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It's Not Just Us...

Tyler Durden's picture




 

...who have reached a level of complete disgust with equity markets in a period of unprecedented central planning. Here is Peter Tchir of TF Market Adivsors asking some very critical questions, which would probably be best directed to the Great Chairsatan.

From Peter Tchir of TF Market Advisors

Is it just me or is the price action getting more difficult to explain?  Being wrong is not new.  Being right for the wrong reasons is also not new, but usually you can at least point to some bit of data or news and see how it impacted the market.

For the past week I've been struggling to even do that.  One day stocks are up on news that Japan is less bad than feared, which would make sense except the Nikkei was down that day.

Some days rising oil prices are bad.  Others its good.

Economic data has been just as confusing.  We rally on bad numbers.  We rally on good numbers.  We sell off on good numbers.  We sell off on bad numbers.

US stocks rally on Irish stress tests, but Irish bonds sold off on the stress test,  but European CDS tightened, but US credit widened.  Go figure.

Some bonds are bid without, others are offered without, and again, no obvious reason for such a discrepency.

The only useful inside information would be which stocks Warren is going to buy, but I'm told that's not actually inside information. 

Maybe I'm the only one confused and find the moves hard to explain and can't figure out why the relationships between markets is breaking down, but I suspect I'm not the only one, and its not necessarily a good thing.  SPX 1200 or SPX 1400?  Who knows?  I'm not even sure I know what news would take us to either one.

 

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Thu, 03/31/2011 - 13:28 | 1122006 Thomas
Thomas's picture

Been posting how my jaw drops daily watching the market. The bots are in control.

Thu, 03/31/2011 - 13:37 | 1122045 the mad hatter
the mad hatter's picture

Didn't you get the memo Peter?

You need to BTFD with every TPS report.

http://movieclips.com/4aBM-office-space-movie-did-you-get-the-memo/

Thu, 03/31/2011 - 14:05 | 1122207 TaxEstate
TaxEstate's picture

Yeah... I'm gonna need you to go ahead and BTFD.

Thu, 03/31/2011 - 14:12 | 1122234 baby_BLYTHE
baby_BLYTHE's picture

How about this one. Chairsatan is going mainstream!

http://www.youtube.com/watch?v=kbPjNLWMjZ8

Thu, 03/31/2011 - 14:24 | 1122288 Jay Gould Esq.
Jay Gould Esq.'s picture

It is the invisible hand of the successor to the PPT ( Plunge Protection Team ): the PPTT ( Positive Price Trajectory Team ). The original acronym "PPT" assumes the first "P" will be allowed. Such a naive, antiquated notion, in the brave, new Era of QE.

Thu, 03/31/2011 - 15:25 | 1122526 Banjo
Banjo's picture

If you are not buying gold.  Barber Bernanke he will happily give you a haircut on your lifes savings.

 

Thu, 03/31/2011 - 13:28 | 1122009 MightyZum
MightyZum's picture

Stop complaining and BTFD . . .

Thu, 03/31/2011 - 13:58 | 1122188 taraxias
taraxias's picture

What FD? There ain't even any more dips to but FFS.

The ChairSatan had discovered perpetual motion.

Thu, 03/31/2011 - 14:04 | 1122212 Id fight Gandhi
Id fight Gandhi's picture

There hasn't been any dips. Japan fell apart, but that took 3% off and put it right back on in a few days. Big deal.

Who the fuck will buy price line at 510 here?

Thu, 03/31/2011 - 15:44 | 1122588 Cash_is_Trash
Cash_is_Trash's picture

Shit, not even with his money.

Thu, 03/31/2011 - 13:31 | 1122014 FunkyMonkeyBoy
FunkyMonkeyBoy's picture

There will be no normal ever again.

"Order out of chaos" - The motto of the New World Order.

Thu, 03/31/2011 - 14:30 | 1122316 pazmaker
pazmaker's picture

who would junk you for that comment.. it's spot on!

Thu, 03/31/2011 - 13:32 | 1122019 TIMMAYYY
TIMMAYYY's picture


http://www.youtube.com/watch?v=98LeLZ2crZE

who would of thunk he would start an online blog to inform, he was doing so well with the soap.

Thu, 03/31/2011 - 13:32 | 1122020 DutchTreat
DutchTreat's picture

Jeez, stop whining. This market is crowded with machines because smart money is on the sidelines. Once the balance tips, the machines will reinforce the move. Just make sure you're ready for that day. Until that time: follow Mighty Zum's tip: BTFD.

Thu, 03/31/2011 - 13:31 | 1122022 jkjacksonhole
jkjacksonhole's picture

Thanks to the FED for meddling and destroying free markets. A dart board is a great education. All the techanical education is worthless these days.

Thu, 03/31/2011 - 13:33 | 1122025 themosmitsos
themosmitsos's picture

;) and yet ...

Thu, 03/31/2011 - 13:34 | 1122030 Pedro
Pedro's picture

Will they be able to continue their $4 prescription plan?

Thu, 03/31/2011 - 13:33 | 1122031 RealitiveMind
RealitiveMind's picture

My deepest sympathy on the loss of your reality.

Perhaps there is a new reality just around the corner.

Thu, 03/31/2011 - 13:35 | 1122033 earnulf
earnulf's picture

I find the most peace and serenity in deciding what I wish to own and buying it at a price I wish to purchase at and not giving a frigging care as to what happens day to day.

My silver glows quite nicely and the golden highlights are calming.

Although one must exist in the now, one can plan for tomorrow with the caveat that no one will take care of me, but me.   No one will care for my family, but me.

If I'm wrong, I'll shrug my shoulders and accept it.   If I'm right, then I have been wise in my preparations.

I may review my long term positions day to day and adjust as needed, but I don't lose sleep over it.    Find what is of real value and treasure it.

Thu, 03/31/2011 - 14:28 | 1122302 SilverRhino
SilverRhino's picture

Silver grows well.  My quandy is whether I should pick up a bunch of copper rounds too.   10 more oz of silver or a bag of 250 oz av copper art rounds .... tough call.

 

Thu, 03/31/2011 - 15:35 | 1122554 SamuelMaverick
SamuelMaverick's picture

Go with silver or gold,  go with what has been and continues to be real money.

Thu, 03/31/2011 - 13:35 | 1122037 Paul Krugman
Paul Krugman's picture

This is what happens when the market is manipulated by the FED. I really wouldn't be surprised to find out that the FED is actually purchasing ES directly and/or through a proxy. 

Thu, 03/31/2011 - 13:39 | 1122062 jkjacksonhole
jkjacksonhole's picture

They have already admitted to it.

Thu, 03/31/2011 - 13:39 | 1122082 jkjacksonhole
jkjacksonhole's picture

Bernie has admitted as much

Thu, 03/31/2011 - 13:34 | 1122042 redpill
redpill's picture

The stock market has become an pointlessly complex and inexplicable Woody Allen movie.

 

Thu, 03/31/2011 - 13:37 | 1122047 nkktwotwozero
nkktwotwozero's picture

Bermuda Triangle of finance::

NYFed to the north, DCFed to the south, and BOJ to the east.

Covers a lot of ground.

Thu, 03/31/2011 - 14:14 | 1122239 SignsAndWonders
SignsAndWonders's picture

Maybe inglip will provide some insight.

Sat, 04/02/2011 - 04:21 | 1125094 nkktwotwozero
nkktwotwozero's picture

Insight? No.

Just squiggly lines to interpert the best we can.

Very much like certain investment methodologies...

Thu, 03/31/2011 - 13:38 | 1122057 REALTRADE
REALTRADE's picture

BUY 3 SHARES OF PCLN FOR THE LOW LOW PRICE OF A LITTLE MORE THAN AN OZ OF GOLD .... COURTESY OF THE BERNANK

Thu, 03/31/2011 - 13:39 | 1122068 kentfinance
kentfinance's picture

+1

Thu, 03/31/2011 - 13:38 | 1122071 Korrath
Korrath's picture

I've spent the last few months trying to figure out what that constant low level grinding noise in the background was.  Thought I was developing tinnitus.  

Turns out it was just the equity markets tearing free from reality.

Thu, 03/31/2011 - 13:52 | 1122145 Amish Hacker
Amish Hacker's picture

Right. And all that ringing was just Warren's cash register.

Thu, 03/31/2011 - 13:38 | 1122072 rubearish10
rubearish10's picture

Maybe I'm the only one confused and find the moves hard to explain and can't figure out why the relationships between markets is breaking down, but I suspect I'm not the only one, and its not necessarily a good thing. ....

Great and now I'm relaxed 'cause for a while, I thought I had painted myself into a corner.

Thu, 03/31/2011 - 13:38 | 1122073 AR15AU
AR15AU's picture

I could have written that article like 2 years ago.

Thu, 03/31/2011 - 13:47 | 1122123 ghostfaceinvestah
ghostfaceinvestah's picture

No kidding.  Has he seen the performance of the Zimbabwe stock market?  Or Weimar Germany?

For that matter, just look at the price of the market using silver or gold as a basis.

The rise in the stock market is no great mystery. The great unknown is, what happens if/when the printing presses are turned off.

I think we saw a preview last spring...

Thu, 03/31/2011 - 13:39 | 1122081 Milton Waddams
Milton Waddams's picture

Let me help this fellow out:  Bernanke is Ivan Pavlov, quantitative easing is his bell, and you are one of his dogs.

Thu, 03/31/2011 - 13:41 | 1122083 nobusiness
nobusiness's picture

New High in IWM.  Don't know why.  Maybe small caps sell radioactive protective suits, maybe the companies that sell concrete, Maybe they sell bullets, tanks, body bags, bandaids, artificial limbs, etc.

Thu, 03/31/2011 - 13:50 | 1122138 Boilermaker
Boilermaker's picture

IYR ready to pop 52 week highs, again.  Pay no attention to the fucking plywood on the abandoned stores.  It's a mirage.

Thu, 03/31/2011 - 13:59 | 1122193 Cdad
Cdad's picture

Boiler,

You know what that plywood is...opportunity, baby!  Rip the boards off the front of that strip mall, lever it up 10:1 on mezzanine debt, IPO some shares at the NYSE [where Duncan Niederauer is perpetually out to lunch or taking a dump], and use the "slosh" to buy some SPG, while also using the margin in your account to short silver.

American Dream, baby!

 

Thu, 03/31/2011 - 13:42 | 1122098 Cdad
Cdad's picture

Dear Mr. Tchir,

First, buy another vowel.

Second....there is no market.  There is only the wasteland that Ben Bernanke made, and the impressionist painting that the BlowHorn [CNBC] holds up for us to see how pretty it all is...so that we do not see all the criminal syndicate Wall Street bankers running wild everywhere.

The market perpetually rewards the last and the dumbest and the shortest-sighted trader, entering at the closing bell, speaking some drivel like, "Because Japan has been destroyed, it is good news for [     ] stocks."  K?

Ease up on the fluoride, man...that shit will kill you if you overdo it.

No disrespect intended.

Cdad

Thu, 03/31/2011 - 14:10 | 1122226 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

F'n a right, Cdiddy!

Thu, 03/31/2011 - 13:42 | 1122100 ShankyS
ShankyS's picture

Just like Japan and TEPCO fighting a nuclear disaster that was doomed
from the start so is what the Fed is doing with financial crisis.
Admitting defeat and that you can’t keep the dream alive is tough
medicine to take. Desperate moves in the last hours by the greedy ones to
get out what you can lead to more damage than needed to be caused.This sucks.

Thu, 03/31/2011 - 13:45 | 1122106 dcb
dcb's picture

It's the hft, dude.....

you haven't figured out the computer algo. it goes down when the boys want it to go down. a lower open if down the prior day is a buy signal, in fact lower opens are buy signals. the reason is that if the boys owned the night before, and they sold on the lower open, it  would be a loss. that is not allowed.

the easiest way to make money is to program the computer the night before and ignore the news. just figure out the patterns, and realize the us staock market has nothing to do with reality anymore, it is just a bunch of algos.

 

the trick is to figure out when the algo's are running or humans.

for instance on the way up, if you buy the short at the low  of yesterday, this is a common sell signal. picked up by the algos as rapid selling so to them it is a buy.  the close always above low the day before.

 

you draw that low on a trend line and that is the buy point the following day.

 

there are no gaps down, so never use a simple buy stop, and it will never gap low  of the day before. take the tlt (20 year treasury).

the open gap means buy tbt, then get near top of yeaterday, seel and buy tlt. if you owned treasury's last night, better sell on the gap.

 

always use a buy stop limit, because the gap will be filled, and you can almost always bee assured that if you traded the way a human would do it, you will loose money.  

if you open lower, by a small  amount OK to try a short, never on a large amount.

 

I find the hourly MACD on the s and P is rather usesfull, and if you want to go in and out often the 10 minute MACD works really well. data has nothing to do with it at all.

 

tomm. Firday, never be short on friday, or be sitting in from of your computer. if it gaps down they will buy all the way up,if you go up, they buy all the way up. I think they like a thing before going into the weekend.

 

if I short it may be at close friday as a hedge for bad weekend news, or on monday.

 

please don't tell me you don't see the pattern on this rise in the s and p.

Thu, 03/31/2011 - 13:44 | 1122109 Debtless
Debtless's picture

JPM borrowed $95B from the Fed Discount Window the docs revealed.

They said they borrowed nothing. Fuck them.

Thu, 03/31/2011 - 13:49 | 1122142 Boilermaker
Boilermaker's picture

Well, it depends on what the definition of 'borrow' is.  I guess.

Thu, 03/31/2011 - 13:57 | 1122171 SDRII
SDRII's picture

$95B s not even a months worth auction. Plus they were only leading the other mules to the water - wasn't that the meme

Thu, 03/31/2011 - 14:13 | 1122232 Revolution_star...
Revolution_starts_now's picture

@ .025 I'm not sure you could call it borrowing. It's more like the Bernank jacked them off with 95 billion dollars.

 

Hey Ben do me next!!!

Thu, 03/31/2011 - 13:44 | 1122110 mendigo
mendigo's picture

is it possible that superimposed on the sureal world created by bernanke - where-in "up" is the new "down" and "insolvent" is the new "affluent" (or at least no big deal). the market is interpreting bad news as good because it supports QE3. (is it the same people attacking bernanke for devaluing the dollar and then attacking him for proposing to end the printing or is it really two different groups - i've lost track)

Thu, 03/31/2011 - 13:45 | 1122118 The Axe
The Axe's picture

I feel your pain Bro....I hope my other version in George World, a parallel universe is makinng lots of money and getting banged. But it is true market broken....Don't tasr me bro...

Thu, 03/31/2011 - 13:45 | 1122120 carbonmutant
carbonmutant's picture

The reason "price action getting more difficult to explain" is because the majority of the trades are not being done by hormone based logic systems.

Thu, 03/31/2011 - 14:43 | 1122293 AccreditedEYE
AccreditedEYE's picture

+1  These are the joys of government involvement with free markets. When the market doesn't have true price discovery anymore assets are valued by where "the committee" believes they should be valued. It's what happens when prices are more funny money than they are fundamental. I'm sure the author knows this....

Thu, 03/31/2011 - 13:47 | 1122125 dcb
dcb's picture

tomm being april first all bets off

Thu, 03/31/2011 - 13:46 | 1122128 Long-John-Silver
Long-John-Silver's picture

Admit it...We are living in the Twilight zone, not just watching it.....

 

http://www.youtube.com/watch?v=NzlG28B-R8Y

Thu, 03/31/2011 - 13:48 | 1122139 Sutton
Sutton's picture

So this man works at Turd Ferguson Market Advisors?

Thu, 03/31/2011 - 14:08 | 1122222 Dagny Taggart
Dagny Taggart's picture

+37.80

Thu, 03/31/2011 - 13:50 | 1122150 Boilermaker
Boilermaker's picture

Golly, you mean this really might not be legit?  I never made the connection.

Thu, 03/31/2011 - 13:54 | 1122164 baby_BLYTHE
baby_BLYTHE's picture

Mr. Chairsatan, you're fired!

...If the Donald beats Obama (and Ron Paul doesn't run), would he END THE FED?

Thu, 03/31/2011 - 13:58 | 1122187 alien-IQ
alien-IQ's picture

I believe the Donald will be disqualified from running due to his horrendous comb over and the multitude of BK filings...but mainly the comb over.

Thu, 03/31/2011 - 13:54 | 1122165 jbc77
jbc77's picture

I feel the same way. How can they not be controlling the capital markets? Two weeks ago we had a war in Libya start, a nuclear meltdown and the worst housing data ever and the market ramped all week.

The only way it can be explained is that the fed is in there buying stock through the PD's.

 

Thu, 03/31/2011 - 13:55 | 1122169 dcb
dcb's picture

Oh, you can almost always buy from 2 to 3:30 long and make money. I'd like to see a study of gains made at this time of the day only trading!!!

Thu, 03/31/2011 - 13:57 | 1122178 eddiebe
eddiebe's picture

Looks like Mr Tchir is having an AHA moment. Good for him. I just hope the folks managing my pension fund have a clue.

Thu, 03/31/2011 - 13:59 | 1122184 pendragon
pendragon's picture

audjpy looks ripe for a correction. maybe tomorrow is the day....

Thu, 03/31/2011 - 13:59 | 1122185 dcb
dcb's picture

OH, the algo's use a speed line, even when breaking they almost always go back into it. I think that how they are programmed. normal people use certain lines as sell lines, they use them as buy lines to drive it back

Thu, 03/31/2011 - 14:07 | 1122210 Racer
Racer's picture

They don't have a panic mode, they just have a buy mode when the price moves down a lot very quickly.

computers have no need for fundamentals or reasons. and if they are most of the "market" and the banksters get paid to trade then they will spend all day just trading regardless of what is actually going on with 'fundamentals'

The market as a price discovery mechanism has been truly killed by the ChairSatan

Thu, 03/31/2011 - 14:23 | 1122202 Occams Aftershave
Occams Aftershave's picture

.

Thu, 03/31/2011 - 14:02 | 1122205 Racer
Racer's picture

"We now have an economy in which five banks control over 50 percent of the entire banking industry, four or five corporations own most of the mainstream media, and the top one percent of families hold a greater share of the nation’s wealth than any time since 1930."

http://www.minyanville.com/businessmarkets/articles/extend-and-pretent-r...

Thu, 03/31/2011 - 14:05 | 1122217 alien-IQ
alien-IQ's picture

We have an economy?

Thu, 03/31/2011 - 14:18 | 1122268 Racer
Racer's picture

Sorry should have written eeeeee CON on me

Thu, 03/31/2011 - 14:03 | 1122208 Bobportlandor
Bobportlandor's picture

Should of started off " DEAR ABBY "

Thu, 03/31/2011 - 19:17 | 1123293 StychoKiller
StychoKiller's picture

"Dear Abby, dear Abby; you won't believe this:

My stomach makes noises whenever I kiss!

My girlfriend tells me, it's all in my head,

but the rumbling inside me sez write you instead.

Signed NoiseMaker" -- John Prine

Thu, 03/31/2011 - 14:05 | 1122214 buzzsaw99
buzzsaw99's picture

there are no markets, there is only the bernank.

Thu, 03/31/2011 - 14:15 | 1122241 sharkbait
sharkbait's picture

we are in the end game of the triumph of mediocrity.  All the people making the investment decisions are measured and compensated based on performance vs a benchmark.  So they strive to be slightly better than the benchmark.  If they are, they are well paid.  It the benchmark is down 15% and they are only down 14.5% they did great and get a fat check.

Very few are looking at this and saying 'this is crazy, I'm out because there is no value here'.  

It will return to sanity some day but whebn it does, it will overhsoot on the other side.

 

Thu, 03/31/2011 - 14:17 | 1122250 Catullus
Catullus's picture

Very sorry. I should keep you informed of when I'm making BTFT moves in the market. I'm generally on the absolute incorrect side of a trade 95% of the time. Except of course the tiny mound of shiny metal bars and coins in my closet. Honestly, I think hard 8s and 6s in Vegas would have been a better investment plan.

Thu, 03/31/2011 - 14:16 | 1122252 dogismyth
dogismyth's picture

Too bad there is no voice of reason.  No one would listen anyways!!!

Thu, 03/31/2011 - 14:33 | 1122332 LostWages
LostWages's picture

Our weathly CONgressional leaders are all enjoying the "wealth effect" therefore don't see that anything is wrong.  Now should their portfolios suddenly drop, there will be a rush to the microphones to demand explanations.

Thu, 03/31/2011 - 14:18 | 1122270 whatz that smell
whatz that smell's picture

russell 2000 and 4PM Eastern = greater than 847.18.

praise be the bernank! may his bitchez paint the tape forever!

Thu, 03/31/2011 - 14:22 | 1122283 monopoly
monopoly's picture

Yup, and when it ends. Look out.

I do very little outside of miners, have not shorted in a long time except to test the waters....that is when I drown. No shorts.

Thu, 03/31/2011 - 14:24 | 1122290 hoyasrule
hoyasrule's picture

constantly complaining about hft's, the bernank, and the direction of markets on a daily basis is pointless.  if you are trying to make money as an investor, come up with a thesis, figure out whether that thesis is variant to the price in the market and make an appropriately sized bet on that particular idea when you reasonably believe this variant view will come to fruition.  being early and being wrong is imperceptible so you'd better keep your liquidity available in case the world continues it's fight against your view.  screaming and complaining that your world view is correct and will come to light while you go bankrupt fighting against it is not a winning investment strategy. 

Thu, 03/31/2011 - 14:28 | 1122303 Sandy15
Sandy15's picture

I've been saying things didn't make sense for 1 1/2 yrs.  Obama said on TV in March or April 2009 that (paraphrasing), 'we would not be able to gauge the economy based on stock market movements'.  As someone that trades daily, watching a total of 21 charts per day, that comment really caught my attention.  Why did he say that??

 

I believe between the FED, the communist and socialist groups funding this global movement we are seeing, and Evil George Soros this market has been MORE rigged than ever before.  The movement up over the last two years has been on lower volume than normal.  WHY??  Technicals do not work....WHY?? Soros keeps saying that the "Free market system does not work", WHY? he's made his billions in the free market.  This is their propaganda and reasoning for their NWO.

 

On Dec 6, 2010 after the s&p @1225 had just moved up 45 points in 3 days someone purchased 1000 s&p future call contracts at 1470 strike price for a Jan expiration. No retail trader nor institution is dumb enough to spend that much money buying call options to say the market will move that high in less than 6 weeks.  I know several traders willing to sell that position to the FED,.....opps....I mean, buyer.  Many, Many call and put options purchased WAY out of the money.....WHY?

Thu, 03/31/2011 - 14:28 | 1122309 bob_dabolina
bob_dabolina's picture

His questions are very cogent but easily explainable.

The artificial liquidity provided by the Chairsatan is being misallocated in every facet of every market (bonds, stocks commodities, you name it). The excessive liquidity is sloshing from one inefficient plateau to the next, and back again, leaving an interference pattern hard to measure qualitatively (from an asset class standpoint) to a quantitative standpoint. 

The one thing that is certain however is that the inflation being experienced is of monetary origin and completely dislocated from the supply/demand paradigm. Oil invetories were up, Japan is weak, and our housing sucks yet look what oil did today...

Munis are tenuous as are sovereigns and picking a currency is like picking the prettier ugly girl. The margin compression induced by rising commodity inflation makes most stocks unattractive from my point of view. So, the one asset class that seems most likely to benefit is commodities. So just pick a few you like and ride the wave.

Thu, 03/31/2011 - 14:32 | 1122331 Fortunes Favor
Fortunes Favor's picture

 

I humbly suggest the following post may clarify... Stock Market Strategy: Understanding Fed Speak & Economic Statistics @ http://rosenthalcapital.com/blog/2011/03/market-strategy-fed-speak-economic-statistics/

 

Thu, 03/31/2011 - 15:00 | 1122420 campag
campag's picture

nothing to understand .it cant be explained.

go old school - sell in May and stay away .

just placing  my puts in the market - slowly every day for the next 20 trading days. 

Thu, 03/31/2011 - 16:08 | 1122691 mberry8870
mberry8870's picture

The premise of the authors questions are incorrect. The author is coming from the angle that this was a fair or rational market. Why apply questions of logic when our government is allowing the manipulation of the market by the Fed? This market has nothing to do with economics or the discounting of future cash flows.

Thu, 03/31/2011 - 19:26 | 1123337 SofaPapa
SofaPapa's picture

I'll take a philosophical angle on my response...

 

In a free market, the goal is to make money.  All actors have the same goal, so even though there are a million different viewpoints on the best strategy to do that (thus the noise), certain patterns are superimposed on the chaos.  For example, large disruptions lead to instability and often reversals.

 

As the vast majority of us on this board agree, this is no longer a remotely free market.  What does that mean?  Well, it means that we now have huge actors (popularly labeled TPTB) in play whose interest is no longer making money.  The government and their TBTF proxies don't care if they make money, they just want everything to "look stable".  For them (Ben being the puppet-in-chief for this policy), the market going up "looks encouraging" for the people and will maintain the status quo.

 

With this new motivation injected into trading, it is no surprise that signals have gotten completely out of whack.  It's hard enough to trade such as to make money.  But now they are trying to trade so as to keep everything going up.

 

An example.  Imagine a hard down day (in the old system).  Well, now the Fed steps in and says "nope, we can't have that".  Suddenly there is an unnatural support for price at that point with no motivation of profit, only for "stability".  Two days later, however, the market looks good, so TPTB say "we can lay off the support for today, it should be fine."  Imagine that.  On a good day, prices drop.  This is just one of many possible permutations that could lead to unnatural trading.

 

In other words, now that there is a new motivation overlaid on the original purpose of the market, there are very confused (even more than usual) signals.  The punchline?  Have we ever in history seen a centrally planned economy succeed?  It won't happen this time either.  It's just a matter of time, and the collapse will be epic.

 

Very sad.

Thu, 03/31/2011 - 20:54 | 1123600 PulauHantu29
PulauHantu29's picture

Even my plumber is asking, "WTF?"

So no, it's not just Zero Hedge...but ZH is my favorite all time web site...(of course, after to The Naked News Channel).

Thu, 03/31/2011 - 21:01 | 1123623 KeepDancin
KeepDancin's picture

Gotta keep dancin' 'til the music stops.

 

 

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