Is China's "National Team" Now Bailing Out US Markets?

Tyler Durden's picture

Many people wondered what the trigger for today's massive short-squeeze was.



We may have found the answer. Right as the "Most Shorted" stocks started to soar, someone decided to buy offshore Yuan with both hands and feet (yes in the middle of the US day session).



This held up until the NY close... and now offshore Yuan is fading back fast.


So did China's "National Team" step in to save the world today?

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lasvegaspersona's picture

Well something 'helpful' happened.

Divided States of America's picture

It has to be the Chinese...werent they lining up to buy dollars recently??? They need to park their USD somewhere and overvalued most shorted trash is the best place to put it.

Was this FULL RETARD ramp a coordinated effort, first ramp at 12:30 was China PPT, second ramp at 2:30 was US PPT?

And they still couldnt get it to close in the green...

But that must be really bad the US markets need to rely on the Chinese to prop the stock market up, the Chinese is propping up the US housing markets already. Pretty sad really.

Squid-puppets a-go-go's picture

money printing: taking the play-doh lump of the economy, rolling it into a long tube, and telling everyone they now have a bigger volume of play-doh

Mr. Ed's picture

Maybe I'm missing something here; but...

If you wanted to trigger a short squeeze in some heavily shorted stocks, you would need to BUY a significant quantity of those stocks.

But if you are the Chinese PPT, you would have to have dollars to do it.  That would mean SELLING CNY (not buying CNY or CNH) to obtain the necessary USD.

What am I missing here?


hound dog vigilante's picture

Why not?  

The US PPT floated china for a decade...

SimplePrinciple's picture

Maybe, if there is a connection at all,  it's that China is dumping dollars in a manner so as not to give offense. It figures on helping the efforts of the US propaganda team with its stawk buying while also converting USDs to yuan.  Net result is fewer USD holdings.

edit:  I was slow posting this.  It would better be in reply to gmak's question below.

slobug's picture

The water is fine... come on in

EHM's picture

This story is untrue - The Chinese

Arnold's picture

The question to ask myself:

Are the chinks sophisticated enough to do this?

Self, the answer is yes.

Self, did the chinks do this?

I have no way of knowing.

Exit through the gift store's picture

It takes a village.....


gmak's picture

If they were buying US stocks, wouldnit it be with USD?  If they're not selling t-bills and notes to get it, they would be SELLING yuan to get the USD, no?


How does buying offshore Yuan translate to CHinese PPT buying us stawks?

DukeMakewater's picture

gmak, excellent question!

Abitcoinbrain's picture

soft landing is what the chinese wants. They can hide USD lots of places my friend do not always have to sell treasuries to have USD.Don't you think the PBOC has probably many of the largest USD holding accounts ?Ask yourself if you know any chinks without money stashed all over the fucking house? 

Chinese want a safe haven from the yuan depreciation that is coming!

gmak's picture

The question is why does soemone buying OFFSHORE YUAN mean the Chinese PPT is buying US Stocks.  The issue isn't where the Chinese have USD. Did you even read the comment?

DukeMakewater's picture

I'm a newbie in a lot of things, ok, but is this correlation or causation?  

Where can we look to see the volume of these trades, and why not show it?  How many people could actually be seeing that trade happen and react to it?  So many times these charts make me wonder if correlation is 'bullshittingly' being masqueraded as causation, as in nearly every other financial venue?

besnook's picture

it is all a quant's utopia. all kinds of numbers with all kinds of explanations for it, in an endless quest for the meaning of life through the perfect alignment of algos that result in a prime number that can't be cracked.

besnook's picture

more likely a disguised usa op. the key to the present strategy is to maintain a strong dollar. a collapsing equity market was an unintended(because they are stupid) consequence of the strong dollar policy which, also , has the effect of devaluing the dollar and the intended effect of a devaluing yuan. this all means the game is almost over. the usa lost. next week green shoots will magically appear in the spx.

ghengiskhan's picture

Bingo.  They are turning knobs and flipping switches as fast as they can.  Sell 3 buckets of Netflix coupon codes for a donkey and then sell the donkey for a pallet of paper clips that can be melted down to make a steel cage to catch the monkey that keeps scaring away the postman who might have a birthday card from Grandma with some cash in it.  It's Science.

U4 eee aaa's picture

I see you got the early release of the fed minutes

Charming Anarchist's picture

It sounds like MacroEconomics In One Lesson to me. 

snowhuouv's picture

Dude you knock it, but that monkey has been rolling fat ever since gma won the lotto


Also, flipping that donkey was totally worth it. Do you even know how many paper clips it takes to melt into a monkey cage?

snowhuouv's picture

Plus, now the GDP is soaring

Yen Cross's picture

 That's actually not as crazy as it sounds... China is covering Treasury holdings that are $usd denominated.

 It doesn't necessarily mean that those funds[cash] is/are being spent.  Just the interbank move/transfer can move the Yuan.

 My guess is that China is storing dollars somewhere in Africa.

besnook's picture

i kind of mentioned that possibilty yesterday. the usa is looking for another thailand to break and take the brics and the rest of the emerging markets with it. china controls a dark pool of dollars that is being used to bail out whatever emrging market is threatening to blow up.

Yen Cross's picture

 China also has their hooks in South America.

Menoetius's picture

Oh Goody. Maybe they'll have sufficient green fiat in Abuja to finally pay our invoice. Been craving the 'Beef' Balls from Sinoni Chinese resto for months now.

Consuelo's picture

Wake me up when Treasury & the LBMA run out of physical to sell to Hong Kong.



commishbob's picture

They had "ups."

ECB on deck.

conraddobler's picture

Nothiing crashes straight down because as more people get short this stuff happens.

It's the huge swings that tell the tale of where we are and it aint good.

U4 eee aaa's picture

Yes, plus shorts want to be taking as much money off the table as possible knowing there is a hostile Fed ready to jump in at a moment's notice. So the shorts are on a hair trigger and trying to build a bigger and bigger powder stash for the big push.... bear market capitulation.

This is just a battle. The war is far from over.

get nothing and like it's picture

As a born and bred Wyomingite - gotta love Conrad Dobler!

will ling's picture
will ling (not verified) Jan 20, 2016 5:54 PM

it is, after all, in both "sides" interest to keep the ponzi scheme goin'- at least for awhile longer.

Winston Churchill's picture

For as long as they can convert those USD for phyz.One failure to deliver and its game over.

Spectre's picture

A few global traders went long Yuan because they were losing their asses in the US Indicies, money had to go somewhere and I think some felt the Yuan had gone low enough for the week. 

DukeMakewater's picture

A lot of hand waving but kind of short on answers to a solid question.

Can I escalate this ticket?

nmewn's picture

"Halp us Chairwoman Yellen! Halp us! We did it for you comrade!" - Vice Public Security Minister Meng Qingfeng

Hard Baloney's picture

Fuck their "National" team!!! I ain't buyin' anymore Chinese shit...that ain't to say I don't respect Chinese people I mean look at how many them chinks Mao killed; we all know how much gutz...Oh, sorry wrong ethnicity, movie...

Jason T's picture

shey shey bitchez

lobojones's picture

Just asking myself why would the chinese try to help our markets?

nmewn's picture

Keynesian economics, its all they know.

Freddie's picture

To prop up the value of their mansions in California, Hawaii and a few other places.

lobojones's picture

Would this have anything to do with the RRR policy on offshore domestic deposits? Trying to gain additional liquidity.  This is of course assuming that a massive devaluation in currency is anticipated?

chairman mao's picture

cause we love you long time?

NEOSERF's picture

Meanwhile in the real world, BDI drops again to 353...almost a full stop on containers coming to the US...this is the metric to tell you whether it is safe to get in the water again.

WezTheJuic's picture

With this process, I would have to call it a "balancing act".  A piece of a part.