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Biggest "Plunge Protection" Buy/Sell Imbalance For 2015 Halts Market Slide
Despite the ubiquitous pre-open ramp in stocks, it appears 'investors' want out in a hurry. With The Dow having fallen 150 points from its overnight highs - testing towards multi-month lows, Nanex points out that suddenly a bid arrived... the biggest buy imbalance of 2015 so far exploded into e-mini S&P futures and managed to save stocks from falling (for now).
The rescue bid arives...
in dramatic size!!
Plunge Protection Team? or dry powder dip-buyers manically trying to catch a falling knife on no news?
You decide...
* * *
It appears they have more work to do...
Charts: @NanexLLC
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You, Me and The PPT.
The USA is getting ready to export the depression that never happened.
When the Fed tightens the USD will soar, I mean really soar as the EUR, BOJ and CNY are all stuck in QE.
Commodity currencies will crash and burn (even more than now) as the dollar crushes commodity prices and commodity currencies. There will be an epic flight to safety.
The Fed is ready, the BOE are following the Fed and the rest of the world is going to be demolished.
Commodity prices at the lower bound and a giant influx of foreign and repatriated capital will drive the US economy and inflation into supporting a self reinforcing rate tightening cycle.
If the USD soars then any semblance of an export or job market here in the U.S. will collapse as our exports become too expensive and labor here becomes so ridiculously expensive compared to all other nations. A strong USD means depression everywhere, not just outside the U.S. Some lucky few (upper 10%) will have purchasing power, and the rest of America will be f-ed.
Go and look at the US current account balance. Imports thump exports.
Ironically asset prices in US will deflate as economic activity picks up. Such is the exit from ZIRP.
They're gonna need a bigger boat. Bounce over, still dropping.
When the worlds reserve currency begins to tighten and every other currency on the planet is either in full swing QE or on the wrong end of a commodities blood bath, then all the free capital in the world is heading back to USD.
If you don't see that outcome, then I can't help you.
The USD is going to fly. It really is.
What is everyone gonna buy? UST. And thus the circle is complete. Will UST fly? No, because someone is looking to exit a gigantic UST position.
Correct me if I'm wrong, but the logical end to your scenario is simply far greater inequality, right?
along with flight into the USD and UST will be dollar denominated assets---I agree with you OM --and I've said that the FED will tighten on here many times--The FEDs main thing is the USD---it will protect that.
The term free capital implies that this capital is liquid. I think you are overlooking capital that simply vaporizes in 1s and 0s.
Looks like we need another "Biggest" First one may not have been big enough. Or maybe Yellen leaked tomorrows NFP number to her friends.
Which 'assets', and how will the deflation/liquidation of said assets affect the downstream economy that said assets support?
That's always been the case, and it must be the case if you're going to have a world reserve currency.
However, you have to strike some kind of balance, unless you want your *only* export to be your currency (which financializes everything). Right now, exports of goods and services from the U.S. is the only thing keeping the feds receiving any tax income they didn't print first.
Vix 13.3
So the only people with fear is the PPT?
Exports only represent around 3% of GDP
What planet are you on and what amateurs are upvoting this goofball?
The ONLY things that the US exports are inflation and terror.
I've been thinking about that scenario too. The fed could raise rates for geopolitical purposes, having nothing to do with the economy whatsoever. Not sure, but a thought.
You are about to enter another dimension, a dimension not only of sight and sound but of mind. ... Because, you see, fate can work that way in the Twilight Zone.
https://www.youtube.com/watch?v=NzlG28B-R8Y
You'll have geopolitical confrontation - which is fancy way of saying 'War', before what you suggest materializes into anything of significance. This is not 2008, and despite the myopic view that the universe still revolves around planet $DX, an awful lot has changed since then. In any case, we're about to find out in short order either way.
Yes there is going to be a much larger run into the USD, but not because of some for-show-only 25 bps "tightening."
and the SNB.
Someone decided at 10:48 that SPY was a great deal and has been gobbling up shares ever since despite a falling price in the underlying. I guess futures weren't enough
Hmmm
China this is how you do it OK.
You're going to have to turn it up to eleven Kevin.
Hey, I'm a poet and don't realize it.
PPT only operates in corrupt China. We have free and fair markets in the West since at least January 1988 per the free and fair financial press here.
"Ambulance" is the contraction for "buy imbalance". I looked it up.
Plain and simple, this is economic warfare waged by the Fed/CB against all others that don't do as told. When it comes down to it, do we really think the Fed/CB cares about the other CB's?
All of the CB's are controlled by the same handful. What you see is a coordinated plan. That is why the NIRP, ZIRP, and QE are rotating from CB to CB. The shit show will go on till the bubble is big enough to break everything when it pops.
They may be 'connected' in a sense but do you really think that our CB will allow itself to be the last out the door once 'the bubble is big enough to break everything'? Don't think so. There is no honor amongst thieves.
Its not about stealing, they have already done that. Its about greater control. These psychopaths want a permanent slave class.
I would say 'they continue to steal'. As far as the control -same rule applies-no honor.
Above the Law, Unlimited Money Printing and Unaudited. Come out and play.
Dip buyers on what is traditionally the quietest trading week of the year? I don't think so. This smells PPT all the way. Not saying that it will hold, but the PPT is trying.
I still can't see the school of fish on that screen shot of the sonar. anyone?
Hope this is right, as I just got out of my beloved TZA at the RUT 200DMA and SPY 150DMA, and with my luck PPT turns out to be a spoof and we head toward the Daily Keltner. In reality, I was prepared for buyers to come in either here or a half-pivot below the DMAs, always a guess. As I type this, nascent signs of major DMA defenses, not a crazy thing pre-JOBS, algos seem to trace out best & worst case scenarios and end in the middle, I won't be shocked if 1/2 or more of downdraft gets retraced, though with single digit Stochastics, we could always see another down leg without a coincident VIX slam. Big bowl of popcorn for traders today ...
Beware trading these very thin markets. Lots of noise.
It's my daily profession, so I use noise-cancelling headphones. (HUGE volume short-term candles in the 11:24 - 11:28 range, should know soon whether PPT is real or just a spoof to use dippers like Jupiter's gravity to propel us another parsec farther)
How come the PPT doesn't step in to help gold when its clobbered?
Tradition
You mean the TBTF?
Alex, strapped down, eyes peeled open, with Ludwig Van's Ninth being piped in; I'd dare say he had it easier than an outsider staring in at these markets.
Unfortunately it didn't work...
When you slide into recession, again there is no PPT that can save the market. The market will do what it has to do and if you try to stop it is going to react even more strongly. The PPT and the dammed Fed should get the f..k out.
The Biggest Federal dip buy of 2015 just a couple daze and % points off the all time high nasdaq squirt.... Wet cleanup on aisle one.