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Frontrunning: July 30

Tyler Durden's picture




 
  • Jobless claims pick up again, hit 584,000 (Bloomberg)
  • Pettis: Brace for a decade of lower Chinese growth (FT)
  • Must read: Wall Street analysts keep telling big earnings lie (Bloomberg)
  • Goldman Sachs hatred might cost you your bonus (Bloomberg)
  • NYSE Euronext swings to loss (WSJ)
  • Michael Panzner: Don't Be Fooled (Financial Armageddon)
  • Exxon profit down 66% (Reuters)
  • Dow Chemical posts loss on charges, drop in sales (Reuters)
  • International Paper second-quarter profit falls 40% (MarketWatch)
  • Luskin: Can the Fed identify bubbles before they happen? (WSJ)
  • Another German auto soap opera close to unwinding: Continental to defy Schaeffler (Bloomberg)
  • The simple math of "staggering" Chinese growth (ContrarianEdge)
  • Mahwah, NJ - new headquarters of High Frequency Trading (WSJ)
  • How to understand High Frequency Trading (The Atlantic, h/t Lizzie36)
  • California credit rating assessment to take time, pathetic rating agencies say, who took 5 minutes in 2005 to rate a "AAA" 1 billion CDO (Bloomberg)

 

 

 

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Thu, 07/30/2009 - 08:56 | 19131 aldousd
aldousd's picture

I know they aren't so stupid as to miss the fact that unemployment benefits are running out, and that's why continuing claims are down.  Honestly, nobody is that dumb.. except the people buying futures contracts? jesus. I stopped buying stocks last month, and I'm announcing today that I'm re-capitulating. I give up, even after I've given up.

(edit:make that I stopped buying 2.5 months ago, time is flying.)

Thu, 07/30/2009 - 09:55 | 19138 mdtrader
mdtrader's picture

I have to admit I am close to giving up on these Wall Street dummies. In 1999 they told everybody to buy dot.com - Crash. It the took them just a few years to dream up a bunch of toxic products, that would effectively bankrupt the entire financial system. Smart guys! Crash. Now they are bidding up on 584k jobless claims, and have priced in 40% earnings growth for next year.

In the summer of 2007 the credit crunch started, after an initial slump the dummies on Wall Street then drove the market back to a new all time high in October. Why? Oh because the FED was going to cut rates. Smart guys!

It was rally rally rally after Bear Stearns. Wrong yet again dummies. The stupidity just goes on and on.

After careful consideration I have decided to mark Wall Steet's brain cells to zero. I never got into this game to try and predict how idiots would react.

MD

Thu, 07/30/2009 - 09:12 | 19140 Anonymous
Anonymous's picture

So more people are in an even worse situation than before and that is why the sentiment figures are dropping yet again.

Looks like a case of put your head in the sand and it will all go away, the Fed has given free money to the banksters so they can put it on the market

Thu, 07/30/2009 - 09:01 | 19134 mdtrader
mdtrader's picture

584,000 jobless claims is a good number apparently!

Thu, 07/30/2009 - 09:10 | 19136 Anonymous
Anonymous's picture

And if you look at the revisions the previous numbers were revised up as usual

So what, people are irrelevant to the GS money making machine that pushes the market up against logic and fundamentals but that's the way they like it, squeeze more blood out of the shorts that way

Thu, 07/30/2009 - 09:11 | 19139 Anonymous
Anonymous's picture

A threat to taxpayers huh ? re: Goldman Sachs. Aren't GS/JPM surviving under this very threat. No different from a blackmailing thug. Why don't these aholes save the bonuses that run in the billions and use it for a rainy day, instead of issuing threats to the taxpayer by pillaging them repeatedly.

Thu, 07/30/2009 - 10:05 | 19143 Danz Gambit
Danz Gambit's picture

"They could be made to accept the most flagrant violations of reality, because they never fully grasped the enormity of what was demanded of them, and were not sufficiently interested in public events to notice what was happening." -  George Orwell

Thu, 07/30/2009 - 09:23 | 19144 Anonymous
Anonymous's picture

How much money you gonna let this site cost ya?

Even Cramer looks good by comparison

Thu, 07/30/2009 - 09:24 | 19145 speedo
speedo's picture

The post on China is just plain wrong. GDP is not equal to domestic growth + exports. It is equal to domestic growth + (exports - imports).

Thu, 07/30/2009 - 09:27 | 19149 Anonymous
Anonymous's picture

From that link on HFT
"but on the first approximation instead of converging prices to a fundamental value, it seems likely that these computers are actually driving them away, and away in such a way where much of cutting-edge finance theory thinks there is a big weak spot in how financial markets work to correct bad prices."

I wish I had known more about this and it seems that the market is indeed doing that because the worse the news the more the market rises, so in effect proving that the market is now in a very inefficient way of finding out fundamental prices for companies and that is very worrisom indeed.
The further it is going to extreme from what is should be the more likelihood of an extreme correction and where will the liquidity be then?

Thu, 07/30/2009 - 09:30 | 19151 Gilgamesh
Gilgamesh's picture

10 Zillion REITs reported either last night or this morning, and it seems every one either missed FFO and/or lowered expected future FFO (except VTR, that I can find so far).  Expect all REITs to gap up 10% on the open.

Thu, 07/30/2009 - 09:59 | 19177 Gilgamesh
Gilgamesh's picture

Oops, I was wrong.  Looks like not even GS would touch DRE with your taxpayer money.  When I see that stock back in double-digits, I'll say it's time.

Thu, 07/30/2009 - 09:40 | 19162 Anonymous
Anonymous's picture

Look at a 5 min chart of SPY. It was breaking down from a bearish flag. What do you do? Juice the market to open above the top channel. Look at the fake Head & Shoulders pattern on daily chart, no confirmation of volume. To keep it from turning into the most obvious Double Top you ever saw, juice the market some more.
Now, we have the only legitimate pattern in the SPY, Broadening Pattern with confirming volume characteristics. I cannot find any reference to a Bullish Broadening Pattern, if you know what I mean. There have been 5 legs in the formation of the pattern, that would indicate exhaustion. Top trend line extend approx to SPY 1050. Or would get S%P 500 into that 1060 range that was "predicted".
The last two days have seen increased volume in a slightly stalling fashion, but to stall here would be "Death March". I would not bet against the target being reached in SPY/S4P 500, but this gap up today looks more like act of desperation, than anything else. Besides, we still have a 7 yr Treas auction to deal with today.

Thu, 07/30/2009 - 09:46 | 19166 Anonymous
Anonymous's picture

gap up on what?

Exxon profit tumbles, jobless rate every increasing, but oh the continuing claims go down (poor things they have even less money now they have no benefits!)

A completely rigged and unfundamental market that ever was and so far away from it, it deserves to crash and burn the longs to bit with runaway collapse

Thu, 07/30/2009 - 09:49 | 19169 Anonymous
Anonymous's picture

Well, I guess you got my point wrt "act of desperation".

Thu, 07/30/2009 - 14:26 | 19668 Anonymous
Anonymous's picture

"how to game technical analysis traders for fun and profit"

Thu, 07/30/2009 - 19:36 | 20098 Anonymous
Anonymous's picture

I didn't get gamed by fake H&S pattern. I covered my shorts at bottom when everyone was "Squacking" about penetrating neckline, went long and had good rally before there was one.

Thu, 07/30/2009 - 09:48 | 19168 mdtrader
mdtrader's picture

Meantime, the euro starts to slide again. I wonder when the Wall Street dummies will realise the extent of the problems in Europe, and discover how a significantly lower euro will crush earnings for the big mult-nationals, especially big tech.

Thu, 07/30/2009 - 09:50 | 19170 Anonymous
Anonymous's picture

Earnings are irrelevant in this market

Thu, 07/30/2009 - 09:52 | 19171 mdtrader
mdtrader's picture

Sorry I forgot. It's all about the hype these days.

Thu, 07/30/2009 - 10:04 | 19188 Anonymous
Anonymous's picture

And the bigger the earnings losses the more the share goes up

Thu, 07/30/2009 - 10:01 | 19182 Anonymous
Anonymous's picture

Is it just me or everything I am long goes down or flat and everything I am short screams higher? Its like someone knows what the hell I am doing even before I actually do it, just to make a few bucks off me.

Thu, 07/30/2009 - 10:03 | 19187 mdtrader
mdtrader's picture

85 Broad are flashed your portfolio as soon as you trade. ;-)

Thu, 07/30/2009 - 10:05 | 19191 Anonymous
Anonymous's picture

So the market takes off because even more people lost their jobs.
No worries for the banksters, they took all their money to pay for the losses they had and then took their house and their job

Thu, 07/30/2009 - 12:10 | 19431 phaesed
phaesed's picture

Bah, I'm not even bothering, I'm stalking the FAZ for when it hits 30.00 (or $3, either way you look at it)

Thu, 07/30/2009 - 12:12 | 19436 Anonymous
Anonymous's picture

Try this on for size: all the smart money has either left the market or has taken very very very long-term positions and is just sitting on them. So all the trading activity today consists of computers, short-term day trading gamblers, and dummies. Robots and morons. So the moves look dumb because they are.

Thu, 07/30/2009 - 12:53 | 19512 Anonymous
Anonymous's picture

And as long as the market keeps going up relentlessly the long termers won't cash out, hence no real sellers to counter the short squeezes

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