movies, buy and sell used stuff, talk on the cell phone, surf the net.  AMZN tonight.

Thu, 10/21/2010 - 14:20 | Link to Comment HarryWanger
HarryWanger's picture

Probably ramp right back up into close today. No news on tap tomorrow and POMO Monday continues to generate "buyers" on any and all dips right now. 

Thu, 10/21/2010 - 14:46 | Link to Comment prophet
prophet's picture

Could be, but an 1168 close would be more normal action.

Thu, 10/21/2010 - 14:20 | Link to Comment T Rex
T Rex's picture

If only short interest had caved. :(

Thu, 10/21/2010 - 14:21 | Link to Comment HelluvaEngineer
HelluvaEngineer's picture

...and now back to the highs.  Sorry for the hiccup.

Thu, 10/21/2010 - 14:21 | Link to Comment Village Idiot
Village Idiot's picture

"..then the confusion will be total and complete as the Fed becomes a pulsating neutron star of liquidity."

 

Will I be able to see it from my telescope?

 

Thu, 10/21/2010 - 14:24 | Link to Comment T Rex
T Rex's picture

Try and photograph it without an appointment and you'll be arrested.

Thu, 10/21/2010 - 14:24 | Link to Comment Lazarus Long
Lazarus Long's picture

the fed is definately a pulsating something but not a neutron star

Thu, 10/21/2010 - 21:08 | Link to Comment StychoKiller
StychoKiller's picture

Bet you're thinking Thrombosed Hemorroid...

Thu, 10/21/2010 - 14:24 | Link to Comment His Dudeness
His Dudeness's picture

Welcome back my friends to the show that never ends
We're so glad you could attend
Come inside! Come inside!
There behind a glass is a real blade of grass
be careful as you pass.
Move along! Move along!

Come inside, the show's about to start
guaranteed to blow your head apart
Rest assured you'll get your money's worth
The greatest show in Heaven, Hell or Earth.
You've got to see the show, it's a dynamo.
You've got to see the show, it's rock and roll ....

Right before your eyes we pull laughter from the skies
And he laughs until he cries then he dies then he dies
Come inside the shows about to start
Guaranteed to blow your head apart

You gotta see the show
It's a dynamo
You gotta see the show
It's rock and roll

Soon the Gypsy Queen in a glaze of Vaseline
Will perform on guillotine
What a scene! What a scene!
Next upon the stand will you please extend a hand
to Alexander's Ragtime Band
Roll up! Roll up! Roll up!
See the show!

Performing on a stool we've a sight to make you drool
Seven virgins and a mule
Keep it cool. Keep it cool.
We would like it to be known the exhibits that were shown
were exclusively our own,
All our own. All our own.
Come and see the show! Come and see the show! Come and see the show!
See the show!

Thu, 10/21/2010 - 14:43 | Link to Comment plocequ1
plocequ1's picture

Great album. Brain Salad Surgery.  I love Emerson Lake and Palmer. Try the album Trilogy, Track # 1, The endless enigma.

 

Why do you stare
Do you think that I care?
You've been mislead
By the thoughts in your head

Your words waste and decay
Nothing you say
Reaches my ears anyway
You never spoke a word of truth

Why do you think
I believe what you said
Few of your words
Ever enter my head

I'm tired of hypocrite freaks
With tongues in their cheeks
Turning their eyes as they speak
They make me sick and tired

Are you confused
To the point in your mind
Though you're blind
Can't you see you're wrong
Won't you refuse
To be used
Even though you may know
I can see you're wrong
Please, please, please open your eyes
Please, please, please don't give me lies

I rule all of the earth
Witnessed my birth
Cried at the sight of a man
And still I don't know who I am

(Chorus)

I've seen paupers as kings
Puppets on strings
Dance for the children who stare
You must have seen them everywhere

Thu, 10/21/2010 - 14:29 | Link to Comment treemagnet
treemagnet's picture

So by reverse POMO - are these the primary dealers taking profits cause the puppet master pulled on the right string?  I mean, if the PD's swap w/the fed and go shopping, how can the Fed tell them what to do? 

This is actually a question - I'm missing something.

Thu, 10/21/2010 - 14:43 | Link to Comment mynhair
mynhair's picture

Sop to TurboTimmah to get him to shut up over the fiatsco.

Thu, 10/21/2010 - 14:44 | Link to Comment Turd Ferguson
Turd Ferguson's picture

Someone needs to explain this schizophrenic bullshit to me.

The FED POMOs every other day and waxes philosophic regarding QE2 but today they drain $1.5B? What the fuck? Help?

Thu, 10/21/2010 - 14:45 | Link to Comment algorerhythm
Thu, 10/21/2010 - 14:50 | Link to Comment firstdivision
firstdivision's picture

It's called a love-hate relationship.  I will have sex with you, but punch you in the stomach on my way out.

Thu, 10/21/2010 - 15:02 | Link to Comment bigdumbnugly
bigdumbnugly's picture

fed trying to frontrun itself and is now just afu?

Thu, 10/21/2010 - 16:29 | Link to Comment There is No Spoon
There is No Spoon's picture

the repo data is what's been done. tomorrow is the settlement date for today's repo

Thu, 10/21/2010 - 22:16 | Link to Comment algorerhythm
algorerhythm's picture

there is a reverse repo delivery date that is today. there was also a repo delivery yesterday.

Thu, 10/21/2010 - 14:48 | Link to Comment spanish inquisition
spanish inquisition's picture

Still time this year to till up the back yard and get ready for next years victory gardens!

Thu, 10/21/2010 - 14:48 | Link to Comment firstdivision
firstdivision's picture

congrats Ben, you just proved to us how leveraged the PD's are in this market. 

Thu, 10/21/2010 - 14:56 | Link to Comment John McCloy
John McCloy's picture

   And they have to lever even more just to squeeze out those pennies. Great report out of Credit Suisse today as well and their trading revenues:

"Revenue at Credit Suisse equities sales and trading unit fell by 41% to Sfr1bn in the third quarter, the lowest level since the end of 2008. Sales of bonds and loans almost halved, to Sfr1.46bn, from Sfr2.48bn last"

    Looks like Mortal Kombat is nearing. 8 man knife fight in a broom closet for trading profits and NOBODY is allowed to sell without taking down the whole system. Should work out splendid.

Thu, 10/21/2010 - 14:48 | Link to Comment treemagnet
treemagnet's picture

Turd - I'm with you....I don't get it.  Does anyone or are we not supposed to question "The Ben". 

Thu, 10/21/2010 - 14:51 | Link to Comment barliman
barliman's picture

My take on it is laid out in my comments above

Barliman

Thu, 10/21/2010 - 14:49 | Link to Comment John McCloy
John McCloy's picture

Markets almost green..Harry was that you?

Thu, 10/21/2010 - 15:17 | Link to Comment firstdivision
firstdivision's picture

I would say that was Leo jamming on his buy the dip key. 

Thu, 10/21/2010 - 14:51 | Link to Comment Unlawful Justice
Unlawful Justice's picture

The universe is mostly empty space, but there is a large concentration over at the FED

Thu, 10/21/2010 - 15:07 | Link to Comment youngandhealthy
youngandhealthy's picture

FED balance sheet got to "big" and FRNY were not authorized to "swell it"...so dump some before someone complain?

 

But why did they buy "to much" in the first place?

Thu, 10/21/2010 - 15:10 | Link to Comment Oracle of Kypseli
Oracle of Kypseli's picture

This is a gold supression attempt orchestrated with the PD's until futures expiration on Tuesday.

Thu, 10/21/2010 - 15:20 | Link to Comment max2205
max2205's picture

soooo. does that equal a 30 x or 40 x drain?   whats 80B suck out of the market.....good thing they preannounced it or we'd have 50% flash crash

Thu, 10/21/2010 - 15:27 | Link to Comment Bill Lumbergh
Bill Lumbergh's picture

PPT to the rescue...cannot make BO look bad now...not that he can look good.

Thu, 10/21/2010 - 15:33 | Link to Comment TraderTimm
TraderTimm's picture

So, I'm going to go out on a limb here.

I have a few things I've been working on for technical analysis. I won't go into the entire timeline of how long I've been developing this, just suffice to say I think it has an edge.

I know -- if you've followed me at all, you know I got burned on an options play that was anticipating a decline in prices on the indexes. Yep, I sure did. Problem was - I had the right tool, but wasn't applying it correctly.

My strategy was to fade moves, when what I should've been doing was sticking with the move and exiting with a trailing stop to prevent loss and lock in profits.

So, what I'm going to do is post the status of this thing. I call it the "Market Impulse" indicator, or MI for short. (No, it has nothing to do with Prechter's theories - it is pure technical and not subjective in application.)

Executive summary: The MI for now is in positive territory - this means, don't short. Yet. I'll keep you guys updated.

Now back to your regularly scheduled thread-tertainment.

Thu, 10/21/2010 - 15:39 | Link to Comment plocequ1
plocequ1's picture

WTF is up with Netflix?? Its as if they just announced they are going to start streaming Seka and Johnny Wadd  flicks.

Thu, 10/21/2010 - 15:43 | Link to Comment firstdivision
firstdivision's picture

They only announced they are now stocking plenty of XXX movies for all to stay preoccupied while they are having their life savings stolen from them.

Thu, 10/21/2010 - 21:13 | Link to Comment StychoKiller
StychoKiller's picture

Seka:  "It's like I'm sitting on a fscking telephone pole!"

Thu, 10/21/2010 - 16:54 | Link to Comment espirit
espirit's picture

Pump in, pump out, pump in...

Could somebody please get me a f*ing schedule?

or... Do Not Resuscitate.

Thu, 10/21/2010 - 19:12 | Link to Comment Buck Johnson
Buck Johnson's picture

I bet Friday is going to be a bloody day.

Sat, 11/13/2010 - 06:58 | Link to Comment mark456
mark456's picture

Thanks for taking the time to discuss this, I feel strongly about it and love learning more on this topic.
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