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Stocks Surge As Algos Finally Catch Up With Six Hour Old News

Tyler Durden's picture




 

Curious why algos suddenly are buying because other algos are buying because other algos are buying, pushing the S&P higher by 10 point in virtually no time?

Simple. It appears at least one vacuum tube decided to scan the news archive, and fell upon the Politico story from 7 AM Eastern which said that the Republicans and Democrats had met in a secret meeting.

To wit (from 7:38 am, or about six hours ago):

House Speaker John Boehner and Majority Leader Eric Cantor quietly met on Wednesday with House Minority Leader Nancy Pelosi and Minority Whip Steny Hoyer.

 

The meeting, held in Boehner’s (R-Ohio) suite of offices in the Capitol, comes a week into the government shutdown and eight days before the Treasury Department says the debt ceiling will be reached.

 

“Reps. Pelosi and Hoyer asked for the meeting, and as we’ve stated publicly, we’re willing to meet with any Democratic leader who is willing to talk,” said Michael Steel, Boehner’s spokesman. Pelosi would not comment.

 

After the meeting ended, Boehner refused to comment on what was said, or on anything related to the shutdown or debt ceiling hike. He then went to the House floor and delivered a brief speech chastising the health care law as a “train wreck” and detailing the glitches that have plagued the rollout of the new Obamacare exchanges since Oct. 1.

 

“This is why we need to sit down and have a conversation about the big challenges that face our country,” Boehner said on the House floor.

 

There has been absolutely no movement toward finding a solution to reopen government and lift the debt ceiling.

Well better late then never: and since stocks are soaring, any impetus Congress may have had to do a deal, is now gone.

Catch 22.

And of course, when one sees an entire market driven by momentum on what is speculated to be a rumor, when all it really was is the regurgitation of news that is nearly a quarter day old, what can one say but... efficient markets!

 

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Wed, 10/09/2013 - 13:37 | 4038487 duo
duo's picture

Obamcare will destroy itself.  Taking the equivalent of a car payment a month from every houshold and still leaving them on the hook for 4 and 5-figure deductables/copays will drive consumer spending to a screeching halt.

Wed, 10/09/2013 - 13:47 | 4038518 knukles
knukles's picture

I been saying that since the very start of this debacle.
Decimates an already declining after tax real disposable personal income.

Booyah!

Yes, in a year or two when folks really get to see what this does....
It'll have been begrudgingly "accepted"

Sheeeeeeit...

Wed, 10/09/2013 - 13:51 | 4038529 Cult_of_Reason
Cult_of_Reason's picture

Hey Tyler,

The article has been constantly updating with fresh news.

Obama calls Congress to the White House

A meeting is a good start, but only if it means [Obama has] decided to drop his refusal to negotiate on solutions – only if he’s ready to work with members of both parties to address the debt in a meaningful way,” said Senate Minority Leader Mitch McConnell.

Wed, 10/09/2013 - 13:53 | 4038546 CPL
CPL's picture

How can a secret meeting have an updated schedule if its publicly published and everyone knows the names of the attendees?

Wed, 10/09/2013 - 14:37 | 4038626 Cult_of_Reason
Cult_of_Reason's picture

It was a secret meeting before and during the meeting.

 

Tyler does not even realize that his claim -- “Six Hour Old News” -- does not make any sense. The meeting was not before 8 am. How can it be six hour old news?!

Wed, 10/09/2013 - 14:26 | 4038635 moonman
moonman's picture

Ssshhhhhhhhh

Wed, 10/09/2013 - 13:55 | 4038552 NoDebt
NoDebt's picture

Yep, that's pretty much what socialism does, Knuk.  The European democratic/socialist paradise comes with a hefty individual tax burden.  Our future, apparently.

Wed, 10/09/2013 - 14:38 | 4038677 Oldwood
Oldwood's picture

Don't think of it as it tax, but simply an income redistribution. A tax would imply that everyone would pay it. From those who much has been given (earned) much is expected (taken) and if not complied with, much will be punished.

Wed, 10/09/2013 - 15:16 | 4038832 Boeing Boy
Boeing Boy's picture

Derr, that is the idea.  Keep a lid on inflation, back door tax to suck out the economy, double book keeping (intra-departmental), for the treasury, the printing must continue.  This is simply another tax.

Wed, 10/09/2013 - 13:39 | 4038488 fiftybagger
fiftybagger's picture

Derp

Wed, 10/09/2013 - 13:47 | 4038527 Shell Game
Shell Game's picture

Looks like it's been bought...

Wed, 10/09/2013 - 13:42 | 4038496 firstdivision
firstdivision's picture

Stocks were so forward looking that they completed a time loop to react late this time.

Wed, 10/09/2013 - 13:43 | 4038499 NaiLib
NaiLib's picture

There is a mind behind the "algos" to say its "algos" is only a way to try and disiguise  the fact theat algos are written and run by humans.

Wed, 10/09/2013 - 13:46 | 4038525 knukles
knukles's picture

Thank you

Wed, 10/09/2013 - 13:43 | 4038500 TaperProof
TaperProof's picture

Gold bouncing back..

Wed, 10/09/2013 - 13:41 | 4038501 Michelle
Michelle's picture

ZH never reveals the real reason for today's ramp but then nobody else does either. I can set my watch by these things but I won't tell you either, too profitable.

Wed, 10/09/2013 - 13:44 | 4038515 TaperProof
TaperProof's picture

Other people hopping on the trade just makes it more profitable for you.. so that doesn't make sense...

Wed, 10/09/2013 - 14:16 | 4038539 Dr. Engali
Dr. Engali's picture

Surpirsingly after 4+ plus years of being here not only does michelle not understand that fact, but neither does he/she grasp the fact that 99% of the Hedgers can set our watches too.

Wed, 10/09/2013 - 15:05 | 4038782 Michelle
Michelle's picture

All of you idiots missed my point - that secrecy is the key to profit in the financial markets and transparency regarding this one thing is non-existent to the public.

Now why don't you hedgies start producing something of REAL VALUE and get off the Fed dole.

 

Wed, 10/09/2013 - 14:03 | 4038573 NotApplicable
NotApplicable's picture

LULZworthy post of the day!

Anybody who believes that profit can be measured in dollars has no clue as to the real trap they're in. All you're doing is further feeding the wealth-transfer beast, while they retain full control of your "assets."

A day will come when you've no access to your so-called wealth, but rather, it will be locked up in order to protect the integrity of the entire scam.

Why do people always believe that capital controls are of no issue to them? Oh yeah, it must be that "wealth effect" I'm always hearing about. Watching growing account balances must desensitize them to the reality of ever falling purchasing power.

Wed, 10/09/2013 - 14:45 | 4038695 Oldwood
Oldwood's picture

Nah. Even though everyone knows the "market" is rigged up the ass, as a committed gambler they all believe they can beat the house and time the market. They always let you win the first few hands to build your confidence. Thats why its called a confidence racket!

Wed, 10/09/2013 - 13:42 | 4038504 HUGE_Gamma
HUGE_Gamma's picture

New intraday chart pattern.. its called the idiot trap

Wed, 10/09/2013 - 13:42 | 4038505 Moe Hamhead
Moe Hamhead's picture

There's no way you'll get me on the line for ACA.  I'll take my chances with the tax return hit.

Wed, 10/09/2013 - 14:07 | 4038581 mydogisprettier...
mydogisprettierthanyou's picture

Im adjusting my W4 to make sure I have nothing coming back. Let them find out in Indiana what happens when you enter property without a warrant.

Wed, 10/09/2013 - 13:48 | 4038511 Dr. Engali
Dr. Engali's picture

As if the congress isn't going to come to a deal once they get their 15 minutes of teevee time to show how importanty they are to us pleebes in the first place.

Wed, 10/09/2013 - 13:46 | 4038512 Dr. No
Dr. No's picture

"These [headlines] are seven bloody hours old...."  "sitting on the [sidelines] like an addled school boy.."

Wed, 10/09/2013 - 13:46 | 4038514 Let them eat iPads
Let them eat iPads's picture

It's so weird how the stock market goes up and down.

Wed, 10/09/2013 - 13:48 | 4038523 earnyermoney
earnyermoney's picture

Maybe the algos read Barry's statement on Ransquawk concerning the Republicans. "They'll do the right thing ..."

 

Ol Yellin, Sodomizing the middle class till morale improves

Wed, 10/09/2013 - 13:48 | 4038524 ptoemmes
ptoemmes's picture

I took a dump at 7:15AM ET.  Flushed twice, but it's still a long way to the algos. 

Wed, 10/09/2013 - 13:55 | 4038558 knukles
knukles's picture

Talking about flushing.
We've got them new low capacity (Water, not poop) toilets in our house.  And a good dump takes 3 flushes to get it down whereas the old toilets used to just take one.  So net, net, its using more water.
(Then we got idiots like that lady singer telling us to just use 1 piece of TP, FFS... something wrong with her...  Ask Venezuelans...)
And in spite of more flushes and more water, the less powerful single flush in major metropolitan centers tends to have larger poop buildups in the sewer pipes, necessitating more frequent manual cleanings (there are job openings for Americans, you know...) and necessitate the use of caustic chemicals.

Next thing I'll be told is that global warming (in stasis for 15 years) is cause exclusively by humans.
Guess the dinosaurs and cavemen drove too many SUV's....

scratching nuts and thinking about a good dump, now that you all bring it up...

Wed, 10/09/2013 - 14:51 | 4038720 ptoemmes
ptoemmes's picture

Well...I could use a job, but begging may be preferable.  

Wed, 10/09/2013 - 13:50 | 4038534 rubearish10
rubearish10's picture

IMHO, merely a bounce off first attempt through 200DMA. Will revisit shortly. That is all. Over and out.

Wed, 10/09/2013 - 13:52 | 4038543 orangegeek
orangegeek's picture

Pretty much.

 

Some like to tighten their stops after large moves.  And so they stops get picked off and then the market resumes trend - down in this case.

Wed, 10/09/2013 - 13:59 | 4038563 rubearish10
rubearish10's picture

Any notion we've reached the end of this "crisis" mid week is preposterous, ROTFLMFAO!!!!

Wed, 10/09/2013 - 14:01 | 4038538 scatterbrains
scatterbrains's picture

This thing is going to counter move knife up and fuck a shit ton of shorts all the way down to 1400  i'm thinking.

 

Wed, 10/09/2013 - 13:52 | 4038545 Al Huxley
Al Huxley's picture

Good old Yellen.

Wed, 10/09/2013 - 13:56 | 4038560 TaperProof
TaperProof's picture

"Gold traders laugh at earlier blatant manipulation attempt"  -- possible headline

Wed, 10/09/2013 - 13:57 | 4038561 Sufiy
Sufiy's picture

And Gold can not be hold below 1300 now:

 

We can expect the Gold price to be under pressure to impose the false interpretation of extremely bullish fundamentals, but this manipulation will end with the real fireworks in this sector. Debt ceiling increase will happen after all this political posturing and new Chairperson will be even more accommodative in its polices based on Michael Woodford's narrative.

 

http://sufiy.blogspot.co.uk/2013/10/flashback-jim-puplava-janet-yellen-to.html#

Wed, 10/09/2013 - 14:06 | 4038586 GrinandBearit
GrinandBearit's picture

All short term noise.  Any huge dip is a buying opp.

Wed, 10/09/2013 - 14:16 | 4038564 Kirk2NCC1701
Kirk2NCC1701's picture

This is all consistent with basic motives at the Fed level:

Keep up demand for Dollar and keep up the VoM (Velocity of Money). Without these two components, the fiat-Ponzi that is the Petro-Dollar, its Reserve status ends under the present debt levels.

And w/o these privileges for the USD and its creator (the Fed), the wealth-transfer (from producers to consumers and parasites), the MIC and National Debt would not be possible.

Their actions and tactics are now completely predictable, when viewed in this context. I'm hedging and planning accordingly.

Wed, 10/09/2013 - 14:00 | 4038565 Let them eat iPads
Let them eat iPads's picture

Hang on people, the Fed's going to say some shit in a couple of minutes.

Then the market's going to do some shit.

This never gets old.

Wed, 10/09/2013 - 14:00 | 4038568 polo007
polo007's picture

According to Canaccord Genuity:

https://app.box.com/s/vkdglg7m80dvrg0dgn4f

NEGATIVE SPX MOMENTUM SUGGESTS LOW IS NEAR

With the S&P 500 (SPX) trading lower midday, yesterday’s 1.2% loss was not enough to attract buyers. While we continue to believe the intermediate-term uptrend in the SPX remains intact, we feel the current correction could have a bit more to go. The SPX broke below a four-month rising trendline, which makes 1627 the next level of price support we are watching (Figure 1). Short-term momentum has also turned negative. The daily MACD indicator has crossed below centerline and into negative territory, indicating momentum has changed. Although this is generally a bearish signal, we would caution investors about turning negative at current levels. Over the last year, the MACD has crossed below the centerline three prior times, and each instance led to limited downside before an intermediate-term low was in place. The average loss after signal was -2.17% over 7.3 days.

Wed, 10/09/2013 - 14:05 | 4038571 kianator
kianator's picture

Just technical bounce (DOW on 200 MA) and oversold hourly charts.  

New News?  Nah, just somebody finding something to justify the oversold spike in the markets!

Wed, 10/09/2013 - 15:23 | 4038873 soopy
soopy's picture

Sweet! Now I can totally frontrun the market.  Take that, algos!

Wed, 10/09/2013 - 15:51 | 4038993 Number 156
Number 156's picture

Yep, As of 12:40PST thus far, it looks like we have entered into a ballistic trajectory.

The ramp is failing..

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