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Confused By The "Artificial Market"? Deutsche Bank Explains It All

Tyler Durden's picture




 

Yesterday, Deutsche's Jim Reid was kind enough to put modern capital markets in their most proper context: "in these artificial markets the percentages are skewed towards the bulls for now." Today, for everyone confused how to navigate the "artificial market", Reid has the much needed explanation. To wit: "So far this year markets have gone down on good data, gone up on good data, gone down on concerns over weaker data and also gone up on weaker data."

And now you know everything there is to "know."

 

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Wed, 01/15/2014 - 10:18 | 4333793 AccreditedEYE
AccreditedEYE's picture

In short: BUY BUY BUY!!! (told ya those hedge funds were looking for retail shorts to rape)

Wed, 01/15/2014 - 10:37 | 4333834 y3maxx
y3maxx's picture

...Ya but the growing millions of Americans who just lost their employment insurance will very quickly become millions of "starving" Americans. These millions are also "armed to the teeth". The Real Hunger Games is just beginning.

Wed, 01/15/2014 - 10:39 | 4333838 LawsofPhysics
LawsofPhysics's picture

optimist.  FYI- very large (5 billion dollar) POMO today.

Wed, 01/15/2014 - 10:49 | 4333866 Keyser
Keyser's picture

BTFATH and BTFD is still the mantra of the day and will continue to be so until the music stops. 

 

Wed, 01/15/2014 - 11:04 | 4333885 Hippocratic Oaf
Hippocratic Oaf's picture

I'm just waiting for maxine waters to speak on CNBS today at 11:50am. After all, she is a big part of the house financial services committee.

Get your popcorn ready.

Wed, 01/15/2014 - 10:55 | 4333886 LawsofPhysics
LawsofPhysics's picture

Everything is going to get bought today.  I will take some profits and wait to see what happens next week, need to look at the POMO and REPO schedules. 

Wed, 01/15/2014 - 11:12 | 4333930 Liquid Courage
Liquid Courage's picture

Every day the bucket goes to the well, But one day the bottom will drop out ...

Bob Marley (as translated from the original Jamaican patois by Eric Clapton)

Wed, 01/15/2014 - 12:37 | 4334184 AlamoJack
AlamoJack's picture

Hep Me! Hep Me!  I forgot what BTFATH means.  I'm gettin' old and the goats and cattle are takin' up too much of my time.  Buy The Ferking ? ? ?

Wed, 01/15/2014 - 10:42 | 4333846 XAU XAG
XAU XAG's picture

artificial markets

for an

artificial World

with an

artificial money system

for an

artificial life!

Wed, 01/15/2014 - 10:56 | 4333889 akarc
akarc's picture

Noted the other day when Goldman said stocks were highhly valued. Fucking buy.....

Wed, 01/15/2014 - 10:19 | 4333795 slotmouth
slotmouth's picture

Bad news leads to stronger dollar leads to weaker yen leads to higher stocks

Good news leads to stronger stocks leads to weaker yen leads to stronger dollar

Anything else is the BTFD opportunity.

Wed, 01/15/2014 - 10:19 | 4333797 wallstreetapost...
wallstreetaposteriori's picture

Vomit... just sick of all the dumb BS.

Wed, 01/15/2014 - 10:28 | 4333818 Sudden Debt
Sudden Debt's picture

the guy who wrote it makes 600.000 euro's a year....

Wed, 01/15/2014 - 10:31 | 4333826 Indian_Goldsmith
Indian_Goldsmith's picture

So, he's anything but dumb.

Wed, 01/15/2014 - 10:34 | 4333833 Sudden Debt
Sudden Debt's picture

I didn't say that. And also... the higher you go up a organizational structure the dumber they get.

Wed, 01/15/2014 - 10:52 | 4333879 Keyser
Keyser's picture

The Peter Principle is firmly in effect at the highest levels of our civilization. Inbred assholes that are only looking to feather their nest at our expense. 

Wed, 01/15/2014 - 10:58 | 4333892 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

Absolutely there was a theory on that. I forgot who put it forth originally but basically the jist was the worse you are the more you get moved around and usually up the ladder. The better you are at lower level crucial jobs the less likely you are to move because of your worth to keeping everything moving.

Wed, 01/15/2014 - 10:30 | 4333824 BLOTTO
BLOTTO's picture

We're living the dream boys & girls...just unfortunately, its not ours.

Wed, 01/15/2014 - 10:24 | 4333804 Everybodys All ...
Everybodys All American's picture

The "market" has been dead for nearly five years ...

Wed, 01/15/2014 - 10:53 | 4333882 Keyser
Keyser's picture

Imagine that and we are coming up on the 5th year anniversary of QE... Gee, I wonder if it's related? /sarc

Wed, 01/15/2014 - 10:25 | 4333805 madbraz
madbraz's picture

Coming from the bank that is orders of magnitude bigger than Germany's GDP, has boatloads of debt exposure to Europe's periphery and carries it at 100% face value and depends on US short-term free funding (via it's Taunus US subsidiary) from our repo market to exist.

 

Just lovely.

Wed, 01/15/2014 - 11:20 | 4333949 Keyser
Keyser's picture

Dr Jim Willie calling for Deutsche bank to fail this year and begin the domino effect...

http://www.youtube.com/watch?v=jbhxPRamhHQ

And just how much derivatives exposure does Deutsche bank have? 

http://z3news.com/w/derivative-panic-coming-global-markets/

Wed, 01/15/2014 - 10:25 | 4333806 replaceme
replaceme's picture

F*ckin', A.  Buy buy buy (and then have a multi-million dollar algo poised to sell).  We'll all be rich.

Wed, 01/15/2014 - 10:26 | 4333812 101 years and c...
101 years and counting's picture

confused by the "market"?  nope.  the goal of the "market" is to fuck as many non 1%'ers as possible.  once wall st feels they've sucked in as much money as they can, they will send all the peasant money up the ladder by crashing this. the only questions are:  1) when and 2) what is the black swan they unleash?

Wed, 01/15/2014 - 10:30 | 4333821 savedeposit
savedeposit's picture

"So far this year some markets have gone down on good data, gone down on bad data, gone down on concerns over weaker data and also gone down on weaker data and also gone down on no data at all."

Guess wich markets ?

Wed, 01/15/2014 - 10:32 | 4333828 frankTHE COIN
frankTHE COIN's picture

CURRENT TIME: 10:30 pm

Note to Self ; Tommorow at bedtime, write a note to myself to Stop Writing
Notes to Myself.

Wed, 01/15/2014 - 10:54 | 4333884 akarc
akarc's picture

Be sure to write a note to yourself to remind yourself to read the notes to yourself. I keep fergetting myself.

Wed, 01/15/2014 - 10:33 | 4333829 Rising Sun
Rising Sun's picture

another day another gap up at the open for the S&P's

 

*puking*

Wed, 01/15/2014 - 10:41 | 4333830 Dr. Engali
Dr. Engali's picture

How damn confusing can it be? The "market" is a fucking policy tool, and until that changes every dip must be bought to take advantage of the free money and any shorts that Yellen will squeeze. That is all.

Wed, 01/15/2014 - 10:56 | 4333888 ArkansasAngie
ArkansasAngie's picture

The solution is therefore a change in policy.

We do not have an economic problem ... we have a political problem.  

Wed, 01/15/2014 - 10:34 | 4333831 Rising Sun
Rising Sun's picture

hey fuck - another 14 year high in the nasdaq 100

 

weeeee!!!!!!!!!  yipppeeeeeee!!!!!!!

Wed, 01/15/2014 - 10:38 | 4333836 LawsofPhysics
LawsofPhysics's picture

Speaking fake markets, HUGE POMO today...

hedge/trade accordingly...

Wed, 01/15/2014 - 10:39 | 4333839 madbraz
madbraz's picture

And even Fed hawks like Fischer say there is not a bubble yet.  On a monthly chart the SP500 has been above one standard deviation (2yr periods) for over one year.  This has happened once in the last 33 years - in 1996 when it lasted a few months more and was the biggest bubble since the 1920s.  Even then the market fell 15%.  

 

No bubble???  

 

What about small caps that have almost doubled in over 2 years, not even in the late 1990s did they manage this (when the world had much, much, much less debt and leverage).  Small caps are almost 3 standard deviations above their 3 year mean.

 

What about the consumer discretionary sector, up almost 4-fold since 2009, up 100% in a bit over 2 years?  Delta airlines going from $9 to $32 in a year?  Best Buy going from $12 to $44 in a year?  Even Johnson and Johnson, up 60% since it's peak in 2008 - even though sales are exactly the same as they were back then...

 

No, no bubble.

Wed, 01/15/2014 - 10:50 | 4333864 LawsofPhysics
LawsofPhysics's picture

75 billion freshly printed dollars per month (that we know of) says there is no bubble...

Two questions;

1) what does the REPO schedule look like moving forward and

2) has congress funded those liabilites yet?

tick tock motherfuckers...

Wed, 01/15/2014 - 10:41 | 4333845 paint it red ca...
paint it red call it hell's picture

The overt game is - if you play you win.

The covert game is - you win till We Say Otherwise.

Who is the 'We' and when is the 'Say Otherwise'?

Wed, 01/15/2014 - 10:42 | 4333849 Clowns on Acid
Clowns on Acid's picture

Finally Reid makes some sense. The artifical market moves down on artificial good data, the artificial market moves up on artificial bad data (reality was worse).

So why does Reid even have a job?

Wed, 01/15/2014 - 10:51 | 4333874 akarc
akarc's picture

Being a  Deutsche bag ain't easy. Somebodys gotta do it.

Wed, 01/15/2014 - 10:44 | 4333856 Cornholiovanderbilt
Cornholiovanderbilt's picture

Dirty bong water is no way to go through life Sons!

Wed, 01/15/2014 - 10:47 | 4333859 CheapBastard
CheapBastard's picture

uber bullish

 

Wed, 01/15/2014 - 10:49 | 4333867 dbTX
dbTX's picture

My round Eagles are not artificial.

Wed, 01/15/2014 - 10:50 | 4333869 akarc
akarc's picture

"So far this year markets have gone down on good data, gone up on good data, gone down on concerns over weaker data and also gone up on weaker data."

As it was, it is and shall be.........

 

Such is life

Wed, 01/15/2014 - 10:50 | 4333870 flyonmywall
flyonmywall's picture

Just remember, the bigger they are, the harder they fall. This applies to the stock market, as well as the Federal Reserve, all empires, Goliath, the Titanic, Michael Jackson, the Lakers, every NFL team, your hairdresser's toe sucking boyfriend who cheats on her, and everything in between.

Nothing lasts forever.

 

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