This page has been archived and commenting is disabled.

Guest Post: A Grand Unified Theory Of Market Manipulation

Tyler Durden's picture





 

Comprehensive report on some of the more inexplicable things in capital markets, compliments of Precision Capital Management.

 

 

hat tip English Bob

 


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Mon, 08/03/2009 - 10:16 | Link to Comment phaesed
phaesed's picture

Excellent report and spot on about the July auctions, the sell off in equities timed perfectly well with the rise in treasuries... which ended the day before the prior 30 year auction.

Mon, 08/03/2009 - 13:41 | Link to Comment ghostfaceinvestah
ghostfaceinvestah's picture

Does anyone doubt the Fed was intervening in the equity markets?

Seems like a no-brainer to me.

Anyone know of a good wheel-barrow manufacturer?  I figure they would be a great investment.

Mon, 08/03/2009 - 16:29 | Link to Comment phaesed
phaesed's picture

It's not about whether they were intervening, it's more about how and where to make sense of the larger game plan.

Mon, 08/03/2009 - 18:06 | Link to Comment Anonymous
Mon, 08/03/2009 - 10:24 | Link to Comment Dixie Normous
Dixie Normous's picture

I'm not buying any of it.

The market has gone vertical since July 13 (there will never be any retracements of anything ever again) because of sound fundamentals and super positive reports, I know because I saw it on tv and the interweb.  Soon, when all the "money on the sidelines" finally wakes up and gets in, this market will really move.

We've learned our lesson, no more boom and bust. Just eliminate the bust!

Mon, 08/03/2009 - 11:46 | Link to Comment Anonymous
Mon, 08/03/2009 - 13:13 | Link to Comment Dixie Normous
Dixie Normous's picture

I was being facetious but even during the internet bubble I don't recall a rally like the one we've had off July 13 lows, without any real pull back, 16 days and 125 S&P points and counting and not one retracement of more than 20 points off a high?

If you're going to pump at least make it look good.

This is just an attempt to draw stupid money in.

Who would buy here?

Mon, 08/03/2009 - 12:40 | Link to Comment Rusty_Shackleford
Rusty_Shackleford's picture

Yeah!

Upsloping yield curve!!  Yeeeee Hawwwwww!!!

Mon, 08/03/2009 - 10:26 | Link to Comment Anonymous
Mon, 08/03/2009 - 10:44 | Link to Comment Anonymous
Mon, 08/03/2009 - 10:46 | Link to Comment Anonymous
Mon, 08/03/2009 - 11:19 | Link to Comment Anonymous
Mon, 08/03/2009 - 17:23 | Link to Comment Anonymous
Mon, 08/03/2009 - 11:02 | Link to Comment Anonymous
Mon, 08/03/2009 - 12:09 | Link to Comment Anonymous
Mon, 08/03/2009 - 13:03 | Link to Comment newera22
newera22's picture

Ditto Oso. About a month after was when what I call the "+20 buy moves" came on the Dow. They would use a couple of them between the 1:00 to 3:00 time frame in order to basically (what I call) "lock the market in" for the last hour. And they have continued with carefully placed +20 point buy shoots, out of nowhere blatantly jamming market up. I would love to see some research about where those were coming from (as if we don't really now).

Tue, 08/04/2009 - 10:46 | Link to Comment Anonymous
Mon, 08/03/2009 - 10:28 | Link to Comment Project Mayhem
Project Mayhem's picture

they found the Bernanke boson!!

Mon, 08/03/2009 - 11:15 | Link to Comment Anonymous
Mon, 08/03/2009 - 10:29 | Link to Comment Anonymous
Mon, 08/03/2009 - 10:31 | Link to Comment Anonymous
Mon, 08/03/2009 - 10:32 | Link to Comment Anonymous
Mon, 08/03/2009 - 10:40 | Link to Comment zeropointfield (not verified)
Mon, 08/03/2009 - 11:54 | Link to Comment Anonymous
Mon, 08/03/2009 - 10:40 | Link to Comment Chumly
Chumly's picture

 

Meanwhile, the Congress prepares to recess, Barry, Michie and the kids will be heading out to their $50,000/week vacation home to BBQ some $100 steaks soon and the dollar/oil equation is perilously close to a breakout that will put a crimp in the average citizen's weekly Ramen budget.

 

Mon, 08/03/2009 - 10:51 | Link to Comment Anonymous
Mon, 08/03/2009 - 12:11 | Link to Comment Chumly
Chumly's picture

yeAH, yeAH, I went tooa dinnahh pahhdy Satahhday nite and all the locals were all kindah goin' happy-crazy over the idyer of Bahry bein so close by...

Mon, 08/03/2009 - 11:27 | Link to Comment Chumly
Chumly's picture

 

In fact, I expect a "wag-the-dog" event in the two weeks to put the brakes on this rally - the USD (with an oil rally to boot) is in deep trouble as we post here.

Mon, 08/03/2009 - 10:39 | Link to Comment Anonymous
Mon, 08/03/2009 - 10:40 | Link to Comment Anonymous
Mon, 08/03/2009 - 10:41 | Link to Comment Anonymous
Mon, 08/03/2009 - 10:57 | Link to Comment Anonymous
Mon, 08/03/2009 - 11:16 | Link to Comment Anonymous
Mon, 08/03/2009 - 11:10 | Link to Comment Anonymous
Mon, 08/03/2009 - 11:25 | Link to Comment Anonymous
Mon, 08/03/2009 - 11:31 | Link to Comment newera22
newera22's picture

I just want a free market back.

There must be separation of Goldman and State. These big bankers are ADDICTED to government. They need to be broken up from their love for big government.

 

Bring back a free and open market where intelligent investors and risk-takers can price MARKETS.

Mon, 08/03/2009 - 11:34 | Link to Comment pc_babe
pc_babe's picture

...meanwhile, back in the curency pit, is that the greenback doing a reverse one and a ha-lf somersault with three and a half twists, in the Freefall position?

Mon, 08/03/2009 - 11:54 | Link to Comment MarkD
MarkD's picture

It must be that "strong dollar policy" that is putting the spring in the diving board.

Mon, 08/03/2009 - 12:44 | Link to Comment Anonymous
Mon, 08/03/2009 - 11:39 | Link to Comment Anonymous
Mon, 08/03/2009 - 19:37 | Link to Comment Anonymous
Mon, 08/03/2009 - 11:48 | Link to Comment Anonymous
Mon, 08/03/2009 - 11:50 | Link to Comment mitchrothschild
mitchrothschild's picture

i would not get in the way of this rally.  as consumerism has replaced religion/politics, it's obvious that there is something almost holy in the hope of everyone getting bigger and better toys and pay checks.

Mon, 08/03/2009 - 12:12 | Link to Comment Anonymous
Mon, 08/03/2009 - 12:18 | Link to Comment Sancho Ponzi
Sancho Ponzi's picture

This has got to be the greatest juggling match in history. Does anyone truly believe the FR can continue laundering (sorry, monetizing) MBS's and flooding the market with 200+ billion of treasuries / month without consequences?

Here, Ben, let's see you juggle 3 knives.

So far, so good. Let's try 4

Okay, now 5

Good boy, here's another

Meanwhile, SPY breaks through 100 - freaking insanity

 

 

Mon, 08/03/2009 - 12:20 | Link to Comment Miles Kendig
Miles Kendig's picture

The share vol/price action in the top 200 over this period has been somepthin'...

Mon, 08/03/2009 - 12:26 | Link to Comment Anonymous
Mon, 08/03/2009 - 12:59 | Link to Comment Anonymous
Mon, 08/03/2009 - 13:11 | Link to Comment newera22
newera22's picture

Goldman and Fed just printing money via stocks. Show up at the stock market and walk away with a wheel barrel full of cash.

Mon, 08/03/2009 - 13:18 | Link to Comment Anonymous
Mon, 08/03/2009 - 13:33 | Link to Comment Anonymous
Mon, 08/03/2009 - 13:38 | Link to Comment ghostfaceinvestah
ghostfaceinvestah's picture

global correlations are going to 1.

Mon, 08/03/2009 - 13:35 | Link to Comment Anonymous
Mon, 08/03/2009 - 13:57 | Link to Comment Anonymous
Mon, 08/03/2009 - 17:07 | Link to Comment Apocalypse Now
Apocalypse Now's picture

Based on the paper and the info below from, I presume, an individual associated with the paper, I would hazard the following simplified:

The 8/5 OMO would be expected to paint the tape (business as usual from large bank leverage used to prop equities through OMO on those days) - the equities might be strong into the close.  If it doesn't, it would signal that the tug of war between equities/bonds favors the treasuries in a bias to bring equities down or flatline them to drive interest in the Treasury auctions and next week is important for them.

The 8/6 date, since it is the second day of a back to back, has no "trading edge".

Mon, 08/03/2009 - 17:51 | Link to Comment Anonymous
Mon, 08/03/2009 - 14:35 | Link to Comment Anonymous
Mon, 08/03/2009 - 16:33 | Link to Comment Anonymous
Tue, 08/04/2009 - 01:15 | Link to Comment Anonymous
Mon, 08/03/2009 - 17:14 | Link to Comment Anonymous
Mon, 08/03/2009 - 14:39 | Link to Comment Anonymous
Mon, 08/03/2009 - 14:41 | Link to Comment Tyler Durden
Tyler Durden's picture

all posts on ZH now that have scribd (which btw is for the benefit of those VERY impatient raders who can't click on a link) have an attachment with the scribded doc.

Mon, 08/03/2009 - 18:39 | Link to Comment texpat
texpat's picture

Very much appreciated. Thanks!

Mon, 08/03/2009 - 15:48 | Link to Comment crzyhun
crzyhun's picture

The PDF is welcome, that way I can save it and re-read at a later time....a good article.

Mon, 08/03/2009 - 16:28 | Link to Comment Anonymous
Mon, 08/03/2009 - 16:54 | Link to Comment Anonymous
Mon, 08/03/2009 - 16:29 | Link to Comment Anonymous
Mon, 08/03/2009 - 16:30 | Link to Comment Anonymous
Mon, 08/03/2009 - 16:53 | Link to Comment Anonymous
Mon, 08/03/2009 - 17:58 | Link to Comment Anonymous
Mon, 08/03/2009 - 18:12 | Link to Comment Cheeky Bastard
Cheeky Bastard's picture

dont forget to take your blackberry Dennis, we wouldnt want you to cry ..

Mon, 08/03/2009 - 18:54 | Link to Comment Anonymous
Mon, 08/03/2009 - 18:07 | Link to Comment Anonymous
Mon, 08/03/2009 - 20:57 | Link to Comment Anonymous
Tue, 08/04/2009 - 00:37 | Link to Comment Anonymous
Tue, 08/04/2009 - 08:04 | Link to Comment Anonymous
Wed, 08/05/2009 - 17:10 | Link to Comment Anonymous
Sun, 06/05/2011 - 07:46 | Link to Comment sun1
sun1's picture

I have to admit that I have never heard about this information I have noticed many new facts for me. Thanks a lot for sharing this useful and attractive information and I will be waiting for other interesting posts from you in the nearest future.keep it up. car insurance

Do NOT follow this link or you will be banned from the site!