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Dow Dumps 450 Points From Post-Fed Euphoria Highs, Time To Unleash The Bullard
It appears we are going to need more dovishness. Following The Fed's admission that all-is-not-well - despite every talking head proclaiming liftoff imminent - the implicit lower-for-longer dovishness of The Fed has not been embraced by the "market." It appears a tipping point in Fed credibility may have been reached... but then again it is a quad witching.
From 16,837 highs, Dow futures are now down over 450 points...
Unleash The Bullard!!
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No, shackle the Bullard. Then try him. Then, fix the problem for good.
Soooooooo bullish...
Expect the silver/gold monkey hammer to come out soon.
Indeed, Why, we can't have stocks getting smacked down and these barbarous relics rising, now can we?
-Argenta
Time to crush the short sellers. Bandwagon...wait...destroy. Fixed market.
Those days might be gone, bro. Silver appears to be busting out of the monkey zone, and this time the pin-stripe banditos are powerless to stop it. Those of you waiting for $12 AG will be waiting the rest of your lives. Including premium, we are already at $20, and today might be the day that stawks break, sending even more into the phyzz realm.
Agree mostly with you, but even now I can get 1 kilo silver bars $0.99 over spot. I don't expect that to continue much longer.
-Argenta
One can only hope. I'm being persuaded that the central banks will hammer gold down no matter what.
NIRP and QE infinity should put the barbarous relic in its place... or...
wow..that was quick..rumors were that this could weeks,days..not hours.
We have a long time until 3:30 ramp and Kevin Henry's mom has not put him on the bus yet this morning.
Mummy always makes sure little Kevin has with him his lunch box complete with a meal and some condoms. Little Kevin makes friends in all the right places.
LOL!!!
I am afraid to ask who exactly are the condoms for?
Not for nothing do government officials suck cock.
Actually I was thinking they were for his handlers for when they need their homo fix for the day.
I think you met peadophile as in London fix.
Why, they're for you and me, non-lubricated of course. Now bend over.......
momma say lock yo ass son
+1 but it won't let me use the green arrow. I feel like Kevin Henry and the etrade baby when I can't use the green arrow on ZH. I just keep clicking and nothing happens.
Its a weird quirk here where if the first letter of the post is italicized and bolded (or something like that) you can't upvote.
Uncle Tyler needs to look into this. Never know could be a backdoor in the website.
If the text is bolded or italicized has NOTHING to do with it.
If someone starts off with the BLOCKQUOTE option then the voting is hampered.
You CAN DOWNARROW ME on this easily.
I will start.
Technically why would you need a condom if you are going to get fucked in the ass?
Kevin's mummy doesn't want him getting his wee-wee dirty.
Kevin Henry is holding a thermometer up against a light bulb, hoping to fake a fever so he doesn't have to come in today.
If the market closes red you will be correct. Lets see what shitshow magic they pull today.
CFLs don't seem like such a - ahem - hot idea now, do they?
Stocks clearly need their QE fix.
"Stocks clearly need their QE fix."
I'm not so sure now. Stocks may actually rise if they raise 1/4 point. Their language changed. Something has spooked the Fed.
Reality has spooked the Fed.
This calls for Chuck Norris.
So what's your point?
You have issues letting go don't you?
Well since you're here tell me all about the Kardashians.
How do you keep a moron in suspense?
OK. I give up since you called me a moron. It's a sure sign of your superiority. You win.
I've got all day man......just let it all out.
As an outsider reading the exchange, I'd have to agree...., he won. You're looking pretty petulant right now.
People keep asking me that - I'm dying to find out.
Well since you're here tell me all about the Kardashians.
Pardon the interruption in your pissing match, but this is too important to wait--kylie is dropping the jenner brand name and Bruce-lyn is now swinging from the women's tees with Matt Lauer.
Ok, carry on.
Clearly Janet didn't take her printing press 101 class before she took the reigns from the Bernank. Maybe she needs to go back to orientation and start over.
The problem with the people who supported the Fed's decision yesterday is that they assume the economy will take off and inflation will rise BEFORE the next recession. Neither will happen, therefore, get ready for NIRP bitchez.
"When Black Friday comes-----"
next stop qe^infinity and beyond! bet the bernanke is jealous that mr yellen will be the one to pull the trigger on his helicopter drop.
She is running late, had a hair appointment with her dresser, Moe Howard
It's only a Baby Ruth, not to worry about the Dump.
https://sp.yimg.com/ib/th?id=JN.s%2fRgKy%2bR5EQkS%2fzWaVbX2Q&pid=15.1&P=...
yellen said they weren't seriously considering nirp YESTERDAY.
And the Bank of England Chief Economist said differently for the UK: http://www.telegraph.co.uk/finance/bank-of-england/11874061/Negative-int...
And the Swiss said they will never "de-link to the Euro" exactly one day before they "de-link to the Euro". This means nothing. Does a mugger tell you a day before he robs you?
yes, exactly. one wonders how they feel TODAY. the entire mealy mouthed text regarding nirp:
Fed officials don't think they will be able to hit their price target until 2018. For Mr. Kocherlakota, this failure means any move to boost rates would be a mistake. It appears that he now wants the Fed to do more to help the economy.
"Let me be clear that negative interest rates was not something that we considered very seriously at all today. It was not one of our main policy options" under consideration, Ms. Yellen said.
By and large, that is because the economy, despite facing rising risks, is doing pretty well and over time will need less, not more, Fed support, she said. "I don't expect that we're going to be in a path of providing additional accommodation," Ms. Yellen said.
That said, Ms. Yellen didn't knock the idea down completely. She said that "if the outlook were to change in a way that most of my colleagues and I do not expect, and we found ourselves with a weak economy that needed additional stimulus, we would look at all of our available tools."
Using negative rates is "something that we would evaluate in that kind of context," Ms. Yellen said.
Read more: http://www.nasdaq.com/article/janet-yellen-knocks-down-negative-interest-rate-idea-20150918-00015#ixzz3m5vWLvTg you'll notice that she doesn't rule it out at all.I resile.
vix is logical choice, but then this is a controlled market..central planning is wrong under communists but ok if it is jewish fed banksters..do not make big bets on logic. think like a criminal might work.
People trade on emotion, the "herd mentality"; if one can remove that component and be patient and wait for large discrepancies on the bear side, then go long or wait for large tilt toward the bull and go short, then you know how it works to rape and pillage from the outside. the inside always wins because they have near perfect information. Thank the Lord there is no honor among thieves otherwise this could be much worse than it is and will continue to get.
Has it dawned on no one yet that Janet Yellen is Penelope.....weaving and unweaving the rug????
i don't want to know about yellen's rug thank you very much
And you won't know anything about her weaving and unweaving the "rug" as long as it's up to the Fed and their henchmen the mainstream media. Only Tyler at ZH, thankfully, will reveal that to you.
I've been thinking Shiva, Destroyer of Worlds.
http://www.sanatansociety.org/hindu_gods_and_goddesses/shiva.htm
Stocks as well as the dollar will drop considerably in the next two months....bank on it.
Where's my shemitah? I'm Hongry!!!!!!!
Unleash the Gimp on Bullard
...this situation absolutely requires... a really futile and stupid gesture... be done on somebody's part... [/otter]
Just wait till Euro closes, they will ramp this like no tomorrow.
Huh. I at least thought the Dow would react positively. Wall Street got what they wanted, didn't they?
CRASH, CRASH, CRASH!
JUMP YOU FUCKERS!
after listening to Obama shrill for 20 minutes and how great he did and how great he is,,,,someone is lying.....either our economy is number one..or its a failure....we at ZH know
I guess I prefer to shave with Occam's Razor, so when a no-volume pre-Fed ramp is immediately followed by an option expiration Friday (rather than just another post-FOMC Thursday), doesn't it make sense the returning big money would want prices down closer to the option strikes that help them, likely not near the 50 DMAs we'd nearly spiked to (?)
Release the QEracken :-)
I was so comforted by Yellen pronouncing that consumer spending was robust. I will now stop paying down debt and begin spending again because I don't want to miss out on the party. I want to feel included as a typical American - or else i might get spied upon or arrested as a financial terrorist or something.
Christmas will be dismal and ObamaCareLess premiums are set in almost every single state to increase by double digits, some as much as 23%. That will go well toward the phony GDP, but will crush the "Consumer Spending" to higher levels. NIRP & QE will be the last ditch effort before real :in our faces Capital Controls are enacted. Will they uphold this through the election cycle or do they even want to; King Obama. God desires that we know Him, that is salvation in a nutshell and the Gospel is referred to as The Gospel of Peace; what mankind always cries aloud for and never finds because he always looks in the wrong place or person or book.
very bearish looking,
http://finviz.com/futures_charts.ashx?t=ES&p=d1
Ok. Now this shit is funny.
Dow is down 220.
I fail to see what's so exciting about that.
https://www.youtube.com/watch?v=_lN2auTVavw
Wrong. Talking won't help anymore.
The FED anticipated this as a possibility, which is why two FED mouthpieces are scheduled to speak on SATURDAY, but they have neglected the fact that they have lost all credibility except in their own circles. Good thing it is Friday, one reason the meeting are always on a Thursday. Also, the PPT has yet to come out yet and as I said the past few days the run-up on the markets was also in anticipation of the probability they needed to mitigate what we are seeing. 1940 on the S&P is the maintenance target for now and I suspect at the end of this day; it will land near there (+/- 8) with a lot of help from the PPT. Then they will have the weekend to make a new plan to keep the monster afloat..
Carry unwind?
The currency war just got heated up by the non-rate hike decision. They are damned if they do and damned if they don't; they will need to do many more shenanigans behind the scenes, than they are already do, to keep this one afloat. I say they are & will have some measure success.
If they had raised interest rates, the emerging markets would have had to dump US Treasuries in greater numbers and get USD to buy there own currencies to keep them propped up. This would in turn cause a quicker and more powerful disaster...damned if they do or don't. The decision was the best of the worse; like voting for a Bush or a Clinton.
According to Macquarie Research:
https://app.box.com/s/hx16540dwpct4uj5h5iohxsa4197zozd
Time for a policy U-turn?
Back to the future: British Leyland
From conventional QEs to more unorthodox policies…
- As discussed (here and here), we do not believe that investors are likely to benefit from acceleration in growth rates, trade or liquidity and indeed on the contrary, negative feedback loops from EMs to DMs imply that neither would be able to support global growth. Secular stagnation is the key explanatory variable (here). The deflationary pressures from overleveraging, overcapacity and technology shifts can be either allowed to work through economies or the public sector needs to continue resisting via expansionary policies.
- Since ’08, monetary policies were doing most of the lifting with limited participation by fiscal authorities (bar China). In other words, in the absence of either private or public sectors driving higher velocity of money, it was Central Banks that were supplying incremental liquidity to preclude contraction of nominal GDP and avoid stronger deflationary pressures. However, marginal utility of incremental injections has been declining (witness much lower impact of recent ECB’s QE and increase in BoJ accommodation since Dec ’14).
- Part of the reason for monetary stimulus fading is that supply of US$ remains low. Global economy continues to reside on a de-facto US$ standard and current incremental supply is almost non-existent (depending on definition growing at +2%/-1% clip vs. average since ‘01 of ~15%). In other words, due to lack of recovery in the US velocity of money and lack of QEs, global economy is not getting enough US$ to continue leveraging.
…as efficacy of conventional monetary QE is questioned
- At the same time efficacy of continuing with conventional QE policies is being challenged and not just by independent observes but also ‘insiders’ (such as recent SF Fed paper). As velocity of money globally continues to fall, conventional QEs have to become exponentially larger, as marginal benefit declines. If the public sector is not prepared to step aside, what other measures can be introduced to support nominal GDP and avoid deflation?
- There are several policies that could be and probably would be considered over the next 12-18 months. If the private sector lacks confidence and visibility to raise velocity of money, then (arguably) the public sector could. In other words, instead of acting via bond markets and banking sector, why shouldn’t public sector bypass markets altogether and inject stimulus directly into the ‘blood stream’? Whilst it might or might not be called QE, it would have a much stronger impact and unlike the last seven years, the recovery could actually mimic a conventional business cycle and investors would soon start discussing multiplier effects and positioning in areas of greatest investment.
British Leyland failed, but it might work at least for a while
- British Leyland (formed from nationalized British car companies in the late ’60s) destroyed its automotive industry but for a time it provided employment and investment. Central Banks directly monetizing Government spending and funding projects would do the same. Whilst ultimately it would lead to stagflation (UK, 70s) or deflation (China, today), it could provide strong initial boost to generate impression of recovery and sustainable business cycle. It could also significantly shift global terms of trade (to the benefit of commodity producers) and cause a period of underperformance by our ‘Quality & Stability’ portfolio and improve performance of ‘Anti-Quality’ screen. What is probability of the above policy shift? Low over next six months; very high over the longer term.