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Intraday Charting
The DXY minibounce from the 75 support level is being tracked by 10 Year Treasurys tick for tick. The only outlier is the equity market where to say there is no volume participation would be an overstatement. The VIX is meandering somewhere in between the SPY and the USTs. All in all, the FX and the bond markets are once again ignoring the shallow equity melt up which is as produced as the President's daily TV appearances.
In the FX realm, the Euro, JPY and the AUD are trading in lockstep, while the cable has grown a mind of its own. Curiously, recently we have seen major divergence by both the Yen and the Pound, which have both decoupled from broad USD weakness, er, action. In essence the global FX market is now a derivation of German exporting and US importing (or, more vividly, of Bernanke pitching and Trichet catching). With US consumers unable to wait to load up on Porsches (wait for the average Goldman bonus of $750k/person to hit) and printing presses made in Heidelberg, the optimists on a US-Deutschland bilateral world may just be on to something.
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....and buyers went after the 3-yrs at auction this afternoon like dogs after a bitch in heat.
from acrossthecurve.com:
Many of the little saying I offer here have been appropriated from colorful characters with whom I worked through the years.
In the early 1980s at Chase Manhattan Bank ( the original one before it became the Rube Goldberg edifice of today) the short bill trader (he only traded the bills out to 91 days) was a gentleman named Frank Rose. When the market was screaming and buyers were in abundance Frank would proclaim that it was “like watching dogs in heat”.
Why do I bring this up? Because the bidding in the three year note auctionwas like watching dogs in heat.
The yield was fully three basis points through the level which prevailed in the market at 100 PM .
The bid to cover ratio approaches 3.4
And the Indirect Bidders took about 68 percent of the auction. That is the highest level of indirects since 2003 and well above the norm of about 55 percent.
"buyers went after the 3-yrs at auction this afternoon like dogs after a bitch in heat."
Who were these "buyers" (besides deluded dollar-deflationists)? Oh, I see it now. Over two-thirds were "indirect" buyers. How great is it that the very foreigners who are buying Gold by the truckload to "diversify" their reserves still can't have enough of the dollar? There is only one question that I want to ask though: Is there absolutely no common sense or intelligence left out there? Has somebody bothered investigating who these alleged "indirect" buyers were? The ugly reality is that a majority of the "indirect" buying is nothing but stealth buying by the Fed itself. No shit it "is the highest level of indirects since 2003" - because no person in their right mind would even consider buying the certificates of confiscation...er...treasuries being peddled by the corrupt government of a bankrupt nation. The analogy is more aptly stated as Fed eating what the government shits.
The dealers buy from the front door, and then turn around and sell it back to the FED thru the back door..
Kind of reminds me of the scene in "The Goodfellas" where they bust out the restaraunt..
In the end, they finally torch the Joint...how fitting..
The ability to work pitching and catching into a sentence about central bankers, and their respective import/export markets is pure literary genius.
It certainly got me all hot and bothered.
While I force myself to check other sites and blogs each day, I find myself returning to ZH for my hourly fix of wit and wisdom. God help me but I'm addicted and I can't stop.
Is there a 12 step program for Zero heads?
I feel like were in a reality tv show now
Kinda like the season of 'Surreal Life' where the cast included Ron Jeremy and Tammy Faye Bakker.
i loved that episode. :))
ron jeremy was bragging about his 9 incher.
wasn't Vanilla Ice Ice Baby a part of that episode too?
My only goal is to live to see the Dow reach 14000 again. I guess I can survive until Thursday.
Yes, and it will do so on dismal jobless claims numbers. Bad is good.
Yeah, 50% unemployment should do it.
Fifty percent unemployment would be enough to trigger a clearing out of politicians through force.
Na, just some new puppet screaming change
Well, at least even the mainstream financial press isn't kidding itself anymore.
Headline on Yahoo Finance?
"Stocks Soar as G20 Says Cheap Money to Continue"
Yeah, although most of them still say that's a 'good' thing.
how long can the carry trade continue? Will the dollar/S&P negative corrilation continue forever?
TD,
How does volume here compare to say that of the Japanese markets over the years? Is there any correlation?
SO, the average true range speculation of all these markets
is the daily uncertainty??
A game of kick the can down the road again.. only when foot meets the can again, nothing has changed...
trading strategy for the SPY
sell if the volume of the first 1 hour is higher than 30 million
buy if the volume of the first 1 hour is lower than 30 million
buy if the volume of the first 30 minutes is lower than the second 30 minutes
Can someone remind me...what was it that had the market falling and the vix spiking last week? Did we fix those problems while I've been napping?
Have faith my son... "God's work" is sometimes counter intuitive.
10.2% unemployment is *so* last Friday.
some interesting thoughts - fwiw.
http://blogs.stockcharts.com/chartwatchers/2009/11/market-is-strong-but-correction-should-continue-.html
Anyone else notice the Coordinated Bank & Fed Pumps that came out on the wire at 2:30-3pm
FED:
http://www.reuters.com/article/ousivMolt/idUSTRE5A144U20091109
JPM:
http://us.rd.yahoo.com/finance/external/bizj/SIG=12cl2rbrg/
BAC:
http://biz.yahoo.com/ap/091109/us_bank_of_america_credit.html?.v=2
Citi:
http://www.thestreet.com/_yahoo/story/10624115/1/citi-worth-5-even-10.html?cm_ven=YAHOOV&cm_cat=FREE&cm_ite=NA
double top anybody, anybody at all??
That'd be nice...
This shit is surreal and I've thought that since March.
Works for me.
Am I the only person that has felt, more than a few times over the last 8 months, this market was on the brink of heading significantly in the other direction? Only to be saved at very crucial time by some event. Whitney's July upgrade of Goldman. One of the banks reported early the one time, and a timely bank on bank upgrade another. Buffet, twice, with his buy stocks op-ed, and the BNI deal. The GE credit upgrade.
So many times, it seems, just when things finally seemed be making sense, it went the other way.
How long can this continue? Till it doesn't I guess.