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Algos Vigorously Defend Crucial S&P 500 Support, Dow Hits 6-Month Lows
The S&P 500 and Russell 2000 are very close to joining the Dow Industrials and Transports in negative territory for the year. The S&P 500, which has fallen 5 straight days for the first time since January, is now back below its 200DMA, having swung from euphoric "Greece is fixed" exuberant record highs in just a week of rising volume. The Dow is the furthest below its 200DMA since October's Jim Bullard-rescued dump. Treasury yields are plunging.
Notably the S&P 500 was unable to make higher highs after testing the 200DMA for the first time since the rally began in 2009...
And The Dow is near 6-month lows...
The selling pressure pushed the S&P 500 near red year-to-date...
But the machines are holding the 200DMA line for all they are worth...
Although the bounce was clearly machine-driven to hit VWAP perfectly...
While we do not want to ring the bell - this type of ramp to VWAP suggests heavy selling pressure overhead from institutions (as machines make way for those orders).
Charts: Bloomberg
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President's Working Group and POMO desk's Kevin Henry doing everything they can to keep this market from crashing today.
Giddy up!
:)
Whodathunkit?
Some of you Algos are going to die today.
That's OK....we'll write a good letter. You might even get a medal.
The Chinese desperately need to open their entire markets to algos...they are the only things that can be reliably made to buy at any moment, regardless of newz, fundmentals, or anything of importance.
The key reason HFT was never investigaged or regulated? They are too useful to the Fed and PPT. Just punch in some desired values and boom(!), nothing but buying.
Green finish? or setting up to pull the football out again?
The screen will be green by the close today.
When valuation is so manipulated, only the volume becomes interesting.
Lucy pulls da football
" nothing but buying"
But, but, but where does the FED get the money to do that?
Oh,,,,, never mind.
/s
Skynet has the answer, it's just not the answer everybody thinks it is. I can hardly wait for that magical day when the markets set an all time high trading one share of one stock.....
Is that a new name for Kevin Henry?
Tyler you will jinx it. Shit!!!
Well now it's jinxed.....thanks a lot.
It's just the PPT...not jinxed.
It wasn't me
Yep, covered all shorts on the opening plunge...gonna sit tight and wait for another opportunity to sell some more TNA calls again.
Tip of the hat to the Tylers...even when I second guess covering a dip, I can always count on a confirmation post to set my mind at ease.
Nothing open for me at the moment. Had 2 quick crude trades this morning and nothing else. Nice trading and glad you banked some profit,.
All PPT vacations and personal days are hereby canceled until further notice.
In the early hours this a.m. i was wondering what kind of person would work for the PPT. They would NEVER be able to talk about their work, worse than the CIA or NSA. They probably all live in the Caymans specifically to avoid any "misrepresentations" if they are ever "caught"...then again it may be all algos on their end as well.
Another tax payer wall st bailout! Spend it Obummer! A little SPY, some ES, maybe a few biggies. Shopping cart full? Proceed to checkout. Your account has been recognized as US Treasury.
The more they print the less value the dollar has. This has been their short term gameplan, as "decreasing the value of the currency creates greater exports". <-- That is Keynesian policy 101, the problem with that is if it is done in extremis then the diminishing returns on the dollar are so dramatic hyperinflation ensues.
Your move Janet.
"Treasury yields are plunging" Hey! Fed/Treasury win/win - Just means they can sell/rollover a whole schmidtload more debt on the cheap. What's not to love about that? /sarc
The Chinese are selling all of their stocks,so they can invest in Netflix,and Amazon..Green by the end of the day,new all time highs early next week
I'm betting GREEN by the end of the day...
Normally a good bet, hell I'm betting green before the end of the hour!
yeah...the last hour of trading in the home of financial fraud - LONDON.
and for your reading pleasure....
http://www.washingtonpost.com/blogs/wonkblog/wp/2015/07/25/gold-is-doomed/
so fucking ridiculous...
total fucking bullshit....
look at the fucking Dow....
http://www.marketwatch.com/investing/index/DJIA
Dollar down 1%, silver's up 1%, US equity building downside pressure....
Relax,Sousa, we're just getting started
:)
Everyone knows it's rigged. It's why no one sells.
No one sells? You mean WS traders that are paid commision? Pensioners who rely on high stock and bond prices while thee dollar's purchasing power crumbles?
I don't think those people you speak of understand the level of manipulation that goes on at the exchanges. Mention the President's Working Group, a factual organization to centrally control the market, and people think you're a onspiracy theorist.
Everyone will sell when the dollar has lost all of its purchasing power and the Working Group has no gun powder left.
I know people who do not understand how the manipulation works, but still plow their money into the market because they believe the US government will never let the market go down. That belief is a belief in manipulation. And until that belief starts to crack (as it has in China) no one will sell.
Then they do not understand inflation and the dollar's diminishing returns per investment. The DJ and S&P have the same value they did in 2007. The numbers are higher but also inflated.
ppt shows up right on time to make sure things dont get too out of hand.
can they make this shit anymore fucking obvious
NO.
I love the fact that using charts in a completely manipulated market apparently has some integrity, really? I'm sure the Fed and other CBs are making sure that their manipulation strategies are consistent with good financial modeling, checking always for mathematical consistency in the context of the global economic system - because hey, they all went to college.
As you are aware; fundamentals are now only the latter, mentals. However, at some point the reality of the basics, such as the markets are becoming more and more illiquid by the day, week & month and that fundamental will rear its ugly head on a day(s) that will cause a real reset. Then rinse and repeat.
Yes, charts have value. The problem is that, as you say, the markets are completely manipulated. So, as often as not, the Fed and CBs and especially HFTs are using traditionally useful chart patterns to drive prices higher.
Say SPX is approaching an obvious (to chartists) reversal point. It stops just short of it at the end of a session. The following morning, an hour before the "market" opens, it's a very simple matter to ramp the eminis up past that point of resistance. When the cash markets open, SPX gaps up past the resistance and is off to the races. Happens all the time. Usually it's USDJPY driving the algos, but it can be CL, the euro, VIX, etc.
It's a predatory trading technique that is designed to pick off chart/harmonic based traders and has done a damn good job over the past couple of years as HFTs become more dominant. It's why active traders continue to drift away from the market and why many non-HFT hedgies have gone belly up.
Charting is a hell of a lot harder than it used to be, and it isn't nearly as effective as, say, 2011 -- when a very cool analog forecast the big drop to the very day/dollar. [http://pebblewriter.com/learn/analogs/] But, it still works -- even when it merely points out the level at which you can expect TPTB to come in to manipulate prices. For an active trader, it's of great value to know where those ambushes might be planned.
Yes, how quaint. The stockmarket follows rules and graphs and trend lines. Hogwash.
The stockmarket is one fucked up, manipulated and dishonest cess pool.
It will collapse and people will loose and complain that they didn't see that one coming.
Well, at least if we have to go by the last umpteen times the market collapsed before.
Lower lows on the 6 month chart...
CHART PORN!!!
Does anyone feel they can keep this illusion alive through the 2016 election cycle? I have a bad feeling that we may have a king named Obama. He has vowed to make it neigh impossible to buy and use guns (gun control) over the next 18 months.
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Remember this is the one who said we need a police force as powerful and well funded as the military.
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In case you doubt there is a difference between a Republican or Democrat; ask yourself how the Republicans can control both houses and not a single "veto" from the king.
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I'm thankful for food, water, clothing, AC, running water and flushing toilet and to God for all that is good.
A king named Obama? Seriously?
Let me tell you something...when the times comes, that guy won't be able to get outta there fast enough...He knows, as do they all, that shit is going to hit the fan big time, and he'll want to be far away from it when it does. He's gonna take his money and his connections and get the fuck outta Dodge. Leave that mess to Hillary, or whoever...
He may even relocate the family overseas somewhere.
Is 2064 the line of death? I can't make out the chart.
Very close to Dow Theory bear signal. S&P 2040 is the line in the sand.
I really wonder what the 'nobody saw it coming' event will be....cuz I see 'everything' coming.
Maybe, ironically, it will be someting going 'right' that over turns the apple cart.
How come the chinks can't master the markets like the US does? Dow would be down 2k points today if there wasn't any intervention. Chinks better get with the program.