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Pre-Holiday Flagpole Rally
Yet another miracle "stick save" pulled off by Geithner. Another multi-billion bond issue floated off without a hitch, while stocks remain pinned at 52-week highs, led by retail and REIT stocks. The usual "flagpole day".
How many times can they run this play over and over?
Step 1: Gap stocks up on the open
Step 2: Slam commodity prices immediately
Step 3: Drive yields down with fears of deflation as oil prices fall
Step 4: Unload another gigantic wheelbarrow full of new Treasuries
Step 5: Treasuries eagerly snapped up, 300% oversubscribed, nothing paying over 1% interest
Step 6: After the auction is finished, continue floating stocks near the highs, touting a v-shaped recovery
Its all for the "greater good", as the TIAA-CREF money manglers say.
We are stuck in a self-reinforcing feedback loop, where more money is piled into the marketplace, interest rates stay flattened at world record lows, resulting in an easy money environment where Grandma is chased out of her CD's and money market funds and back into stocks.
Meanwhile, hedge fund managers keep hitting "refresh" on the Bloomberg bond screen, salivating at the extraordinarily cheap interest rates, which means near zero margin interest costs, and free-flowing liquidity throughout.
Any questions??
Stock of the Day: Zions Bancorp. These guys were the kings at buying SBA loans and commerical RE loans on the secondary markets. Swapped out some new preferred stock today, resulting in an epic short squeeze as this bank is now "adequately capitalized" and removed from the RKH "death pool".
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Missed this one...
is that a young Catherine Bell... "eat your heart out captain"...goes for the charts too
How many times can the replay this? I'd say they're about done. Zero.
interesting final minute on the spy as well...
Robo: You forgot to include your favorite single packet coffee company's rocket ride today.
Don't worry!
"There are core strengths to the American economy that will put us in good stead over the long term," Obama said. He said the key is bridging that gap toward a more prosperous time and promised the gathered reporters he won't let up "until businesses are investing again and businesses are hiring again."
QE, Stimulus, TARP 2.0 - ∞ here we come!
SPX shot up at 7 am because of the fabulous housing sales and dropping inventory (ex the shadow inventory... millions of homes held by the banks/FED)
THE 2YR auction indirect bidders % today was essentially "flat" at 44.5% vs 44.5% at the last auction.Previous two auctions were 45% & 49% respectively. Hedge funds & everybody else piled into the 90 day paper pre-auction in a HUGE way(starting last friday). See $IRX at stockcharts.com.. THE CHART WILL ASTOUND YOU!!!..the USD effectively "crashed" last friday!!!!!
The last time this happened was September 2008...
THE END IS NEAR !!!
20-20
don't cry for me, mercadolibre !!!
http://articulo.mercadolibre.com.ar/MLA-70565619-zapatos-altos-stilettos-sexy-_JM
MELI
meet Aitor Luna:
http://www.youtube.com/watch?v=o31rkoklChA&feature=related
CW just snapped
Prechter gone 200% short today. Lawdy, lawdy, lawdy.
I am assuming the only reason the DOW is going up is as stated previously by ZH commentators - people are borrowing money for zero interest and need to put it to work somewhere.
What I don't understand are all the 52 week high stocks of companies whose revenues are down, business outlook poor but profits up only because they just whacked half of their employees (expenses). Okay I just answered my own question but really people what is going on out there???
How long can this charade go on?
By Abby Normal
45 million shares traded for SEED, versus an average of ~100k ... me thinks there is going to be some buyer's remorse this late in the cycle.
2x its float was traded! Wow daytraders galore..
There is an article posted at http://www.graspthemarket.com/articles/20091121a.php that talks about how you have to be careful when you read headlines. I would say that today was defintely filled with all kinds of headlines that can hint at where the market might go if you use the contrarian approach.
robo, you give "V shaped" a whole new meaning!
what about the turgid flagpole rally???