This page has been archived and commenting is disabled.
Buy The Rumor... What Next?
Some context...
Bonds remain unimpressed...
- advertisements -
Contact Information:
Tips: tips [ at ] zerohedge.com
General: info [ at ] zerohedge.com
Legal: legal [ at ] zerohedge.com
Advertising: ads [ at ] zerohedge.com
Abuse/Complaints: abuse [ at ] zerohedge.com
Suggested Reading:
Make sure to read our "How To [Read/Tip Off] Zero Hedge Without Attracting The Interest Of [Human Resources/The Treasury/Black Helicopters]" Guide
It would be very wise of you to study our disclaimer, our privacy policy and our (non)policy on conflicts / full disclosure. Here's our Cookie Policy.
No taper...no shutdown...no ceiling. This market better make new highs soon.
you forgot Yellen.
Nope. i am assuming they will print more and more and more. I do not give a fuck as to who is pushing the button.
The market has everything it needs to pump the equity markets to the moon. If it can not make new highs soon...that is going to tell me something.
"No taper...no shutdown...no ceiling."
And gold skids. Gold should be at all time highs right now. They have done a good job of spraying the money hose at the gold fire to keep it under control. So far...
Can anyone name one reason why the market won't continue higher, blowing through all time high's?
It would probably take an act of God at this point, something like a meteor strike.
And once we get Printy Smurf in the Fed chair, it's game over. To the moon.
A Meteor strike is bullish!
My bad, forgot about the broken windows.
I have one for ya. Because we are going to default, not a drill! The insiders are selling to you clowns right now.
Right after the U.S election
Right after interest rates skyrocket
Right after the German election
Right after the default.
The waste bin of reasons grow by the day.
How bout a war we loose ....
We loose wars on anyone at the drop of a hat...
Oh you meant a war we lose.
Historical experience has generally been that the most severe market losses, hands down, occur when a broken speculative peak is joined by an economic downturn. The problem is that such a downturn may or may not be adequately reflected in the most widely-followed data until it is too late. The best approach, in my view, is to attend to valuations and market action, with continued attention – though perhaps not as aggressive – to the emergence of any fresh “overvalued, overbought, overbullish” syndrome of conditions.
John Hussman
.From his most recent weekly commentary. Yes...he mentions QE in the piece..but I did not want to paste the whole fucking thing.
http://www.hussmanfunds.com/wmc/wmc131007.htm
Zimbabwe
That's wasn't a reason, just an observation.
Show me 10 million people on the white house lawn demanding higher wages and I will consider hyperinflation. I remember a bunch of fast food workers demanding $15/hr. Have not heard much about it since. Did they get it?
Actually, I wasn't making an observation on hyperinflation, just an observation on the ambiguous meaning of market valuations.
In our case, I think the economy is being bifurcated, and the meaning behind abstract economic values will differ depending on which side of the demarcation line you find yourself on.
I think there's no real limit to how high this can go, or how fast. There are limits to what it means.
QE basically has its effect on financial markets by forcing someone to hold the zero-interest cash that the Fed has created, which makes them uncomfortable and leads to a game of “hot potato” as each cash holder seeks higher-yielding alternatives. That, in turn, drives up the prices and drives down the yields on those alternatives (primarily stocks) until someone is finally indifferent between holding zero-interest cash and chasing overvalued stocks.
This above is key. I do not claim to have the answer as to the price level of indifference.....I am just suggesting that this level exists and that I am seeking clues to its location.
No one knows, but my guess is substantially higher than here. Probably by multiples.
I could give you a reason, but probably not one that'll actually matter. Being that it hasn't(yet) mattered any time in the last 8 or so months.
In late January thru March I was expecting an intermediate term correction, somewhere around 8-12%. Never materialized. Having said that the Dow has essentially been flat for the last 5 months(the S&P up less than 1%), and has shown bearish technical divergences over that time period. The higher we go, I think it's more and more likely we get a full blown bear market in 2014, complete with another 40+% decline.
Either that or Dow 36,000. Who knows, like I said, I've been wrong all year. Maybe Dow 36,000 is pessimistic. The only chart that seems to have made any real prediction toward future price moves for the entire year has been the Fed Balance Sheet chart overlaid on the S&P.
So I guess it's still 'Don't fight the Fed', even if you have to give yourself a labotomy in order to discount all common sense and make the necessary leap of faith.
They have watered down Oil as well. I would like to short Oil here for many reasons...however...these fuckers have not finished with the middle east....yet.
today it's best to buy the rumor and another clueless neo-keynesian money-printer, then to buy findamentalz.
Buy the rumor...buy the news...
New normal
I swear it's different this time...
Martin armstrong has been calling this dead on with the metals, stocks and bonds.
I don't want to see that word "shutdown" it's bullshit. If the government to stayed "shutdown" a whole 3-400 would even realize it.
Buy the rumor, sell the Gold(GLD)
Who the fuck is buying T-bills? There is no open market operation scheduled today. Certainly we aren't being lied to.
/s
Anyone getting REALLY MAd yet!
I passed that point a decade ago.
The government was completely subverted before that, but I removed my head from my ass to see the truth. At least "my" air smells better. 95%+ of the rest of us are still lapping up the shit.
that ship sailed a long time ago...
Then buy the fact and then BTFATH
what's next? moar rumors of course.
Rumors are the new "fundamentals".
You start throwing around words like "fundamentals" be careful, you might be labeled a terrorist. There is no room in this market for such language.
Bah Bah dumb sheep
Have you any sense?
No sir, no sir
we're naive and dense
If this deal goes thru like the market thinks it is, we'll never go down again. GET IN FRONT!
I'll reply to my own post:
If anyone hasn't figured it out yet (you know DJIA 36,000, BTFD, BTFATH etc...), hyperinflation or just inflation means buy it now since tomorrow it will cost more.
Obumma is KING (SHIT)!
An absolute fucking farcical fraudulent rigged banker fucking piece of fucking shit market. .. ON MY WAY OUT TO MY REAL MONEY DEALER.... FUCK U BERNANKE AND U TOO OLE YELLEN....
Buy the news..... SELL GOLD (its a slam dunk, don't you know?)..... Just BUY all the paper you can!!!!! BUY! BUY! BUY! (bye, bye)
Remember the Goldman rule... whatever they say, do the opposite.
We wouldn't get a reaction like this if NFP printed up 700,000 with a 4.0% UE rate. Utterly ridiculous.
the nfp does not get a reaction anymore, fundementals mean shit.
if the number is good, the casino goes higher.
when it disappoints, like always, the market is flat, and then they continue to say how the next nfp report will move the markets, and so on and so on.
its all bullshit. just lets all pray for another lehman, or fucking worse.
Of course we wouldn't because "good news" is bad news. The S&P would flash crash if that headline came across the tape.
breaking news report: a nuclear bomb will NOT be hitting washington dc or nyc in the next few weeks. again, this is breaking news.
what great news this is if true, why not send the s&p to 2000 already on this news, its such great news.
Double Post.
When I am the point where I wanna capitulate and buy something it know there are absolutely no shorts in sight..haven't really been any for years.
Never seen a market with an upside bias like this..truly something to see.
Bad news good after small dip. good news amazing, as expected = good
Temporary crisis dip then wait for the theater and eventually rip higher from Syria to this debt ceiling nonsense.
I swear it's just computers ping ponging and selling to one another to get shit higher . There is going to be zero liquidity when something occurs that does not have a political solution .
Then I will looking for the Yellen steps down as chairman..Pres nominates Santa Clause and his endless sack for chairman.
Perhaps Martian landing with their ambassador saying" Take me to your leader oh and we're interested in buying only 100 Year T-bills.
Insanity.
"There is going to be zero liquidity when something occurs that does not have a political solution".
You mean only if the world ends, right? Because everything else has a political solution,it seems.Buy The Rumor... What Next?
...sell the farce.
Awesome! This must mean the economy is back on track and hummin' along.
I'm so happy I'm starting my Christmas shopping right now.
/fuck this
wow - I wouldn't believe it if I didn't see it with my own eyes. I still find it unf'n unbelievable. Way to go Benny!
Would only happen if your intention was to destroy the entire world with your stupidity.
I just dont understand why the Dow is not 30k yet. I mean as long as were ignoring reality we may as well go hog-wild.
Buy the rumor.
Buy the news.
Buy the dip.
Buy the story.
Buy the hope.
Buy the hype.
Buy the bullshit.
Buy buy buy....
that's what's next.
What else could we expect from this corrupt farce?
'
'
'
What else could we expect from this corrupt farce?
Bye-bye!
•?•
V-V
Seriously, isn't it all bullshit? Isn't that the never ending message here?
Buy physical gold to provide for yourself and your family when these assholes finally destroy the economy.
If you're buying or selling securities, YOU ARE PART OF THE PROBLEM, and you show yourself to be ONE OF THEM.
Just withdraw your participation and starve the beast.
When you divide by a negative number, you get infinity. Of course people buy paper assets and sell physical assets because everyone, including Bullard and the Fed, know this is just a short term bubble.
When you divide by a negative number, you get infinity.
Wrong.
Zero....stand corrected.
Math was not your favorite subject as a kid, was it?
I would say my hatred of the Fed negative interest rate policy is making me insane. This policy is destroying the markets and everyone still treats the Fed Board like gods. Shame on us all.
Great dbl post.
1800...thats next....td said so yesterday.
Booyaaahahahahahahaha
Glad it's not monthend.
Who's your daddy?
You got that right, comrade rally monkey. It will be S&P 1800 by EOM.
I mean, it took only took less than two days of trading for the S&P to recover (and surpass) the amount it lost in the seven trading days after the government partially shut down.
Just think what it can do over another three weeks of "talks" and "hopes".
Just wait until they actually announce the deal, then the market will really fly. Market hates uncertainty and we've removed just about all of it at this point. Nothing but blue skies above on deal announcement
... and you'll get pie
in the sky, when you die
bye and bye.
http://www.youtube.com/watch?v=M2tyW-68iik
brilliant
Obama + Boehner + Cantor + Ryan come up with a plan to destroy the tea party and Cruz + Rubio + Rand go for it hook, line and sinker
mainstream republicans were willing to have their legs and arms amputated by Dr. Obama - anything to get rid of the Tea Party cancer
meanwhile Hillary is picking out curtains for the white house and Pelosi is selecting seat covering for her private commuter jet when she returns as speaker.
http://www.zerohedge.com/contributed/2013-10-11/us-debt-limit-be-raised-...
Every strata of U.S. society is saturated with debt and there is no signs of a reduction in debt levels or deleveraging of the economy.
The appointment of Janet Yellen as Federal Reserve Chairwoman will lead to a continuation of ultra loose monetary policies and this will likely exacerbate this trend and lead to more debt being piled on top of the already huge U.S. debt mountain.
At some stage the whole ‘house of cards’ will come tumbling down and result in a dollar crisis and an international monetary crisis.The analysis of the debt ceiling crisis has been extremely superficial and very short term in nature. Very few analysts are pointing out the long term risks of a nation, still the world’s leading economy, living beyond its means for an extended period of time.
The dangerous habit of politicians and governments continually ‘kicking the can down the road’ cannot go on indefinitely. Eventually, the ramifications of this profligacy will be clear to all.
Look at the 10 year chart of the Dow :(
This is un-fucking-believable.
When this thing ultimately goes down, it's going to be a fucking spectacle - days with double digit % drops and shit like that.
Fuck you, Bernanke!
I believed that until 2011.
we can only hope....to have the sack to play those days. get rich slow? thats for the sheeple. dboule up and roll it out. these 4% moves there have been some small oppotunities, but those big days to come, 1000 points tuesday to thrusday.....thats what the powders for
http://www.marketwatch.com/story/why-america-needs-a-debt-default-2013-10-11
Why America needs a debt 'default'
Commentary: Is it time to hit the reset button?
By Anthony Mirhaydari
It's clear the fiscal fight in Washington isn't going to end anytime soon.
Sure, a short-extension to the debt ceiling is under discussion, according to reports, but that will only open the door to contentious budget talks over issues like entitlement reform and changes to the tax code. The two parties remain far apart: Republicans want to balance the budget in 10 years, while Democrats want another trillion in taxes and spending.
There's too much at stake and the choices are tough. But what if we didn't have to make it?
What if we took the easy way out that didn't require the sacrifices — such as higher taxes, lower spending, and fewer entitlement benefits — that Democrats and Republicans are playing hardball over in the first place?
What if we could avoid the nightmare that would be a debt-ceiling breech, which would force us to choose between ruining the Treasury's reputation as a risk-free investment but provide checks to seniors on Social Security, or leave grandma in the lurch but pay our creditors in Tokyo and Beijing?
The more I think about the extent of the problems facing this country, the more apparent it is that a hard reset is needed. I'm talking about a debt default, but not in the traditional sense. And the Federal Reserve would play a key role.
In the bullpen, warming up, is Ms.Debtfire...she is the first female to pitch in Major Money Market League. She is rumored to be able to throw a printing press at over 100+MPH...
But can she bat ???
"What next? Buy moar! Another 500 pts coming.
this whole thing has the no-taper day vibe to me. nothing has actually happened. just like 9/19, nothing changed.
feels like June 30 2011 give or take a week...
500 points in two days. Most amazing fucking rally. We are so leveraged out the banksters can't even allow a 10% correction. Fundamentals havent mattered for years, technicals matter every now and then, psychology is totally insane and completely contradictoray. The only variable that matters and will continue to matter is the Fed's invovlment. Pumping this market with $85/billion a month just to keep a bunch of fucking greedy hollow miserable bankers buying the same stupid yachts, sports cars, and uselessly large houses. Whats worse is they fund and back the most worthless divisive suggestable sell outs to congress to keep the system going.
So here we are again, like every day bitching about how fucked up things are when we the educated class of this country/world continue to believe that all of this is just too damn large to change or take down.So we settle to being educated sheep and just like the ignorate sheep we continue to allow priars,users, bullys, and men of questionable moral run our socity just becuase they figured out there was no one to stop them from doing so.
To the pessimist you are right, others have tried and failed or worse have lost everything in the process. The only really successful revolutions have been those led by the rich class.
Clearly things are not bad enough in our individual lives for us to feel compled to act. And as long as we don't act don't expect things to change. Until one day you end up with no job, no rights, and no way out and you ask yourself why you never did anything when you had the chance to act.
So congradulations to all of us we have the market that we want, with the government that we want and the loss of rights that we want! right? no? Then get off the sidelines.
buy the rumour, buy the fact, just keep-on-a-buying
still trying to figure out why the market didnt ramp up when obama went for a walk
USD strength will crash that momentum and sp500 will recoil like a whore.
Let it rise. Is this in part due to the dumping of T-bills?
it's starting to get silly
up 108
there's gotta be more to this
Real silly. Obama is not going to want anything Boehner wants. Anything Obama wants the House will reject. Nothing will be resolved until the end of next week even if that. This rally is totally not yet called for.
WTF? Since WHEN did governing the people become a cacaphony of FUCKING DEALS!!!??? DEAL THIS you political motherfuckers. Hang these fuckers for treason.
Game theory says bet the opposite way that we go into the weekend. Why are the insiders scrambling out of the short term paper that would be subject to the default? Are we going to have an engineered technical default sunday night...take everything limit down and next week a deal off of the 1400 lows with Yellen hitting over drive on the printer machine? Gold and silver are acting like this pig is going down before it goes up...what's the game theory going on here ?
All I can say is......cocksucker. And that's ALL I can say. For now.
Looks like up is the path of least resistance for stocks now. I say this thing unravels sometime next year in a shock inducing don't-you-ever-taper-me fashion. Anyone who thinks the status quo get cracked over these negotiations doesn't understand how close the politicians negotiating are to each other.
cocksuckers. There, I said it again.
Anybody with a half-decent education remember PV = nRT from their high school days? Well, the Fed deals with... MV = PQ
Where: M = Money Supply, V = VoM (Vel. of Money), P = Price Index (Inflation), Q = GNP Growth
Given the state of our economy, Debt, UST sales, etc, the Fed is desperately trying to keep the Dollar's Reserve status. They need to keep growing M and keep up V.
Wall St and Consumers are there to keep up V and the demand for M. Between these two (Demand-side) players, they hope to keep Growth (Q) going, to increase CONfidence to the point of being a self-sustaining fire (to reduce unemployment). The idea is not so much to "reduce unemployment" per se, but what this does: Higher Employment --> fuels FRB, thus fuels demand for more M. "Unemployment" is just the PC cover-story they use for growing the V and Q relationship.
As James Rickards keeps pointing out, the Fed is using a linear set of equations for a complex, non-linear system. They think they can adjust the 'Thermostat' up & down as needed, when in fact the System is more like a Nuclear Reactor -- where keeping a dynamic balance gets tricky.
Now that you have the Decoder Ring and the Double-Speak translations, I hope that more of you will not get so easily distracted or CONfused. :-)
Don't make me say it again.
Let's Default, for most of us it can't get much worse. Fuck it, let's do it. Then we can welcome the 1% to the fucking party.......cocksuckers.
Most people I think would be happy for the banksters. Why hate? They're just out there working hard trying to make a living. It's not easy making payments on all those yachts and mansions. I kinda feel sorry for them and I'll tell them that right before I kick the chair out from under them after I put their necks snuggly in a hangman's noose. Sooooooooorrrrry. Have a good trip...........TO HELL YOU COCKSUCKERS. I said it again, but with good intentions.
should we also buy the fact that there wont be any deal today, nor this weekend?
You ain't jellin, unless you got Yellen...
Exactly. Debt ceiling is a joke, it is going to be raised one way or another. Irrelevant issue and false flag like Syria, to "solve" and ramp the market higher.
It's all about Yellen. She is going to increase QE, extend ZIRP and pull another trick out of her sleeve shortly. She will push rates lower to ramp equities and bonds to bubble levels.
Deal? DEAL? DEAL!!!????? FUCK DEALS!!!! DO WHAT'S FUCKING RIGHT YOU COCKSUCKERS!!! JUMP IN FRONT OF A SPEEDING TRAIN!!!!
If you want to see a favorable show of hands go to DC and ask all the politicians to "Raise your hand if you're a COCKSUCKER!!" For some reason they'll all raise their hands. Amazing, but true. With the exception of Yellen and Big Sis Napalitano, if they're in town looking for chicks.
Hahaha, honestly, does anybody take this BS serious anymore? Of course, you cannot be on this merry go round to see its going to end badly....very badly...eventually.
Corzine, the Bernank, even the NOBama himself...you would have told people 30 years ago this would all be true one day you would have been put off as a lunatic. The current cast of zombie muppet leaders is just totally twilight zone.