Is The Market Correction Over?

Tyler Durden's picture

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ratava's picture

we had our two weeks of bad news, last week held on support. watch all the dumb money pouring in on monday.

TexDenim's picture

I think the volume of late, and especially Friday, suggests the peasantry is keeping its money under a mattress.

ratava's picture

peasantry aint got no money left, mutual muppets are the target audience

Implicit simplicit's picture

The market must be smokin cause it has short term memory loss big time with BP. All that ocean oil must have made it slip their minds

unwashedmass's picture

well it has to be pretty damn sobering that the peasantry hasn't shown up to take all this stock off their hands at these ridiculous prices.

and hell, CNBC has been waving those pom poms so frantically that they've got streamers in their hair....and its not working.

at some point, someone is going to end up holding a lot of stock...insanely overpriced stock, and right now, it doesn't seem like the usual patsies are going to show up.....

of course, that kind of thing happens when you suck the very life out of the lower classes, leave them penniless, and facing decades of ruinous taxes.

they just don't have it to give to GS and the boyz any more. its all gone.


RobotTrader's picture

Isn't next week Options Racketeering Week??


Look for virtually all puts and calls to get vaporized.

Here's the playbook:

Monday:  Up 100

Tuesday:  Down 200

Wednesday:  Flat

Thursday:  Up 350, then down 150

Friday:  Up 50, then down 100



SilverIsKing's picture

What's Bill doing with his right hand?

TheSettler's picture

So if my math is right Friday we will be up 1OO?

jedwards's picture

The market has digested all the bad news for now.  It gave them a bit of indigestion, but I think we're headed up now, until the next bout of bad news.  We'll probably start ping-ponging the bad news between various countries, Europe, US, China.  My guess is that the economic indicators will turn down, and a double dip will be evident and people will run for the hills.


Sudden Debt's picture

For Europe it will be all about the details and roll out plans for the Austority plans. And that shit can take as much as 6 months befor e they are started so that can create a whoble in the markets for quite some time.

Sudden Debt's picture

The bear got shot in the woods this weekend  and now we go back to the arena to watch the bull fights.

I'll start unloading most of my puts on monday and lets hope I can sell some long positions witch I've been holding since feb. with a profit.

GovernmentMule's picture

The song remains the same as the squid swims on...

poorold's picture

I don't get it.


Sovereign debt skyrocketing into territory where even the uneducated realize it cannot be repaid.

State and local governments whose budgets cannot and will not be balanced without serious pain and actual layoffs of employees, thereby further slowing things down.


and these "investment" firms continue forecasting the same old ****.  Market correction???  Yeah, wait till it just breaks.

Oh, my mistake.  They are just providing tomorrow's racing sheet for the betters.


How soon till the track closes?

jedwards's picture

Go watch "Wall Street" from the 80s.  They say the EXACT same thing about debt, trade deficits, the US being in the toilet, etc, and we managed to squeeze out another 25 years of "prosperity".  People on Wall Street have made billions upon billions, during this time when we should have been worried about our levels of debt.

Don't invest based on that thesis, because people who have thought that for the past 20 years, like Jim Rogers, have been on the wrong side of the trade.

The world is more than willing to extend credit to the US.  The only thing that would stop that is if another, more suitable country came around, but so far that country doesn't exist, so until then, the US will remain king, and everyone in the world will keep on giving us more rope to hang ourselves.

Once China gets its shit together and forms a politically stable and reliable place where we can put our money, then the US is fucked.  But not one second sooner.

TBT or not TBT's picture

The sovereign debt-to-GDP ratios were wildly lower in the 80's, and the demographics were better.   We could plausibly grow our way out of those debt levels, and so we did.  This time around, short of a series of technological miracles extending working lifetimes and lowering costs, there will be no pulling out of this dive.

As to China, have a look at their demographics.   China will get old before it gets rich.

Nikki's picture

When you shit on Jim Rogers you remind me of those ass clowns on Fox Biz every Saturday that laughed at his rants for years about Fannie, Freddie and sChitty bank. Think those fuckers are still laughing ?. Why are you ?. His commodity calls were right as was his advice to not short last years Fed rally. I'll go with Bow tie Jimmy instead of you. Watch for a short term Euro rally and weep.

Do not disrespect the bow tied one...

jedwards's picture

Wrong.  He was completely wrong about the USD and commodities for the better part of 25 years.  He was wrong about oil in 2008, he thought it would stay high, but it dropped 80% down to $35.  He has been completely wrong about USD.  The only thing he's been right about is gold, and that is only in the last 3 years or so.

His track record is worse than mine, and mine is terrible!

GeorgeHayduke's picture

I'm holding my few positions for a couple more weeks to see if they rise on this BS wave. Then, I think I might bail out completely at the end of June. Too many bombs and traps laying around. Although, even being in cash in the account might be a crappy deal when they trash the dollar too. Oh well, I'm as ready as I can be right now for what they throw at us.

mcguire's picture

just for fun, thought i would post this... this is a cartoon slideshow that appeared in the UK Telegraph over a year ago, predicting events to start next week (monday into tuesday), june 21,22.  (in this video, it is set to music, but you can still see it posted in the telegraph as a slide show) (i always freak out on tuesdays, always want to be short the market or long vol.)  it is laughable, i know, but still presents an interesting trading point... the question is, if this were to happen, would all trades be made meaningless?  would you be able to collect anything, even if you put together a winning option strategy???  whatever happens this week, remember this for next week.

mcguire's picture

as far as this week's trading and the broad equity markets in the US, i am using the 200 day moving average to guide my decisions (around 1100 in the sp500).  if the pump and dump machinery manages to break through this point, i am giving up on this being a capitulation with any teeth (at least until it retests april highs).. just my thoughts...  

Bohica's picture

RE  "the ECRI leading economic index posted its 44th sequential weekly decline this Friday, and has for the first time plunged to an annualized negative rate."

The ECRI WLI posted its 5th sequential weekly decline on Friday 6/11 for data as at 6/4.  It's still up 5.8% y-o-y (52 weeks), but the 52-week change is declining rapidly.  6-month change (26 weeks) has been negative for three weeks.

Thoreau's picture

The correction is over; long live the erection... until the blood vessels blow-out and we start pissing blood. Now go eat your dinner.

bigkahuna's picture

Does anyone remember what bernie ebbers said about worldcom stock just before it tanked? Something like, now is a great time to buy--right from the mouth of the scumbag who was behind all of the bs. This sounds familiar to what is taking place on a market wide scale right now.

Edna R. Rider's picture

Last week I suspected the markets would move up (if there isn't seriously bad news, that's good news, it seems).  I am guessing that until August the market will slowly go up, mostly overnight, with excellent moves on Sunday nights.

mcguire's picture

i kind of suspected the market would move up after it shrugged off japan minister saying "we are the next greece". 

mcguire's picture

i kind of suspected the market would move up after it shrugged off japan minister saying "we are the next greece". 

Sudden Debt's picture

For Europe we're getting into extreme right government mode. Belgium just voted for a seperation government.

ratava's picture

right is the only side capable of fiscal consolidation tho. czech and slovak voters showed surprising amount of sanity and elected someone else than populist socialists.

Borat's picture

Honestly, very confusing text. The title says one thing and the article seems to contradict it. I would use other indicators to show that a pull back is due in a couple of weeks. Just get the news and see how biased to the down side ( Bob Pretcher on Cnbc, Bears on magazines, the phrase " we are in correction territory"...). My guess we should test again the 1050 and then... Who knows....

mudduck's picture

An economist named Binky. To bad his last name is not Bernanke, now that would be a good name for an economist. Anyhow, I think these guys have got it backwards, I think the correction started in March 09 and just ended in April 2010.

buzzsaw99's picture

I hope there is a rally as I have some equities I need to unload.

Maxiarg's picture

I believe the short term correction ended.... but, taking a longer perspective, (technically), the "double dip" is possible... look at this charts:

The similarity between 1929 / 1932 and 2007 / 2010 are amazing...


The Rock's picture

Is The GSHS (Goldman Sachs Horse Shit) Over?

Enquiring minds would like to know...


keepmydollar's picture

Options manipulation week next week.  I think the bounce has another week, but we are headed back down.

All_Is_Well's picture

But fundamental initial conditions are also important and, in our view, the main cyclical driver of the current recovery, the large gap between final demand and corporate activity levels, remains and will continue to drive corporate spend and hiring.

Translation: AAPL sold another million iPads therefore everything is "peachy" and SP 1350 is just around the corner!

lewy14's picture

far less margin for reality


Brilliant. Soon entering a lexicon near you.

Treeplanter's picture

Nobody has a clue about where the market is going short term.  We do know long term.  Wishful thinking tends to lose money.

Lighty's picture

With all this official bullishness, a market crash is guaranteed. Time to reload shorts!

Eric Cartman's picture

Maybe the regulation on banks will kill the market down the hill.

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