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Sudden Risk-Off Bout Attributed To Groundless Fitch Rumor
While there is little news aside from a modestly disappointing pending home sales print, risk assets in general are bleeding quite notably. USD is strengthening and Treasuries are rallying as commodities slide and stocks tumble. The chatter is a rumor that Fitch is about to downgrade the US below AAA. We find this highly suspect as there would be hell to pay for doing this two weeks before an election (and Fitch themselves have said that there would be no downgrade until 2013 at the earliest). Of course, this is merely the market gurus attempting to come up with a narrative to explain yet another intraday sell-off, which is now coming with dangerous regularity for the bulls.
Risk-Off - quick, we need a narrative!
Charts: Bloomberg
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PM #winning
Tomorrow could be an up day for the stocks as short sellers take profits off the table before the weekend.
Wait which is it, markets down because of profit taking or short sellers? Cant be both can it? Trust me if there was a massive short interest which there isnt the market would be well below 13k on the dow.
I don't know how many degrees of child-psychology this market has. What ever it is it's fucked up.
The other thing is... nothing goes up or down in a straight line... except when there is capitulation. Are we there yet? I don't know what the child in the market is thinking... Look at VIX, up 2.26% and VXX down 2.13%.
I agree - jsut saying of the markets up don't attribute it to short covering because the short interest just isnt there to jsutify that. It can be up because bernanke poo'ed a poop that was super coiled up. Whatever it is jsut know that if the big boys wanted to pile in short here we'd already be down around 12000 on the dow.
> if the big boys wanted to pile in short here we'd already be down around 12000 on the dow.
Maybe that's justification for a big Friday rally... I don't know. All I know is the longer term the markets are going to get ass raped.
QQQ is right at 200 dma. Will it bounce from here? I don't know it's a crap shoot.
The boyz are cashing out
http://finance.yahoo.com/q/it?s=jpm
another one
http://finance.yahoo.com/q/it?s=gs
profit taking while the profits are good.
do as they DO not as they SAY
QQQ is waiting for AAPL earnings after the bell. If they dont meet sales exp for iphones/ipads bombs away.
I'm doing a QQQ spread. Either way it's likely to move a lot by tomorrow.
Good luck bud. Bollinger's on you if you score.
market follows oil, oil up on Fridays
Actually the rumor is the Rothschild family wants Obama out (because he is not good for Israel). The Rothschilds ordered Fitch to downgrade the US right before the election.
just ask who you got the rumour off where they got the rumour ...simple
a bit of investigative journalism and simple phone calls tracking back would not go amiss since it was shut down post Watergate
who started this rumour?
most come out of Rothchild carrier pigeons,, sorry Reuters, don't they?
He loves to stiff a market, his age-old (and tired) dirty trick for Centuries. Someone should nab him for it, hundreds of examples of lying to markets to turn a profit dating back to telling the London SE the French had won the battle ..he cleaned up before they found out it was the English
crooks dirty tricks and filthy lies are easy to spot on the stock markets and easy to prosecute, isn't that right SEC/FSC ??
nevermind the SEC/FSC
The Rothschild's are shitting in the Russian's bed and that should have them very very worried.
do you have a reference you can share?
PMs aren't going anywhere today before options are settled. It's options expiry today.
or market gaming before AAPL earnings to allow plenty of upside after they report blowout numbers on low expectations....I smell GS manipulation
Bubbles, arrows and lines - oh my.
The relief from the rumour not being true will save the day. Yawn.
Over a year since S & P's downgrade and a rumor of another agency's first downgrade comes as a great surprise to the market? Too funny.
Lucy extends the football for the shorts to kick. Really. It is safe to go for it this time.
"Come on Charlie, I'll hold the football and you can run up and kick it".
That sounds awfully similar to "the Bernanke put."
Here is the narrative: Q4 is going to be a B, but just wait for that fiscal cliff and debt ceiling bomb.
Oh friendly reminder; we are still in the soft landing.
"Risk-Off - quick, we need a narrative!"
It is Bush's fault.
The new narrative is "Romney's a Bullshitter!"
You mean he is not a bullshitter?
Doublepost...
Let's look for the bounce once every trading unit is informed that ZH thinks the Fitch rumor is BS.
Fitch will downgrade in 2013 btw.
It will be a part of the globalist "elite" extortion plan that includes raising taxes on poor-to-middle class people, mass layoffs (especially in retaliation for voting for Obama - they'll extort him, too...again.....JIC), and ever stagnating-to-lower wages.
Hedge accordingly, slaves.
ALL HAIL FITCH! ALL HAIL FITCH!
ALL HAIL FITCH! ALL HAIL FITCH!
WTF, why would the US dollar strengthen on a US downgrade? Why would Treasuries rally? Why would precious metals fall?
Would the Euro rally if France got downgraded?
It is a bizarro world
Logic? Please.
Because it's rigged and manipulated?
For the same reason Kaminsky went into full retard, chicken little, QE/ZIRP denial mode on CNBC after the Fed announced endless money forever. There is no reason.
You have to sell the toilet paper (of the toilet paper, of the toilet paper), to get the other toilet paper, to get real shit.... or when you sell a financial asset denominated in dollars you are buying dollars.
Why are NFLX and CMG up? /lulz
even turds bounce if they fall fast enough
Fitch, my ass.
It's simply that the flow is swallowing all the market and nothing much is left to trade.
That's why risk off is never gradual. Somebody small simply runs out of money and throws everything into the soup.
The fun stuff happens when one or two primary dealers start throwing everything into the soup. Remember MFG?
I wonder if this could affect the election?
Someone should check Trumps call history for the source.
"hell to pay"? If the big boys want Mittens in who is going to make them pay hell?
I would love to see Fitch grow a pair of balls. Maybe Sean Egan can lend them one of his.
He'd still have 4.
godman suckers doesn't want obummer in, so is managing the 'market'
If that were true they would be collapsing the market right now, they could drop this thing a 1000 points in a minute. The banks own both candidates and they don't care which figure head occupies the white house.
More like a phantasecond, but they don't want to make it toooo obvious do they..
A steady grind down to the wire seems like a reasonable strategy.
Can we get this fucking party started already....seems like I've been waiting for years and years.
It's tough to know you have the concept right....and know that what is, cannot be forever....and watch these monetary magiicians keep the ponzi afloat....another month, year, decade.
You gotta hand it to them - they are crafty little bastards.
My question has been, and will reamain to be - when are the people / nations holding all of the debts going to call in their markers...and ask to be repaid with something other than another I.O.U?
Maybe never? Maybe the concept of real wealth has been completely lost on the world now?
Maybe we live in a world where a promise to pay (even if made by a person / gov't that has no abiltiy, intent or motivation to pay) is the same as being paid with an actual asset?
Is the financial world (and the world in general) that deluded as to the real value of things?
If so...maybe the big reset will never happen?
Maybe the bubble just gets bigger and bigger and bigger....and no debts are ever really settled....maybe they are just continuously rolled over into a new I.O.U.S.A....
My head hurts....
know the feeling aweshucks, you hear about "printing" there is no printing just digital zero's behind a 1, a lot like scientific notation.
notice how the /es rises up to the 1412 level overnight, then when the selling comes it is bound in the same range as the last 3 days. still not broken below 1400. see those obvious green buys in the middle of the night on non-existant volume, pump,pump,pump
it may never end, its the new normal. but you sure can't trade it with any rationality.
Im looking at MW. Everything looks green.
Could anybody inform me about what will arrive of the US dollar if Obama is elected? Can you advise me an article above?
Dollars? Maybe you should watch this just released video by John Williams at Shadowstats. Just one warning: It's not pretty!
http://www.silverdoctors.com/shadow-stats-john-williams-feds-qe-to-trigg...
Fitch is FRENCH, don't forget that.
And France is now owned by Hollande, who wants total war in the middle-east... and only the neo-cons will give him that.
That normal 4AM futures pump isn't working anymore? What's a Fed to do??
First the Greek caught obviously lying, then, in the overnight, the Japanese say they want to pump 10T more yen into the market, then, in the US session, we get refutation of yet another rumour on an imminent US downgrade...
Seriously? Is this what this "market" has come to? Anyone else see that they are grasping at straws? That can't be a good thing.
http://www.forexlive.com/blog/2012/10/25/boj-considers-10t-yen-increase-...
:/
It could well just be the usual European closing bell selloff by the way.
China is making preparations to nuke Israel but the ark of the covenant has been found and Greeks have in their possession the Golden fleece.
Anybody check Mitt's call records...I'm just sayin'.
A rumor of a downgrade? Thats almost as good as a bogus youtube video.
Who is this Risk Off and why does he care so much?
riskoff, sounds russian to me
Oh, we are still AAA. That is a joke in itself.
And the rumor is that US is going to be downgraded. And you sell gold on that. Amazing the idiocy out there.
I heard a rumor we have a national debt of $16 Trillion and over $65 Trillion of unfunded liabilities.
But, these numbers are so astronomically high and UN-payable, it must just be a rumor.
So, let me get this straight, bonds are up and gold is down. Yep, it's 1984
1984, oh no. mash isn't going to be playing this season
market is just pausing until it gets its next $40 billion fed infusion
The sea change, IMHO, is that before the market seemed driven inexorably up by positive rumors, whereas now the tables seem to have turned...
The HFTs must be spooked...