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Chart Of The Day: Who Is Buying?
At the end of last month we noted that stocks were entering a dangerous period: the "buyback blackout" that surrounds earnings. As we've documented exhaustively, stocks have benefited handsomely from the corporate share repurchase bid and so in the absence of demand from cost-insensitive corporate management teams, and with households and institutions both selling as outlined here, the following chart, which shows that equity flows are aggresively negative, comes as no surprise. Having said that, stocks are at record highs begging the question: "who is buying?"
From BofAML:
Big decoupling in recent weeks between US equity flows and prices (new highs today –...correction risks will grow in absence of fresh inflows in coming weeks.
We might ask the following: is there someone (or some central planning agency) out there buying ES or spoofing to push the market higher without ever actually buying anything? One never knows — perhaps Kuroda's plunge protection is now operating outside of Tokyo.
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<-- Everyone
<-- No one
correction risks will grow in absence of fresh inflows in coming weeks. This statement is a capituation that this whole thing is a ponzi
Computers, bitchez....
They hold for sub seconds...buysellbuysellbuysell
No newtons law here.
It is better to aim your spear at the moon and hit an eagle than aim at the eagle and hit a rock.
Fuck it, take this market to the sun.
Nothing better than having our whole economy and future held up by a big steamin pile of bullshit.
Watch out when that pile goes cold.
Yea right and even though u might wanna short high against ur daddys daddys bet in the Great Depression ....silver and gold....
We had the boring lecture how the powers that be will cheat the fall to not....spook the masses.
Still hoping the pay out to bad their isn't a short dollar pay actual gold.
My uvxy still must be doing good divided by the square root of assses time must be still valiable at this time or the bombs wouldn't fall upon the good shit and DISSAPPEWAR
But yea... Shorting high yields be foolish thes days....neater $
Huh??? WTF??
This is your brain on drugs.
http://i.stack.imgur.com/U0dWp.png
Gargle translate is my bet
Chumpanzees, a sub-genus of a (paper)silver-back and rhesus monkey.
I want to know who is selling.
Left hand to right hand. No selling, just pushing equity up.
Exactly company A owns company B and C
Company B sells shares to C for higher price, Company C sells to B for higher price
If anyone else tries to snipe the bids before B or C complete their transaction Skynet cancles the order for the insiders and the game continues / rinse repeat and the equities stay in the same hands but the prices continue to rise.
This pushes the books of the companies manipulating the markets higher through the roof... but in reality if they ever actually needed to sell the floor in the market would drop through the earths core, back out the other side until it has gained so much downwar momentum that upon exiting the earths crust again it somehow magically gains value and goes up because Down on the North pole is UP on the south pole.
Its all science and global warming, don't you watch the news?
"Its all science and global warming, don't you watch the news?"
WTF is al gore still buying????
Exactly, the larger issue is – who’s selling? By definition, the only way to rise on such low volume is the absence of any real selling pressure. Instead, institutions, afraid to add at “all time highs”, keep buy orders down at major daily moving averages, which explains why we often bounce strongly. At the same time, major public funds, largely headed by fundamental types, can’t stomach major new buying at these “valuations” but also doubt any rate hikes will come for 12-18 mths, if ever.
With volume muted, predatory background algos easily take us skyward, after the initial bounces provided by institutions and corporate treasury stock depts. These same algos, after sensing a lack of “breakout” follow-thru orders, take us back down. The overall northerly trendline perhaps comes from drip-by-drip automatic 401(k) contributions being put to work. Some think this is the inflection point either way, remains to be seen.
Sounds plausible. KCS, every now and again, on IWM, we get a real flush for maybe 2 days, sometimes just one. By flush I mean 1-2% (the new normal I suppose). Anyway, the "flush" is not even on tremendous selling pressure, it seems to just happen. What's your explanation for this?
I’ve given up on the Russell, switching to the QQQs . . . just in time for the AMZN earnings leak and the frothy-mouthed rabies ramp, like we used to see in RUT in days of old. My theories on RUT’s untradeable behavior have included: a) Euro QE allows hamfisted buying by dealers and CBs, screwing with ‘reliable’ tech indicators; b) major public fund reallocations from lg to sm cap due to dollar fears; c) new, faster predatory low-volume algos. Like most of life, it’s likely a combo of all 3, plus 17 more I haven’t thought of.
Ok. So the IWM is now a piece of shit. It was semi predictable for awhile. I havent traded much lately due to shit like this. Running out of tradeable vehicles it seems.
You may only fool with etf's but nflx had a breakaway earnings gap. It pulled back just a tad last week on nominal volume. It is an issue that seems to thrive on options activity and upgrades etc.. on/ 1 day before weekly options expirations. Much like lnkd, it is a highly manipulated issue imo. With that said, barring some kind of market outlier this week they'll probably ramp the pos. Might be worth a look, though if I act on it, no doubt I'll have to hold my nose before and during my purchase.
Midgets
One legged, lesbian, limbo dancing midgets.
That chart should be titled, "The Smart Money Getting Out."
euro QE. 2billion printed EVERY DAY. at least 1/3 of which is going into global stock markets. 600 million of hard cash to global markets doesn't sound like a lot, but it probably gets levered up 50 to 1 so long as banks don't have to actually have reserves anymmore---not that they ever did.
so for every 600 million they print everyday. that could potentially bring in 50 billion of leveraged gambling money that is literally created out of fractional reserve air.
monopoly money folks. and it's ALL electronic, don't even have to buy ink or cash delivery armored cars.
If possible to spoof the market higher without buying anything, why not run the S&P on up to 5000 and make everyone filthy rich? What could go wrong?
Ding, ding, ding.... we have winner. Now please report to fema camp 187 and wait for further instructions.
The fed is buying. WTF it's free printed money but the future ownership will be 100%.
Those pleebs that will get rich will shortly be poor, so that we the special elites, doing god's work will have even moar. Then once the crash the blame will be spread out amongst everyone. Let the killing games begin.
Jim C ? buy buy buy....my trust fund...they know NOTHING, NOTHING
Tyler let me enlighten you.. No selling will ever occur. The boys have all learned ..DO NOT SELL...Corporations buy back and CEO get rich and richer...Money Manager,s keep it going...EVERYONE KNOWS there is no door large enough...keep the party going..
And as we wind on down the road
Our shadows taller than our soul.
There walks a yellen we all know
Who shines white light and wants to show
How everything still turns to gold.
And if you listen very hard
The tune will come to you at last.
When all are one and one is all
To be a rock and not to roll.
Buzz, what a coincidence, I'm putting the finishing touches on a "Stairway to Hell" parody to post in a day or two (though I didn't do the whole thing, otherwise it'd take up a whole page)
Awesome! Can't wait to hear it.
Have you ever done a parody to Don McClean's Miss American Pie?
Thanks, Yes, I actually did it twice, once when the NASDAQ had that long outage, then again when QE ended, both done quickly during lunch, perhaps not the greatest parodies, but a few excerpts:
We said bye-bye to open outcry
Sent my orders to the NASDAQ, but the NASDAQ was dry
As hedge funds switched from trading GOOG to SPY
Saying: “This'll be the day that I die,
this'll be the day that I die”
Let’s go back to open outcry
NASDAQ’s too complex – we must simplify
Can’t get a freaking quote on BBBY
This should be be the day that it dies ...
That's Boss. Figured you had, that's like setting it on a tee for you.
Looking forward to Stairway To Hell. Look at it on the bright side, when they finally do shut this thing down and no trades can be made, you have a fallback plan. Me, I got nuttin.
100 parodies and 90c still won't get me a cup of coffee :)
Hey KCS.... send me your fax number and I'll fax you a cup of coffee....you deserve it!
Don't have a fax (can't afford it, cuz I'm a trader), but I've discovered the absolute best cheap supermarket coffee, for only $5 a bag: "Seattle's Best" #4 (medium dark), but make sure you get #4, #3 isn't as good (haven't tried #5 yet, perhaps if my equity curve turns north ...)
hmmmm.... still addicted to kona coffee.
http://www.coffeetimes.com/
Wow, prime stuff, you must've been using one heck of an algo in your trading
Dig dig dig your way out.
I'll give you high frequency sensations up and down your spine
If you're into evil you're a friend of mine
See the green numbers flashing as I split the night
Cause if sellin's on the left then I'm yellen to the right
I won't take no prisoners won't spare no lives
Nobody's puttin' up a fight
At the closing bell I'm gonna take shorts to hell
I'm gonna get ya satan get ya
Hells bells
Hells bells, you got me banging
Hells bells, my index's high
Hells bells
HFT, Yellen & Satan, the Trinity all in one parody, Bravo
there wont be a stock market crash. the CB's wont allow it to happen. thats a given.
The mistake ZHers are making is they look at the fundermentals, instead of finding out exactily/factually what the CB's are really doing. a whistle blower would be good.
todate the CB's have saved the banks and bought time for the governments to fix fiscal policy.(which no goverment has)
printed up $4 tillion with no hyper inflation like germany 100 years ago.
my guess is the governments are assuming time will heal the economy.
the potential black swan is the petro dollar. if OPEC ever accept yuan for oil, thats when the USD goes way down in value.
"...
The mistake ZHers are making is they look at the fundermentals, instead of finding out exactily/factually what the CB's are really doing. a whistle blower would be good.
todate the CB's have saved the banks and bought time for the governments to fix fiscal policy.(which no goverment has)
..."
you have been here 5 weeks and concluded that ZHers only look at fundamentals?
ZHers shold be trying to find out what the CBers are doing?
hilarious
has end less articles got to the facts?
that big crash hasnt happened
what is needed is an Edward Snowden with irrfutabe hard data that confirms in detail what is happening.
the horses mouth.
fundamentals probably not the best choice of word.
I wish ALL of you PUSSY PINKO COMMIES here on ZH, whon WORSHIP at the feet of the Fed, would please GROW some GONADS and realize the Fed CANNOT prevent a crash---quit SUCKING at the Teat of these unelected academic MORONS who have never WORKED a day in their lives who cannot prevent NATURAL ECONOMIC LAW from happening! I'm ashamed of any human being who is such a CONFORMIST Bootlicker who cannot think for themselves! Get insight you FOOLS!
We all know about the ponzi scheme, and the theft, and etc etc....What we all dont know, is when this is going to collpase...This October? Next Ocotber? October 2017? As you have read a million times, its not "if", its "when"....and to add to that "how" will it end..
THe most important questions, that nobody has the answer to.. I guess we are nothing more than sheep and wandering around the field waiting for slaughter.
I don't know but I been told, a big-legged yellen ain't got no soul.
Squeeze my yellen?
U seeing those bonds tonight? On Bloomberg ticker or wherever!
The Fed, with printed zeros and ones they are not going to tell you about. EVA
ZHers aren't buying, and have lost a ton of money since '08. Paralyzing fear and paranoia, bitchez.
Is this the autobiographical section?
Devo get u not buying it since of 08 ah been but hung how sucky this economy ...
Doesn't mean they wring up in wrong obviously in the out off of Kiki reality after all bombed to smitheriins by the gnashing tethers who can't get enough money for all the poor.
Aint that right little ms armaggaden whore... Delete buuuutie buttwans but of course god complex' ~. Needs no s
Yes I have and I'm damned proud of the fact.
at some point, if we are to survive this madhouse shit storm, we are going to have to accept that our motive will not be to "profit" but earn. The great dream that we can all be rich by sitting at our computer trading chits is as much madness as anything I can think of.
ZHers dont invest in shit mate. Moreover, most ZHers trade this market. And lastly, you can't lose what is never bet. So I, along with hundreds of others, don't have a fuckng clue what you're talking about.
Hi Troll, welcome to fight club. Who's a zher? I made a lot of money in the markets from 2004 until now , and I'm looking forward to paying a lot of taxes on my investing profits this year.
Japan - they could care less about revenue shortfalls and high pe's. That is the answer to any question over the next few years as to why the US stock market continues to rise. Learn to live with it.
stateside
Cool w that as how long of an investment now?
ponzi schemes always crash, there is no way to make them last forever.
the goal in this administration is to make it hang on till they can pass the buck to the next administration...but is it too far gone already?
guessing when the crash comes is nearly impossible....usually it is way overdue when some totally unexpected black swan tickles it just right.
place your bets to the downside, watch out for counterparty risk, stand back, and be very very very patient.
Funny that these Pinko Fascist Commies think they will get away with the fraud they have perpetrated. Fat chance. There will be lawsuits and clawbacks for DECADES to come!
Price is controlled. Price is chosen. It is programmed in. There is no free market. Price never needs to have anything to do with supply and demand pressures ever again.
Volume has seemingly been down about 1/3 for the last month or so.
<<< I'm short fiat, bonds, stocks et al.
<<< I'm buying it
My allegation: Either the US Fed or it's proxies (like BOJ) are buying equity securities in the open market. They think it's a really great idea because they are not audited, so they think no one will ever know.
The guilty party is Al Gorythim.