Volume Recap: Same Low Volume, Different BTFD Day

Tyler Durden's picture

The chart below confirms what we have all grown to love and expect from the robotic algo stock trading bias, on days when volume does not exist. The trade here is obviously tomorrow's NFP, which is at a critical junction: should Bernanke wish to proceed with QE3 this may be his last opportunity to doctor the employment data to start a smooth transition toward further monetization expectation. Should NFP be a blow out, the next NFP report will be in April and it will have to be truly abysmal for anyone in Congress to buy that further monetary intervention is required just two months ahead of the end of QE2 in June. On the other hand, Bernanke wants stock prices to be as high as possible at the point when the transition to a QE-free environment occurs, assuming of course, anyone at the Fed believes the economy can ever exist without a daily dump of $5-7 billion.

And the chart for all the dollar fans:

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101 years and counting's picture

"Should NFP be a blow out, the next NFP report will be in April and it will have to be truly abysmal for anyone in Congress to buy that further monetary intervention is required just two months ahead of the end of QE2 in June"

As if Bernanke cares what congress says.  And besides, didn't B Frank ask Ben if he would print more money BECAUSE of higher oil???

FunkyMonkeyBoy's picture

Any free-thinking human (i know they are a dying breed on this corrupt planet) can see that in no mathematical, logical or intuitive way can this end well.

Evil runs amuck on this planet, and always wins, always has, always will. Even when you think the good guys have won for a change, if you look behind the curtain, behind all the bull and propaganda, you will find the good guys weren't actually the good guys.

alien-IQ's picture

the good guys always win...in the movies. in real life...not so much.

MolotovCockhead's picture

Good guys usually win by dying young and get to go to heaven earlier. I'd rather hang around till the last minute and be in hell later on, I want to enjoy my decadent life a little longer if you don't mind.

Milton Waddams's picture

No worries, mate. You should sleep well knowing our benevolent Ben has an exit strategy. It is a fact. It involves a gulfstream jet and a private island, but an exit strategy it is.

Dollar Bill Hiccup's picture

Say three Lloyd Blankenfeins and two Ben Bernankes so that your sins may be forgiven ...

WALLST8MY8BALL's picture

BTFD = Biting the Fu*k!n& Dust

Racer's picture

or BTFIP(Iron Pyrite) or BTFFG


Dr. Porkchop's picture

Is this article suggesting that the inner party can't make 1+1 = 3 ?

alien-IQ's picture

if you want to see a truly depressing USD chart...look at a chart starting in 2001 to today. Next stop.....Zimbabwe.

alien-IQ's picture

why is there never a straightjacket and a white van handy when you really need one?

Cruel Aid's picture

Bagdad Bob style statement or pee on my leg and tell me it is raining.

He must know how to read!

lizzy36's picture

Yeah and Charlie Sheen said he isa warlock with tiger blood. Inclined to believe him over anything Geithner says.

In fact inclined to believe that Sheen should be the next treasury secretary.

plocequ1's picture

Dammit JimThe Dollar is near death. What now Spock?

Misean's picture

Dammit Jim! I'm a real Doctor, not a PHkD Economist!

Implicit simplicit's picture

Well captain, the rational procedure would be to cut QE and POMO and face reality. However, considering earthlings are not rational, especialy the ones in charge, I expect we should do the opposite, but still a most irrational move: create a panic, crash equities, drive up the dollar and bonds. Finally put it in hyperdrive, and as Bobby Orr use to say, lets get the puck out of here.

Orly's picture

Three point four million Holodeck simulations have produced exactly four good outcomes, three of which require some sort of religious intervention, however.

earlthepearl's picture

This dude from seaking alpha better watch out, he is asking too many questions

unwashedmass's picture


oh, please, we all know who is doing it and who has been doing it for months....

its JPM and GS funded with bennie boy's newly printed cash -- courtesy of the peasantry who will have to make good on all this funny money some day....

not that anyone cares....they'll be long gone...

oh, is that a jet out there on the tarmac warming up? did they get allthe gold loaded?

Pure Evil's picture

I know I can't exist without my daily dump.

I just wish I could blow dollars out my ass like good ole uncle Bennie.

RobotTrader's picture

Absolutely no chance of the market selling off whatsoever.




As long as the USDX continues to collapse in a heap, and the CRB Index keeps grinding up.


But if TPTB pulls off a Don Coxe "Midnight Massacre", then all bets are off, and we can short huge for another waterfall collapse and vicious rally in the dollar.


TradingJoe's picture

That is exactly what I am thinking of, el dollar might give us a nice surprise, for a change, would be short lived and a one time(last time) event but...!

And there is also(still) oglio di Lybia, eh!

Hugh G Rection's picture

The market did well in Zimbabwe also.

Dr. Richard Head's picture

Exactly.  Who wants to be a Zimbabwean Millionaire anyway?  The public is so trained into thinnking of price in nominal terms of dollars as a unit of price.  Price these equity markets in silver or gold and show how those nominal dollar rises in the markets is really making them richer or not. 

Oh well, fuck the public.  They will reap what they so. 

Unbeliever's picture

You honestly think this mess is of the public's creation?

Dr. Porkchop's picture

Yay... soon we'll all be billionaires!!

Orly's picture

Speaking of Robo: I was just about to say...

This is the blow-off top.  The turn-down shouldn't be vicious but quite deliberate and pains-takingly slow and on increasing volume.  The next three months should be a bit easier for 4X traders the world over.  Hopefully, we can rid the world of this inane volatility (in 4X...) since we don't have to hear Trichet assure the world that he can raise rates...and he just might do it!

Don't make me count to three, Jean-Claude.

SPX to 1044.


Ferg .'s picture

Amen to that Orly , because the first 2 months certainly haven't been easy for us FX traders .

 Jean Claude Trichet has ruined more trades of mine with his cheerleading and " inflation concern " comments than I care to recall . With one sentence today ( that the ECB may increase rates as soon as April ) he's effectively ruined the prospects for a prolonged and sustained drop in the Euro . I mean just look at those Pound frontrunners . They've been piling into Sterling days before BOE rate decisions  and Mervyn King has never alluded to a rate hike at the subsequent meeting . Imagine how many speculators will be jumping on board the EUR long bandwagon in the run up to the April ECB meeting after being told that an increase is possible next month . 

To Robo I'd say the Dollar is right at an inflection point and it's unlikely that it will continue to descend smoothly from here . DXY is currently testing a very solid rising 3 year trendline and moreover articles like this are starting to appear in the MSM . A true hallmark of market turns .



Orly's picture

Looks like they're going to flat-line everything going into the NFP tomorrow.  It's all about the USDJPY and the UST 10-year note.

If it's bad, money should move out of stocks, into bonds, pushing the yield down.  As the yield goes, the USDJPY goes, as goes the EURJPY.

Best of luck trading, Ferg!

Ferg .'s picture

I'm not so sure . Things are just ... zany at the moment . The AUD/USD-SPX correlation has gone to hell , USD can't bounce whether yields rise , data is positive or equities decline and speculators are showing no signs of ending their ongoing threesome with the Euro and Jean Claude Trichet .

 To hell with it though , until things revert to normal I'm just going to continue to play the role of a nimble , plain vanilla , price action intraday scalper  .

Best of luck Orly !

If you decide to brave the bloated spreads and adrenline pumping volatility of NFP Friday then do let me know how you get on :)

Orly's picture

Well, my sense is that the market is timing in some bad news.  Of course, in retrospect, they can make any market move sound almost believable...except today, what with Chavez going to broker a deal with Lybia and oil went down thirty-four cents.  What rubbish!

If anything, the Euro was in blow-off mode (which was what I was speaking about earlier, as I don't really care about stocks one iota...) and is due for a come-down.  About five minutes before the announcement, take a small position in USDJPY and EURJPY short and the EURUSD long.  That way, at least you have some sort of hedge and your winner can run while you kill the hedge.

Best thing to do is just watch it, though, then play the retracements, depending on how "bad" the data are, of course.  But, I don't know.  The AUDUSD and the GBPUSD pairs are trying to sneak out under the radar to the downside.  Those are probably your better bets tomorrow.

Ferg .'s picture

To be honest I would have thought that a wildcard like Chavez entering the diplomatic mix would have had an adverse effect on markets !

Euro is getting frothy but that ECB press conference was a game changer . No way it'll tank with the possibility of a rate hike in April .  I think there'll be a minor correction next week but I've lost faith that we'll see a major drop against USD ( at least for the next month or so ) , unless of course things really start spiking , in which case some onerous , Euro negative comments will start to conveniently appear . EUR/JPY is another matter though .

I actually never enter prior to NFP ,  usually like to fade the initial reaction . Made a quick scalp on GBP/USD and EUR/USD but I'm beating my head against a wall for not shorting GBP/JPY up around 135.00 . I'd been keeping an eye on it all week , patiently waiting for a spike up into that area and I missed the entry . Maddening !

Pretty disappointing NFP Friday to be honest . Very small daily ranges and no signs of a DXY rally .



pendragon's picture

so since the close on 1st wti is up nearly 2bucks, the monkeys at the ecb are hardcoding an april rate hike and the s&p is up 30 handles....shurely shome mishtake

Orly's picture

The darkest hour is just before dawn.

CrimsonAvenger's picture

It's always darkest just before it goes pitch black.



New_Meat's picture

dang-I was in the food store tonight, saw the "motivational" posters and thought: "what if I printed out a bunch of 'despair.com' posters and taped them up ;-)

- Ned

Lapri's picture

JPMorgue, Gaddafi's banker, says it's in the stars. Saw it at Market Watch.

“All the stars seem to be aligned for a stronger number,” said Anthony Chan, chief economist for J.P. Morgan Chase’s Private Wealth Management group.

lsbumblebee's picture

"No need for Congress to buy anything when we can buy Congress."

- Floyd Bankenstein

TooBearish's picture

Tyler ur Bloomberg data is clearly not right - CMBS and Bloomberg news says rally wif heavy volume

Cdad's picture

On a day when the predicate for the rally was Hugo Chavez brokering peace in Libya causing oil to fall [a grand total of $.34 cents per barrel] bringing relief to shoppers.

We are really scraping the bottom of the barrel for rallies these days.

Orly's picture

My point exactly, Da-daddio.

Ferg .'s picture

Isn't wonderful how the MSM always have to have an explanation for intraday market moves ?

cocoablini's picture

If QE stops(or POMO) then the market flash crashes.

Bernanke is at the whim of the primaries now and has to feed them infinitie money or they will show him who Daddy is.

We basically are running on cruise control. The market is on lifesupport. If the market was allowed to find true price discovery it would be about 8000DOW.

There is just no way the FED will stop QE3-4 etc-they need to boil the frog slowly, make sure the people have no clue how the system is transitioning underneath them. The slowness of this crash also allows the alpha class to hoard and protect their assets before the flood comes in.

The US is in a multidecade carwreck unfolding before our eyes. We can thank generations of bad politicians who allowed the corporate banking system to heist everything.

Ask not what your country can do for you, but what your country can DO TO you.

Wascally Wabbit's picture

What I don't understand is why the Fed is pushing up stocks. Ok, Joe blow wants to see his portfolio up but it kills the bond market. Wouldn't you expect the Bernanke to dump stocks and get people to transfer into the treasury bubble?