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Market Stutters As $6 Billion In ES Goes Through
We are hearing that the recent market downdraft and volume upswing occurred as a major block of just about $6 billion in E-Minis hit the bid. What is odd is that such a big order would go as a block and not be split. Either this was a fat finger or someone is making a statement. In the meantime the NYSE cume TICK hit -1,313, indicating just how much of everything trades as one, and the second there is any selling for whatever reason, the house of cards is once again in jeopardy.
In other news, we are pursuing perfectly groundless rumors that someone just leaked next month's ADP number.
Some more from a respected trader:
100K ESH1 sold over a 6-minute period ---> not a fat finger IMO.
Someone's picked a top and is bailing ahead of US earnings, the European auctions and Thursday's ECB meeting.
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Thank you ZH/Tyler. I was wondering what happened.
What happened? Please fill me in
The snake is having a difficult time swallowing the neighbors dog.
Ya know, I was havin' a little trouble the other day trying to explain what's not quite Kosher with capital markets, the Fed, Treasury's debt issuance and so on to some of my more Uber-liberal friends out here on the Left Coast.
These folks cannot see any means, motivation, agenda or nefarious actions taking place in the markets that might be attributed to Federal policies.... all due to evil corporations.
What does that have to do with the price of used condoms and big snakes? One of them lost a pet bird. Pet bird, as used to be kept in a pet bird cage. I'm sure it was very happy being sung to, bathed, rubbed and fed an astounding array of pure wholesome organic foods. Probably pining for home.
But what seems to tie it all together is that whilst she (the lady short one bird and failing to make delivery) cannot conceive of a malefactorious governmental action, she has indeed posted signs all about the neighborhood offering a reward for said lost bird, which probably flew off somewhere.
So I told her that I'd had a dream.... of a dog chasing a coyote with a cat in its mouth which was swallowing a bird. She told me that I really needed to get my Mojo centered and my Karma unbent.
Let's see how many people I can piss off.
Speaking only for myself, the tendency when being contrary while living among other contrary people is that one will step outside the "consensus of the country" only as far as the contrary people you live with will tolerate. I am of course speaking in generalities here because there are always exceptions to the "rule". So the (so-called) enlightened become just as bogged down in their own naval gazing as the (so-called) unenlightened.
The trap is believing that once you "see" more than the unenlightened, there is no more to see. Worse, that the so called unenlightened have nothing to offer you precisely because they are unenlightened. Both are major mistakes. Even the enlightened seek confirmation bias and become trapped in their own little world.
Ah, CD, you've said it all there. Indeed.
DavidC
It's like mountain climbing and society is responsible for destroying your base camp as quick as possible before you go any further.
In our local radio (central europe) ... Assange from wikileaks: soon (whatever that means) new wikileaks releases ... maybe just a coincidence
What about the fed: "further POMOs delayed" - is that a possibility?
Anybody noticed ICE brent? 97 and soon 100 - so the guys in power better step up with some trick soon - otherwise everything straight to da moon.
W&R are at it again. but, never fear, the ramp up on zero volume has resumed. whew!
Thanks, was also trying to figure out what happened.
What?
...and gold proxy GLD zags the other way...
Somebody running for cover?
Time for the FRBNY to snap it up!
It doesn't even push the indexes red...amazing.
for real....what a failure. I have seriously noted that Brian's Sack and his 20 somethings will let the market go down but will pick it up. Unable to prevent the initial fall so dont sell...the Sack will Back!
Was it related to the auction today? It just goes to show you how fast the market can drop. 5 S&P points in about 5 minutes. Doesn't provide a lot of confidence in market stability.
For Tyler; good reportage. very interesting. thank you.
You can say that again!
For Tyler; good reportage. very interesting. thank you.
<rim shot!>
Didn't it happen about the time of the 3 year auction and the Schwab news?
"...a whisper through a megaphone..."
-Pearl Jam, Nothing As It Seems
Must be a chinese equity attack :-)
But Seriously - It must be a news leak of some sort. We will know after market close I guess - for the rest of the regular unpriviledged traders.
Buy the fucking dip. Nothing but
prosperity here.
No doubt that it would begin with ES...as before. The tell for continuing sell action to the close, as far as I am concerned, is the price action on the shares of the world's largest zombie maker...which I am actively shorting....
Today's hail mary, the L. Blankfein maneuver on short the stud man USD and long oil [already priced for stupid]...it was destined to be very short-lived...too transparent...too counter inuitive to the point of illogic.
My money is on a confidence shaking close....'cause Ben Bernanke and crew have only invested $5 trillion in the confidence building scheme...and somehow...it isn't enough. Shocker.
The equity market is priced for stupid while simultaneously standing on thin ice while also free basing cocaine inside of a box filled with loose gun powder. Duh. Sell.
+100 for the last paragraph.
"The equity market is priced for stupid while simultaneously standing on thin ice while also free basing cocaine inside of a box filled with loose gun powder. "
I hate when that happens.. lolololo
you sure picked the wrong day to stop snorting glade air freshner spring mist flavor
lol
just be sure to keep the white and black powders separate.
we call that "brown brown"!
if equities crash...it will take silver with it. thats the confusing part. i can't imagine PM flourishing without equities continuing as well or at least going sideways.
Agreed Barkingbill,
I think PMs are still correcting...or that process is ongoing. Not on value or allocation...but on the fact that criminal syndicate Wall Street bankers must attack PMs so that folk run to banker products. I don't think it will work in a significant way, but I don't believe they are done trying to knock them down.
Remember who you are up against with those PM positions.
I'm not so sure about that, though I don't trade PM.
If traders panic, they will probably rush to UST, and the increasing price will bring the yield "back in line." If that is the case, then big money would rather hold PM than get a negative return with Treasuries.
Just a thought.
:D
I don't disagree on an intraday call...if that is what you are suggesting. I am more patient on the PM issue...and I am simply saying I think they will go lower as banks struggle to keep their [rotting] heads above water.
Or equities crash Friday on JPM announcing that their PM desk has cleaned them out and silver and gold are off to the races!
If only...
hope they come up with a few more like that - maybe we'll see an actual correction
I was wondering if there was a particular trigger for that drop . Am short ES so certainly not complaining .
Three kinds of people in the world:
1. People who make things happen
2. People who watch things happen
3. And people who say "Hey what happened?"
Thanks for the play by play...
Wrong bulls. You left out category 4: People that don't give a rat's ass
There are 10 kinds of people in the world: those who understand binary, and those who don't.
Sorry, I couldn't resist. Hard to use that joke in offline conversation.
+1
00000001 = 1
00000010 = 2
00000011 = 3
00000100 = 4
And those that can count in Binary
and another is those dont understand that most money is in Binary form on the bank wire system.
Anyway, this is a non-event, market will soon BTFD.
Whats more relevant is how this $6Bn order moves the market a proper way, i.e. only a few handle drop, vs the Waddell & Reed $4Bn drop of, oh, about 90 handles.
Maybe the two POMO dudes took a lunch break.
Bankers have been threatening the new Republicans about not raising the debt ceiling. Using code like "the financial markets won't like it" if they fail to raise the debt ceiling. Could be the first warning shot in that battle.
Yes, its official, the market dropped because of sellers.
Shhhh, don't say anything, its secret.
The point is that the market dropped because of a singular block trade, not sellers, plural.
Shhh, don't say anything, your .gov manager might hear you over in the next cubicle.
Perhaps POMO needs to sell all the S&P they previously bought to keep the market up.
It was a block because they're not smart enough to split, and hey, its not their money anyway right?
And the SPY set up now is looking more and more like that before the flash crash
Fed's Psy Ops is to keep the market up for the first six months of the year to make everyone feel good about the future.
People are beginning to wonder if we have not joined the "Banana Republic" commonwealth, when you hear Steve Lies man say they are creating money out of thin air.
In the meantime, buy the dips!
Maybe the $6B is not split up because it is a part of a larger split already ....
The extortionist bankers will keep things moving in the proper direction.
The market doesn't look very sure of itself all of the sudden. Still plenty of time until the close, but that stiff hook to the jaw seems to have left a mark. Not so much here, or here, but more right here.
Break below 127.18 in SPY and things could get interesting. Couple that with a potential USD higher high (above 81.50-81.60) in the next couple of days and things will get even more interesting.
Don't read too much into this. The buyers came in right away and bought the dip as they have been doing Friday and yesterday. Seems to be how the game works these days.
Take another look, Harry - another leg down, now. Something is definitely up...
Huh? It was nearly flat when I wrote this and now is up nearly 3 again. Buyers are jumping on these small dips. It's a game and the players know exactly what's up.
Exactly . Any drop is now being bought up with zeal . It's an intraday strategy .
Yeah, and how did that work out for the buyers of the first dip?
Apparently, it seems to have worked out well for them too now that SPX has turned up again. Please don't get excited over a 5 point drop.
I'm not. However, this market continues to 'feel' just like the run-up to the 2008-2009 drop. Weird action in the summer of '07 [May-10 flash crash] and then increasing vol into the big drops of '08 and '09. Not sure history will repeat itself, but it sure seems like it might...
Little Miss Euro just dropped her diary on the street...[catalyst for tomorrow's selling].
Huge sell program just rolled through the financials...price yet to reflect that.
Selling in underlying energy equities is sustained...although less urgent...it would seem.
Check those burritos...'cause those colon blockers like to move in Novartis induced gaps down.
CNBC describes the market as "holding on to its slight advance"...Koolaid all around. On the hourly turn, E. Burnett adds, "Financials lead the way higher."
Good grief [and by that I mean...good grief]
whoop de doo. not unusual. move along.
It's 1255-8 on the ES Brian will be guarding....a good test of the BTFD coming?
I don't think so,plenty more POMO between now and June to keep it going up.
double posted
If it went over 6mins it wasnt a "block". A block is one print.
Come on...POMO USD 600bln, NYSE market cap increase since announcement QE2 ~1 trillion. Assuming about half (optimistic) of the funds flow directly into the equity asset class and you're still 700 billion short. Who's pumping up the market? It's the fools who actually think POMO is keeping up the market, lol. The FED calls it the "Multiplier effect" if I'm not mistaken.
And there they go again. Every dip must be bought. Free money right? POMO right? We'll see what happens tomorrow with Portuguese debt auction. Market doesn't look that confident it'll be fine and dandy!
Does anyone else get the feeling that this is a test of the PPP? Are they there or not? It happens over and over when the POMO days are not known or are not in effect. I know it was ~8B today, but that ramped the market from 11 to 1. Now there's uncertainty about tomorrow's Fed POMO announcment. Thoughts?
IMO, these sort of "reporting" posts are the best content at Zero Hedge, as well as more in depth observational market-related articles and posts of letters/reports from sharp sources. In terms of regular guests I am thinking of guys like Leo, Bruce and Nic. Zero Hedge is at its best when it provides information; when it says, "Hey, look at that," or "Are you paying attention to this?"
I could do without the conspiracy theory and political stuff though. Not so much from Tyler (sometimes, though) but from a lot of the guest posters. The first 10 posts on "end the Fed"/"sound money" were enough. And I get it: Keynesian economics is bankrupt and Austrian economics rocks. This is the same Red v. Blue, Apple v. Microsoft v. Google, John v. Paul B.S. that competent, well-informed, open-minded people run away from. Zero Hedge is at its worst when it just shouts the same opinion/viewpoint over and over and over.
As I've been saying. The first one to dump wins. Whoever got out today now has plenty of cash and options. He can short, he can wait on the sidelines, or if the ponzi continues, can get back in. Bravo whoever you are.
The sell off between 10.08 PST and 10.13 PST was around 82k esh1...obviously there would be other sellers involved so ZH you are way off the mark with 100K block order...get the facts strait before you report miss information like this post.
Fear not everyone , the S&P has huffed and puffed it's way up again and is now set to close green or at a minimal loss . Intraday dip buyers you've done it again . Kudos . Although perhaps you're getting a bit too complacent/impatient .
Some big-shot just dumped all of his EURJPY longs and the rest of his EURCHF longs from last night. Someone somewhere sees the bottom falling out of this thing pretty quick.
The message is to get short Euros...
Keep your eyes peeled.
Addo:
Maybe it was JPY shorts vs. Euro and USD...
Strange things are afoot at the Circle K
DOW daily chart above shows possible rising wedge.
http://stockmarket618.wordpress.com
Two sides to every trade.