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Oh (Ramping) Canada, Again...
Canada's TSX is now up over 1% from its pre-vertical ramp yesterday afternoon as it is now extremely clear, to all those who take the time to consider why, that as central bank liquidity provision must flow somewhere, so the algos latch on and follow the momentum. We have just had what will likely be the most costly US disaster in history, earnings are anything but robust, BoJ's QE9 failed instantly last night, Greek Government Bonds are fading (now off almost 10% from recent highs) as deals look set to be voted down, and European sovereign bonds are leaking wider; and so - with US equities shut, that PBOC/BoJ liquidity must flow somewhere and the closest proxy is our Canadian brethren. TSX current price implies S&P futures around 1425 and S&P cash at around 1430 - back to Bernanke's starting point for QEtc. We suspect this is just auctioning up to previous resistance but USD weakness is helping modestly (even as commodities slide lower) but of course it is just as likely to be all about slamming the European close.
TSX (red) versus S&P 500 cash (light green) versus S&P 500 futures ES (dark green)
and where that ES level would be...
Why is 1400 or Bernanke's Bottom so important? Aside from the pschological import, S&P options have a maximum pain point (see here) at $144 (the point at which losses for ALL option buyers are maximized) or more importantly $140 (which is the strike that creates the most loss for option buyers since the last expiration)...Some serious pinning here - even though there are still over 2 weeks until Nov expiration. For the weeklies that are due on 11/2, MaxPain is $142 - even more crucial...
With the inability to manage these positions - is it any wonder that the algos are using Canada to nibble the market back up...
Chart: Bloomberg
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Didn't you hear? All this destruction is bullish
didn't world markets ramp for 3 months after the Japan quake, but tank 30% after that?
The most costly disaster in US history was Barack Obama, followed by GWBush. Sandy probably won't make the top 10.
Sandy damage estimates yesterday were $10 – 20 Billion.. today $20 – 30 billion
How does Sandy get over the $100 billion of Katrina?
Unrelenting pressure on the gold/silver. incredible given spastic EUR action.
but but SPDR shares (1/10th unit in HKD) shot up 5% microsecond before close today.
http://www.aastocks.com/en/ltp/rtquote.aspx?symbol=02840
fuck me must be another "glitch"
this is what we will see though when they take the boot off
Good Lord, what an absolute joke.
Seriously, does anyone actually have their money tied up in this fantasy?
BULLISH !
Just don't be bullish on beaver pelts!
Please?
If they are sane...no.
If they are sane and love extreme risk...yes.
Banging the close.
Canada in the news again on ZH. That can only mean one thing: BUY! BUY! BUY!
It's not a good thing when you become front page here. Usually means something stupid will happen in two weeks.
Fuck that.
Thomson One is down across the street. Bloomberg is so fucking slow that people are on TMX.com to get quotes.
Complete and utter bullshit.
Tomorrow morning is going to be chaos.
Lol! And there you are, like Beetlejuice, writing how perfect Canada is!
I hear ya Lizzie - my Thomson is down as well.. wouldn't matter anyhow. I'm just sitting here shaking my head.
The real kicker is the Canadian VIX down almost 7% - no volatility here......
But...but...the Canucks are soo vigilant! They would never be involved with the criminal activities that the rest of the Central Banks are! Carney is a saint!
Right Lizzy?
No, not at all...(cough BreX/Tyco/Nortel/Mitel/All nickle/All coal/All energy/Lumber...and their associated massive public pension shortfalls)
Canada is pure as the driven yellow snow.
give it time and canada will be exposed as the stinking piece of shit it really is.
There is zero manufacturing, zero startups, zero outside oil, real estate and to a lessor extent mining now. Big issues with banks and these integrated money manager/pension funds that are completely unaccountable and opaque. Oh ya and they are selling everything to foreign corporations that import workers and don't pay tax, meanwhile the scardy cat canadians are too timid to go overseas and push for a piece of the emerging market economy.
its dissapointing
DEATH TO THE ALGOS! AND FUCK YOU BERNAKE
Us Hosers are now ramping-up
And Tyler is asking, "Wassup?"
The reason is clear
Besides loving beer
We drink from the same Klepto cup
O Ramp It Up!
With HFT and vacuum tubes,
Your true masters fucking your future.
From glowing HQs, you see us rule.
The True Rats hiding in the tunnels,
Of glass and light!
O Ramp It Up, we run the stops on thee.
God keep our indexes rising and green!
O Ramp It Up, we run the stops on thee.
O Ramp It Up, we run the stops on thee.
I am quite positive the fed has a trading accounts in the British, Canadian, German and Aussie markets.......It does not take a lot of money to move the Aussie and Canadian markets, chump change for the feds, I am sure the Drag is making his bit in Europe helping Ben's team.
If you notice they are all ramping up at the same beat , like an aerobics class......fucking crooks...
Just the Apple news should have been enough to send the markets into a tail spin, now with New York disabled for over a month or two at least, how's that bullish? and just when they finish the subway fixes on December 23 we get the Mayan shit happenning.....................
But gold is being held down reasonably well.
The Fed uses Feeder funds, just like Madoff. Its a good model
"Chump change for the FED"
The FED doesn't have a dime, and has never earned a dime.
"The FED doesn't have a dime, and has never earned a dime."
Are you serious?
You must work for them!!!
So the trade is short TSX and long ES then
No short anything with a central bank attached to it.
OMT is causing part of rally. Seeing enough bullish arguments about the apple change. Not surprising stocks have started another bounce.
The broken window fallacy on steroids. Or is it meth? Crack?
Again
Can't access trading account.
Can't even get quotes from BNN tv.
No ticker today.
Funny how I can access account after the close and before the opens but not during the trading day.
Only the special elites are allowed to trade on days like today.
For anyone who wants a little humor to lighten the mood, here is a Keynesian BS spin-job re. how the damage wrought by Sandy is a good opportunity for improvement in the lives of those who survive...
The Economic Impact of Hurricane Sandy … Not All Bad News
By Yahoo! Finance | The Exchange – Mon, Oct 29, 2012 11:04 AM EDT
http://finance.yahoo.com/blogs/the-exchange/economic-impact-hurricane-sa...
100% FUBAR.
Well, initial estimates for the cost of Sandy-related damage is 35 - 45 billion. This is where those massive trillion+ deficits are a good thing, as they make the hurricane damage much more affordable. 45 billion will barely even register on a deficit that's already 1.2 trillion, but can you imagine the magnitude of the catastrophe if the deficit were only 100 billion, say? It would have been mind boggling!
All it would take is one nuclear plant on the eastern seaboard to go haywire .....scary huh?
Good ole $1+ Trillion deficits! Things are looking rosier by the minute after this disaster...
Their house bubble must have just popped, all that fake money is rushing into equities just like here in the USSA
And the Ontario Securities Commission has this utterly disingenuous statement in the Globe & Mail this morning:
Retail investors are holding onto their money and avoiding stock markets because their faith in the financial system remains deeply shaken even four years after the financial crisis began, Ontario Securities Commission chairman Howard Wetston said Tuesday.
Speaking at the OSC’s annual “dialogue” conference in Toronto, Wetston said financial regulators moved after the crisis to try to reduce the size of global financial firms, while also increasing transparency and reducing complexity of new financial products.
Instead, however, institutions have gotten larger and products are more complex and less transparent, he said.
Regulators in the meantime are still trying to respond to issues that arose in the financial crisis while new issues – such as the Libor scandal – keep emerging.
“And where are the retail investors?” he asked. “They continue to sit on the sidelines, their trust and confidence in the financial markets eroded.”
TMX Group chief executive officer Tom Kloet told the OSC conference a key to restoring investor trust is improved enforcement against those who break securities rules.
“The reality is that a system is going to lack confidence if people think that bad participants just get shuffled through the system and appear somewhere else,” he said.
In his remarks, Wetston said the OSC is increasingly focusing on taking cases to criminal courts, which allows for jail sentences to be imposed.
He said cases involving repeat offenders and people who breach OSC cease-trading orders are most often considered for criminal action.
Yes, retail lacks confidence in the confidence game so we are going to prosecute more traders for breaching cease-trading orders. That ought to fix the entire retail scam and sideline money will flood back into an already over-priced market facing a global commodity slowdown.
Rubbish. The lemmings are invested according to their advisors and and their advisors have them in complex products that even the advisors don't understand.
It's just a big fucking mess ready to blow.
NY is out. Nobody is trading. This is complete bullshit. The global financial markets are PARALYZED. WTF are they trading on when commodities aren't priced. Currencies against anything but the USD? Give me a break. DAX up 1% on bullshit.
The longer NY is offline, the further the effects. Which bank that MATTERS does not have at least an office or their headquarters in NY? Deals aren't being made, investments aren't concluded. Give it a few more days and Toronto, London and Frankfurt can go home as well. Why are these people even working? Maybe they're dusting off their desks today.
From a London perspective (even with the clock changes this last weekend) the ramps have come at the same times as usual, just after 2:30 p.m. and then 4:30 p.m. on the nail - as usual.
DavidC
lofl. Amazing isn't it. The US markets get closed by a freak storm as they were about to run into probably some of the worst economic news yet and crash previous illusionary support levels and all the while elsewhere futures magically ramp (or rump shove to any shorts). If one looks at the trendlines for the S&P to see what they are magically painting it's to establish support at the S&P 1400 level (even if one has to close the markets to prevent a technical breakdown) so they can convince all the chartists (i.e. HFT algos) the market is going up.
Banker brillance at its best. This is akin to NASA putting a nuclear rocket on a turd and blasting it into orbit. Why folks? Because here at Ben ASA (BASA) we prove that SHIT can not just fly, but can rise glowing into the home of the GODS. Don't worry about what the GODs think, we covered the shit with Gold to make it the universal currency GoldSac'dShit (aka GS)! All we need to do now is to launch some NYC rats (aka bankers) up to the GODs and see if our sacrifices are acceptable. Lets not forget to conserve oxygen and add a few bottles of sparkling NYC subway water to richly marinade our sacrifice.
All of Europe is up over 1% today. What a senseless clusterfuck.
Absolutely! The U.S. has stolen everybody else's Gold and China's wisely MAKING Tungsten-Gold and the E.U. nations are running around trying to find out who actually HAS their gold! CHAOS IS UPON US and the U.S. Wealthy started all the STEALING with the help of BANK ROTHSCHILD & Israel's BANK LEUMMI. Time to Xerox $100 bills in the basement!
I'm not a markets guy so this is all over my head... but did ask a banker friend to consider the article and he replied with:
Today's rally on the TSX could very well be driven by algos following momentum.. but it's probably not just limited to "algos". Likely any investor in the US that wanted to buy after seeing today's positive performance in Europe wouldn't want to wait for the US to open and would buy in Canada instead.
But as for last night's close. To anyone that was following the MOC imbalances yesterday it's pretty clear where yesterday's spike at the close came from. That could have been US money entering the CDN market yesterday via the MOC facility, or simply blasting the close. But I think that's unlikely for two reasons: 1) I don't think US algos/traders/investors (whatever you want to call them) use the MOC facility too often (if ever); and 2) it seems a bit silly of them to wait until the last minute to send big orders through the market (if they were just blasting the close) as they could've worked their relatively large orders throughout the day and got better prices.
I also know most big Canadian institutional buy-side investors run MOC programs on a regular basis (lots on a daily basis). To me it makes sense that they just forgot to adjust their volume for yesterday's program to account for the liquidity shortfall.
If anyone has any opinion on his comments, it would be appreciated as I'm always trying to learn/understand more about this crazy manipulated world we live in.
Cheers,
-FN
Did your "banker friend" open his mouth for his response...?
If so,he was lying.
Do some research on the PPT and their hidden manipulation activities. They operate around the clock on multiple markets all the time with a goal to foster "stability" and of course politically correct prices to the extent that they can. Every once in a while things might get a bit out of hand as when Fat Finger triggered a minicrash a couple of years ago but for the most part they are being successsful. The last two days is a perfect example of that...................