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Is This Why The Market Just Turned Green?

Tyler Durden's picture




 

SSDD: Big dump at the open, then the usual low volume levitation higher as the BTFD algos engage. But why? While the economic news today was bad it wasn't so horrible to merit a new all time high in the "market", while geopolitical developments continue to deteriorate, however at the usual "better than expected" pace. So what might have been the reason for today's latest surge higher which just brought the "market" back into the green? This note from Dennis Gartman may well have been the catalyst.

We suspect that later today we’ll be reducing our long positions modestly and/or increasing our derivatives positions also, to take us very, very close to market neutral, and indeed we may find ourselves erring even ever-so-slightly negatively of shares if the conditions warrant. What we do know for certain is that neutrality shall beat bullishness for a day or two or three… or perhaps even more.

"Erring" and "know for certain" being the keywords of course. As for Gartman's clockwork, even the USDJPY manipulators are awestruck.

*  *  *

Joking aside, the reason for the move is the near vertical levitation in the AUDJPY cross since the start of today's POMO.

 

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Mon, 07/28/2014 - 13:29 | 5013364 GolfHatesMe
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As Tuesday follows Monday

Mon, 07/28/2014 - 13:40 | 5013397 Belrev
Belrev's picture

A day befor MH17 shot down

Ukrainian military uploaded to its youtube channel

video showing report from front lines.

 

SHOWING THEIR BUK MISSILE LAUNCHER AND TARGETTING RADAR STATION SYSTEM IN THE ZONE OF military action

 

http://www.youtube.com/watch?v=Q3MomxNHnUA#t=4m46s

Mon, 07/28/2014 - 13:46 | 5013439 max2205
max2205's picture

Monday malaise

Mon, 07/28/2014 - 13:37 | 5013399 BandGap
BandGap's picture

Muppets are green. The market turns green. Coincidence?

Mon, 07/28/2014 - 17:08 | 5014528 icanhasbailout
icanhasbailout's picture

Market had one of Momma Obama's school lunches...

Mon, 07/28/2014 - 21:32 | 5015511 Muppet
Muppet's picture

Rut roe!

Mon, 07/28/2014 - 13:30 | 5013365 Kaiser Sousa
Kaiser Sousa's picture

all of the markets r a fucking bad joke.

Mon, 07/28/2014 - 13:31 | 5013372 thatthingcanfly
thatthingcanfly's picture

Hey Kaiser, did you play the Sousa when you were in the band?

Mon, 07/28/2014 - 13:32 | 5013373 disabledvet
disabledvet's picture

I know a lot of bad jokes.

Some are downright offensive actually...

Mon, 07/28/2014 - 13:36 | 5013395 icanhasbailout
icanhasbailout's picture

Why did the Ebola patient cross Wall Street?

 

Mon, 07/28/2014 - 13:37 | 5013404 BandGap
BandGap's picture

He was stuck in the Loco Chicken.

Mon, 07/28/2014 - 13:46 | 5013434 Ban KKiller
Ban KKiller's picture

Because the bankster had him by his cock?

 

 

 

Mon, 07/28/2014 - 13:49 | 5013450 buzzsaw99
buzzsaw99's picture

He didn't want to be bothered at the orifice?

Mon, 07/28/2014 - 13:55 | 5013493 Keyser
Keyser's picture

To cover for the CIA spook that was spraying it...

Mon, 07/28/2014 - 13:38 | 5013409 icanhasbailout
icanhasbailout's picture

So John Kerry and an Ebola patient walk into a bar. The bartender looks at them and says, why the long incubation period?

Mon, 07/28/2014 - 14:02 | 5013536 tenpanhandle
tenpanhandle's picture

since I can't fine you $50 billion for that, I gave you a +1 in lieu of.

Mon, 07/28/2014 - 13:42 | 5013426 icanhasbailout
icanhasbailout's picture

I just flew in from Nigeria, and boy are my arms tired...

Mon, 07/28/2014 - 15:30 | 5014008 Headbanger
Headbanger's picture

Velly intersting... 

But stupid!

Mon, 07/28/2014 - 13:39 | 5013401 Croesus
Croesus's picture

All of these prognosticating idiots are a fucking joke, and that is the JOB of the people who run the markets...to keep you guessing. Their job is to make you believe that your logic/common sense/reasoning DOES NOT APPLY. 

If you're a rational-thinking, logic-driven human being, then take whatever you think is the right thing to do, and DO the opposite - Bet against whatever makes the most sense, 

The "Day of Reckoning" will come...but probably not for a long time. The status quo depends on your ignorance, and so far, they are winning. 

Mon, 07/28/2014 - 14:49 | 5013769 dracos_ghost
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Worked for George Constanza:

http://www.youtube.com/watch?v=cKUvKE3bQlY

Mon, 07/28/2014 - 13:32 | 5013377 oklaboy
oklaboy's picture

translation: he hasn't a clue

Mon, 07/28/2014 - 13:35 | 5013396 Winston Churchill
Winston Churchill's picture

If you turn your head sideways and squint, he even looks like Stolper.

Mon, 07/28/2014 - 13:33 | 5013379 The Most Intere...
The Most Interesting Frog in the World's picture

I'm sick of this shit.

Mon, 07/28/2014 - 13:34 | 5013382 p00k1e
p00k1e's picture

Psst.  Short the makers of Plumpy'nut.  Their ‘clients’ won’t need the stuff for much longer. 

Mon, 07/28/2014 - 13:34 | 5013383 slightlyskeptical
slightlyskeptical's picture

I read this as saying he expected a bounce today (he got it), and if it continues he will sell more.

Mon, 07/28/2014 - 13:34 | 5013385 Hindenburg...Oh Man
Hindenburg...Oh Man's picture

someone flipped another swtich at 1:05 pm. 

Mon, 07/28/2014 - 13:34 | 5013386 Ness.
Ness.'s picture

Sorry Tylers.  This one is on you.  This post preceeded the low of the day by 8 min.  It's been straight up the rest of the day.

 

Well that escalated quickly. Friday's micro (earnings-based) weakness has extended to today's macro weakness and removed any "ignore the geopolitics, just buy the dips"-exuberance. All US equity indices are once again below the levels pre-MH17 headlines with the Dow and Russell 2000 worst performers.

 

http://www.zerohedge.com/news/2014-07-28/macro-weakness-sends-stocks-ree...

 


Mon, 07/28/2014 - 13:37 | 5013403 Tyler Durden
Tyler Durden's picture

Commenting on what has happened impacts what will happen? Is that some variation of the Heisenberg principle?

As to what "would" happen, how about what was actually said:

There has been little notable equity futures action (for now: the USDJPY algo team gave it a good ramp attempt just before Europe open, and will repeat just around the US open despite Standard Chartered major cut to its USDJPY forecast from 110 to 106 overnight), although we expect that to change since today is the day when Tuesday frontrunning takes place with full force. We expect equities to completely ignore the ongoing deterioration in Ukraine and the imminent release of EU's own sanctions against Russia, as well as what is now shaping up as an Argentina default on July 30.

... With the usual dose of sarcasm of course, as only Kevin Henry has any idea what happens in a centrally-planned market next.

Mon, 07/28/2014 - 13:39 | 5013419 BandGap
BandGap's picture

Two out of three ain't bad (spin, direction and speed)?

Mon, 07/28/2014 - 14:06 | 5013560 NoDebt
NoDebt's picture

You have to admit, though, your timing today was particularly impressive.  Damned near to the MINUTE of the day's lows this morning.

I think algos are cueing off of any negative ZH market status articles.  I'm not sure if I'm kidding about that, but I don't think I am.

Mon, 07/28/2014 - 14:13 | 5013600 Hindenburg...Oh Man
Hindenburg...Oh Man's picture

I think that the trigger was going to be pulled one way or another, but whoever pulls the strings on the coordinated and systematic buying likely does use the "ZH-call" out of a sense of humor (or spite). 

Mon, 07/28/2014 - 15:15 | 5013925 Baby Eating Dingo22
Baby Eating Dingo22's picture

How about the algos just include keywords and select postings along with option trading and news blurbs and 1000 other metrics to dictate tunring points?

It can all factor in

And banksters probably have the inside scoop on NSA datamines, if they don't already own them

Mon, 07/28/2014 - 15:29 | 5013999 espirit
espirit's picture

Well if that be the case... "fire in the hole, bitchez."

Mon, 07/28/2014 - 16:26 | 5014334 Stoploss
Stoploss's picture

Yall look at economic calendars much???

Mon, 07/28/2014 - 13:34 | 5013387 jay28elle
jay28elle's picture

False flags everywhere...

Mon, 07/28/2014 - 13:34 | 5013390 Dr. Engali
Dr. Engali's picture

What a tool.

Mon, 07/28/2014 - 13:35 | 5013392 khakuda
khakuda's picture

:)

Gartman must just hate you guys.

Mon, 07/28/2014 - 14:00 | 5013526 Keyser
Keyser's picture

I used Gartman as a contra-market indicator and it works like a charm... In USD terms that is... 

 

Mon, 07/28/2014 - 13:38 | 5013408 dontgoforit
dontgoforit's picture

The burning smell of power (really garlic breath on a lying tongue).

Mon, 07/28/2014 - 13:39 | 5013417 yogibear
yogibear's picture

You didn't produce that reversal, the algos parsed the Gartman text and did the opposite. It's enough to make some money off it.

Mon, 07/28/2014 - 13:39 | 5013420 Jack Burton
Jack Burton's picture

You know, it has been over 5 years since I paid attention to market moves. I don't consider the stock exchanges to be markets in the former sense of price discovery mechanisms based on real market forces. We all know what has happened since 2008, governments and the central banks consider the markets to be nothing more than a tool to inject huge amounts of cash into the economy. Raise stock indexes as a way to stimulate the economy. Central Banks even speak openly of "Wealth Effect" stimulus. Especially the US Federal Reserve. Openly admit that juicing share prices is they purpose, that they consider this wealth effect as a means to spread economic growth. This is all BS of course. QE and stock index pumping just passes wealth to the increasingly small minority with large long positions and the big banks and trading houses who run skimming operations. It is no wonder New York and London Real Estate is in a world record bubble, the vast fiat wealth being pumped into the markets rewards the few in ways never seen before in human history. While zirp screws workers and savers and honest people saving for kids schooling or retirement. Only way to get a positive return, if that, is to go long stocks, and that helps juice the machine even more. Dumb money chasing some positive yield is going to get fucked over by the smart money and the skimmers. I bet anything that those who finally give in and go into the markets, the small retail investor or 401K workers is going to get screwed to the wall before they ever get that money out. I believe they are called "bad holders" for a reason!

Mon, 07/28/2014 - 13:43 | 5013427 XRAYD
XRAYD's picture

... the message from Ukraine!  

 

Where is the one from Gaza?

Mon, 07/28/2014 - 13:43 | 5013429 dontgoforit
dontgoforit's picture

Empty bag holders.

Mon, 07/28/2014 - 19:21 | 5015070 luna_man
luna_man's picture

 

 

Hey "Jack Burton", it ain't "smart money", it's CRIMINAL money!

 

by the way, like reading your post...keep 'em coming

Mon, 07/28/2014 - 13:50 | 5013424 XRAYD
XRAYD's picture

... just watch as I stick my finger up my .. you know what, and one from the other hand up my nose ... I prommise I dont smell anything!

 

You shouldn't either, till 5 pm today! Tomorrow moring is a different story because I have to scrach both - now and then!

 

 

Mon, 07/28/2014 - 13:44 | 5013428 Father Lucifer
Father Lucifer's picture

At least my russel short is still good.

Mon, 07/28/2014 - 16:13 | 5014262 NotApplicable
NotApplicable's picture

I'm not familiar with that euphemism.

Mon, 07/28/2014 - 13:47 | 5013440 John McCloy
John McCloy's picture

Can anyone explain to me why it's tracking AUD/JPY now and not USD/JPY?

Mon, 07/28/2014 - 14:10 | 5013576 NoDebt
NoDebt's picture

It varies from day to day.  Tylers are looking for correlation and those two currency pairs seem to show up on the radar more times than not.

Mon, 07/28/2014 - 13:48 | 5013442 gatorengineer
gatorengineer's picture

by it with both hands and feet into turbo tuesday....

Mon, 07/28/2014 - 13:48 | 5013443 Cruel Aid
Cruel Aid's picture

It also bailed out pension funds, which worked under an 8% return assumption. That was never going to happen organically.

Too big to fail and the only way to make them whole.

Mon, 07/28/2014 - 13:50 | 5013457 CheapBastard
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"The Merikan stawk market never drops,"my broker told me.

Mon, 07/28/2014 - 13:52 | 5013466 peterpilot9
peterpilot9's picture

If I recall, didn't Gartman announce he was "long of crude @ 103?  Seems to have ticked that short term top as well.  Perhaps he will emerge shortly with a "neutral of oil" or "short of oil" pronouncement and crude will pop to 140.

Does he sell his newsletter as a reverse investment scheduler or simple comedy? 

Chart is moving lower left to upper right..... Man, all that insight in one newsletter.

Mon, 07/28/2014 - 13:59 | 5013524 El Hosel
El Hosel's picture

Denny and his bets, oh but their so spaced out.

Mon, 07/28/2014 - 13:55 | 5013489 Glass Seagull
Glass Seagull's picture

 

 

Gartman, please stop speaking in fucking iambic pentameter!!

 

Regards,

 

Everyone

Mon, 07/28/2014 - 14:08 | 5013570 Itchy and Scratchy
Itchy and Scratchy's picture

Central Banks covering their shorts?

Mon, 07/28/2014 - 14:13 | 5013602 Notsobadwlad
Notsobadwlad's picture

To the three or 4 people who do not have a clue yet. The market is run by computers that are programmed to run various price patterns and then the media and talking heads are given scripts to read that attempt to explain the action to the genetically deficient.

Mon, 07/28/2014 - 14:57 | 5013811 Squid Viscous
Squid Viscous's picture

every day there is at least a 10-12 handle rip higher in the S$P, every fucking day 

Mon, 07/28/2014 - 14:23 | 5013668 the grateful un...
the grateful unemployed's picture

its the day before tuesday. during the gogo 90s traders used to square up on friday, head out to the hamptons, it got so programmed into their behavior that some traders started buying the dip on friday to position for monday. thank goodness that stock market brought lasting wealth to all of america. boy i miss the 90s

Mon, 07/28/2014 - 14:48 | 5013766 Keltner Channel Surf
Keltner Channel Surf's picture

Key technical levels, not the Tylers, was the reason for the bounce, along with a tiny bit of POMO, the SPY near the 20 DMA, but more importantly the Russell near key support on the daily chart, third time bouncing here since early June, today on very high volume.  The fact that the RUT absolutely RACED to these levels from the open and hit them before 10:30, while the DOW hadn't reached triple digits, was your clue the machines would be comfortable bouncing modestly to find a middle ground before the FOMC.  While a late-day move back toward the lows isn't out of the question, it looks like the machines have each others' backs for now ...

Mon, 07/28/2014 - 14:57 | 5013794 TheRideNeverEnds
TheRideNeverEnds's picture

The market went green because every knows by now buying the dip is free money as the FED has told us this (free money) bull market will continue till at least 2015. 

Mon, 07/28/2014 - 15:37 | 5014037 espirit
espirit's picture

Gonna have to wait on the Argentinian 'Fuck You' and Banco Espirito contagion to make it past August.

The weather again will be the fashionable play.

(Edit: Hammer Brasil, as in BRics)

Mon, 07/28/2014 - 15:37 | 5014058 Baby Eating Dingo22
Baby Eating Dingo22's picture

 

Here's why the market jus turned green

With all this war and sketchy data and poltical strife, our psyche needs a lift

They need to control what they can, and DWTS only airs at night

 

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