Late-Day Buying Panic Saves Stocks From Worst Start To January In 84 Years
Santa Rally...?
An ugly day... just as we predicted
The bloodbath started in China, which was halted early on circuit breakers...
Europe was ugly...
And that dragged US Futures lower, which were not helped by weak manufacturing data, weak construction data, and not helped by overly confident Fed speakers, but shortly before the EU close a hug eblock sucked up all ther liquidity in futures and stalled the selloff. We rallied back to VWAP around 1995 in S&P then faded...
The machines did their best at 1101ET to stall the weakness, which ramped to VWAP before institutional selling started...
Cash indices saw Dow break to a 16,000 handle, S&P under 2,000, and Nasdaq under 5,000...before a late-dat $2-3bn MOC buy order out of nowhere lifted everything...
The moment 330ET hit, VIX was slammed (via rampant buying XIV - inverse VIX ETF) and S&P pumped back above 2000
Financials were worst, Energy best...
FANTAsy stocks all plunged with Tesla and Amazon worst...
But Apple managed to ramp back to green briefly as we supposed its ubiquitous buyback prgram stepped in...
US equities dropped to 3-month lows, catching down to high yield bonds' weakness once again - just as they did in August...
Financials tumbled to 3-month lows, catching down to the yield curve collapse just as they did in August...
Treasury yields dropped all morning but as Europe closed, sellers moved in lifting yields and reducing sme of the early flatness...
The US Dollar index rose on the day against the majors (as European buying beat Asia selling)...
And Asian FX tumbled to fresh 6 year lows against the USD...
Commodities were a mixed bag. Despite USD strengtrh, Gold surged over 1% buit silver was stalled when US growth was questioned and sent crude tumbling...
Crude ended the day lower as record gluts and weak growth trumped any war premium fears...
Charts: Bloomberg
Bonus Chart: Just as we warned last week, we have seen this pattern of global pass the illiquidity hot potato contagion before...
Bonus Bonus Chart: You know it's a bad day when...
Brian Williams says today's market action reminds him of his early days trading the 1932 market
— Bob Brinker (@BobBrinker) January 4, 2016
(17 votes)
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GS aka PPT hard at "work" (manipulation w/ FED assist)
a few more days like this and i'm heading to Oregon
knock knock
who's there?
NSA
F*&K youse all. come and get me
China may halt the seller but if there's no buyers 1 taxidriver that didn't read the news about a selling ban could crush the market.
You just missed a buying opportunity , You can lose if the feds are backing it. LOL soon will turn my profits to tangible assests silve and gold
You just missed a buying opportunity , You can lose if the feds are backing it. LOL soon will turn my profits to tangible assests silve and gold
They should only trade the last half hour each day. We'd be at DOW 35,000 in 6 months.
Why did not they figure this out already?
It was the PPT buying, it's always the PPT. They will be buying much more overnigth when China opens again. Soon the real GDP numbers will come out and China will be number 69 then.
Gold surged over 1% but silver was stalled when US growth was questioned and sent crude tumbling...
Nigga please.
Dont worry the fed can print money and buy stocks keeping the prices high and going higher...
Plunge Protection Team powers activate!
Apply tourniquet (51% ownership), cut jugular artery, let bleed it out, laugh ass off, return with transfusion of autologous blood when patient begins to lose vital signs. Celebrate with a fine bottle of wine. Nothing but the finest for these thieves.
An MOC buy order. Does anyone know WHO the insider is, and WHAT they bought?
So when the market sells off like a mutha, it's the natural orders of things, but when it goes up, even for five minutes, that is manipulation/banker trash/fed buying, right? Just making sure I'm keeping up.
Reality and gravity occasionaly weigh heavier than PPT and the ALgos are prepared for
Yup couldn't be end of day short covering, oh never! LOL
Late day panic buying was none other than the Plunge Protection Team courtesy of the Federal Reserve.
IMHO, standard algos going off ... reversion to mean patterns ... I wouldn't get into this thing without quick fingers and happy to receive small gains.
Three pages of posts, yours was the most worthwhile.
The "ripple" at 11 noted in the "Close Up .." article from earlier today was precisely the mean-reverting algos kicking into gear, as soon as volume patterns and other technicals convinced them the foreign-influenced gap-down open would have no substantial follow-thru, they begin to snap us back to the cetnral Daily moving averages and weekly % volatility bands that are their game, and comprise the central controlling influence on markets since 2009 or so.
Would be nice if something would force them to regurgitate all the shares they gobbled up today in a serious breach this week, but until proven otherwise it's likely they'll try for COMP and SPY 200/100 DMAs soon, respectively. Some will say they'll reload short there, others will expect a sqeeeze higher into the FOMC and JOBS. Could a RUT breach upset their well-worn plot? Stay tuned ...
When Janet Yellen takes a massive dump do you think she calls the PPT to get things going again?
Publicity. How about protesting on Wall St. and elsewhere, with signs saying "stop manipulating the markets", "Federal Reserve is lying to you", "Banks committing multiple felonies every day", and so forth. Maybe the presstitutes would be forced to cover this? Just a thought.
NO MATTER...I've already seen the CRIMINALS, weakness!
adding to my "short" positions, as I type
The 3:30 ramp! Didn't a bunch of us call that early this morning - that and the PPT would be at it again? I'm starting to really love hating this "its all we know what to do" Federal Reserve intrusion. If I canbe taken out behind the fucking wood shed, why can't these fuckers?
When you want the baby to really cry, give him his bottle at the same time every day so he "knows" it will come then - and when he is very sure of this happening like clockwork, don't show up one day - he will be twice as demoralized as if he was expecting random behavior.
The late partial rebound in the last 45 minutes was nothing more than muppets buying the dip. No sense in the Fed/PPT trying to manipulate indexes at the close, so their window's usually late morning, maybe 11ish?
// Let's see if BTFD pans out this week?
ZH bears: Don't worry, be happy! Down 1.5% to 2% should put smiles on your faces
It's still bull's ball. They've got the technical setups, one on my ES daily chart has a profit target more than 30 points above the ATH. After the August downdraft, they bounced it twice last year off a major support level around 1861. But then, after coming to within 24 points off the ATH on November 11, they've been making lower highs and lower lows since, today breaching the December low. Looks like the market is rolling over after a failed breakout to me. If we breakdown below 1956, the current setup is officially busted, and we'll be revisiting last year's lows at the very least.
http://tos.mx/rc7yeB
31th December and today 4th January where perfect prints of a completely controlled 'market'. This will not go well, since the script was written long before.
Anybody who buys in this bullshit must be a moron.
Quick, to the Plunge Protection-mobile, Batman!
The Plunge Protection Team of 3:30 pm is called the Plunge Proliferation team at 9:30 am when they are shorting the 30 Dow stocks that they will cover at a handsome profit during the last half hour.
(Oh, if they only could do this forever.)
Goldman Sachs and JPMorgan are looking for a few good men whose job it would be to watch the 30 Dow stocks and whenever one of them neared being down 10% from the previous day's close has to get up on his chair in the trading room and scream "iceberg, iceberg approaching Disney" or Exxon or Apple.
The trader in charge of shorts immediately starts covering the Disney shorts he made at 9:30 until the threat of down 10% is past.
If you're interested in being an Uptick Rule Lookout Guy just call Lloyd Blankfein at GS or Jamie Dimon at JPM.
Starting salary $180,000.00 per annum.