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Draghi Dreams Extend US Stock-Buying-Frenzy To Best Since 2011
Watching talking heads try to "blame" that today's ridiculousness was due to good earnings (and marginally due to Draghi) made us think of just one thing...
Summing today up in words...
Pisani Excited-o-Meter just hit 11...
— Tim Backshall (@credittrader) October 22, 2015
And Pictures...Since the terrible US jobs data, the S&P 500 has risen over 9%, this is the largest such rally since October 2011 (when The Fed last bailed out Europe with unlimited FX swap lines)...
Almost without a pause...
* * *
Today's moves are best illustrated with futures - all beginning with Draghi's promises, ramping above 200DMA, then stalling as 10Y touched 2.00%, then bounced off VWAP to retest the highs...
Note Small Caps (Russell 2000) dropped all the way back to unchanged before bouncing...
Which leaves Small Caps red for the week still (and Trannies leading)...
Dow Futures ripped an impressive 350 points off the 17073 lows... (S&P Futs closed above its 200DMA for first time since 8/19)
Some huge moves in stocks today (the following from the S&P 500 alone)...
Un-Whole Foods...
Valeant was ugly again...
And ABBV and GILD diverged
Stock totally decoupled from Bonds...
And Stocks totally decoupled from crude...
And all that mattered was what USDJPY did...
FX Markets were a major story today (with US Dollar soaring) as EUR plunged...
EURUSD plunged back below its 200-day moving-average...
But The USDollar lost notable growund against Asian/EM FX...
Treasury yields chopped around but ended lower (despite T-Bills getting dumped more)...
Credit markets kept pace with stocks amid the largest fund inflows in history this month...
Commodities were mixed today with gold flat, copper and silver higher (despite USD strength), and crude tumbling before a NYMEX close ramp into the green
Crude's insane day, banging super-$46 and sub-$45 stops before ramping idiotically into the NYMEX close...
Charts: Bloomberg
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VIX got murdered....no fear
Here is a message from the PPT, enjoy (or not) https://youtu.be/sPy8Z5m5zh4?t=17s
Great video.
randy just cracks six feet although i always thought he was shorter.
What the fuck just happened on the NASDAQ?!
DavidC
AMZN
a 320 point ramp lead by fucking McDonalds....
what an exceptional nation and economy....
FUCK WALL ST. AND THESE FAKE ASS MANIPULATED FRADULENT MARKETS....
i guess this shit doesnt matter - right?????
"Embattled fast food giant McDonald’s is making headlines yet again. The company has just launched its much advertised all-day breakfast program, but as that campaign rolls out, franchise owners are voicing their concerns over what may be the company’s dying days. As we covered at Anti-Media in June, the McDonald’s franchise has been shrinking for the first time in the company’s over 40 year history:
However, for the franchisees, the picture looks much worse than simply 700 stores closing down.
Mcd has be shit going down for a while. Why a sudden orgasm over a blip up?
Oh, did MCD report today? All I heard about was CAT and VRX.
How much were you short
Egg McMuffins 24 / 7 / 365 have to count for something.
USA ! USA ! USA !
the dreaded inverted schnauzer pattern. ominous. oh noes oh noes omg omg
A Prediction...goes higher and higher,then next Wed or Thursday(depends on greed factor)...The Hammer Falls.
just enough time to bring the sheep into a "feel good" moment.
something is being brought in. the market fools as many as possible and it's doing quite well lately.
You're probably right, but I think think the last time they kicked the can, the effect didn't even last a week.
And rates are going up Downunder!
Did the groundhog see its shadow today?
"Frankly, Mr. Draghi" from "Frankly, Mr. Shankly" by The Smiths
Frankly, Mr. Draghi, the positions I've held
They ruin my day and put me in a hole
I want to die, you will not miss me
I want to go down in Forex history
Frankly, Mr. Abe, I'm a sickening wreck
I've got negative equity breathing down my neck
I must move fast, you understand me
Or I’ll be stopped out with paranoid mystery
Claim, claim, counterclaim; it can play hideous tricks on the brain
But still I'd never be shameless like Yellen or Draghi
No way, no way, no way
But sometimes I feel more fulfilled
Knowing central banks are all mentally ill
I want to fight against the doves
I want to trade something I might be ashamed of
Frankly, Mr. Draghi, the opposition you’ve quelled
It paved the way to corrode your soul
Oh, I’m not at all surprised you’d knot the rope for me
Not sure you realize you have such bloody awful policies, Mr. Draghi
Frankly, Mr. Draghi, since you ask, you are an arrogant pain in the ass
I do not mean to be so rude; still, I must speak frankly, Mr. Draghi
Oh, just print ‘em more money
And AMZN, MSFT and GOOG all "beat" handily. NDX up 60 after hours
What the hell happened to Abbvie, down 10% on no news?
Hep C drug good for Hep C, bad for livers (as in both the organ, and people in the study who used to be alive).
We ain't seen nothing yet, all this is simply the warm up!
The DOW will take a Mars shot, screw the moon!
imo it doesn't even escape earth's gravity: http://www.hussmanfunds.com/weeklyMarketComment.html
Because what better time to throw more money on the monetary pile than when stocks are climbing parabolically? Can't wait to hear Janet tell us of the desperate need for negative rates and then lament the growing wealth divide.
WE ARE GOING TO SEE FUCKING 5000 ON THE NASSHIT ( NASDAQ ) AGAIN TOMORROW.
ITS AMAZING HOW A FUCKING COMPANY LIKE AMZN CAN CONTINUE TO LOSE MONEY FOR SO MANY FUCKING YEARS AND WALL SHIT IS IMPRESSED WITH THEM.
EVERYTHING IS POSITIVE IN THE ''MARKETS''. A NUCLEAR BOMB CAN FALL IN THE MIDDLE OF TIMES SQUARE AND 3 MILLION PPL CAN BE WIPED OUT AND THE ''MARKETS'' WOULD JUSTIFY IT AS GOOD NEWS SAYING, '' IT COULD HAVE BEEN 3.5 MILLION PEOPLE KILLED SO 3 MILLION IS VERY GOOD.
Amazon is going to hire 100,000 extra for the holidays.
A whole bunch of people will be buying junk they don't need with money they don't have!
Just charge it and worry about it next year!
I am guilty of order items all of the time via Amazon Prime and other companies. 1 or 2 day free shipping from LA County or even Vegas. PPT FOR LIFE.
S&P to 2500! Makin Money Baby!
The Central Banks have said today (in a voice that goes from soothing and comforting to beligerant and loud):
we are in control
We are in control
WE are In control
WE ARE in Control
WE ARE IN Control
WE ARE IN CONTROL
Market McLovin' it.
Has someone familiar with the matter been on Bloomberg TV to speak about VRX? Always got on to speak about HLF.
Or "maybe we just don't get it..." https://www.youtube.com/watch?v=j7oHw0UReuY ((And the joke's no us))
Never seen a more pathetic limp wristed whisky dicked performance out of the RUT before in my life...but it appears the viagra has kicked in after hours.
Given IWM’s recent relative weakness and middling opening technicals, I avoided the initial Draghi “central wanker” morning surge, convinced a short trade would become available, TZA at the ready.
After the 11:00 bar I was prepared to act on a standard daytrading signal, but then spied the QQQs, a chart I always keep up to help avoid RUT fake-outs and spikes, which as you know can have you singing soprano in seconds. With QQQ's stochastic on the way to the mid-90s I thought “some earnings leaks for sure, they’ll pull TNA along with it”, didn’t act, and as a result lost out on that wonderful dump back to Unch.
Thus, going forward, for the first time in 3 years, RUT shall henceforth be traded as its own, singular entity, apart from its big brother indices, both in ramps and selloffs, as it’s officially ‘decoupled’, like a wife of Henry VIII ….
Nice prose Dr. KCS..I'd elaborate, but the wife is out of town and I'm going to take the night off from ZH, pre-markets and strategy analysis for a change...a nice (small) bottle of aged bourbon and a 5 star pizza...plus movie is in store for the evening. A trader has to unwind positions and psyche at some point no? GL menyana...my spelling is atrocious I know...sorry. Looks like I'm rolling...again in the afternoon...who knows though right??? Soon enough the dam breaks. 66-69 preferably, whatever else is managable...for a few more weeks then I start heating up the bank wires... when a $0.10 move moves your portfolio 10K...you have indeed achieved leverage. LOL bring it...Spartans never quit. GL My friend
Whoa, that's not leverage, that's more like havin' your own event horizon on the edge of your living room. I apparently pick my heroes wisely ...
Well, I don't have a wife or the big bucks like you, having been laid off in 2007, resume too long and impressive for re-employment, so instead it was a glass of some Argentina 'red blend' (grapes not good enough to personally identify, it seems) and homemade wonton soup, with the pork personally marinated and roasted yesterday, nestled with shallots, scallions and ginger inside extra large pasta squares lovingly sealed, with a bit of verve and panache, in a tortellini-style fold, the broth augmented with add'l white pepper, a little hot oil and thick cut mushrooms, kale and home-grown Italian parsley. You see, aside from hacking my way through TZA, writing parodies while listening to 17th century sacred vocal music, reading postmodern fiction and communicating with some Carolina gonzo option genius, I can also cook a bit ...
No big bucks just big balls I guess...either that or stupidity one could argue.
Man after my own heart...I'm a bit of a chef myself...not bragging but my family aside from growing me up in a ditch (with a shovel and a pick), grew me up in a a pretty exquisite restaurant for a minute at least before economics got the best of them (anyone who has run a restaurant would know...better off on the FSA dime than that)...chemistry can be useful in the kitchen. Enjoy your evening... hopefully you get a good shot at some vig in the next few days.
Draghi aside... we had "good" jobs and housing numbers today. So either nobody believes these numbers, and/or nobody beleives the Fed will ever hike rates.
None of the stock buying makes any sense. I truly believe the Federal Reserve has been buying stocks via their proxies primary dealers banks. Just look at these charts and you will see the insane amount of stock buying based on bad economic data.
The Federal Reserve is unaudited and already buying bonds, so why not stocks too?
of course you are right. when the audit finally comes, after the next financial crisis, the equity of the fed will be so negative as to add to the firestorm over where did the gold in fort knox go?
many will be pissed and many will be lied to. without breaking the truth about 9-11, none of it will probably stick. guilty of misdemeanors, you walk. guilty of treason and murder, stay awhile.
https://www.youtube.com/watch?v=OsoY3AIRUGA
https://www.youtube.com/watch?v=YW6mJOqRDI4
https://www.youtube.com/watch?v=mhROd7Jt3-w
https://www.youtube.com/watch?v=dgM6hjNedE0
https://www.youtube.com/watch?v=Rj_AL4OlmHc&feature=iv&src_vid=rnbMjAN7B...
http://www.luogocomune.net/site/modules/sections/index.php?op=viewarticl...
https://www.youtube.com/watch?v=EVHstSrC1CQ
https://www.youtube.com/watch?v=gORu-68SHpE
Earlier this week I wrote a post saying there was no juice in the markets, that they acted like they were waiting for news, i.e., "free money". I also repeated the old saying about never shorting a dull market. Maybe there's something to those old market sayings after all, hmm...too bad I stayed short.
Reality is this: If you are too leveraged, you're unlikely to catch the big market swings. You'll either grab your profit too early or you'll get squeezed out in moves like this one. Picking tops and bottoms is very tricky. There is no easy money being made in markets except by insiders.
How long I been here? Thanks 1+
I can't believe all the people who see it coming and stay short.. If you are going to trade then trade never stay anything. The stock market has rallied after every Draghi presser this year! I hope you got out early.
I said yesterday that I was trimming my shorts after hours and I did so but I am never going to be all the way out when I am wildly bearish. That said, the size of today's move was an outlier, I was on the wrong side and so I lost money. That's life in the big city. Fortunately, the loss was trivial for me. I am not risking my future in my trading account. I quit working at 41. I'm 63 now and while my luck is still holding, I am never going to test that luck.
Stay short, lever up if you have to in the interim, you will be rewarded presently..my two cents, this is a headfake, bullshit move. Patience on the short end will pay dividends at these levels....no fundamental support for what we are witnessing.
Lever up to short in the face of super low rates bad idea!
It sounds like you are trading a belief system and stay with it even when the market disagrees with you. I have worked on the floor and traded for many years. Trading on your belief system is a recipe for disaster. I have critical views of the market. But that does not mean I was short today or would have stayed short if I had been. The market did not agree with my beliefs, it often does not which is why I don't trade on that. People also tend to cling to their beliefs even when what us happening disagrees with those beliefs. I may believe this market is a farce, but I know what happens when CBer says moar free money.
Trade the facts not your beliefs.
The fact that you maintained a short through today says you are risking your money in a bad way.
You probably don't want to hear this so good luck.
trading the facts not your beliefs is good advice for traders
some, maybe many, of the people on this site are what must be called investors, those who buy and hold for a year or more. for those people belief is important because it is so hard to hold a (temporarily?) losing position waiting for the major (?) trend to reassert itself.
example the hui. buy it now with both hands and do not look back. hold it for at least five years and do not sell no matter how tempting. thank me later (or come looking with a noose).
I am not attached to my positions. Your advice is conventional trader's wisdom. It sounds smart and it is smart but it is also vague. The "market" changes direction every time it flips from the ask to the bid. Look at an intraday chart...see the market move up and down. You cannot trade without conviction unless you're scalping on the floor.
Ok, how are those shorts working for you now?
My advice may have been "vague", but you sound like every beliefs based trader I have ever seen. They are always sooo sure that they are right even in the face of facts to the contrary. Again staying short given what happened yesterday was just plain stupid.
BTW my advice was free, so take it for what you want.
It is....
sheer madness
Market action today looked like a central bank coordinated short squeeze, led by ECB intervention that ramped the dollar higher, spiked stocks and even failed to break bonds or gold lower. The news after hours also looked like a coordinated bid for attention. My feeling is that the insiders are getting desperate to unload and are painting the tape with every shade of lipstick they can find. My strategy is to trade small and use these rallies to build my short position. The higher they go, the thinner the air.
Your strategy is solid..building a position incrementally is the way to go as #1 it doesn't draw attention from the MM's and #2 It naturally dollar cost averages. Stay the coarse fellow grizzly.
The ECB did not actually do anything. They just said they talked about lowering the deposit rate. Draghi is a million times better at jawboning the Market than Yellen I'd, which is why there has been a rally after every one of his pressers this year.
He learned his lessons well as Goldman Sachs indoctrination camp!
As I said this morning,
Draghi: We talked about jerking off at today's ECB meeting.
Market: Rally like there is no tomorrow, because with our problems there isn't.
As I said this morning,
Draghi: We talked about jerking off at today's ECB meeting.
Market: Rally like there is no tomorrow, because with our problems there isn't.
there is a lot of jerking off but, really, how much talk about jerking off, especially at the ecb?
they are clearly jerks, ergo they jerk.