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The Entire Farcical 2014 Market Summarized In One Chart
If someone had just woken up and missed all of 2014, one look at the following chart of the S&P is all they need to know what happened:
In brief: the 45-degree "bottom left to top right" levitation on negligible volume that started several years ago, continued throughout 2014 with virtually no substantial incidents. In fact, every time there was an interruption, some central banker - be it Bullard or Yellen - stepped in and talked the market right back up, something even the BIS mocked a few weeks ago when it said:
... it would be imprudent to ignore that markets did not fully stabilise by themselves. Once again, on the heels of the turbulence, major central banks made soothing statements, suggesting that they might delay normalisation in light of evolving macroeconomic conditions. Recent events, if anything, have highlighted once more the degree to which markets are relying on central banks: the markets' buoyancy hinges on central banks' every word and deed.
Which is also the explanation why for the 6th year in a row hedge funds have underperformed what was once a "market", and is now merely a "confidence building policy instrument."
And yet, there are still those who still follow every up and, so very rarely, down-tick with morbid fascination. It is for their benefit that we present what in our, and Nanex's, opinion was the absurd chart topping an absurd year of the most absurd "bull market rally" in history.
Presenting the Top 10 WTF moment of the broken market of 2014: the last second December 18, 2014 flash smash in the SPY. Because for all those who think 2094 was the all time high in the S&P, think again: according to whatever algo was trading the SPY 4 seconds before the close on December 18 the real all time high was actually 2130: appropriately enough, a fake "all-time high" attained only thanks to a algorithmic glitch.
Here is the moment of panic to push the SPY at all costs higher by 6 (60 S&P equivalent) points higher in what is a clear example of attempted momentum ignition by an unidentified trader, gone epically wrong, and caught for posterity thanks to Nanex.
That in itself would have been bad enough. But where it gets worse is that as we reported two days ago, virtually every futures exchange has now banned manipulative momentum ignition trading. Keyword being "manipulative."
And the punchline: in any other market, except one manipulated by central banks themselves, the party responsible for the erroneous trades would have immediately stepped up and attempted to bust these "erroneous" trades: after all whoever bought the $200 million, or 611K shares, of SPY up to 3% above market, lost millions in the process.
But then again, if that someone was an entity that didn't want to be unmasked and revealed as responsible for engaging in market-wide momentum ignition using the HFTs' favorite DirectEdge exchange, the multi-million cost of not DKing the trades would be worth preserving one's anonymity.
Which explains this:
- ALL TRADES IN 'SPY' WILL STAND
And this.
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Holy Rigging Batman!
Get to work Mr. Yellen!
Fuck Buffett. He's a pirate who never saw an insider deal he didn't abuse. Go strum your fucking ukulele you old douche bag.
Charts like this are useful but you need to look at them in reverse with a mirror...
Look out below, you mooks...
DaddyO
Joke time (but relevant to what is happening:
One man is on a tight rope 200 metres off the ground and another is getting a blow job from an 80 year old toothless woman. They are both however thinking the same thing.
What are they both thinking?
Scroll down for answer.
Don't look down!!!
"FIVE FACTORS LIFTING THE DOW"
That's cute, USAToday, but that's four too many.
So my unborn grandchildren are buying a stock index fund via the FED?
Your unborn grandchildren don't own the Fed - the Fed owns THEM
Your unborn grandchildren are funding the stock index fund of the FED.
Both my kids think it would be unfair to bring another human being into this asylum, so I doubt my unborn grandchildren have a thing to worry about.
Your unborn monetized pieces of feces you mean.
Fascism doesn't care about the unborn - record bonuses today, tears for queers tomorrow, holmes.
Twilight Zone
The Sixteen-Millimeter Shrine
http://www.hulu.com/watch/440822
Hulu? people still watch shit with commercials???
I don't get out much so I didn't know...shocking
oh so appropriate if that print stands permanently as the all-time high for this "unrigged" cycle.
The purpose was for it to stand. It's a cheap investment in conning the algos into thinking that all time highs are still ahead so it's safe to buy buy buy. I agree that having that spike staring at futures generations as a monument to what this market represents will be priceless. Fingers crossed.
The Archdruid (good most weeks for a giggle) has a really good quote this week:
"Mind you, cheerleading of a distinctly Pravda-esque variety can still be heard from those pundits and politicians who are still convinced thatpeople can be talked into ignoring their own experience if they can only be force-fed enough spin-doctored malarkey. That sort of enthusiasm for the glorious capitalist banker’s paradise has plenty of company just now; I’m thinking in particular of the steady drumbeat of articles and essays in the US mass media wondering aloud why so many Americans haven’t noticed the economic recovery of the last four years, and are still behaving as though there’s a recession on."
http://thearchdruidreport.blogspot.ca/2014/12/the-cold-wet-mackerel-of-r...
And his title for the week "The Cold Wet Mackerel of Reality" is also pretty good
A similtude of US economic policy.
Im bankrupt but have unlimited asccess to credit cards. I hire crooked accountants, attorneies and propagandist to make my broke state viable and credit worthy. With fradulant status and numbers in hand, I successfully apply for bank laons to buy or build unlimited numbers of mCmansions I cant flip or rent. Anyone crying foul is threatened by my minigun militia.
Well, god damn!!!
S&P is 300 % up since March 2009; the DJIA is 275% up .
That says it all. As the only thing that can match that in the economy is the CB balance sheets! All debt!
Your giving them way too much credit, the mark to Unicorn is responsible for at least half of it.
On a mark-to-market basis, the Fed is waaayyy broke. Enter the IMF...
Aren't they broke too?
If you can use a laugh - https://www.youtube.com/watch?v=M_3T-Af57Pg
Bingo! FASB 157 to the Fascist rescue.
Short the piss out of this fraud-pig, but but ZH is all long...
It's not the size of the DOW that matters, rather, it's how it's used!
Happy fucking New Year...
and to you and yours.
I start the year off wondering if 2015 will be the year of the great reset..... I pray that it is, the sooner we get to it, the sooner 20 years perhaps we get through it
I just want to live long enough to see those responsible for the mess held to account.
Once they are, things will change.
Too bad for you justice is monetized.
Until fists fly you are the spineless pussy waiting to be robbed - yet again -.
When are you (or anyone else) going to actually do something?
What is your plan of action, if any ?
It looks like a chart used in a cartoon used as a backdrop for the joke punchline. Maybe that's exactly what it is.
"I am the last bear."
When I have finally capitulated, the market will collapse.
Because they've been waiting for my nickles and dimes before pulling the rug out from under y'all.
Thing is, I'm not going to capitulate. So stay long. Happy 2015.
Unless one of y'all is the real last bear.
"And She's Buying a Stairway to Heaven"
Satan is androgynously a she. She rules this place and is trapped. She is constantly trying to break on through to the other side into heaven forever
And at times and places everything here is a part of presenting that story and its numerous underlying components through every different means, shapes and sizes possible. Including this 1 chart
It may be difficult for some of you monsters to think of an ugly Phoenician troglodyte as a master magician who can levitate something from nothing with nothing but spells. But that's what you see in this 1 chart
Do you really think Cern is being built to smash things together and find the God particle so that we can all live together in peace and harmony in the universe?
If you do then invest heavily in my upcoming crowd funded Globalist Death Cult Hedge Fund in 2015 (See previous post). You may die due to your ignorance but you'll die an obscenely wealthy man or female
ZHers will get confused if you suggest BIS at odds with the Fed. Most here believe that all CBs are a cabal working against 'da people'. Some of us see a different set of contestants. The dollar is in trouble and will ultimately fail. The ECB would like to be there to at least provide a medium of exchange for international trade when it does fail.
Where Russia and China fit in I'm not sure but it is likely we are moving toward a system of (relatively) unmanipulated currencies, floating against each other based on trade balances and gold rather than a single currency being used as 'the reserve'. This gives the advantage to the producers of the world and leaves the USA in deep trouble. With it's currency gone it will need to find a new currency and begin again to build an exporting economy...oh..it's number one export now, financial instruments, will not be needed. There will be lots of work to be done in the US when the big day comes.
http://fofoa.blogspot.com/2014/12/global-stagnation.html
Wowza, that looks like a fantastic read. Thanks for sharing. I'll surely be back to comment on the insights gained.
+1 re "ZHers will get confused if you suggest BIS at odds with the Fed" - the confusion is even greater if you point out that the US Congress is at odd with all the other members of the IMF, which ask for a share increase and rebalancing, a separate IMF issue from the BRIC request for more SDRs