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And Plunge Resumes: ES Under 1100

Submitted by Tyler Durden on 08/09/2011 14:48 -0400

The several hour reprieve on expectations that the Fed's infinite moral hazard would continue unabated, runs out. Plunge resumes. Which means Bernanke needs to shock the living feces out of everyone before his repeat performance at Jackson Hole in 3 weeks. In the meantime, many more traders go bankrupt. Too bad none of them have discount window access.

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Tue, 08/09/2011 - 14:49 | 1543385 Seasmoke

this is going to be a long last 60 minutes

Tue, 08/09/2011 - 14:59 | 1543401 hedgeless_horseman

Especially for The President's Working Group on Financial Markets.

Rex Kramer: [talking on the phone to the airport control tower] No, we can't do that, the risk of a flame-out is too great. Keep 'em at 24,000. No, feet.

Tue, 08/09/2011 - 15:08 | 1543456 SMG

I don't know what the close will be today, but seems like the PPT (another word for the Pres. Working Group) has a must close positive mandate today.

Tue, 08/09/2011 - 14:50 | 1543389 Platinum_Investor

Why do I feel that there is no place to hide in the current environment. Yet Cash is not King.

Tue, 08/09/2011 - 14:53 | 1543403 wombats

Hide? No, be bold!

Go long Tungston!

Tue, 08/09/2011 - 14:54 | 1543407 LawsofPhysics

Cash is king, it just happens to be walking on a yellow brick road and the two will once again be one and the same - hooray! Got physical?

Tue, 08/09/2011 - 14:50 | 1543391 monopoly

Just sitting here. Got tape over my mouse so I won't be tempted. This is insanity.

Tue, 08/09/2011 - 14:52 | 1543394 OpenEyes

the volatility is so fast and furious that it's difficult to find a site that's keeping up with it. FinViz seems to be running 20 or more minutes behind, MarketWatch is so screwed up that their headlines and charts aren't even remotely the same. this is some crazy shit.

Tue, 08/09/2011 - 14:53 | 1543395 Transitory Disi...

If it gets really hairy I want to hear some mp3's from the pits. This one from May 2010... http://www.youtube.com/watch?v=4jUzigCDavU

Tue, 08/09/2011 - 14:57 | 1543421 heatbarrier

Raise you,

http://www.youtube.com/watch?v=9OWFaGNN5hU&feature=related

Tue, 08/09/2011 - 14:52 | 1543396 junkacc

It's as if this market action is designed to wipe out longs and shorts alike.

Tue, 08/09/2011 - 14:55 | 1543408 Toxicosis

Of course it is, and TPTB want it that way. Maximum stress, maximum insolvency, and maximum carnage.

Tue, 08/09/2011 - 14:53 | 1543400 OpenEyes

Silver isn't budging an inch.. stuck at -$1.50 for like.. ALL DAY..

Tue, 08/09/2011 - 14:53 | 1543402 Irish66

Neck Braces for sale

Tue, 08/09/2011 - 14:55 | 1543410 rosiescenario

.shit, and my DOW 10,000 hat is at the cleaners....

Tue, 08/09/2011 - 14:56 | 1543416 John McCloy

BAC Lehman event is weeks if not days away.

Tue, 08/09/2011 - 14:58 | 1543428 karzai_luver

only way to avoid it is if they go ALL in and just stop reporting,may come to that but yeah the cash flow or lack will win even over all the bullshit marks.

Tue, 08/09/2011 - 14:57 | 1543418 onlooker

So do I buy the dip right now?

Tue, 08/09/2011 - 15:03 | 1543442 Greater Fool

No rush. I get the feeling that the other shoe has yet to drop.

Tue, 08/09/2011 - 14:57 | 1543419 karzai_luver

The elite are looting for all it's worth now.

Bernake has been given the all clear and retirement order.

All is well peas all around.

Tue, 08/09/2011 - 14:57 | 1543420 TruthInSunshine

What a sick, morbidly ill patient all things financial markets have become since the long arm of The Bernank & Government has tampered so incredibly with true price discovery and other basic laws of real economics.

The markets wait like a junky on the arrival of The Bernank, their drug dealer, to come through with the fix, and convulse and puke when he disappoints.

I'll be glad to see the Wall Street Casino shut down. When that day comes, as too many people decide to take whatever remains of their assets out of the Ponzi Scheme, it will implode for good, and the overwhelming majority will be far better off for it.

But will the bankers, sell-side analcysts and other shylocks of finance do?

Maybe they can learn to train for a job providing societal benefit and make an honest living.

Tue, 08/09/2011 - 15:00 | 1543435 karzai_luver

Yep, it's been killed. There is no productive reason for it to be in this form.

tragic what they have done to a generation sheep.

Tue, 08/09/2011 - 14:57 | 1543422 Cursive

Oh noes! Bernanke closed his Put!

Tue, 08/09/2011 - 14:58 | 1543431 irishlink

We are almost at the moment of reality when CNBC are calling for the FED to leave the chips fall where they may.

Tue, 08/09/2011 - 15:00 | 1543433 Lord Welligton

Dollar down 5% against the Swiss franc.

Woops.

Tue, 08/09/2011 - 15:01 | 1543436 tmosley

That's gotta be some kind of record.

This is getting nuts.

Tue, 08/09/2011 - 15:03 | 1543443 Max Hunter

Euro following suit..

Tue, 08/09/2011 - 15:01 | 1543438 pods

And.....It's gone!

pods

Tue, 08/09/2011 - 15:02 | 1543440 Boston

Which means Bernanke needs to shock the living feces out of everyone before his repeat performance at Jackson Hole in 3 weeks.

Exactly. I'm lookingfor a return to the summer 2010 lows, or close to 1,000 on the S&P. That's a 27% drop from the highs this year.

Will look for long equity oppotunities and to play for a 15%-20% bounce, but nowhere near the earlier highs.

Tue, 08/09/2011 - 15:03 | 1543441 karzai_luver

Maybe we need to run a 3year auction everyday!

I think Bernake has been given "stand down" order now.

He is done through the election other than a bank bailout if needed.

Tue, 08/09/2011 - 15:05 | 1543448 Lord Welligton

@ tmosley Can't reply directly. Access denied. The Swiss are going to have to introduce capital controls. A 10% tax on all money coming into the country?

Tue, 08/09/2011 - 15:06 | 1543452 Lord Welligton

The Swiss Franc just went apeshit.

Up 5% against the Dollar, the Euro, the Pound, The Aus Dollar.

Tue, 08/09/2011 - 15:10 | 1543461 Piranha

Finally maybe we can have a market, Fed didnt give us anything also germany didnt want to do anything. :)

Tue, 08/09/2011 - 15:12 | 1543468 Sambo

Marc Faber just said:

FEDs should allow markets to "collectively resign".

Tue, 08/09/2011 - 15:14 | 1543471 cbxer55

MUST CLOSE GREEN! MUST CLOSE GREEN!!

Dow at +57. S & P at +11.

What a violent whipsaw move down, and back up again in so short a time.

Who exactly is involved in this kind of crap anyway? How can you possibly keep up with this shit?

Tue, 08/09/2011 - 15:15 | 1543478 sbenard

Someone forgot to tell Wall St that the Fed pulled the punchbowl.
Pollyanna Party on, Wall St! Let us know when you wake up from your drunken stupor!

Tue, 08/09/2011 - 15:18 | 1543484 kelvin

I just saw the DJIA from -99 to +184 in about 12 mins. This is just amazing. I remember a decade or so ago when it moved 50 points, it was a big deal.

Tue, 08/09/2011 - 15:20 | 1543490 Greater Fool

Pure lunacy.

BAC back to its security-blanket $7 level. No doubt the CEO's conference call tomorrow will reassure everyone and sent it back to the stratospheric heights of double digits.

Tue, 08/09/2011 - 15:22 | 1543498 InconvenientCou...

the invisible hand saves the day!

news? Tune in tomorrow.

Tue, 08/09/2011 - 15:32 | 1543526 NumberNone

My grandmother loves what the algos have done to the market. No place better to store your retirement wealth than a computer controlled marketplace that whipsaws 10% within seconds based upon words in a press release that all the computers try to jockey against. Nothing but good will come of it. In algos we trust.

Tue, 08/09/2011 - 15:35 | 1543544 Greater Fool

They're making the markets really, really, really efficient. Really.

Tue, 08/09/2011 - 15:38 | 1543558 adr

It looks like Dow 11,000+ is the target today. They can't let the market close with a 10 in front or the next few days could drop it below 10k. Dow opens up triple digits and then a few minutes later it looks like it is going to plunge red, then as soon as the previous close is in sight the market rockets up 150+ points. The Bernake show causes stocks to drop within a few points of 10600 and then BAM to the moon again up to 10980, 350 points in 20 minutes.

If today isn't enough to prove to everyone that they should just throw the towel I don't know what is.

Tue, 08/09/2011 - 15:45 | 1543587 Eagle Keeper

PPT in full force now....

Tue, 08/09/2011 - 15:46 | 1543594 BeachBummed

from CNN

"Dow rebounds in late trading, gaining 225 points and topping the 11,000 mark, as markets gyrate following Fed announcement."

Must...continue...to....gyrate....aaaaahhhhhhhhh...

Tue, 08/09/2011 - 15:48 | 1543600 Aductor

Yes, a plunge so robots and clueless "investors" can buy up to the market? What would one expect?

Tue, 08/09/2011 - 15:54 | 1543626 cocoablini

Classic PPT manuever. On lower volume come in a blast the market with bots and buying. Shorts are forced to cover and turbcharge the buy orders. The market will probably recoil for a week and then Europe, US issues back to slaughter the longs. Look for a rolling fade into Fall and then maybe its recrashes then.

Honestly, there are no retailers in here now. So the bots can dictate price as long as they get what they want from banks.

300 point rally-it's nonsense. A ponzi Kabuki theatre in a command control economy.

Tue, 08/09/2011 - 15:55 | 1543627 eurusdog

Gold falling to 1725.00 and al three major index in the black. I can just see Timmay and Ben sitting in front of a computer, pants and underwear down around their ankles, storken the shit out of each others dicks, as the DJIA races toward 11150 and the SPX tops 1150. I wonder do they cuddle afterwards?

Tue, 08/09/2011 - 16:21 | 1543752 gatorontheloose