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Something's Broken
With just $10 billion of freshly-printed money left (plus reinvested maturing debt) the Fed is rapidly running out of put-providing, VIX-selling, low-volume-levitating ammunition to keep the wealth-creation dream alive. Nowhere is that more evident in the collapse in equity market breadth. NYSE New Lows have surged to 14-month highs and the spread to New Highs is weakest since August 2013. Of course, back then, equity bulls could rely on a guaranteed 'flow' from the Fed to BTFD, this time that backstop does not exist.
h/t @Not_Jim_Cramer
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"Somebody" is looking for bankers' blood and will get it one way or another.
ekm is beating me to the 1st post....
hmmmm.....until i see some assasinations on the headlines....its just wishful thinking.
Paging 330RAMP Capital...
S&P 500 ramp up at close on motion....sadly it has broken the long term trend. Calling Super Mario to the rescue
Got that Fonz you mooktoid!!?
QE DOES NOT EXIST MISTER "THEY'LL NEVER END QE" MOOK!!
you still here Ballgagger?
Nothing and I repeat no thing you say, "think" or post means diddly, you cop cock snorkeling fuckhead
STFD
STFR. Sell the Fucking rip
STFUANDTAKEMYMONEY!
oh they'll print......they have no choice....but first they need some cover and fear.......ebola/market dump.....perfect
But.., I thought they were just about to rise rates soon..
Peak Highs in late Sept. 2013. Slow but steady decrease until June of 2014. Decrease is accelerating.
HHmmmm.......
No worries---the crime syndicate, aka the elite, aka the central planners, aka the federal reserve, aka new world order, aka illuminati will ramp the printing presses back up once whoever it is they are punishing does what they say.
You obey and listen to the crime syndicate like good little serfs and lemmings and they will print you some money, if you look at them the wrong way they will let the markets fall a little to teach you a lesson. The idiot sheeple and underwater pension funds have nothing to fear---the central planners will be printing worthless fiat currency up in no time---print, print, print, I mean input, input, input into a computer screen.
Isn't it almost beyond belief what an orwellian, dystopic nightmare we live in? Seriously, we work and slave for fiat dollars so we can feed ourselves and these criminals play monopoly games with it---it really is hard to belive that humanity could be so degenerate to go along with this unbelievable paper fiat crime system of exploitation.
$10 billion only? that will be gone in 20 minutes the way these clowns inflate.
Oh oh!
Why not sell at the top...and this is the top...the 80 billion a month is gone....to me that was a big help for the stocks.....and bonds..and whatever except PMs....so now it should go back to a normal level....normal..doubt it...they have other tricks....
Belgium
High dollar killing multinationals and US exports. Rates need to come down now Mr Yellen. 10y to under 1.5 please.
Yours truly
Boeing.
[It's practically standing still now. They've dropped ropes out of the nose of the ship, and they've been taken a hold of down on the field by a number of men.] It's starting to rain again; it's—the rain has slacked up a little bit. The back motors of the ship are just holding it just, just enough to keep it from — It burst into flames! It burst into flames, and it's falling, it's crashing! Watch it, watch it! Get out of the way! Get this, Charlie! Get this, Charlie! It's fire—and it's crashing! It's crashing terrible! Oh, my, get out of the way, please! It's burning and bursting into flames, and the—and it's falling on the mooring-mast and all the folks agree that this is terrible, this is one of the worst catastrophes in the world. [Indecipherable word(s)] It's–it's–it's the flames, [indecipherable, possibly the word "climbing"] oh, four- or five-hundred feet into the sky and it ... it's a terrific crash, ladies and gentlemen. It's smoke, and it's flames now ... and the frame is crashing to the ground, not quite to the mooring-mast. Oh, the humanity and all the passengers screaming around here. I told you, I can't even talk to people whose friends are on there. Ah! It's–it's–it's–it's ... o–ohhh! I–I can't talk, ladies and gentlemen. Honest, it's just laying there, a mass of smoking wreckage. Ah! And everybody can hardly breathe and talk, and the screaming. Lady, I–I'm sorry. Honest: I–I can hardly breathe. I–I'm going to step inside where I cannot see it. Charlie, that's terrible. Ah, ah—I can't. I, listen, folks, I–I'm gonna have to stop for a minute because I've lost my voice. This is the worst thing I've ever witnessed
~Herbert Morrison [5/6/37]
GDP: Blaming Outcomes, Expecting Change, & Producing Noise
The only person you can change is yourself, with substantial effective work. Whether others follow the example is up to them. That is the paradox of free will, an investment in adaptation upon which culture depends.
Civil law, creating the illusion of stability by blaming and punishing the outcome, only to re-enforce it, is pretty d* stupid if you think about it. Economies create distributions of outcomes, recognized or not, including the homeless, bankers and Charles Manson.
Before the politically free speech, equal rights to slavery, bait and swap maroons showed up at university, getting in was easy, but staying required work. Now, getting in is harder than going to prison and you are guaranteed to graduate, with a degree in arbitrary mythology. And printing money to export the lost purchasing power, which can only come back multiplied, isn’t helping.
One day President Obama is receiving the Nobel Peace Prize and the next he is bombing the world, blaming Putin for doing much less next door, after placing a nuclear deterrent on his doorstep, to protect Saudi extortion, and Putin announces more oil, shocking. You have to practice some discretion when/where you apply your talent and skills, and patriotism is not a reliable condition.
There is nothing wrong with converting AC to DC as a means of control, but you have to realize that you are creating a closed system subject to increasing external pressure, producing decreasing internal volume, in a positive feedback loop. Without reconversion in an increasing number of ways you are going to get intermittent failure and then distribution of failure and then collapse. That’s why you are seeing falling elevators, disappearing planes and derailing trains, with critters blaming each other and planning another round.
Measuring convenience instead of adaptation as productivity creates dumber, slower and lazier; arbitrary, capricious and malicious; ignorant, jealous and greedy slaves to the stupidity, running around in circles in an imploding economy. You can have plumbing and electricity, but creating artificial complexity to replace natural input is a recipe for disaster. The point is to move forward, not to replace brain function with artificial intelligence and automation.
You have to identify and make the gate for economic mobility to exist. Apes arbitrarily issuing objectives, hoping the monkeys will accidently find a gate, to build best business practice is a problemsolution. The majority always seeks security in numbers, assuming incorrectly that the last majority had a clue, which simply reshuffles the deck, always ending in a losing hand of solitaire.
If you are diligent in qualitative analysis, quantitative analysis is rarely required. The empire runs exactly backward. When you first run a backhoe, you have to measure the ditch, and lose sight of what is going on around you, increasing the probability of disaster. Pretty soon you start measuring the depth with the bucket/crow, watching and expecting what is coming next. Training apprentices is an investment, required for NPV.
Sometimes a homeless person or a professor or an elevator mechanic is just that, and sometimes not. Don’t take the public, private and non-profit corporations too seriously, except to develop your building block skills, for when/where you will need them. If you chase a corporate job with corporate skills, the empire, which has its uses, collapses on itself.
Without labor that capital stock would not exist, and there would be no beginning and no end to the circuit. That double-sided mirror is a fuse of fuses, which allows you to work on the system. Because a previous culture chose to build a bigger, dumber SMART technology, doesn’t mean that you have to follow it blindly along.
Whether you choose to explore the atom or the universe, life is life, wherever you go; it requires work, as measured beyond your horizon. That’s the feedback loop you are seeking. Just make your gate, and the nonsense will take care of itself, behind you in time. Speed is a function of direction, not the other way around.
An economy begins and ends with labor.
No POMO today but they will try to rally the indexes to about a 1% drop by the close. POMO on Thursday and Monday and then all down hill from there.
Just getting a few more people short before they rally the mkt tomorrow
Doesn't matter house always wins. Was long TZA for the last 2and half months. Since August 3rd IWM down 2.75 %. Theoretically TZA should be up 8.25 %. On August 3rd TZA closed at $16.78. Theoretically TZA should be trading at $18.15, but its not its trading at $17.68. I understand time decay but you cant really sell anything in a retirement fund so 3x short ETF is the only game in town. Whats really crazy is that if you go back 1 Year to today IWM is basically unchanged. TZA down 20%. Everything is setup for the house to win, and if stocks do correct heaven forbid 30-50% yhe last banks standing will print more money to send the S&P to 3200.
I use TZA nearly every day, but ONLY as a pure daytrading vehicle. You should NEVER do a long-term hold, or even many overnight holds, as only in continuously trending markets without oscillations (which hasn't ocurred much lately in the Russell) will you be ahead of a non-leveraged vehicle, otherwise the arcane rebalancing methodology will kill you. If you must short in a retirement fund, for god's sake use non-leveraged ETFs
Problem is if i day trade commisions start adding up. What non_leveraged ETF do you trade for R2K?
(Yikes) My point wasn't to daytrade your IRA (another no-no), but a non-leveraged short russell example would be RWM (though at 5 -month lows I'm not sure this is the time). You can use the ETF database as the best way to search for ETFs, in my opinion, but as they say, be careful out there: http://etfdb.com/screener/
Thanks i appreciate it. Would never daytrade IRA, hard enough to daytrade even with cheap commissions. 6-7 round trips a day adds up very quickly. Trade for 5 years and your talking real money. Just another advantage we don't have.
RWM down 4.5% Since October 7 2013, IWM up.1 %.
The non-leveraged short S&P ETF (SH) seems to track inversely closely with SPY, according to the site, but in general you'll find a lot of return anomalies with inverse funds, and a close reading of the methodology details is always necessary for buy-and-hold. Still not sure I'd mess with shorting in an IRA, but everyone's different.
Day traders are a bi-product of the most permabull markets, which we are no longer in. From here out day trading is a fool's game. Heck, even in bulls the day traders have a tough go of it, but like the gamblers they are, they'll all tell you how great it's going.
Ask their wife or girlfriend how well it's going if you want the truth.
Everybody worried about ISIS and ebola. Let the markets come down a little for some balance then when the sheep are not worried about ebola/ISIS, time to ramp it back up with freshly printed FRN's. The only way to change the course is civil unrest and that is not gonna happen countrywide. Truth hurts. Game on. The FED will be here tomorrow and it will be here after we are all dead. I have come to face the truth that this will never go away. I do my part by not participating as much as one can into their game. You stand up to these assholes and get Guantanamoed because not one swinging dick in the USA will stand side by side with you. So fuck it, I don't participate.
I dont think the crashes of 2000 and 2008 even cross the sheeps' minds, much less a crash from this level. Ignorance has been bliss. I worked with a guy that told me the markets go up, the markets go down, and if never went up more than down nobody would participate (401k) and damned if that market aint up 163% since he said that. It's only down 3.6% from all time highs. I believe backdoor QE will keep it going, even though it may drop another 7% from here.
Let this thing get down another 5% and then let's see how much juice the Fed has left, through proxies or otherwise. My bet is that it's more than you think. They are going to rally it on Draghi even if he pulls his pants down and takes a crap during his speech
"Once had love
And it was a gas
Soon found out
Was a pain in the ass."
Original lyrics to "Heart of Glass" by Blondie. "She's a whore and that's why we love her."
Nice voice though. Better liar though.
The Fed cannot QE now that they're in the taper zone. No less than yours truly...who was 100% long treasuries at the time...complained about Taper "because it was bad news for the recovery thesis." Turned out to be the best news ever for my treasury long though...so in spite of getting monkey hammered at the time I held on to superlative gains so far because "nothing says flight to safety like taper."
Equities are still in a world of their own of course.
Ali Babba? FER REAL?
Something is broken alright ... if this market goes down anymore ... we will see an avalanche of margin calls and it will be lights out.
What are the chances that by October 28 we are in a full correction, and the Fed decides to add another 10 billion back to making it 25 bilion per month, then increasing it slowly back to 85 billion plus.
Skittish Tooms, very skittish.
No no no, they shouldn't print. The game is going great so far.
First flood the world with US$, create an artificial boom in the emerging markets, then withdraw. They are toast. Superstrong US$ buys all commodities and companies. US's dominance is established. I say it's brilliant, evil but brilliant.
Nevermind those stupid stocks, US got the grand price. Empire is saved.
Fuck I hate it, but looks like it's going that way.
You want to challenge that Mario? Then raise rates tomorrow if you dare.
Belgium better step to the fucking plate and prove they're not terrorists.
wait until tomorrow ... the bankers are just flexing here and separating a few over-exuberant retailers from their "hard" earned cash ...
Why stop with retail investors if you can have it all?
"..this time that backstop does not exist."
What about Belgium?