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S&P 500 Surges 5.9% - Biggest 2-Day Spike Since Fed Announced QE1
The 5.9% rise in the last 2 days is the largest for the S&P 500 since March 11th 2009 - when The Fed announced QE1...
In October it was Bullard, this time it's Dudley...
As an addenda, we note that a 'death cross' is likely to occur in the next 2 days for the S&P for the first time in 4 years.
Trade accordingly...
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Yesterday, in response to johngaltfla's comment:
"Yup, and there are some very special dates on the September calendar IMHO...
The Potential Death of the Stock Market will Happen On…"
I responded:
Nice, except you should not have picked September like everyone else also did, but August. Most of the damage as it relates to stocks is already behind us for this year. I would bet that the S&P500 will be higher by the end of this year.
I received 2 upvotes and 17 downvotes.
This is an excellent bullish indicator! 88% of the voters are bearish. They will watch the well advertised dangerous September/October period from the sidelines, as the fed driven "markets" go higher.
That's special.
This is where you got it wrong. "Voters" on here are not a representative sample of those still trading or investing in this madness. The sample you picked is tainted, more specifiaclly, the sample is AWARE.
Rethink your premise before you get hurt.
To make sure the stock markets always get a bid, the Fed should make it mandatory that they have a Jackson Hole meeting every fuckin week.
I am so close to turning off my brain and becoming a 200 DMA "trader."
Oh wait, AG & AU are still cheap. NVM.
Now that the "market problem" is solved, Mr. Yellin should feel comfortable with a Sept rate hike.
Waiting to see your words be a headline...
In the new ab-normal and given the Fed's desire to creatively engineer "recovery"...perhaps worth considering.
Rate Hikes and QE...Simultaneously?!? Actually, Yes!!!
http://econimica.blogspot.com/2015/08/rate-hikes-and-qesimultaneously.html
Chesapeake is up 10% on the S&P, so things are shiny in the energy sector, at least until they default.......
While you might be right -- the Fed can eat shit for only so long.
How long is that? I don't really know. But what makes a market a market are long gone -- its all Soviet style propaganda from hereon out until the whole thing comes undone.
Much like we poked fun at the USSR back in the 80's for pouring a foundating and marking the building as complete for GDP purposes -- once a system becomes dependant on funny numbers & accounting trickery -- it can never "come off" that system until failure.
I would have upvoted you though.
You mean the Criminal UNITED STATES, CORP .INC FED? Based on the following I beg to differ:
Personally, I don't know why I continue to waste my time posting here. Based on the followimg post I posted yesterday.
The vast majority of ZH's especially the veterans here understand fully that there are no more "Bear or Bullish" markets. There's only Fascism & Ponzi.
"If central banks purchase stocks in order to support equity prices, what is the point of having a stock market? The central bank’s ability to create money to support stock prices negates the price discovery function of the stock market."
-Dr. Paul Criag Roberts
"These questions came to mind when we learned that the central bank of Switzerland, the Swiss National Bank, purchased 3,300,000 shares of Apple stock in the first quarter of this year, adding 500,000 shares in the second quarter. Smart money would have been selling, not buying.
It turns out that the Swiss central bank, in addition to its Apple stock, holds very large equity positions, ranging from $250,000,000 to $637,000,000, in numerous US corporations — Exxon Mobil, Microsoft, Google, Johnson & Johnson, General Electric, Procter & Gamble, Verizon, AT&T, Pfizer, Chevron, Merck, Facebook, Pepsico, Coca Cola, Disney, Valeant, IBM, Gilead, Amazon."
-Dr. Paul Craig Roberts
+1 Please keep posting here bro...
Whether thay always were or just become so over time, the Central Bank cartels have become what people always feared they might be: oppressive counterfeiting operations that force their populaces to trade their productivity for worthless fiat trade tokens.
The classic model of banking did not entail counterfeiting and/or expropriation of the means and/or dividends of production.
That was always the intended outcome as outlined in The Creature From Jekyll Island.
It's ALL 100% organic!
Look Ma, NO hands!
To da Mooooooooooooooon!
Look what "less compelling" did.
So Dudley pretty much guaranteed QE4 then?
Bullard said it was possible and the market rocketed to new all time highs.
Does that mean Dudley will be responsible for DOW 20k?
Oil sure seems to think QE4 is a given. Hey maybe oil can jump to $90 by September 15th and we can have $6 gas.
Been saying it for over 5 years. QE forever....
We can get destracted by this or that, but moves here and there, changes in the market, changes in world finance, changes in the day of the week. But in the end, the US and just about every other government in the industrialized world is bankrupt and can't even service their own debt without printing money and buying it themselves. It CAN'T BE DONE! Thus to keep it going, you have to kick the can.
How many ways can it be kicked? More than I thought possible. But it is kicking, there is no doubt about it.
OT: relative...LBMA
https://www.youtube.com/watch?v=rIeehXsr4dE
"Have a nice bag of $hit, don't think about it or you'll miss it"
They couldn't cope with even a this hint of a correction.
Says it all really. This world is built on sand.
Exactly. Unbelievable all the talk of QE4(eva) and delayed rate hikes after a small puke from the DJIA/S&P even with all the macro "data" coming in so "strong." Can we at le back away from the hooker a few feet before asking for another line of blow??? This is beyond ridiculous, and I will have no sympathy for the parties responsible when they finally receive their come-uppance.
AND IM SURE THE SURGE IS ALL DUE TO '' INVESTORS'' WANTING TO BUY THE FUCKING DIP AND NOTHING TO DO WITH FUCKING GOLDMAN SACHS AND JP MORGAN PUMPING UP THE ''MARKET'' TO SHOW ''INVESTORS'' THAT EVERYTHING IS FUCKING AWESOME AGAIN.
PUT JAMIE DIMON AND LLOYD BLANKFEIN IN JAIL RIGHT FUCKING NOW, I HATE THOSE BASTARDS
These swings are complete crazyness.
So what's on deck for tomorrow is paper mania land?
Maybe 5 percent in both directions.
Reminds me of 2008.
QE4 is in the bag everyone knows it.... plus ppt
Its all computers playing with each other now.....one day down....the next day up....they are not buying a company..they are buying a spread that they can make with their computers.....who cares if there is a business behind the stock and employees...its just a money game today....a penny here wins..if you can do it two million times a day
AND HOW AMAZING, NOT AN OUNCE OF VOLATILITY ON THE WAY UP THE LAST 2 DAYS,, JUST STRAIGHT GREEN ARROWS.
Seems normal. Now that confidence is restored, why would anybody sell on the way up.
Everything is awesome and we just have to accept that now.
Remember that fruit vendor in China trading stocks on his laptop in the street a few weeks ago?
That story died down, but somebody found that dude and it was discovered he was quite successful, for he was diversified. In addition to being a fruit vendor and trading stocks, he also sold monkeys using items found in his fruit cart.
They asked him: "How do you do that?"
He said: "Do you know how to I catch monkeys? I hollow out a coconut, by making a hole in one end just big enough for the monkey to slip in his hand. I Insert some bananas inside the coconut. Then I screw a strong eye-bolt into the other end of the coconut. Then I hook a rope onto the eye-bolt and tie the rope to the roots of a tree. Then, I scatter some bananas around the coconut... and then I leave.
When the monkeys come, one of them will see the bananas. He/she signals the rest of the monkeys to scoop up the bananas. When all of the bananas laying around the coconut are gone one of them will pick up the coconut and stick his hand in the hole, clutching the bananas inside with his fist. When he tries to pull out the bananas, his fist is balled up and he can't get his hand out the coconut.
All he has to do to is open his fist and let go of the bananas, but he just won't do it. He tries to pull on the coconut, but its tied to the tree. He struggles and he pulls at the coconut until he's exhausted.
Later I can come back to find a tired monkey who's been caught by his own fist.
I just throw him in a cage and bring him back here and sell him."
The Bullard Strategy worked again. When the Fed doesn't raise rates next month, you may have enough gas for a new high sometime thereafter before the end of the year. This year more and more reminds me of 2007, not 2008.
The S$P is retail money so this is dumb money chasing a stabilization.
It's FED software stupid.
Yesterday oligarchs through MarketWatch ordered a double. Looks like they're getting it.
According to Guggenheim Partners:
http://www.guggenheimpartners.com/perspectives/media/the-monetary-illusion
As economic growth returns again to Europe and Japan, the prospect of a synchronous global expansion is taking hold. Or, then again, maybe not. In a recent research piece published by Bank of America Merrill Lynch, global economic growth, as measured in nominal U.S. dollars, is projected to decline in 2015 for the first time since 2009, the height of the financial crisis.
In fact, the prospect of improvement in economic growth is largely a monetary illusion. No one needs to explain how policymakers have made painfully little progress on the structural reforms necessary to increase global productive capacity and stimulate employment and demand. Lacking the political will necessary to address the issues, central bankers have been left to paper over the global malaise with reams of fiat currency.
With politicians lacking the willingness or ability to implement labor and tax reforms, monetary policy has perversely morphed into a new orthodoxy where even central bankers admittedly view it as their job to use their balance sheets as a tool to implement fiscal policy.
One argument is that if central banks were not created to execute fiscal policy, then why require them to maintain any capital at all? Capital is that which is held in reserve to absorb losses. If losses are to be anticipated, then a reasonable inference is that a certain expectation of risk must exist. Therefore, central banks must be expected to take on some risk for policy purposes, which implies a function beyond the creation of a monetary base to maintain price stability.
What kinds of risk are appropriate for a central bank? Well, the maintenance of a nation’s banking system would plainly be in scope, given the central bank’s role as lender of last resort. The defense of the currency as a store of value and medium of exchange is another appropriate risk. This was the apparent motivation of Mario Draghi, European Central Bank president, for his famous promise to defend the euro at all costs in the summer of 2012. The central bank balance sheet has proven a flexible tool limited in use only by the creativity of central bankers themselves.
In response to those who argue against the metamorphosis of monetary policy into fiscal policy, one need only point toward the impact of quantitative easing (QE) on interest rates. The depressed returns available on fixed-income securities, largely as a result of QE, are acting as a tax on investors, including individual savers, pension funds, and insurance companies.
Essentially, monetary authorities around the globe are levying a tax on investors and providing a subsidy to borrowers. Taxation and subsidies, as well as other wealth transfer payment schemes, have historically fallen within the realm of fiscal policy under the control of the electorate. Under the new monetary orthodoxy, the responsibility for critical aspects of fiscal policy has been surrendered into the hands of appointed officials who have been left to salvage their economies, often under the guise of pursuing monetary order.
The consequences of the new monetary orthodoxy are yet to be fully understood. For the time being, the latest rounds of QE should support continued U.S. dollar strength and limit increases in interest rates. Additionally, risk assets such as high-yield debt and global equities should continue to perform strongly.
In the long run, however, classical economics would tell us that the pricing distortions created by the current global regimes of QE will lead to a suboptimal allocation of capital and investment, which will result in lower output and lower standards of living over time. In fact, although U.S. equity prices are setting record highs, real median household incomes are 9 percent lower than 1999 highs. The report from Bank of America Merrill Lynch plainly supports the conclusion that QE and the associated currency depreciation is not leading to higher global output.
The cost of QE is greater than the income lost to savers and investors. The long-term consequence of the new monetary orthodoxy is likely to permanently impair living standards for generations to come while creating a false illusion of reviving prosperity.
GREAT NEWS!
https://www.youtube.com/watch?v=vYhtqys3t_4
Great buying opportunities. I think stock markets have now legs.