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Today's Negative NFP Surprise Was The Biggest In Over Two Years
Today's actual NFP result, which was at 111,000 jobs below the economist estimate of 150,000, was the worst miss in over two and a half years... And the market is about to close at fresh 2010 highs. Will the last algo left churning with itself please turn off the lights. As to what this ridiculous price action means shortly, we present the following quotes from the BIS which explains absolutely everything: "If the market is dominated by mechanistic traders, who react to microscopic directional changes in 9 prices rather than to market fundamentals, market prices may deviate further and further from the fundamentals once a demand-supply gap emerges. The Flash Crash is a perfect example of this, where the end result was just the contrary to the supposed stabilization."
And that it is only algos who create the upward bias, we bring you the following quote from Kiyohiko G Nishimura recent BIS paper "Electronic trading and financial markets"
If the market is dominated by mechanistic traders, who react to microscopic directional changes in prices rather than to market fundamentals [such as today], market prices may deviate further and further from the fundamentals once a demand-supply gap emerges. The Flash Crash is a perfect example of this, where the end result was just the contrary to the supposed stabilization.
At this point we are certain next week will see the 31st consecutive weekly outflow from domestic funds, as the VIX hits zero and the Dow approaches infinity.
There is no market any more.
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Best way to bury a bad employment print? Last minute ramp job to paint the pundits' screens green, spurring countless forthcoming articles about this being the Best Week Ever (this month).
ok, in terms of late day manipulation, now we have seen it all. can't wait to see the mass media spin the unemployment rate increase and jobs miss now that the market has finished green.
Bob Piss-on-me was absolutely giddy at the close.
I guess Bob means the market is all natural and pure and thus this is normal.
... and if you dare imply otherwise, you are crazy.
It ain't gonna be pretty once the vise starts to close. Crazy can become terrorist faster than you can say double-think.
CD, we'll get to see their faces when reality hits home too.
Meanwhile, NFLX and CMG are officially being sold by the same fund, whoever it may be. I noticed that NFLX tended to sell hard when the S&P was buying hard the last couple days. That is somewhat mysterious.
Christ, you make it sound almost like what's corporate consensus isn't what's good for actual people, CD.
/sarc
...Zoom up DOW, Zoom down $.....thats all folks, the three day rally, freebie is done....now a www.eekofAusterity...THEN another zoom for www.xmascheer.shopping madness....
lets see how the afterhours is doing...i need to dump and realize $
Kinda makes ya wonder WHEN someone is gonna snap under the tremendous pressure of seeing lies and garbage being heaped around daily and say: "To hell with this, I CAN'T TAKE IT ANYMORE -- I'M OUTTA HERE!"
Cnbs is useless. Nothing even you can trade by. Everything is cheerleadimg gains and shocked surprises when it drops.
From now on they'll ensure unemployment numbers are thru the roof every week!!
The world is becoming a cruel place. Heres what Wall street thinks of UE
http://www.cnbc.com/id/40491033
Nothing matters anymore. POMO
Fucking unbelievable - rationale given for todays big finish is...
Stocks pull up after payrolls data questionedhttp://www.marketwatch.com/story/us-stocks-modestly-lower-as-jobs-data-questioned-2010-12-03?dist=afterbell
the irony of it all.
Cantor Fitzgerald’s Pado argues that the uptick in the unemployment rate is actually positive in that it signals Americans who had given up were re-entering the labor pool in anticipation that the climate was improving.
“Workers see the prospect for jobs coming down the pike here,” Pado said
Really?
Just wait until the revision when it gets even bigger.
"Today's Negative NFP Surprise Was The Biggest In Over Two Years"
"Surprized?" thats the point, after two years of training, NOBODY is 'really surprized' at this 'surprize' and certainly will not even bother to react at all when THIS surprize is surprizingly, not quite right, needing some further surprizing revision...
the startle, surprized reflex is getting de-conditioned, rather well.
Nice gold spike at the close. Thanks, banksters! Now get back to your thieving.
As messed up as this is dude, and it is seriously messed up... the fact that the market went up on such horendous news will only embolden the bulls further.
What bulls, Bernanke and Sack and the CNBC anchors? Other than them, the markets are totaly empty after 30 consecutive weeks of equity outflows.
Well, whoever is holding equities certainly aren't selling them.
Skynet needs no encouragement.
Well there certainly is no equity market anymore, they've killed that forever as the totaly rigged Ponzi is obvious to all now. But PM markets are doing fine and will continue to do so, negating any and all of Bens monetization DOW 36,000 fantasies. He's been check mated already, he's just in denial.
In unrelated news, the Nanny State sez:
[quote]
The FBI is warning against the potential misuse of a Barbie doll with video recording capabilities, cautioning that the popular toy could make it easier for sex offenders to surreptitiously film child pornography.
In a memo from the FBI that was mistakenly released to the press and obtained by ABC News, the FBI warned that the Barbie known as "Video Girl," which is equipped with the ability to capture thirty minutes of footage through a concealed camera in the necklace worn by the doll, could be a "pornography production method."
[/quote]
found at:
http://abcnews.go.com/US/fbi-video-enabled-barbie-sexual-predators/story...
With the SEC busy watching pr0n and the FBI ensuring that your child's playthings are being used properly, just WHO in the Govt has time for regulating the stock market(s)?? BRING ON THE GREAT IMPLOSION ALREADY, WE DESERVE IT!
Never mind - the Fed will keep printing and the S&P will keep going up since the poor jobs data will give them cover for more QE. And the fiscalists in Washington now have cover to extend unemployement benefits AND the tax cuts.
If they just keep doing the same thing, and the bankers continue to get fabulous bonuses, do you think anything has changed? And has the underlying economy improved? No!!! The same problems plague our economic system and poor outcomes still await. Patience is not a policy.
Merkel Threatened to Pull Germany Out of Euro Zone
It just hit Dow Jones Newswires, but the market turned green (and Euro is higher).
Can someone explain as to why the market and Euro should be higher on this news?
Ummmm, I think it has something to do with how Spanish air traffic controllers all called in sick, shutting the entire aviation industry down today...as their response to banker delivered austerity. Now, you might think that is bad, but Bad is Good now.
and "up" is down, and black is white, and etc. But, wait.... up IS up....and it's all good ("and He saw that it was good"). If it's good for GS, it's gotta be good for us, right? It's all trickling down, right? Yeah, in fact I think I heard a couple pennies fall out of the sky into my yard just now. Hot diggity!
Can you please copy story. PLEASE!
It hit the Dow Jones Newswires at 15:32ET
No story yet, it says "(MORE TO FOLLOW)"
Damn... that could make for a total mess... crush this rally dead in its tracks... wtf is wrong with people?
It feels like a massive short squeeze (maybe some of those hedge funds under DOJ investigation are forced to liquidate their short positions?)
Apparently, the initial story about Merkel was reported by Guardian (that’s all I could find so far). DJ story should appear shortly (usually they also publish it on WSJ).
The reason for December rally:
Bernanke Doesn't Rule Out QE Exceeding $600 Billion
http://www.bloomberg.com/news/2010-12-03/bernanke-won-t-rule-out-further-asset-purchases-cbs-s-60-minutes-says.html
"The interview with CBS journalist Scott Pelley was filmed Nov. 30" (and of couse the selective few knew about it in am on December 1st)
here is one version.
http://www.guardian.co.uk/world/2010/dec/03/angela-merkel-germany-abandon-euro
Thanks... I found it too.
AH Angela, if only you could have said it earlier in the day!
Just buy the fucking dips, buy the fucking dips.....................buy, buy, buy...
Go ahead.
What dip? the 10 day. 50 is solid.
Juicy jugs Cabrerra is discussing this fine market reaction of the lousy employment numbers now.
I had to sell some silver into this....just way to *freaky* to hold it over the weekend. Buy Monday, sell Friday....
prices may deviate further and further from the fundamentals once a demand-supply gap emerges.
That demand-supply gap sums up my sex life, and yes, I have been forced to deviate. So good analysis.
oof...talk about a deflating environment...
So what will the big surprise this weekend, what grand news will gap up the stock index futures this Sunday?????????????? How high will SPY gap up on Mondays open 0.73% thats my bet. There is no way the FRBNY is going to let the stock indexes fall. This will guarantee wall street another record bonus season.
Sweet, inflation up, jobs down -- shaping up to be a hell of a recovery.
Look for Rick Santelli to walk off the set on Monday, screaming to anybody that'll listen...
....and long rates continue to rise.
Not high yet, but every bp up must make incrementaly more bond holders nervous. If you ran a bond fund, or sold bond puts, or hold long bonds yourself this has got to be drip drip drip time.
Unless you sleep with The Bernanke.
and still 4 more days of POMO, no ? Plus whatever else they got planned behind that.
they are dead serious about marking this up.
I love MarketWatch's explanation of the late day ramp:
Late-day rise boosts stocks as some investors question the latest employment data and see an upward revision in coming weeks.
Similar commentary on CNBC today.
Market Watch is an absolute shill outfit. Many of their stories are not stories at all, but rather headlines with a couple sentences worth of poorly thought out commentary...the idea being to juice a stock with HFT/quant love.
Market Watch is simply lousy.
Have to agree that Market Watch front page stories are some of the most rediculous on the internet. They would have to be the worstg Govt / Fed shills around.
This is an obvious political game being played in response to one, or both of:
- GOP threatening to remove keeping unemployment low from the Fed's mandate
- GOP not allowing UI extension
Off topic... wow
"There is a long tradition of young boys dressing up as girls and dancing for men in Afghanistan, an activity that sometimes crosses the line into child abuse with Afghans keeping boys as possessions."
http://www.guardian.co.uk/world/2010/dec/02/foreign-contractors-hired-dancing-boys
Now the Catholic Church will be sending a pilgrimage to Afghanistan so that the priests may cultivate and harvest the fruit from this highly irregular ritual.
Well, price discovery in a freefall on the other side of this will be interesting to say the least.
I'm sick and fucking tired of getting destroyed. I have been trading futures / options in a bunch of different markets through all of this maddness and I'm just tired of it. There is only so long you can get your teeth kicked in everyday and I am about at my end here. Honestly, these scumbags can manipulate this shit to wherever they want. There is truly no one left to sell / short this stock market. When markets ignore fundamentals they become dangerous, and I am openly praying for a collapse here. I want the Fed to pay for what they have done / are doing to our country. Crash this shit and pick up the pieces and start over again.
Buy low ...
X
DRYS
BoA
MT
JPM
JKS
I feel you bro. I cringe at the disconnect of reality. All week was hyped up to a blow out jobs number. What we got? Worse miss in 2 hears and market shrugs it off.
Honestly if you knew the report a week ago would you have traded differently?
Taleb's "black swan" becomes the "expected".
Six six six Sigma? (sorry I stuttered ;)
Prefectly rational reaction to the news, the Bernank will continue to flood the system, USD weak, 2-10 curve steepens to new move wides, commodities take off. Forget stocks make hay buy GC, SI ,CL, HG and today just about any currency or ag commodity
What's all this confusion about?
It's pretty clear... good news is, well, good news... bad news means Ben gets to keep on printing, good news for the market!
You guys really have to turn the volume up on CNBC... you're missing so much!
p.s. Who really cares anyway... other than PM miners, I wouldn't put a dime of my money in any of the "chicken crap" NY stocks.
It's like you guys read and then forget 5 secs later.
There are only computers trading. There are no investors moving anything. It's all computers reading headlines, interpreting as 1) positive for earnings, 2) negative for earnings or 3) neutral for earnings. Beyond that it's all HFT.
You want the markets to go down, get AP to arrange their headlines to say "Merkel threatens to leave the Euro, suggesting poor prospects for corporate earnings" and down we will go.
Not until.
"There are no investors moving anything."
Well, that's not EXACTLY true, is it? We do have the 30th consecutive week of mutual fund outflows and something like 8,000 to 1 ratio of insider selling to buying.....
It's moving. Out of equities.