This page has been archived and commenting is disabled.

Algos - We Have A Problem

Tyler Durden's picture




 

For 'years' the US stock market has traded on 'fun-durr-mentals' - tracking USDJPY tick for tick day in day out as algos tickle leveraged currency trades to ignote momentum in US equities and guarantee 'proof' in the recovery. The correlation, however, between USDJPY and stocks (US and Japanese) has begun to deteriorate rapidly since Kuroda unleased Godzilla QQE... and today it is very clear...

First Japanese algos broke...

 

 

 

And now US...

 

Maybe the divergence between stocks and VIX & HY Credit protection buyers in the last week...

 

 

 

did mean something after all as traders await some possible inconvenient truths in the fed minutes.

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Wed, 11/19/2014 - 11:22 | 5465214 LawsofPhysics
LawsofPhysics's picture

Yes, but the "buy low sell high" algos at JPM are working fine.  Don't be a hater...

It's called "the skim" for a reason.

Wed, 11/19/2014 - 11:36 | 5465279 Headbanger
Headbanger's picture

You idiot..

The algos have been turned off now that Goldman's S&P 2050 year end target was hit yesterday..

Duuuhhhhhh

Wed, 11/19/2014 - 11:38 | 5465283 Save_America1st
Save_America1st's picture

paper gold and paper silver getting shredded right now.

What's up?  Wacky Wednesday?  Amnesty in Vegas?  Just becuase?

Oh well...no complaints from me.  I'd love to see silver back into the low 15's again.  Love stackin' the phyzz nice 'n cheap.

Wed, 11/19/2014 - 11:41 | 5465313 sodbuster
sodbuster's picture

Chart Porn!!!!

Wed, 11/19/2014 - 11:50 | 5465347 Save_America1st
Save_America1st's picture

paper PM's have been monkey-hammered into a free-fall...looks like nothing's stopping them at this point. 

Time to place an order!  :-)

Wed, 11/19/2014 - 11:57 | 5465377 Kaiser Sousa
Kaiser Sousa's picture

agreed...complete in ur face criminality...
there r no markets...just fraud.
fucking London scum mother fucking moneychangers...

Wed, 11/19/2014 - 12:06 | 5465429 gold-is-not-dead
gold-is-not-dead's picture

Wow, thank you manipulators for cheap silver. Made my day. Philharmonics, almost no premium above.

Wed, 11/19/2014 - 12:21 | 5465504 Save_America1st
Save_America1st's picture

"Philharmonics, almost no premium above."

 

where?  care to share? :-)

Wed, 11/19/2014 - 11:46 | 5465327 LawsofPhysics
LawsofPhysics's picture

Personally headbanger, I think any human that is really playing in this "market" has brass balls.

Wed, 11/19/2014 - 11:23 | 5465217 espirit
espirit's picture

Colonels final ride in Dr. Strangelove. 

Wed, 11/19/2014 - 11:22 | 5465220 g'kar
g'kar's picture

Yeehaw

Wed, 11/19/2014 - 11:30 | 5465249 Ness.
Ness.'s picture

Bonzai

Wed, 11/19/2014 - 11:37 | 5465284 Divided States ...
Divided States of America's picture

Hey guys, no need to Fret over a small dip in stocks...if any big cap stocks dip for whatever reason like home depot did late yesterday, the exchanges will Just cancel all orders at a Certain price...not sure how they figure out the priCe but it seems all good in this fair markets

Wed, 11/19/2014 - 11:42 | 5465309 Ness.
Ness.'s picture

They call Goldman and GS tells them what the bust price is going to be.

Wed, 11/19/2014 - 12:09 | 5465451 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

Exactly. The crash is planned. Pick up those stocks on the cheap after the great short.

Wed, 11/19/2014 - 11:23 | 5465218 Impoverished Ps...
Impoverished Psychologist's picture

You can fool some of the people all of the time and all of the people some of the time...

But you can't fool all of the people all of the time...

 

Wed, 11/19/2014 - 11:37 | 5465285 Headbanger
Headbanger's picture

Yeah but you can time some of the people ...

Oh never mind..

Wed, 11/19/2014 - 12:50 | 5465691 KnuckleDragger-X
KnuckleDragger-X's picture

It depends on which people you want to fool....

Wed, 11/19/2014 - 11:23 | 5465229 Hohum
Hohum's picture

Jubber, please comment when stocks rally again.

Wed, 11/19/2014 - 11:25 | 5465235 Everybodys All ...
Everybodys All American's picture

When will the instantaneous haircut in the Yen currency happen and where will you be when this occurs?

Wed, 11/19/2014 - 11:40 | 5465294 Headbanger
Headbanger's picture

Looking a lot moar likely the USDJPY is about to implode

http://www.marketwatch.com/investing/Currency/USDJPY/charts

Wed, 11/19/2014 - 12:52 | 5465697 KnuckleDragger-X
KnuckleDragger-X's picture

At which time we'll create an economic blackhole.....

Wed, 11/19/2014 - 11:26 | 5465239 Yen Cross
Yen Cross's picture

     The usd/jpy has entered the accretion disk and time dialation has started... For us on the outside it's only trading the 117.70 handle, but on the inside Japan is a smoldering pile of rubble.

Wed, 11/19/2014 - 11:41 | 5465311 bbq on whitehou...
bbq on whitehouse lawn's picture

This explains alot more then just the yen. In fact many dynamic systems have just come into focus. Universal theory of money by :Yen Cross.

Wed, 11/19/2014 - 12:15 | 5465480 Yen Cross
Yen Cross's picture

     You should stick to BBQ'ing.

Wed, 11/19/2014 - 11:47 | 5465329 Amish Hacker
Amish Hacker's picture

I'm waiting for Kuroda-san to announce that they're building a frozen ice wall around the BOJ.

Wed, 11/19/2014 - 11:48 | 5465330 Amish Hacker
Amish Hacker's picture

I'm waiting for Kuroda-san to announce that they're building a frozen ice wall around the BOJ.

Wed, 11/19/2014 - 11:32 | 5465248 gmak
gmak's picture

Let's just wait until we see the VIX prostate exam with the fat finger before thinking that the algos are broken. If VIX is pushed down hard and the markets don't rally (or VIX resists being pushed down), then I will start to begin to think a little about the possibility that there might be an idea leading to the hope that things might normalize within this decade. heh.

Wed, 11/19/2014 - 11:32 | 5465261 yogibear
yogibear's picture

With the Yen dying the dollar will follow in a few years. Maybe sooner if they all plan on jumping to a SDR based fiat.

Wed, 11/19/2014 - 13:19 | 5465822 lasvegaspersona
lasvegaspersona's picture

yogi

The SDR is a Willie/Rickards induced hallucination.

No country of size will give up the ability to create and control it's own fiat currency. They are the only medium of exchange that will keep 7+ billion people in wheat and oil.

What will change is the idea that the same smoldering pile of paper and digits we call currency is a satisfactory store of value. The world can handle fiat currency. It cannot tolerate losing everything each time the geniuses at the local central bank submit to political pressure and over print the dollar/yen/whatever. Eventually gold will be selected again as the best store of value. It's repricing will be amusing, mostly to those who hold some. Those who do not will just watch the world collapsing and may not even notice that some folks are doing OK.

Wed, 11/19/2014 - 11:38 | 5465282 SickDollar
SickDollar's picture

Fuck the VIX, no one cares about the risks/ principles anymore

bitchez and blow only

 

Wed, 11/19/2014 - 11:50 | 5465339 starman
starman's picture

Don't you all see? Its all about whos got the most positve charts! 

 

Wed, 11/19/2014 - 11:56 | 5465382 SheepDog-One
SheepDog-One's picture

Please Fed, come SAVE US! We're all skin n bones here at all time high peak everything! More porridge, please??

Wed, 11/19/2014 - 13:55 | 5466001 max2205
max2205's picture

These rips in IWM are looking moar bearish

Do NOT follow this link or you will be banned from the site!