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Risk Ramp On Boehner Banality

Tyler Durden's picture




 

Great timing. The ubiquitous post-European close trend-reversal was extended by some 'nothing' comments from Boehner that every media outlet is inferring means everything's fixed and compromise is close. It's not - what did we expect him to say?

  • Boehner says talks with Obama were constructive. Outlined a
    framework with Obama; Will accept revenue if spending cuts
AAPL jumped up to VWAP and S&P 500 futures coincidentally reached overnight highs/stops. Now let's see if anyone really believes...
And for those who have forgotten last summer's debt ceiling negotiations, here is a sample of what happened before the market tumbled by 20% to get the deal done:
  • July 18, 2011: House Republicans brace for compromise on debt (Source: LAT)
  • July 22, 2011: Debt Ceiling Talks Collapse as Boehner Walks Out (Source: NYT)
Luckily, the algos never learn...
and AAPL has popped for the hopers to yesterday's VWAP...
 

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Fri, 11/16/2012 - 13:04 | 2988356 ebworthen
ebworthen's picture

Get ready middle class, you are going to get it in the rear again!

CONgress will collude to raise your taxes and reduce already taxed entitlements; the Kleptoligarchy must be preserved!

Where was all this austerity and responsibility talk in 2008?

Where was all this "concern" about the "fiscal cliff" when they bailed out the banks, insurers, and automakers?

Where is all this "concern" as the FED pumps $40 Billion a month into the very leveraged instruments that caused the crash?

All hail vampire crony capitalism and the socio-fascist government bent on taking away individual liberties and any assets you might have!

Fri, 11/16/2012 - 13:05 | 2988360 slaughterer
slaughterer's picture

Beautifully played: announcement comes out seconds after European markets closed.

Fri, 11/16/2012 - 13:08 | 2988382 spastic_colon
spastic_colon's picture

beat me to it....perfect strategery

Fri, 11/16/2012 - 13:12 | 2988405 NotApplicable
NotApplicable's picture

A framework? Damn, I was hoping for a roadmap this time...

and a comprehensive one at that!

Fri, 11/16/2012 - 13:23 | 2988466 I Am Not a Copp...
I Am Not a Copper Top's picture

A Way Forward!

Fri, 11/16/2012 - 13:29 | 2988500 Randall Cabot
Randall Cabot's picture

Stocks are long overdue for a short-crushing ramp into the close.

Fri, 11/16/2012 - 13:34 | 2988526 Manthong
Manthong's picture

Kevin must have done a couple of lines in the men's room.

Fri, 11/16/2012 - 13:36 | 2988541 pods
pods's picture

Yep, Wall Street equivalent of "powder your nose."

pods

Fri, 11/16/2012 - 13:44 | 2988581 astoriajoe
astoriajoe's picture

would a blueprint suffice?

Fri, 11/16/2012 - 13:16 | 2988431 spastic_colon
spastic_colon's picture

....plus on option expiration, all the cash from selling europe went straight to OOTM ES (which of course are now ITM) and a weekend to boot to digest no details

Fri, 11/16/2012 - 14:06 | 2988686 Stock Tips Inve...
Stock Tips Investment's picture

The market is oversold and are looking for any excuse to start climbing. The problem is that until now, there was no excuse. Today, lawmakers have provided a float to Wall Street to grip. This could be enough to change the character of the stock market. However, it does not seem enough to change the trend. Let's wait to see if the government or the Fed take this opportunity and give a new impetus to the market. But beware, to retake the way up, need to see more.

Fri, 11/16/2012 - 13:11 | 2988404 SmallerGovNow2
SmallerGovNow2's picture

What a fucking farce...

Fri, 11/16/2012 - 14:45 | 2988918 Manthong
Manthong's picture

The hopium bags have been distributed.

Europe has provided the template for the meetings and communications "policy".

Fri, 11/16/2012 - 13:35 | 2988531 Randall Cabot
Randall Cabot's picture

Boehner Speaks, Stocks Get A Boner!!!

Fri, 11/16/2012 - 13:46 | 2988592 kralizec
kralizec's picture

Speaker of the (Shit) House...

What a chump!

Spending cuts?!  LOL!!!

Fri, 11/16/2012 - 13:04 | 2988357 Cassandra Syndrome
Cassandra Syndrome's picture

So when do the gates of hell open?

Fri, 11/16/2012 - 13:43 | 2988580 dracos_ghost
dracos_ghost's picture

I believe they already have. For all the Pelosi/Reid jokes around here, Boehner is by far the most incompetent short bus "leader" on the planet right now.

Fri, 11/16/2012 - 13:06 | 2988362 Deepskyy
Deepskyy's picture

The market leaps on 3 minutes of fluff.  We didn't learn anything.  There is no plan (not that it would matter) and no true direction.  Just "we promise to try to talk again after Thanksgiving." 

Idiocy.

Fri, 11/16/2012 - 13:13 | 2988411 SmallerGovNow2
SmallerGovNow2's picture

Ineptocracy (in-ep-toc'-Ra-cy) - a system of government where the least capable to lead are elected by the least capable of producing, and where the members of society least likely to sustain themselves or succeed, are rewarded with goods and services paid for by the confiscated wealth of a diminishing number of producers.

Fri, 11/16/2012 - 14:00 | 2988669 jal
jal's picture

Are the financial advisors sheeps!!!!

Bad new announced and the big money jumps into the market.

The real bad news of the postal service loosing billions, BP paying billions and Twinkies are going to be museum pieces is overcome by the stupid investment advisors.

 

Fri, 11/16/2012 - 13:06 | 2988364 ghostfaceinvestah
ghostfaceinvestah's picture

Talk is cheap, but until there is concrete evidence that capital gains and dividend taxes are not going to skyrocket, the selling will continue.

Fri, 11/16/2012 - 13:56 | 2988636 Just Ice
Just Ice's picture

Would not surprise me a bit if taxes on cap gains and dividends are exactly where the "compromise" comes in for Obama to get his higher tax rates on the wealthiest two percent (and rest of investors/traders of course) and republican house members to keep Boehner's pledge of not having the tax rate (on income) go up on those making over $250k.  After all it is the lower rate on cap gains and divvies versus rate on earned income that all the broohaha has continuously been over about the different taxes paid by Buffett versus his secretary and, more recently, Romney and his assistant.  Should that be the case, market knows not what it celebrates. 

Fri, 11/16/2012 - 13:07 | 2988373 fonzannoon
fonzannoon's picture

hammer this rally home CNBShit...get in there...stop with the selling the pops shit what are they paying you for??

Fri, 11/16/2012 - 13:07 | 2988375 Boilermaker
Boilermaker's picture

SURPRISE!!!

Fri, 11/16/2012 - 13:08 | 2988378 Al Huxley
Al Huxley's picture

Ooh, 'talks were constructive'!  I'm sitting on the edge of my seat waiting to see how this 'fiscal cliff' thing pans out, it's ever so exciting!  Fuck these clowns, all of them.

Fri, 11/16/2012 - 13:10 | 2988396 EscapeKey
EscapeKey's picture

Rhetoric you can take to the bank.

Fri, 11/16/2012 - 13:18 | 2988442 Rainman
Rainman's picture

'constructive' is another popular bullshit term like ' robust ' .....algos are programmed to like both equally.

Fri, 11/16/2012 - 13:08 | 2988379 Beam Me Up Scotty
Beam Me Up Scotty's picture

Lets see how manic this market is going to get in the next month or so.  I said this a couple days ago in an earlier post, the algos will ramp on any positive rumor regarding the fiscal cliff.  Just like they did it on every rumor out of europe.

Fri, 11/16/2012 - 13:08 | 2988381 Temporalist
Temporalist's picture

While I can't prove causation, I believe there is correlation to how much ZH exposes on a single day to how much the markets are pumped on said day.  It's as if someone is reading ZH and saying "We can't have all this bad news and have the markets tank too.  Turn the knob to 11 Kevin...and quick!"

Fri, 11/16/2012 - 13:12 | 2988408 slaughterer
slaughterer's picture

Temporalist, you have discovered an important truth about ZH, the NYFED, and the intraday markets.   Kev' has ZH Twitter feed flashing next to his BBG and BUY button all day.  

Fri, 11/16/2012 - 13:09 | 2988384 Ignatius J Reilly
Ignatius J Reilly's picture

IT CAN'T BE DONE.  "Fiscal cliff" is a sound bite.  The debt ceiling will be raised. End of story.

Fri, 11/16/2012 - 13:11 | 2988403 Al Huxley
Al Huxley's picture

You should have prefaced your comment with 'Spoiler Alert!'  You're going to ruin the fucking drama for the CNBC shills and all the politico douchebags.

Fri, 11/16/2012 - 13:16 | 2988429 fonzannoon
fonzannoon's picture

by next week the traders will be naked draped in american flags drinking a coca cola while rock music plays as they prance around selling used hyundai's.

Fri, 11/16/2012 - 13:19 | 2988446 slaughterer
slaughterer's picture

+1 for the imagery. (Can we have a little sodomy and peanut butter thrown in there?)

Fri, 11/16/2012 - 13:23 | 2988463 fonzannoon
fonzannoon's picture

if the scene gets set for those guys i am sure they can put our imagination to shame

Fri, 11/16/2012 - 13:09 | 2988388 lizzy36
lizzy36's picture

Market rallied bc Boehner and Reid didn't have fist fight on camera.

Nice expecations.

Fri, 11/16/2012 - 13:09 | 2988390 HurricaneSeason
HurricaneSeason's picture

Boner can give Obama some stimulus because he can take it back with the debt ceiling.

Fri, 11/16/2012 - 13:10 | 2988391 vote_libertaria...
vote_libertarian_party's picture

By 'revenue' he means:

 

Eliminate home mortgage deductions and cut tax rates.

 

To bad the algo bots can't compute that correctly.

Fri, 11/16/2012 - 13:16 | 2988430 Bam_Man
Bam_Man's picture

Yup. With interest rates so low, who needs the deduction anyway?

Fri, 11/16/2012 - 13:48 | 2988601 jcaz
jcaz's picture

Yep- you can bet that someone is pitching that one right now- "And since interest rates will never go up in our political lifetimes, there is no risk".....

Fri, 11/16/2012 - 13:10 | 2988394 RopeADope
RopeADope's picture

Cya Boner, and thanks for all the fish.

Fri, 11/16/2012 - 13:10 | 2988395 mdtrader
mdtrader's picture

Looks like it could be setting up for a outside reversal day.

Fri, 11/16/2012 - 13:49 | 2988608 jcaz
jcaz's picture

Yeah, it's ALL about the technicals, genius....

Fri, 11/16/2012 - 13:10 | 2988400 LooseLee
LooseLee's picture

Know how to tell when a politician is lying? His lips are moving! Ratings downgrade imminent! We MUST go off the fiscal cliff in order to get our fiscal house in order. BULLTARD TRAP! Don't be a fool. This market is finally heading in the direction it should be going---DOWN!

Fri, 11/16/2012 - 13:11 | 2988401 jimijon
jimijon's picture

Hmm, I think I have an idea on how to arbitrage ZeroHedge...

Write a blog about a blog and tie it into network marketing.

Brilliant!!!

http://www.empowernetwork.com/jimijon/

Check on me now and then. :-)

Fri, 11/16/2012 - 13:23 | 2988464 pods
pods's picture

I don't know, there was a post a while back where someone said his mom made $83 an hour and all she needed was a cucumber and a webcam.

pods

Fri, 11/16/2012 - 13:12 | 2988407 Lost Wages
Lost Wages's picture

Everyone temporarily believes the fake fiscal cliff crisis has been fake averted. Thank fake god. If nothing else, this should be good for a dead cat bounce.

Fri, 11/16/2012 - 13:12 | 2988414 Tortuga
Tortuga's picture

orangeman: OK, constructive income taxes to be raised on "rich people" and no problem with the 26 obummer care taxes and the SS rate going back up. Now that is one heck of a deal.

theWON: So, we'll cut 3, no 2, no 1% from the shhhhhh(baseline automatic annual increase of 8%) budget AND, now this is how generous I am going to be, in VICTORY, that will be over 10 years while the taxes will be retroactive to '08 when I took office, the first time.

orangeman: Why, why are you being so reasonable?

Fri, 11/16/2012 - 13:13 | 2988416 slaughterer
slaughterer's picture

Test the 200DMA on the ES is the new name of the game.  

Fri, 11/16/2012 - 13:15 | 2988424 slaughterer
slaughterer's picture

How many MoMo monkeys will be re-buying their recently-sold precious AAPL in a panic today with the idea that the sell-off has abated?

Fri, 11/16/2012 - 17:58 | 2988440 fonzannoon
fonzannoon's picture

dup

Fri, 11/16/2012 - 13:16 | 2988426 Kaiser Sousa
Kaiser Sousa's picture

the moron on CNBC with the head that looks like Max Headroom states the follwing - 

"i'm buying more Apple...."

yea, yeah, me too...imma sell all my Silver and get me some Apple.....

what a fucking joke...

Fri, 11/16/2012 - 13:18 | 2988441 Lloyd_Xmas
Fri, 11/16/2012 - 13:23 | 2988467 Kaiser Sousa
Kaiser Sousa's picture

hey bro thanks...i needed that...

now, where was i...........oh yea,

 

FUCK YOU BERNANKE.....

Fri, 11/16/2012 - 20:40 | 2990255 Lloyd_Xmas
Lloyd_Xmas's picture

Anytime my friend!!

Fri, 11/16/2012 - 13:16 | 2988432 Lloyd_Xmas
Lloyd_Xmas's picture

Boehner says talks with Obama were constructive. Outlined a
framework with Obama; Will accept revenue if spending cuts. ...

BREAKING NEWS

Boehner then spit and he and da prez smoked a cigarette.  

Fri, 11/16/2012 - 13:16 | 2988433 teahouse
teahouse's picture

bullshit

Fri, 11/16/2012 - 13:16 | 2988434 alien-IQ
alien-IQ's picture

The illusion of compromise only needs to be maintained for another 4 hours. That will buy them the weekend to come up with some other bullshit.

Fri, 11/16/2012 - 13:19 | 2988448 fonzannoon
fonzannoon's picture

'WHAT A REVERSAL WE ARE SEEING" 

up 30 pts and they are pitching it like it's up 500

Fri, 11/16/2012 - 13:19 | 2988450 tahoebumsmith
tahoebumsmith's picture

Good luck keeping this rocket that was launched at precisely 11:40am from falling back to Earth. Gravity BITCHEZ... You can keep a balloon afloat with hot air as long as the hot air continues, time to see what happens when the hot air cools down.

Fri, 11/16/2012 - 14:41 | 2988899 graneros
graneros's picture

Ah but your forgetting the magic "1530 anti-gravity ramps."  They will be activated at that time by simply playing reruns of Boehner smiling and saying "constructive talks."  Maybe, just for good measure, they'll even through in some Drahgi reruns.  

(For those not used to military or European time, 1530 is 3:30 in the afternoon)

 

Fri, 11/16/2012 - 13:20 | 2988452 Oldwood
Oldwood's picture

We are looking more like Europe every day! How many times have we seen the markets jump on some quote or quip?

Fri, 11/16/2012 - 13:21 | 2988456 slaughterer
slaughterer's picture

Hey Ty:

Got NFLX?

Luv, Whitney.  

Fri, 11/16/2012 - 13:35 | 2988507 LouisDega
LouisDega's picture

I have NFLX the service. Streaming improved 1000% from a few months ago.  I saw Giant w/ Rock Hudson and James Dean last night. I was very impressed to see that movie on the menu.

Fri, 11/16/2012 - 13:23 | 2988465 SheepDog-One
SheepDog-One's picture

Full-retard in full-effect.

Fri, 11/16/2012 - 13:24 | 2988471 Oldwood
Oldwood's picture

Is it just me or does anyone else find the term "constructive" a bit frightening? Sharpening the knives, are they?

Fri, 11/16/2012 - 13:26 | 2988483 Frank N. Beans
Frank N. Beans's picture

Boner ramped the market so he could sell his aapl

the market is acting twitchy  --  not good

 

 

Fri, 11/16/2012 - 13:27 | 2988485 pragmatic hobo
pragmatic hobo's picture

AAPL headed to 8 straight weekly close in the red.

Fri, 11/16/2012 - 13:27 | 2988494 stormsailor
stormsailor's picture

whew, got out of my long with a little coin. watch /es  if it breaks over 1356.50, its probably long time.  if it fails,  go short.

Fri, 11/16/2012 - 13:28 | 2988498 nick howdy
nick howdy's picture

...and now a word from Ted Torbich dicussing current events: http://www.youtube.com/watch?v=IWTv3f7gQqs&feature=plcp

Fri, 11/16/2012 - 13:42 | 2988567 Oldwood
Oldwood's picture

Wow! There really are middle aged guys in their mother's basements. I hope she brings his meds to him soon.

Fri, 11/16/2012 - 14:26 | 2988802 nick howdy
nick howdy's picture

He's in his basement...and the reason he's like this is because he's off his meds, maybe if everyone got off of theirs.....

Fri, 11/16/2012 - 13:29 | 2988502 sbenard
sbenard's picture

Based solely on the words of John Boehner that his meeting with President Obama was "constructive", S&P 500 futures have leaped 16 points (about 120 on the Dow) in less than 30 minutes. Oops! It wasn't "words" (plural), it was WORD (singular).

Fri, 11/16/2012 - 13:31 | 2988515 fonzannoon
fonzannoon's picture

"Generational Opportunity" there it is

Fri, 11/16/2012 - 13:34 | 2988525 SillySalesmanQu...
SillySalesmanQuestion's picture

All hail The Tan Man so sayeth the HFT's! The rally will last until Harry Krishna and Nancy Nazi speaketh out against the Tan Man. Tax the rich, let the tax cuts expire and the HFT's will weep...

Fri, 11/16/2012 - 13:36 | 2988543 slaughterer
slaughterer's picture

"Orange Man Makes Markets Green" (WSJ)/sarc

Fri, 11/16/2012 - 13:34 | 2988529 stormsailor
stormsailor's picture

went long /es it broke above,  thats a cup and saucer pattern.

Fri, 11/16/2012 - 13:35 | 2988537 Oldballplayer
Oldballplayer's picture

The republicans come out and pretty much say, "The Democrats must have showered today because they do not smell like fish," and the Dems come out and say, "The republicans did not sacrifce an old person on the table this morning" and the whole fucking world believes we've been saved.

These guys are just incredible.

And we are so screwed.

Fri, 11/16/2012 - 14:00 | 2988550 ekm
ekm's picture

Boehner's remarks are a justification, but NOT the reason.

 

The stocks have no other way to go but up. It's FORCED buying.

The option of a SLIDE is no longer available. Either creep up or grand canyon, untill the weakest link collapses.

After that, grand canyon is the only option.

Fri, 11/16/2012 - 13:48 | 2988559 razorthin
razorthin's picture

IWM bounced off of and has defended support the past 2 days so far.  To all the technical skeptics, all I can say is that I saw it coming - even though I didn't know what "it" would be.

From this point though the New Year, I think every effort will be made to get the sheep to buy as much holiday junk as possible.  And let's not forget those banker bonuses.

Fri, 11/16/2012 - 13:56 | 2988635 SheepDog-One
SheepDog-One's picture

Like this year will be somehow better than last years ridiculously hyped faceplant 'retail shopping season'? I know none of us here are buying much of anything for Christmas presents, only needed and useful things. It will be worse than last years dud, no way around that.

Fri, 11/16/2012 - 14:09 | 2988703 ekm
ekm's picture

I don't agree.

50% of population is receiving food stamps or other kinds of money that CANNOT be deposited but only spent in USA.

 

If I have have dollars I can spent them everywhere. If I have an EBTC (electronic benefits card or food stamp) I can spend it only in USA. People are forced to spend them.

It can continue as long as Chinese are willing to be enslave to ship goods to USA in exchange for worthless electronic dollars, hence retail won't go higher,  but won't go significantly lower either. But again, it will employ a lot of enslaved chinese, but zero americans.

Fri, 11/16/2012 - 13:56 | 2988641 bnbdnb
Fri, 11/16/2012 - 13:59 | 2988659 marcusfenix
marcusfenix's picture

we have a framework. wow. great...I feel so much better now, in fact, this has boosted my consumer confidence so much that I think I will run out right now and burn not one, not two, but all there of my credit cards.

yep, it's wine, roses and hopeium from here on out.

now can somebody tell me, how do I nominate the US federal government for a nobel peace prize?

Fri, 11/16/2012 - 14:04 | 2988679 sawman
sawman's picture

If ever you needed more evidence of how broken these markets are then this is it. Proof positive the humans have left the building. I think it's great though - every time they artificially take down the metals I buy more and every time they artificially hype up the markets I put on shorts big enough for Roseanne Barr. 

Fri, 11/16/2012 - 14:05 | 2988685 Rathmullan
Rathmullan's picture

M&Ms (muppets and maggots)

Fri, 11/16/2012 - 14:11 | 2988709 Village Smithy
Village Smithy's picture

No one was buying that ramp except Ben and Kevy. They were leaning on the buy button spending your money to let the PDs get out before 4:00.

 

Fri, 11/16/2012 - 14:27 | 2988810 ekm
ekm's picture

Federal Reserve and PDs are one entity.

Are you saying they are selling to each other, since nobody else is buying?

Fri, 11/16/2012 - 15:47 | 2988908 Village Smithy
Village Smithy's picture

They are one entity that is true, but they don't share the same balance sheet. In addition PDs have voluntary shareholders that need to be kept happy. The Fed's shareholders on the other hand are captive by virtue of their citizenship.

Fri, 11/16/2012 - 15:13 | 2989028 wagthetails
wagthetails's picture

it appears US politicians have learned from the Euro politicians.  Free Beer Tomorrow!

Fri, 11/16/2012 - 15:16 | 2989039 Cheshire
Cheshire's picture

Watched that. It took about ten minutes on low relative volume. Its just momentum move. They always tie it to a narritive, but basically the whole "skynet" did a ramp. Its a trick....

Fri, 11/16/2012 - 18:34 | 2989898 bugs_
bugs_'s picture

the old spending cuts later and tax increases now RINO rope-a-dope - watch that AMT on the nodascope

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