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Unprecedented SPY-ES Divergence On Goldman Settlement News, BP Non-News
SEC's announcement of a paltry and ridiculously small $550 million Goldman settlement a few minutes before market close means all is well with the economy (and presumably the resignation of Lloyd Blankfein now that Goldman admits it is not admitting fraud). We presume whatever backdoor cash is involved will also stop the Cuomo criminal case into Goldman. The tactical surgical strike to ramp the market also coincided with last minute announcement that BP has halted a leak - which was the expected pressure test and is not news at all, but who cares -buy buy buy! In other news: ES and SPY disconnect massively, as nothing makes sense any more. Elsewhere, Charlie Gasparino reports that Gary Cohn wants out: "Gary Cohn, the firm’s president and presumed heir apparent to
Blankfein, should he step down, has told people on Wall Street
that if he could he would leave the troubled Wall Street firm as
well, according to people with knowledge of the matter. Cohn,
however, is also telling people he isn’t going anywhere until Goldman
is finished dealing with the myriad of regulatory bodies
investigating the firm’s business practices, including a high-profile
case recently filed by the Securities and Exchange Commission
charging the firm with civil fraud over its sale of a controversial
mortgage-related bond in 2007. Goldman has denied the
charges. Goldman spokesman Lucas van Praag said in a statement that “Gary
has no plans on leaving the firm,” adding that “Blankfein
and Cohn aren’t going anywhere.”
ES vs AUDJPY divergence
ES-SPY divergence
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ES ramped 13 handles. Can you believe it. I mean ya 330 pump is common, but between the circle jerks of BP, GS, and GOOG, who woulda thunk it?!
SPY 107 on Friday 7/9.
Borrow $550 million from Discount Window at 0.75%.
Cut deal with SEC, set up legal closing on settlement for 7/15.
Deal verbally agreed to, legal gets to work on it.
Buy SPY 109 calls with $250 million.
Buy GS 150 calls with $300 million using offshore hedge fund.
7/15 - agree to terms and sign off on 'settlement'.
7/16 - Sell call options for profit, repay Fed, set cash aside in T-Bills for the Treasury.
Business as usual.
They thunk it way ahead of the curve "probably".....
I'm just throwing another conspiracy theory out there that "probably" never happens.
I'm just sayin'....
FuckNa. Anyone who doesn't think it played out almost exactly this way has their head so far up their ass they can lick pancreas.
7/16 - board helicopter bound for Hamptons
7/17-18 - do massive blow, and bang skanks all weekend long
7/16 Short the shit out of BAC and have their analyst department issue as report painting the company as crap at 0830.
Cover short at 3:58 p.m. THEN board chopper with the choice selection of Skanks.com and go party in the Hapmtons.
-:)
Another day, another sham!
yeeeeeeeeeeeeeeeeeeeeeeeeeeessssssssssssssssssssss....... guess who has the boat loaded with out of the money August 145 - 150 calls of GS??????....... uuuuuhhhhhhhhhhh yeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeessssssssss YEEEEESSSSSSSS... JUST KEEP GOING UPPPP BABYYYY $151... @4:52PM....
Good job, well done.
Myself I prefer the October 120 call.
I must admit to being shocked by the announcement. $550M is a total joke. How much free money does GS make daily by borrowing at the discount window and reinvesting in 10-year treasuries? So,
1) GS et al totally, fraudulently fuck up our entire financial system and economy.
2) Deemed TBTF, The Fed asks GS to convert into a savings bank.
3) GS now can borrow freely at the discount window and use $ to buy trsys.
4) Obama DoJ sues GS for fraud re #1.
5) GS settles with govt and pays fine with $ it earned for free from said govt.
What a fucking racket. I cannot believe that this is actually happening in The United States of America. I know many of us ZHers feel that nothing about our kleptocracy should surprise anyone, but this is outrageous. I'm speechless.
It's not going to go unnoticed.
If the people and Dylan Ratigan won't revolt, the competition will scream bloody murder.
Can't wait for the part where the banksters are turning on each other because the streets are bare and crowded with so many pranksters trying to get their piece of the action.
GS may think they're doing God's work but they're far from being the Godfather of all trades.
JPM has more history and is far more ruthless than GS can ever hope to be.
Jamie Dimon and others are going to crush GS and short their stock to nothing all the while making 100 cents on the dollar when GS fails.
How would that be?
hooray for efficient markets!
Efficient? I'M DOWN 0,01% TODAY!
I WANT TO SUE THE PPT TEAM FOR FUCKING IT UP TODAY!!!
PPT... suck my balls... the hell with 1100
Dick Bove was on BNN Canada about an hour ago.
He said that Goldman and the government where miles apart and that the SEC was demanding a management change. He said there is no way that they will be settling any time soon.
Well, in that case, he was spot on with his call. As usual.
GS skyrockets, on no insider info of course...
Told ya the glass was half full.
But you fools didn't believe me and junked me this Monday when I said I was long.
edit: (after the junks) and I am still long
nice jugs
I am going with Bove's report until I hear otherwise.
As in , youre going to invest your earned dollars on Boves report? Or youre going to put your internet "rep" on the line on Boves report?
Perhaps you should realise analysts , especially the Dick Bove variety , are total blowhards and do not move markets either way.
But keep going with whomever makes you sleep better at night i guess.
long what?
better not hold too much of the stuff. try and offload when everyone else does.
Gloating is idiotic... unless you post all the trades you fucked up as well. How's your total return?
And, those damn things are still mesmerizing.
"Gloating is idiotic"
true
"unless you post all the trades you fucked up as well."
I'm just needling those that posted those great gains on -3x ETFs.
"How's your total return?"
up (though they do tend to mimic my avatar)
Fair enough. I'm just cranky because my trades have been foreseen by the Matrix for the past several days.
can i get those in divx or m4v format pls? damn.
When does the nipple make an appearance? ;)
Soon.
But only Joe and you get to see it.
(And not the Matrix!)
We need something bad to happen. Perhaps, since all is now resolved???
Can't wait to hear the "we've done nothing wrong" part!
Shorts keep waiting for the total meltdown like 2008. Longs still looking for the never retreating market like Fall of 2008 to March 2010.
Yet, we are in the Summer duldrums. If you are in a bad position you will probably have to live with it until the fall.
Nothing makes sense anymore". Makes perfect sense to me.
Manipulate media
Manipulate market
Manipulate FOREX
Manipulate fiat currency
Manipulate sheeple (easiest of all)
Used to have to pay about 100P for all this manipulation, now its free. Yippee!
nice attempt to distract attention away from the collapse in M2 just out
got a link?
http://www.bloomberg.com/markets/economic-calendar/
The fed's um, assetts increased 8.7b this week from more mbs? I thought they were done?
Did someone turn on the M2 vacuum?
Bravo!
- Goldman SEC case
- BP leak
- Google earnings
- OE tomorrow
- 15 minutes till market closes down for once
Oddly ironic that all this occured together within the last hour. All I need now is for Barry to come out and claim victory for all this and I'm done.
It's all just a crazy co-incidence Tyler. There was no need to spike the market at the end of the day. Everything was hunky dory.
And even though it has been telegraphed for days that BP would attempt to shut in the well for a pressure test (after which they would open it back up again) the fact that for a few hours all fish within 50 miles of Macondo have a fighting chance of living to swim another day easily meant that all is well in the world at 3:55 PM EDT 07-15-2010.
BTW did anyone else notice that dear Maria Bart has a very pronounced lisp this afternoon. I wonder if she had dental work done? Or maybe she swallowed a bee.........or something else? :>)
I know what I'm dreaming of tonight...
LOL
+1 to CD and to you sir.
I must admit she was eager to swallow in the beginning but because of size limitations(think golf ball putted into ant hole) we had to call off the whole idea.
I didn't mean to hurt her and cause the lisp.
.
of all the BS ramp jobs I've witnessed, today's creeped me out the most
Full Frontal Fascism on display for all to see. It's almost to the point where they're bragging about their big market muscles.
I see you all fail to see the elegance in this fraud.
Max pain OPEX at 1100 tomorrow. Get over it. The ramps are nothing new , not in the last 20 odd years anyway.
Use it to your advantage - no one wins fighting a trending market , not even the PPT.
Honestly, what's the point anymore? If the laws of the land don't apply or aren't enforced...and they aren't, then they'll just do whatever the hell they want to do. Why even try to hide it? There isn't any reason to, period.
Well, time for the futures pump again. I'm assuming I'll finish my nightcap of rum and cola with the futures down 14 or so on the DOW and wake up to +70 or so. You know, lather, rinse, and repeat.
Seriously, this is just fiction at this point. And fiction has any ending the author feels like writing.
I totally agree. This has me beyond disillusioned, into depression... funny word choice, huh? It's just such a fucking joke. I have a couple of guys calling me saying they had a hunch the market would go up, even though they don't know shit about shit. But, of course, they're right. The market's way up and there's no fundamental reason supporting it. But mainstream people don't think like that, they still believe there are good stocks to be bought and they feel smart when the market goes up like their "hunch" told them it would.
Problem is, if this keeps going up, more people will begin to believe in it. Then they'll start trying to get in on it just as it tanks. It's just a big mean ass machine that grinds down the nest eggs of normal middle class people.
And, when all of the middle class people have lost all their wealth, and then their jobs, what the fuck are we left with. The United States of Argentina? It's slow financial death for millions of people who actually don't even find the markets interesting and just want to do their work, raise their kids, have good sex with their wives, and live basically decent lives.
It really sucks and I'm pissed.
me too
The audacity of the timing of the GS case - they announce charges right before FinReg starts debate. Then they appear to stand tough on settlement throughout the debate. Just THE day that FinReg passes - and on a day where substantial econ news is pushing the market down, BOOM, settlement. Make the fine sound big, but it's tax deductible and will be refunded with a couple of nice pump-and-dumps. They're taunting us with the obviousness of the timing. I wonder if they even called GS this morning after the econ news and offered a one-time-right-now sort of settlement. Probably even let GS front-run it all.
Score one for the banksters, PPT, et all.
Dead right. What a slam slap to the face of the people! How does this happen so willfully but without revolt?? Nobody's paying attention except the algo traders.
“We are right smack at the beginning of a brand-new aerospace cycle,” Cramer said Wednesday, “one that could last for as long as seven years.
How long can the market ignor economic fundamentals?
Anyone have any idea what's up with gold and silver today?
Doesn't anyone else find it bizarre that on a day when the DXY falls thru the floor and neither of the PMs seem to have taken notice?
Especially since itss risk on rally on news of Spanish n Greek salvation?
the 10yr note says 0 inflation, and those that buy gold for inflation hedges (as opposed to the currency it is) are selling it.
nobody is selling gold you Nadle-r-tard
nobody is selling gold you Nadle-r-tard
Seasonal pattern. Just trade the seasonals in gold and the gold stocks and its hard to go wrong. Buy selloffs in June/July and sell the over-exuberance in the fall.
This has nothing to do with GS or BP, and everthing to do with manipulating opex.
The PPT will soon drive everyone out of the market.
x2
the SEC settled with GS for a "ridiculously small" amount, and apparently was unable to roll any heads, because their case was pathetic, political, lame, and going nowhere in court of law.
GS settled with the SEC in the same way that a shopkeeper reluctantly pays a mafia thug protection money to leave him alone.
M2 Release:
http://www.federalreserve.gov/releases/h6/current/
http://research.stlouisfed.org/fred2/graph/?chart_type=line&s[1][id]=M1&s[1][transformation]=pc1
Like anyone here is really surprised that the Squid basically got a slap on the wrist with a pat on the back. It was obvious that the SEC was just showboating. TPTB were not going to let their beloved high school football star quarterback boyfriend slip away.
"Rampjob!" Yelled LawWrench Summers while he slept on the back porch hammock. His bellow could be heard inside, where Timmah had the PPT controller in his hand. 'The order is in, and so is Dr. Timmah!" he thought to himself. He squeled with delight, "Timmah!"
+1
MISSION UPDATE 2:
"SGT' TYLER, PPT STILL OPERATIONAL IN SECTOR 1080,SIR
"REQUEST BACKUP IMMEDIATLY"
"ROGER THAT"
"SERG', SHOULD WE SET UP AN AMBUSH"
"NEGATIVE,THE PPT ARE HEAVILY ARMED"
"REPEAT HOLD YOUR POSITIONS"
"WHERE THE HELL IS CORPORAL COG"
"LIEUTENANT ARRANGE A SEARCH PARTY"
"SHIT SERG'THE TWIN SHOOTERS ARE SHORT ON AMMO"
"F*** BRING OUT THE AMOX"
http://www.thecolektr.com/Amox.jpg
"ON MY MARK"
And now for the entertainment portion of our show. Goog is down 20.00 AH. Crappy earnings.
I don't get it. What Spy -ES divergence. Is that a chart of %? if so it looks dead wrong.
On the face of it, its ridiculous. any diff >1 cent would be arbed away instantly.
Unless your chart is showing variation of pennies, it has to be bogus. And that I'm the only one calling it is kinda sad.
I actually found myself cheering at the DOW, like the little engine that could! She showed so much spunk. Ya cant keep 'er down...
In all seriousness; what could have caused this?
DXY (inverse relationship locking in from the recent capitulation)? Massive moves in the Euro/USD and GBP/USD trades? Platinum? Other than those indicators all I can think of is the "President's Working Group on Financial Markets" and the Majors congratulating Congress on a job well done.
You tell me CB.
Somebody with bottomless pockets and extreme confidence in the market or their ability to pump it up. The news creates a reason or disguise for the pump to make it seem credible. Why the fuck would so many investors be happy GS settled ? Was the outcome so unexpected ?
NEW YORK (AP) -- Investors gave the stock market a big last-hour turnaround on just the anticipation of Goldman Sachs settling the government's civil fraud charges.
Ya right.
Change your trading recos. to once again:
Buy the dips.
Again, GS leading the way. Did Meredith say something?
brit pee happy talk rest of week/weekend! goon sucks plows the way for all propreitary trading and ins-inc too boot!! We may open at spy at 1200; Friday AM! Any thing the paper shuffling gov goon sachs can't perform in doing god's work!!???? LOL???
The multi-billions GS had budgets for the long drawn-out bribes and shadow games was immediatly rebudgeted to the HFT account unpon settlement. The HFT machines, upon seeing the account balance changed by an order of magnitude, immedately tried to adjust its balance and buy the heck out of the DOW.
All fane stream media happy talk! Wonder if AmeriCON'd is waking up in the poppy patch? Headed for emerald city to find nothin but ONE NATION UNDER FRAUD!! http://www.businessinsider.com/breaking-bp-has-stopped-the-leak-2010-7
BP HAS STOPPED THE LEAK FOR NOWWell BP blows a well (and it is going to cough up ~$50 billion dollars)...Goldman blows the entire economy and pays $500 million...
I have learned from reading this website in the last 6-8 months not to be surprised by anything these criminals pull off.....Nothing to see here senate and the house passed fin reg today...all is well.. clear sky's and rose colored sunsets from here on out...
or not. (most likely)
the questions is how do we arbitrage the divergence between fiction and reality ?
I love the smell of burt bear meat in the morning!
now the SEC is as overtly part of the scam as their boss Goldman Fucking Sachs
gee, how ..... great
the never ending success of the criminal bankster scum saps the will to live
The SEC has always been part of the scam as well as politicians and all other government agencies.
If I am on the wrong side of a trade, fine. But these ramp ups and downs just fly in the face of my experience with indexes over the past 10+ years.
I only hear about the market flaws here, which makes me wonder if we're going to find out what the failure mode of the market really is after 'nth' algo-trades, since nobody wants to really discuss and solve the problem.
Like metal fatigue at 25,000 feet finally catches up with you in a big way. Was that a wing? Uh oh.
And we thought there was corruption in 2008? This is the biggest joke ever...I take that back, the 13 billion dollar payout to Goldman via AIG was acually a bigger joke! WTF PEOPLE! Don't worry about Lloyd and the rest of his CRONIES when the starving sheeple decide to eat their herder, he will just disappear into the sunset like Ken Lewis and all the rest of the fucking assholes that carried out the largest heist in American history!
Just buy this damn market and be happy...
Bitterness won't take you anywhere, sorry.
Personally, I think its great how pissed everybody is here - that means its almost time to add short positions. S&P 1130 would be fantastic, but I'm willing to lever in every 10 points.
duplicate
Or there could be an expected dividend change or interest change that happened today. It is earning season.
Expect the Friday morning run-up and afternoon sell-off before the weekend. This market is so rigged it is not even amusing anymore to watch just criminal.
I never want to hear in my life time a US Administration or any US Government official call another country corrupt and bankrupt.
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