Tyler Durden's picture

PIMCO happy, Bernanke happy, Dollar mauled, $2.6 Billion POMO closed, Stocks flying. All is good.

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Cheeky Bastard's picture

I'm telling you, Chinese are dumping like crazy 

we have oil lift of; and i have only three words to say; MAKE IT RAIN


my Asian shorts will bring me mucho dinero tonight.

Fish Gone Bad's picture

I agree.  I think of this as the ant vs. elephant fight.  If there are some ants, the elephant kills them.  If there is an army of ants armed with chain saws, the ants win.

This might just be the ants armed with Chinese made chain saws.

Cognitive Dissonance's picture

Every in the MSM wants to believe China will save the day. What happens if they don't?

Oso's picture

my man, its not that your explanation isnt sound.  it could very well be (would love to see the data point), but the OMO completion was announced around 11, that means they were buying around 10.  Its too coincidental that DXY puked right then, all at once. (and SPX went up) 

Spoke with some FX desks, you would have needed 1.5 - 2 bl dollars to sell to move DXY the way it did initially.  and, wow, what was the OMO for?  2.5 bl? shocking how ridiculously close those numbers are.

every day the dollar weakens is a day the baltic states become less and less competitive and China has to work even harder to keep its currency down.


Lizzy  - wonderfully timed comment, lol. ;)

Anonymous's picture

I thought you said you didn't care about money? :)

Cheeky Bastard's picture

i dont, its just a way to keep score.

lizzy36's picture


Anonymous's picture

Something is amuck. They know that China's bubble is crashing, and are doing everything to keep our markets from going to shit.

I am so sick of this blatant manipulation. Fuck Pimco. Fuck Bernanke. Fuck Turbo Tax.

vanquished's picture
vanquished (not verified) Aug 19, 2009 4:06 PM

RDN very was leading the market higher today.

Goldman and Bank of Amerika run the markets along with Geithner, and beagle boy Ben. There is no free markets, only welfare capitalism and socialism for capitalism.

good articles; good articles 4 slow news day ..http://www..
hat tip: finance news & finance opinions

Raymond Shaw's picture

Plunge Protection Team is in full action.  Or whoever they've outsourced this job to these days.  GBP/JPY went up and down like a crazy horse and now back up again.  Thankfully I took myself out at the first start of the upturn around 13:00 GMT, seen that pattern too many times to give back gains again.  Cable was slow to catch on but finally put itself in reverse gear and TP stop got hit.

Lesson for you gents and ladies - if you got profitable short positions in Asian and London sessions, be sure to take your thumbs out of your arses and watch them closely during the NY session otherwise be prepared to give it all back.

Anonymous's picture

As we all know. Central banks are rarely effective in dealing with curreny. the mrket is wway too huge for any one entity to control. So eventually what is a right value will prevail

dnarby's picture

And what about several entities acting in concert?

Anonymous's picture

To TD: how ould the s&p jump a whole 7-8 point in the doldrum time,just before traders go to lunch?may be you can show one of those screen shots in regard to volume!!!

lettuce's picture

yes, i am looking for a nice explanation on this ridiculous (and painful) short squeeze. the DOE report this morning was enough to chafe me but now this equity move is killing me. come on man!

Deficient Market's picture

I second (or third) that request! Although it's pretty obvious where the 2.6 billion for the ramp job came from, just want to get an idea of what to expect at the stick save

Anonymous's picture

Its the dollar. I have no financial background, and even I can see that.

Dollar is starting to rally, cause China's bubble is popping. So Pimco comes out with a nice little story about the dollar no longer being the reserve currency so more of the idiots will short it some more, it drops like a rock, and the markets immediately move upwards. Its all computers, when the dollar drops, the computers buy. stocks up a percent, dollar down a percent. No one made any real money. Its not the PPT. You move the dollar, the program trading (which is everything that's going on right now) does the rest.

Anonymous's picture

Uncle Joe's Budget

Wages = Down
Home Price = Down
Fuel = Going Up
Food Prices = Going Up
Money Left for Discretionary Spending = Zero

Things he has to have will go up in price, things he already owns will go down.

Anonymous's picture

Gallon of gas: $3.50 on mastercard
Utility bill: $500 on mastercard
Christmas gifts for the kids: NOT GOING TO FUCKING HAPPEN!

My cognitive dissonance's picture

Living in a tent city: Priceless

Anonymous's picture

Inflation is more than higher prices. It is also a lower quantity and quality of goods and services for the same price, and new fees and taxes.


Anonymous's picture

wtf is going on in our markets, why do we keep having days like this? i'm seriously at a loss to understand this...


ex ante's picture

option expiration = premium burn at the 950 pivot is my guess


where is max pain now?

ex ante's picture

excuse me 995 pivot - 950 is the wall of support

Comrade de Chaos's picture

see the ROBOT's market summary from the other day. Excellent visual, it's all about delirious herd moving in and out.

mgarrett84's picture

That was a tiny POMO.  Not the kind that should drive a market like this.  Was this emergency POMO  (did it catch everyone off guard?)

vanquished's picture
vanquished (not verified) mgarrett84 Aug 19, 2009 4:06 PM

Here's a thought.  Could it be due to the Gold ETFs?  Do they play daddy in the COMEX markets?

Goldman and Bank of Amerika run the markets along with Geithner, and beagle boy Ben. There is no free markets, only welfare capitalism and socialism for capitalism.

good articles; good articles 4 slow news day ..http://www..
hat tip: finance news & finance opinions

Sancho Ponzi's picture

From: Fed

To: US Working Stiffs

Re: Take That



How dare you cut spending and start saving! Can't you understand what those dollars you've been diverting to your local credit union and mattress of choice will be worth once we finish with you?

Look at all the money you could have made had those savings been invested in the market. Your behavior is irrational and illogical. Call your broker, buy more crap, go deeper into debt and everything will turn out okay.  


Anonymous's picture

Amen to that. S & P up nigh on 17 points (sorry, just gone to 18 1/2) since the open, following the overnight fall in Asia one would have expected (oh, no, not these days) some caution. When this pops in the US/UK it's going to pop big time.


Anonymous's picture

Don't Fuck with Mandrake!

mdtrader's picture

Well who knows what will happen with China tonight? Remember their market crashed 70% when the credit crunch started. People may well become nervous again with that event in mind and simply flee the market, now that it's off 20% from the high.

Anonymous's picture

What drove the market up like that?

One of these days they are going to create such a vacuum underneath it will implode underneath their manuplation so fast it will take even the HFT manipulators off guard

dnarby's picture


I wonder what the straw will be.  Maybe Iceland completely implodes and just stops paying?

rhinotrader's picture

This market is like a upper cut from Tom Cable

Anonymous's picture

Did today's FRB PR about margin changes at the discount window trigger the chart erection?

"New Discount Window and Payment System Risk Collateral Margins Table, Effective October 19, 2009"

Anonymous's picture

Who gives a f@ck if the market goes up or down. I'm all cash and giving the birdie to the Goldman cabal, I'm not willing to continue to become road kill everyday. Some one here obviously haven't learned their lesson yet.

Anonymous's picture

It is to be assumed that the large structural works in order to rebalance the economies have to be seen through equities markets only?
So far nothing that has not been seen in 2005 ,2007,2009
Monetary policy expansion
Interest rates down and further
Fiscal policy will be up and up
Fiscal paradises the new axes of evils
Currencies few whipsaws
Balance sheets fraud and fraud and misrepresentation of truth (allowed)
When will we able to afford to be honest?

PS even the math quiz does not tolerate a true answer

Miles Kendig's picture

Why do so many of you good people stil think that what we have can in any stretch be called "markets"?

Anonymous's picture

The priority of Fed to defend all markets is in the following order: stock market, treasuries, US dollar and house market. Get bullish!

Anonymous's picture

I think they are overstepping the mark and creating a superbubble, but that's what they are good at so why stop I suppose.
After all, the real world must be in a horrific state if they are still defending them this strongly and so persistently
As the VP said.. got to keep spending to keep from going bankrupt

Anonymous's picture

t=The bubble has already been inflated. They seem to be trying to move it sideways lately rather than to keep making it bigger.

Anonymous's picture

I don't think so, even though it may seem like it at the moment. It's very easy for the Fed to move people into bonds. The only question is when they will do it. Not if. When.

Anonymous's picture

Remember QE, Fed really does not need you and me.

Anonymous's picture

The Fed would get far more friction in the economy if they did that defense in reverse order.

Anonymous's picture

Agree. If that happens, US economic will be in much big trouble.

vanquished's picture
vanquished (not verified) Aug 19, 2009 11:57 AM

Spoke with some FX desks, you would have needed 1.5 - 2 bl dollars to sell to move DXY the way it did initially.  and, wow, what was the OMO for?  2.5 bl? shocking how ridiculously close those numbers are.

Raymond Shaw's picture

Amazing.  Just amazing.  Thanks for the information  Vanquished.

Oso's picture

um, ya.... thanks for the info.... vanquished........ didnt realized u were on the phone with me..........

Anonymous's picture

To #41215:

Proper order is: Stocks up, treasuries up, houses up.
Gold down, oil down,(inevitably)
dollar down

TumblingDice's picture

These people are just sick.