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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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!

slaughterer's picture

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

spastic_colon's picture

beat me to it....perfect strategery

NotApplicable's picture

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

and a comprehensive one at that!

Randall Cabot's picture

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

Manthong's picture

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

pods's picture

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


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

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.

Manthong's picture

The hopium bags have been distributed.

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

Randall Cabot's picture

Boehner Speaks, Stocks Get A Boner!!!

kralizec's picture

Speaker of the (Shit) House...

What a chump!

Spending cuts?!  LOL!!!

Cassandra Syndrome's picture

So when do the gates of hell open?

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.

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." 


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.

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.


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.

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. 

fonzannoon's picture

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

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.

EscapeKey's picture

Rhetoric you can take to the bank.

Rainman's picture

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

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.

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!"

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.  

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.

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.

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.

slaughterer's picture

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

fonzannoon's picture

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

lizzy36's picture

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

Nice expecations.

HurricaneSeason's picture

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

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.

Bam_Man's picture

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

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".....

RopeADope's picture

Cya Boner, and thanks for all the fish.

mdtrader's picture

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

jcaz's picture

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

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!

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.



Check on me now and then. :-)

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.


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.

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?

slaughterer's picture

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

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?