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Presenting What Could Be The Oddest Capital Flow Observation In History
It is no secret that the last few weeks saw massive liquidations along all asset classes. The result was a huge outflow across almost all products: Loans, HY Bonds, Municipals, Commodities... all a typical reaction to broad based liquidations. However, note we said "almost" - one class that actually posted a $6.2 billion inflow was equities. Yet not is all as it seems: peeking underneath the hood indicates that the bulk of this inflow, or $10.3 billion, had to do with inflow into ETFs... or rather, just one ETF - the SPY, accounting for $10.1 billion. Did someone prop up the entire equity market last week by massively pushing capital into the most liquid equity proxy available?
The plot thickens: as Bank of America points out: "The number of SPY's shares outstanding rose by 5.3% on Thursday and Friday of last week (May 6-7th), at the time when S&P 500 was trading lower on both days." BofA asks: "The question then becomes if this large intake into SPY was a part of the rogue trade that took place on Thursday, May 6th, or was it part of bona-fide rush by investors to buy equities at their lows...This suggests to us that the inflow into SPY, and by extent the overall equity category, was at least partially attributable to that trade dislocation. Potentially, some form of market-making activity closing on divergences between shares, ETFs, and derivative instruments may have been responsible for positive net interest in SPY." That, or is this the biggest faux pas ever conducted by the "invisible hand" which openly flooded the market with $10 billion in the form of ultra liquid SPY, at a time when massive derisking was taking all single names lower. A much more relevant question according to Zero Hedge, is whether there is any sense trading single names anymore - all the action is now in the form of index equity proxies now that liquidity in single names is virtually non-existent: this means trading only SPY and ES. Was last week's freak occurrence a huge ETF rebalancing, an implosion in one or more market neutral funds, which were forced to cover billions in SPY shorts as single names were being sold off en masse, or was this merely a direct intervention into equities by the Federal Reserve? We are confident that the SEC will immediately rush to answer all these questions and will have a definitive conclusion within a week.
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My bad, was the Plunge Protection Team supposed to reveal this move?
I wonder if the PPT have a pact similar to fight club: "The first rule of the plunge protection team is, you do not talk about the plunge protection team....."
Doesn't quite have the same ring to it, but then again, bankers aren't artists.
If this is your first plunge, you have to buy.
3rd Rule: If someone says stop or goes limp... manipulate/buy more...
4th Rule: Only two PPT's to a market manipulation...
5th Rule: Manipulate ALL markets all the time.
7th Rule: Market manipulations go on as long as
they have to...
I think they have fun.
Because of their secretetly added rule # 9 of no pants.
that is my favorite rule
This is the same crap that has been going on since March 09. Every time the market looks to turn, the invisible middle finger pushes it up and usually hard up. We shall see. Bernanke's comments to the ECB about being it being more sensitive to the markets tells me alot about how important he views the markets performance in his confidence building scheme.
So Ben is the market's proctologist? Talk about a fat finger.
http://www.halolz.com/wp-content/uploads/2007/10/proctologist.jpg
Guess this is what Fed backstopping is all about.
YEAH! She's Back!
I had an avatar up earlier that was in the same style, a scantily clad woman, with a man's hand on her arm, as if, indeed, MsCreant had been kidnapped by the evil Lord Bankfeind.
I swear that picture of Lloyd cracked me up so bad, I had to have it. I tried posting as Lloyd a few times, trying to act as a kind of effigy to lure reader hatred to the Bankfeind. It never worked! Meanwhile, he is a miscreant. Just not a Ms.Creant.
Thanks for rescuing me from my bad taste!!!
I thought your imitation was great, and that the pic looked like Lloyd was having a fear and loathing moment.
Go ahead, click it. The full fucking monty. I dare you.
http://www.thisislondon.co.uk/standard-business/article-23836437-goldman-sachs-chief-regrets-banks-actions.do
Goddamnit and I'm out of eyewash.
I guess him and hilary clinton are usin the same invisible surprise buttseks demon.
http://hatonnspeaksthetruth.files.wordpress.com/2009/12/hillary-clinton.jpg
I was looking for a "Man on the Hill" Joke and found this instead (Werd association is a funny thing).
Eerie...
From Johnny Cash
Will we get cold and hungry will times be very bad
When we're needin' bread and meat where we gonna get it dad
We'll get it from the man in the house on the hill
Yes we will from the man on the hill
Ploughin' time is over still the fields are bare
How we gonna make a livin' with twenty acres to share
I'll beg for more land from the man on the hill yes I will I'll ask the man on the hill
I ain't got no Sunday shoes that I can wear to town
Papa reckon the boss has got a pair of hand-me-downs
I'll go and ask the man in the house on the hill yes I will I'll ask the man on the hill
Maybe he will help us maybe we'll get by
But who's gonna pay the dyin' bills if we all should die
We'll leave it to the man in the sky when we die
Yes we'll leave it to the man in the sky
http://www.youtube.com/watch?v=ZhP5-9CF9WU
He reminds me of Vizzini.
http://yankees.lhblogs.com/wp-content/uploads/2009/09/vizzini.jpg
Vizzini was a more upright guy, had more honesty, and more integrity. But yeah, they look alike. :-)
Lloyd would not have sat down for a poison drinking contest, he would have tried to have his sidekick do it.
It is true, even Vizzini is more honest than Lloyd.
LMAO!!!
man he looks just like a punching bag in that pic.
Fuck you, Lloyd; the "hate the game, not the player" routine does not suit you.
http://www.youtube.com/watch?v=kviX4G0KuX0
I see you are back to your literal smoking hotness.Excellent.
Next time you see blankfiend, kick him in the balls.(bring an electron microscope with you, you will need it!)
She is packing too.
http://www.abc.net.au/rn/artworks/galleries/2009/2503399/image2.htm
Oh Yes, Girl. Ninety percent of the young fuckers here haven't the slightest clue where your coming from. Hang on, girl. I don't see it yet, but we will prevail.
All is well with the universe once again!
wow, hulk tears are green!
I apologize for the offensive avatar. I was not being a good ZH citizen. The vagina avatars are at least pictures of something useful. The stinking doodoo avatars are representations of compost. But that...you were right to hulk out.
Its just that some things should never change!
I feel your avatar pain Ms. Except, in my case, change was very necessary. lol (again, a special thx to Janice, Fish and Rocky)
Your other one was abstract art. I was cool with that. For the sake of the community, this may indeed be a better choice. This image to can be read, as you like. I do not like censoring anyone.
The doctor will see you now.
An investor is just another asshole to him.
He is gay?
Ben Gay.
He got that way by having his tube squeezed.
...by Dodd
By Dodd you're right! Sorry, my nose is stuffy....
He is a gay proctologist, thus enjoying his work.
Screwing the voters.
a large scale move to shorting individuals hedged long SPY away from long individuals hedged short SPY?
Okay not a bad theory but would BOA be squeaking about it if it was the FED or a player on behalf of them? I would have thought that the government would use a proxy like GS or even BOA to conduct such interventions.
Like JP's silver shorts for instance.
Ha, Ha ZH. Since when do you spell decade "w e e k".
+10
Were you guys not trading during the 2008 collapse? Are you still surprised by the way this works every time?
Call goes into Squid Central to alert them.
Scene then repeats at all backstopped institutions...
"Yes, sir, Mr. Bernanke... we'll put in buy orders for SPY at the market..."
Another record trading day for GS - and the market is "calm".
I think Tyler caught the Working Group on the Financial Markets stacking cards.
My guess is that "they" were trying to avoid a worse looking weekly candlestick. I think they are VERY aware of TA and know how to paint. Cute little bullish head and shoulders late last week to.
Winner
Take a look at "their" influence to do the same in the gold market. Very obvious manipulation, especially last Friday when "they" were able to close it at 1228 and avoid a very bullish close over 1230.
- the "invisible hand" of the government pushing the market around
- all of the big brokers reported 0 losing days last quarter
What an amazing coincidence!
"all of the big brokers reported 0 losing days last quarter"
That was not lost on me. I am no expert but I think that includes their ponzi interest game too. I didn't think it was purely their trading arms that had no losing days. I would think that on a pure MKT trading basis that would be impossible. They's have to have been short every day that MKT closed down a bit and long every day it closed up.
If one knows when the liquidity switch will be turned on and off, because one has one's own finger on that very switch, then it is not hard to imagine winning at trading each and every day.
"Thimk" like a criminal.
We are confident that the SEC will immediately rush to answer all these questions and will have a definitive conclusion within a week. HaHaHaHaHaHaHaaaaa
You ZH guys would bitch if someone shit in your ice cream.
If the SEC says it's hot fudge, it's hot fudge.
SEC Fudge, the hot new flavor at Ben n' Timmy's, I mean Ben n' Jerry's.
Gilgamesh
http://www.wsu.edu/~dee/MESO/GILG.HTM
The Sumerian; Ziusudra tells how the god Enki warns Ziusudra (meaning "he saw life," in reference to the gift of immortality given him by the gods), king of Shuruppak, of the gods' decision to destroy mankind in a flood - the passage describing why the gods have decided this is lost. Enki instructs Ziusudra to build a large boat - the text describing the instructions is also lost. After a flood of seven days, Ziusudra makes appropriate sacrifices and prostrations to An (sky-god) and Enlil (chief of the gods), and is given eternal life in Dilmun (the Sumerian Eden) by Anu and Enlil. Coughs out loud.. see the fairytale?? Of course you doNota Moron! A spokeswoman for gullible sucks stated there is an anchor in real monetary stores of value beyond paper ponzi!!!!!!
Most liquid equity proxy? On friday SPY did a lil over $50bil in $vol while ES did ~ $215bil in notional and SP did ~ $12bil. (and yes an S&P contract is essentially an equity proxy)
The $vol of futures products + the 500 underlying securities dominates, the SPY action is a drop in the bucket...
Agreed, but not every fund trades futures. Same goes for retail, probably even more so.
The ES on Friday 05/21 hss a 17 point rise in about 20 min.(2:39-2:59 CT) with very little retracement then you have the ES selling off with 58,834 volume at 2:59 CT, 47,106 volume at 3:00 CT ,but only a temporary drop of 3-4 points going right back up to the highs. There is intervention otherwise more than likely we would have had a steep selloff bringing it down 7-8 points. Could have been a combination of OPEX and PPT.
This entire market is an oddity of the 1st magnitude.
Oddity? I would say fraud.
+100
frauddity
2010, a Space Fraudity or Farcism?
2010: The Latest Fraudity of Farcism
I agree with the post above, they are controlling the technicals.
Since they were able to mess up the fundies big time, people are migrating in mass to technicals, so their next job is to mess it up also.
This blog raises ever more questions, every week. The answers to which are impossible to determine with any accuracy.
It's like living in a heads or tail world. A Craps game. A cut deck, high wins, low loses.
You learn a lot here, but I'm struggling to find out besides the knowledge gained, where it can be applied. The gold bugs are passionate about Au. The gold deniers, just so. Leo says buy the solars, and dips, while others rightfully point out it is all a fool's game.
I'd rather spend some quality time with Robo's and Leo's tarts.
Heads they win, tails we lose
Let's build a pyramid. At 9% unemployment, we can construct in 15 days. Public works programs are at full tilt.
Sadly, they are looting your savings to create a new financial system. MSM will exploit wrongdoing. J6P will bite for reform. The thieves will run off with the money. Regulatory departments will cry foul & MSM will tell J6P reform is in the workings. Welcome to the Ponzi scheme
Let us instead repair roads and bridges and move electrical systems underground.
Let's build fiber-optic communication networks and develop new rail systems.
Let's have a plan in place and make sure these projects are "shovel ready" before throwing Trillions at them.
And let's do all this before handing Billions of taxpayer dollars to Wall Street executives, on bended knee...
The worst thing you can imagine they are doing...they are.
Note to self: Get over it and stop being surprised. Absolute power corrupts absolutely. Who was there to tell Michael Jackson he was nuts? No one. Ditto all involved.
"Who was there to tell Michael Jackson he was nuts? No one."
Thats right!! The banks, they messin' up! Banks!! Quit messin' up!!!
The rioting masses will signal the end game.
$500 gallon of gasoline speaks for itself & is only a matter of time.
Will it get there?
Perhaps the riots start at $50 gallon of gasoline?
Of course Walmart & ConAgra are out of business long before that!
Tyler
SPY diverged from SPX by almost 1% for almost 5 minutes on the beginning of the trading session on Friday. Haven't seen such a gap and for a relatively long time. Any thoughts?
Here's a thought: Look up SET process for SPX settlement.
If the PPT is buying then everyone should take advantage of their generosity and sell. Same goes for those who say gold price is being suppressed. Hell, don't be shy, buy, buy, buy!
+1
ROTFL! Caught in the skankster wankster gangster bankster fraudsters skunk works go round!! http://www.abc.net.au/news/video/2010/05/20/2905304.htm
Hey Ben, we got caught long at the top of the market. We're not ready for the plunge yet! Prop it up for a while so we can liquidate! Damn it, I'll tell 'ya when we're ready.
Lloyd
Looks like I picked the wrong week to quit sniffin glue...
damn, you too?
+ fart noises and chemical smells (and prescription meds).
Damn, second time I have responded to a turd!
A stupid question, but since it's so obvious to 98% here, what their doing, WHY participate?.
At this stage, every stock bought, every, play you make, is basically propping up their SYSTEM, or costing you money.
I do not get it.
When you know the game is rigged, most people do go IN.
Kill the bitch, by not playing........keep food away long enough, and it will die.
IT, the BEAST, has to have Playa's to survive.............
It is a symptom of the illness. Each of us with our own level of engagement with it are keeping it alive. I am almost out. Have funds I can't get out. Have a card that I need for work. Have work that takes out taxes for the beast. But compared to where I used to be, I am out. But part of the pathology is that they think they need to participate or they are going to lose what they have. What we have is an illusion. We want to be able to work, and store the value of that work. It may be that when a system of agreements for his kind of storage of value gets too big, it just can't be done because the temptation to adulterate it will be too much.
That is why gold and PMs are a good play. It can be adulterated, but that can be detected. What we are in is absurd. The social contracts have broken down. Time to cut our losses.
Edit: I would also add that without BIG funding, BIG planetary damage would be much more challenging.
The system is fine for day trading.
Day trading feeds the beast more than anything...
And maybe it was the elusive "fat finger" seller[s] moving while they had a chance to cover and de-risk without a big loss....
But again, isnt that always the problem with trying to figure out the "why"...
Please short some stocks, cause I'm buying next week.
Good for you, really
I think we can just call it TheHandTM now.
http://www.youtube.com/watch?v=tfKj2yOzj1I
it was options expiration, and the SPY goes out on Thursday? Probably a ton of short covering, the options sellers had to liquidate, what did short interest look like going in?
if so monday the options sellers will liquidate their new longs.
OT: I've been watching this all day but BP seems to have turned the lights off and called it a day, but now it is an amazing phosphorescent spectacle.
http://www.bp.com/liveassets/bp_internet/globalbp/globalbp_uk_english/ho...
I wish that I still smoked weed...
I guess this is relevant to "capital flow".
They turned the lights back on, and please, please tell me that the black tube with the robot arm is not the suction tube that is drawing 5000 barrels a day!
All heck seems to be breaking loose down there.
I'm really worried too.
Oh no, no no... It's not sucking 5000 barrels/day... It's less than that now:
Mile-long tube collecting less oilBy Greg Bluestein, May 23
COVINGTON, La. — The amount of oil siphoned by the mile-long tube inserted into the leaking well in the Gulf of Mexico has sharply dropped in the past day.
BP PLC spokesman John Curry told The Associated Press on Sunday that the siphon collected some 57,120 gallons of oil within the past 24 hours. BP said Friday that the tube was sucking up an average of about 92,400 gallons of oil a day.
"Please short some stocks, cause I'm buying next week."
reminds me of a story: Barber has sign in window.
"Free Haircut tomorrow" Guy waits to next day. Barber says that'll be $20
Guy say but sign says...Barber answers, "Sign's still up"
Not sure next week should
ever come in this market.
Yes, Virginia there is a Santa Clause.
Uh-oh. Somebody's asleep at the switch. Gold is UP $7.20
Don't get excited, though. I'm sure it will get "corrected" overnight or at 8:00 am EDT.
I thought it smelled like someone died last Thurs. Some form of quant or arb implosion seems to fit the bill. Other comments suggest options expiry, which is another reasonable and possible explanation.
SPY wags the market but how much SPY action is direct trading in the ETF shares as opposed to hedging/reciprocal trades from S&P 500 futures and options? Do futures & options traders/machines even buy/sell individual names anymore or do they just reach for the SPY too?
There are S&P 500 index options of course but there are also options on the futures too which makes them
a derivative
of a derivative
of an index
of 500 stocks
of 500 companies.
Now that's abstract capitalism.
surprised not more people didn't reference options close friday...this mkt has been amazing at expiration...talk about manipulation
The sad part, at this point I would be more surprised if the market held its ground on its own.
Yeah we can.. until oops wtf we can't!
The March 2009 lows won't hold.
Updated DOW daily and weekly charts:
http://stockmarket618.wordpress.com
http://www.zerohedge.com/forum/latest-market-outlook-1
Seth Klarman told to buy what's not popular, US private equity would fit this well, and is a much better bet due to being battle hardened through the past 2 years, while the rest of the world is only starting to plunge.