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S&P Hits New All-Time High As Credit Plunges
Presented with little comment aside to remember what we said the market ignored in 2007... and as a reminder, we warned last night that the Hilsenrath article would be spun to the equity-eating retail public as a positive (just another reason to buy stocks)...
and it's not just the US, European credit is not happy...
Charts: Bloomberg
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Hilsernath Bitchez!
Overheating Bitchez!
Indeed, the liability side of the ledger is still very bad and getting worse. Oh well, mark to fantasy forever (or hyperinflation, WWIII, jubilee, or complete fiat collapse - which ever comes first)!
And no POMO today... and tomorrow is Turbo Tuesday with POMO. Yikes.
"If I close my eyes forever, will it all remain the same?" ~ Ozzy
http://www.youtube.com/watch?v=Zy3fJ8Nmzyw
Yes, I can hear the investment arms of the PDs now; "okay guys, buy everything".
So if the banks lose all the money they borrowed from the Fed can they just claim record profits and keep borrowing forever?
Yes.
I didn't hear no bell!
Today's bill gross tweet
"Gross: 30-yr bond bull mkt over but bear mkt begins only with consistent 2-3% real & 4-5% nominal GDP growth. Not there yet. Maybe never."
Yes, in fact they can. In addition, they would be losing a whole lot of other people's 401k money as well. remember, these folks are forced to play this sick game (unlike us "sane" people).
'credit plunges' ???
i'm on board that something has to give......but this in not a plunge
Indeed. Just like the talking heads the say "gold was crushed". Wake me when it under $300 and ounce, then we can talk about getting "crushed", although the ounces will still be the same. morons.
Equity markets are calling Ben's bluff, and why wouldn't they, everyone knows he's bluffing. They're just eliminating the middle step where a plunge forces him to go easy again, now it's just easy all the time with a little bit of 'I-could-stop-this-any-time-I-want' pretend ...
Just don't understand why commodities actually act like he'll do something. Makes no sense. Disconnect everywhere. Dysfunction everywhere. Corruption everywhere. Sad times.
BURN!!! CRASH AND BURN!!!
The propeller heads at the FED are plugging in the markets initial dip and rebound into their models. They'll be scratching their balls tonight trying to figure it out.
cheesepopebux bitchez!... But I'm ok with 'HilsERnath' as well [just for the lulz]
<=== Go ahead & junk me here [just for the lulz]
Everybody vote up. Just for the LULZ.
Everybody... get out your set of waterskis & JUMP THAT SHARK!... [just for the lulz]...
The market knows best bro.
<But just in case it doesn't may I suggest we all shelter-in-place bitches.>
The turned the momo algos on at 10.00am after all the fund managers sold in the first 30 minutes.
The Momo algo is quite good at sniffing out intelligent people who act with limited resources on fundamental analysis, and mowing them down relentlessly with credit backed positions. Then we have the Pomo algo which can detect the footprints of most permabears and blows them apart with shocking precision. Further, meet the plunge protection team's algo which buys stocks near the market close in unlimited amounts until the % value turns green. Then we have Ze Stabilitee Algo in Euroland which buys the dips in worthless bonds, The Abenomics algo which issues bonds with nice looking symbols on them that it then promptly buys from itself, and so on. These algos work beautifully with the quote stuffing algos of market makers to form a cogent symphony of green shoots.
What seemed to have happened is that Pomo somehow got out of whack and started to frontrun Zhe "Whateva it takes" Stabilitee which somehow has crashed or frozen, so those worthless bonds are now becoming worthlesser faster than Pomo can baffle veterans who use "analysis" (which was commonly used in the past) with a flood of equity bids out of nowhere aka Shock the Wise doctrine. This type of divergence is unusual but not uncommon, as the Bernank would have said. A little bit like the money supply increasing exponentially while gold drops in a cascading waterfall manner due to the London Locust algo that leases out gold faster than Indian tradesmen can transport it on gravel roads...or so they say...
Divergence Bitches!
I get it, I get it.... but, Tyler, when should I buy SPXU?
Right before the market crashes.
The market first hits a high (not necessarily an all time high) then drops down to support and then does not rebound with a "V" but hangs on support for a few days. If it drops over support at that point the descent will be close to a freefall. Wait for it. Either that or wait for the missiles to fly.
One day very soon, suddently the world will find out that POMO did not occur.
Totally sustainable /sarc
And the stock market is so cheap and self-sustaining that the NY FED just lent $25 billion in Treasuries to primary dealers for the tri-party repo corruptfest ramp-up, in addition to the daily QE.
Securities lending is at levels last seen in 2011. Something is rotten and I can't wait to see this turd go down. What a bunch of corrupt, no good, shysters the banksters and federal reservsters. they should all hang.
I can't verbalize how badly I want this thing to blow up. Asinine momentum investors, and Big Ben deserve a wake up call.
Negative Nancy, you see, that's why they are "richer than you". Nothing will change until the supply lines break and the guillotines roll, could be a while yet.
Look at the Elon Musk bubble - TSLA and SCTY. What a fiasco!
I am going long for ES 1650 tomorrow.
Thank god I don't trade because I am going nuts watching you go back and forth everyday. I'd lose my mind and especially all my money if I tried to apply short term thinking to this fucking disaster market.
1650, just another 1% Ben, just another 1% please.
To POMO or not to POMO, now that's the m'fckn question.
The rising stock market is not totally bullshit...after all we have a rising global population, rising energy, and more consumption, which is good for business.
But what people don't get is that this is unsustainable. If you deplete capital just to make stocks go up, eventually they'll crash and you have less capital for the next go around.
So all you'll end up with is more and more people chasing a shrinking pile of real wealth.
So with each high in the stock market...2000, 2007, 2013...the bigger the next crash has to be.
True ... but not on Bernanke's watch.
All Wall Street cares about is, 'What has the Fed done for us in the past 15 minutes?'
As far as I can tell, global energy production and the consumable energy available to humanity (required to actually do anything of real value) has been flat since 2007/2008. This is why you are seeing more countries around the world with and increasing share of their GDP sue to "financial services" - buying and selling of billshit financial "products" of mass destruction. Oh well, as you say, not sustainable and will in fact only accelerate the collapse of all fiat.
Amazing how this rally was not accompanied by large dollar devaluation. If the dollar were devaluing we would be above ES 1700 by now.
Hell, if Ben were taking Japanese lessons, we'd be at S&P 2K already.
Guess he's leaving the heavy lifting to Janet.
"Amazing how this rally was not accompanied by large dollar devaluation. " - Then why in the fuck does it take considerable more dollars to fill the tanks on my tractors? Must be my lying eyes.
Yes, it is. For the US Dollar to fall hard, the Euro must rise sharply.
A rising Euro - tied to a continent with so much future potential.
think of the bid that treasuries get if Ben creates the perception that he will back off easing while the rest of the world devalues to hell. I think it even puts a bid under equities too as people just want to own anything US based because we have decided to be fiscally responsible now regarding our currency.
Just make sure you forget about 17 trillion debt and trillion dollar deficits....which it seems everyone has.
USA USA
Again, your optimism is appreciated. The reality is that only central banks and insider fucks have any sort of liquid capital to create such a bid. Come on, how many of the 7+ billion people (liabilites) on this planet really give a shit, much less have liquid captial to buy anything aside from food and fuel.
Laws first of all keep preaching it man. You are right, It helps keep me sane, and for that I thank you.
But....If the fed eases up, but as you said, tells the investment end of these PD's to buy treasuries until their fingers break off on their keyboards...you don't think they can fill that gap, temporarily even?
fonz has established an ongoing sarcasm
Ironically ekm I was actually being serious there. I agree with Lawsofphysics completely. But look at what happened post QE2 and pre operation twist. Treasuries were bid. Yields dropped. It was the market that could not hold it in and barfed.
http://www.youtube.com/watch?v=4eYSpIz2FjU
http://www.marketwatch.com/investing/future/crude%20oil%20-%20electronic
The whole thing is hanging on a thread. Check the crater and came back.
Everybody's leveraged long ............oil.
Huh, didn't "bond king" Jeff Gundlach just recommend buying TLT?
Yep, he also said Apple is no longer expensive.
He will be right about TLT anyway. the 10yr will see 1% before 3%.
S&P500 showed upside on Friday.
http://bullandbearmash.com/chart/sp500-hourly-remains-bull-channel-short...
But it could be very short lived.
THE. MARKET. IS. A. TOTAL. FARCE.
~~~
but have no fear... spamming links to 'Elliott Waves' will sort it all out for us...
This market is real. You just have to watch your charts for the 30% fibbonfatchy retracement confirm the dow transports theory spx is on my radar etrade baby roth IRA dividend reinvestment plan dollar cost average follow the green line POMO FOMO buy low sell high...............................
Over @ usdebtclock.org the number on thur-fri I'm almost certain was 16,840? something and now shows 16,815.
I've never seen this before or am I mistaken?
I still see 16.8 trillion and growing.
Manifest Destiny: Russell 2000 to 1,000
From 1.15pm tp 2.00 pm the algos make another run for another S&P 500 record high!
And then at 3.30 we have the Fed "green light" rally for yet another record high!
And then overnight futures should gap us up within spitting distance of 1650.
Then POMO tomorrow will make us go above 1650 and move on to 1680 as AAPL gains upside momentum to reconquer $500.
TLT/HYG/JNK all sink to new lows.
yes, and the 10 year yield will break 2.0%, bring it!
no POMO no problem
Working on a new tune!
Buy the high,
Give it a try,
Know you're gonna cry
When Dow 5,000 draws nigh.
Huh, why are we going down now? I feel like E-Trade Baby now.
Trail those stops, but realize you get filled at the market price once triggered...
Ben has just changed his name to Qen Bernanke.
Who needs an economy! We have PRINTED prosperity now!