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Bank of America Explains All You Need To Know About The Market: "Down In The Morning; Rally In The Afternoon"
Want to be a consummate stock picker and investor? Forget all you have learned in business school, from fundamental or technical analysis, or from years of trading: the only thing that matters is the position of the sun: if it is rising, sell. If it is setting, buy. Rinse. Repeat. Bank of America explains it just slightly more scientifically.
For the fifth consecutive day US equities sold off in the morning only to rally in the afternoon as European markets closed. That to us symbolizes the tug o’ war between negative developments in the European sovereign crisis and positive developments in the US economy. Today our European economists downgraded their outlook on European growth to now call for a small contraction in Euro Area GDP next year. However, this is not a major concern to us in terms of the outlook for US corporate credit, as the direct economic linkage between the two economies is fairly weak. Instead our concern with Europe is the possibility that the sovereign crisis leads to further volatility in financial markets over the next couple of months, as – through more persistent hits to consumer and business confidence – that could be the external shock that pushes the US economy into recession. However, it is also striking how the market has shown resilience to the recent surge in Italian interest rates now approaching 6.8% on the 10-year. That suggests the market is somewhat comfortable with the ability of Europe to deal with Italy and work through its crisis – and perhaps reassured by the extra cushion on the US side from an economy that appears to have momentum into year-end.
And since we are 5 minutes away from the Europe close as of this posting, we expect a massive rip as the vacuum tubes switch from sell to buy mode oblivious of reality and everything else.
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easy money, lets all "buy" the dip after lunch.
a "stronger" US means a weaker USD and stronger EUR? afterall, those are the afternoon moves that have been driving equities. Cough (PONZI) cough.
It really is outrageous that the commentariat are using Europe's misery to highlight how rosy things are in the US. The US fiscal and trade position is worse than Greece. The only difference is low interest rates, courtesy of the maniac Federal Reserve and the (for how much longer?) global reserve currency. The US is the biggest financial sinner in the world on both an absolute and a relative basis. How much longer do we have to swallow this crap?
Very true, it is a fallacious arguement.
insanity move in CRUDE given dollar breaking trend... alligator formation - http://hedge.ly/seLPNI
"There are no markets anymore, only interventions" Chris Powell GATA
Oh look, I see some some (Bank of America) lemmings, let's follow them and see where it takes us...
Oil green at 97, this is great the higher it goes the bigger the fall eventually .
Or did someone realise there wasn't enough to go around at these prices ?
"That suggests the market is somewhat comfortable with the ability of Europe to deal with Italy and work through its crisis – and perhaps reassured by the extra cushion on the US side from an economy that appears to have momentum into year-end."
BAHAHAH! Oh man I needed that.
To me it suggests more money printing, especially now with Draghi in charge. That's why oil and gold are surging.
Yes, and seeing Brent go back over $120 should do wonders for future growth in Amerika.
In Communist Amerika, we buy the 2pm dip and ride the rumor that corrects itself once again before the market open next day.
In Communist Amerika, market drive you!
we use WTI (WEST TEXAS) not Brent. Cheaper here.
With the caveat that "middle America" runs on WTI which is a fat 20% cheaper at the moment. The coastal areas have more exposure to brent pricing.
Regards,
Cooter
But but but.. the TV says WTI is under $100 so oil is cheap again. See how that works?
If you don't believe in the worldwide economic recovery, you're a communist terrorist traitor!
homosexual atheist welfare communist terrorist traitor
You forgot a couple of words.
Suggests...or "begs for" to the point of needing new kneepads????
This salient quote is just a measure of the staggering level of ignorance at work in BAC.
Pie-in-the-sky, tooth fairy, Santa Claus - call it what you may; but, they are all more believeable that this crap from BAC
However, this is not a major concern to us in terms of the outlook for US corporate credit,
I wouldn't characterize BofA as a bastion of credit aficionados these days.
Flash crash afternoon?
Watch the trend change now that it's been publicized.
Condition the sheep for pattern A then switch to pattern B to rake in the dough.
Dead on! Market news, geopolitics, etc., etc., makes little difference. All that matters is the momentum of market phsycology.
...cuz after all, when BoA speaks everyone listens.
Hockey Stick, Bitchez!
BAC, go chapter 11 so that we don't have to read this shit anymore.
....the only that matters is the position of the sun: if it is rising, sell. If it is setting, buy.
So that's what Stonehenge is, a stock trader's little helper? Damn Tyler, who would have thunk? :)
lol
+3 for your carlin avatar.
Literally almost sprayed the coffee out the nose! That was funny. Makes you wonder if the bots have a binary bitmapped model of a cyber-stonehenge in their memories.
Actually No. Stonehenge is a Druid temple. The Druids used such structures for human sacrifice. Mixing living persons with kendling set them on fire as the priest would read the signs of the quivering limbs in order to tell the future. In some ways maybe even better than a day and night gig.
OMG. Let me guess: amateur druid scholar?
Yep, he finally got to put that Druid Studies major to good use!
Stonehenge was built thousands of years before the appearence of the druids, who may have never even used it (rather it was merely the fancy of a 18th century "archaeologist" who put forth the idea long before the appearance of accurate dating technologies).
http://en.wikipedia.org/wiki/Stonehenge
Break away from the Matrix. Druids existed along time.
Stonehenge, the first HFT algobot.
Brilliant... it's amazing that the entire global market can be redued to a pile of rocks...lol
+infinity
Wonder how Banana Ben intends to string the market along come Dec.
The BS brigade is running low.
"The BS brigade is running low."
Perhaps, but methinks the BS Brigade will *always* be in business big time. All those blogs...
Hmm...why does this excerpt read like it was penned by Million Dollar Bonus? (Why isn't Clark ever around when Superman shows up?)
MDB will confirm this very soon.
He just has to log out of his regular account then he will be back.
pods
You sure MDB is a he?
Not at all. Most show trolls are alpha male caricatures though, so calling MDB a "he" was to match the personality. Reminds me a bit of NYaphamale/SF3006 from Bonner's old board.
pods
If MDB isn't a he, then here's my best guess. Female sarcasm at its finest.
http://www.filthyrichmond.com/
Positive developments in the US economy? HAHAHAHAHAHAHHAHAHAHAHAH!!!!!
Well, they didn't quantify what was positive did they? I mean, all it takes is two positive things and that satisfies the plural. So, dollar up and 30 year bond, so there ya go!
Man, life is so much easier after I got my dissembling merit badge in the Boy Scouts!
Regards,
Cooter
Thats the overriding theme the TBTFs and the MSM try to beat into the sheeps brains. You see, the markets only go down for central planning approved reasons such as the EU problems.(or snow) The SPX never ever goes down for any rational reason, because the US economy is always sound, just one more QE away from prosperity.
Of course when its time to use taxpayer cash to bail out EU banks, the reasoning is that the global financial system is so intertwined that Europes problems will bring down the USA unless we help them out.
Sometimes the propaganda contradicts with other propaganda but they do tr,y God bless em.
Hmmmm...BAC or Gold today? I think I am going to go with Gold because I hate loosing money!! Going to my favorite gold store in San Diego later today.
Liberty Coin & Precious Metals These guys are cool and the prices are better than the other big guys!
I wonder if Moynihan makes it to 2012?
This makes me strongly consider finding another coin shop in SD. Bummer...I liked those guys.
Positive developments?!? Did I miss something here? 0_o
I'm all in boys! Long bullshit! Don't worry i'm hedged poopie scooper.
9/11/11 today. Do not forget your numerology
Hmmm, they are running a nationwide Emergency Broadcast System test today too.
pods
DON'T LAUGH !!!
I used to be a 99%'er until I started this new investment strategy and now I have so much money that I use all the low denominations as toilet paper. I just bought myself a vacation home in the Hamptons and got myself a hot little trophy wife (or two, wink wink).
You too can have it all. Just be sure to pay attention to the daylight savings time or it will throw your entire strategy off.
Not sure if you're being sarcastic or not, but just in case I suggest you read Nassim Taleb's little story about the turkey...
markets already started the rally on the Joe Pap news (Joe Paterno and G-Pap resigning)
So does that mean a pap smear campaign is imminent?
Regards,
Cooter
Another back door bailout for the insolvent financial institutions courtesy of the only policymaking tool central planners care about: eur/usd aka /es aka risk on/off.
Bank of America...LOL hey hows that $5 fee you were depending on to make your bottom line, hows that goin?
Bankrupt bums. If they have all the answers, why are they bankrupt?
yea... instead they are just planning on jacking up the monthly account fees with higher deposit requirements to avoid it. Say hello to $25 a month or a 2500 minimum
PPT smacking speculators AFTER they take their positions in the morning
Lot of divergence going on lately ! Yellow metal up....white metals and DOW down ? Monedas 2011 Comedy Jihad This could be the start of a beautiful relationship ? Central Banks and their 1% Minions are buying ?
This puff piece from BAC is dated and dead already. Let's see how this
idea works out with the Italian yields rising 100bps per day. Yes,
you BAC idiots, Europe seems to have everything under control.
Geez I hate dumb people. Does Birninyi ghost write this crap?
'Europe seems to be under control'...and totaly insolvent with not even a plausible rumor to convince even the sheeple for an hour anymore.
Program trading systems reviewing the trades and then taking out stops. Tough to beat systems that take advage and trade on market weakness and strength. Maybe one day these trading systems will cause the whole financial system to unravels.
Hint, hint, a challege for hackers. Access these trading systems and mess with them.
What's this red button for...?
BofA Motto: Close Your Eyes and It Will All Go Away
Let it all burn.
There is more logic to sports betting than there is to stock picking at this point. Pathetic.
BofA puts up this little 5 day chart timespan of an utterly insane eye bleeding week, and says 'Look here, see this is the new reality and we project this ever increasing insanity out to infinity'...yea good luck with that ya bunch of bankrupt BITCHEZ!
The previous moves have all been on low volume. To me it means fund managers need a certain % gain, so they're driving prices down, buying the dip, baiting momentum traders, and cashing in that % each day. Once they meet their yearly target, the market will be allowed to fall so they can make next year's numbers.
There are no positives in the U.S. economy. BAC writing that there are only highlights the economic ignorance that got them into their current mess.
Man - truly sickening if accurate.
Jocko Homo.
A phenomenon such as this Sell in the morning, buy in the afternoon, only works until the masses cotton onto it....and by having posted this BofA codswallop you have now just jinxed the market.
What will happen is as follows: The market, having been down as much as 300 pts, will soon only be down by 100 or so, and everyone will be saying "OMG, it's happening again!! We're missing it!!" and yet, this time it'll be a total headfake. The market will brutally seal-club all the day traders and remind them of their mortality by having a horrible 400pt selloff, closing on its arse, and doing major technical damage in the process...thereby guaranteeing a shellacking tomorrow as well, as Asia & Europe will follow suit. There you have it.
That was a fun read - thanks.
Bankers and those analysts of those investment bank will sell their soul just to have their hands in your cookie jar.
Like clockwork, the market is obeying
Here's what I learned in Business School.
Professors don't know shit, because if they did, they wouldn't be wasting their time at a dumb-ass university babbling bullshit to young skulls full of mush. Those that can do, those that can't teach.
Why make a million a year when you can take home 70K?
http://vegasxau.blogspot.com
Those who can't do, teach...and those who can't teach teach phys-ed.
Nah, those who can't teach administrate - or "reform."
Crux of the problem, no? Less William Blacks, more Dean Hubbards.
The other advantage is that this investment strategy is never self-defeating. So all you arbitrageurs, get the hell out of here.
I, as well as many others I'm sure, have been playing this Europe closing/dollar tanking/equities ripping phenomenon for quite some time. It comes in cycles. When it begins to happen, I've noticed that it's often been a precursor to an impending meltdown to the tune of several back to back triple digit drop days. Let's see if history repeats...or at least rhymes.
Works fine till it doesn`t then real carnage.
Plus rumour time is 3.00pm
Crowd Behavior:
http://greshams-law.com/2011/11/06/is-the-herd-capable-of-identifying-stupidity/
"That suggests the market is somewhat comfortable with the ability of Europe to deal with Italy and work through its crisis – and perhaps reassured by the extra cushion on the US side from an economy that appears to have momentum to year-end."
Doesn't BAC just give you that warm and fuzzy feeling. After all, they know what they are doing, right?
What a pathetic bunch of crap from a useless bank.
CDs image of Stonehenge looks remarkably similar to the off switch on my mac. Those Druids knew their trading shit.
Here's the one other thing I learned in Business School.
Any Business School in the U.S. is only interested in making you a "worker bee" for corporate America. You want to kiss ass all day long, and work at BofA? Great, we got the finance program for you. Show up, regurgitate the drivel we teach you, and go out and make Angelo Mo a fortune before he screws the public.
Want to get rich? Oh, sorry, we don't have anything that teaches that. I mean, who wants to actually accumulate wealth and get "fuck-you" rich? Donald Trump? WTF does he know?
B School is the biggest ripoff in the history of education. Except for the degree program in puppetry of course.
http://vegasxau.blogspot.com
B School is the biggest ripoff in the history of education. Except for the degree program in puppetry of course.
And K-12 teacher certification.
So a "financial report" is basically some very creepy wall st asshole(s) (basically sports/hooker crazed illiterati) making terribly flawed and trite conclusions and then electing to disseminate the misinformation widely. IT IS A FUCKING PROPAGANDA MACHINE SIMILAR TO NAZI GERMANY. SOME PEOPLE ACTUALLY BELIEVE THIS SHIT ALTHOUGH THANKFULLY LESS AND LESS. THE ENTIRE FINANCIAL INDUSTRY IS FUCKED AND OVERFLOWING WITH ASSHOLES WHO NEED TO BE HUMILIATED AND FORCED INTO LABOR CAMPS. COMRADES I WANT TO SEE THE S AND P DOWN 400 POINTS BY THE END OF TODAY. I HOPE ONLY BAD THINGS HAPPEN TO THEM. AN MBA IS A BULLSHIT DEGREE. FUCK BAC. My puts are in the green and so I'm going to buy OCCUPY WALL ST. some fucking cristal. DAS VEDANIA.
"That suggests the market is somewhat comfortable with the ability of Europe to deal with Italy and work through its crisis – and perhaps reassured by the extra cushion on the US side from an economy that appears to have momentum into year-end.
Yeah I mean definitely, the U.S. economy has absolutely no risk facing it what so ever. The U.S. has no debt problems, consumer stats have never been higher, and unemployment is at an all time low!!! Thanks BAC!!!
let me re-phrase this whole article....it should be....
banks/fed/HFT drive market down in the morning and then the banks/fed/HFT drive the market up in the afternoon.
Well, as long as it's merely symbolic, I guess that statement is allowable. Otherwise, it's time I moved on to harder drugs to alleviate the dissonance.
the dip is about 10:30 goes up, later dip, then afternoon buy, with a buy if the double inverse funds at the end of the day, and a sell on that at about 10;30
I talked about this yesterday mentioning a channel, but also mentioned crude was a bit different.
I I love certain things, Like how they fail to mention that the vast majority of trades are done with computer algo's who don't hold anything overnight
Total sell side BS spin. This is called a trend change. Markets become uncertain with which direction it will go thus having large swings in both directions. This happens every time until it doesn't and the opposing traders are completely trapped causing a big move by them covering their positions.
and here I thought it was and afternoon ramp job by the HF guys!
so it is not bullshit block trades to create a better close! it really is europe saving us! God Bless Europe for taking one for the team!
and to think I was concrend about all the channel stuffing and / or over production that is just sitting around never to be sold.. NEVER, EVER.. EVER, EVER! will the shit that was pushed out be moved! You will have 2010 cars being sold as 2015 Brand New Cars! LOL!!
Never mind the cars! what about EVERYTHING ELSE??!! Pump those Factories Up!! LOL!! Maybe the owrking class can get a credit card to up thier limit to buy more shit?? Nope? "O" Well! all of retail should be looking at the Gucci Model ( http://en.wikipedia.org/wiki/PPR_(company) ) to up sales! LOL!!
How about that rice harvest? WOOOOOOOWWWWWWWIIIIEEEEEEEEEEEEEEEEE!
this guy is fool
Oh look some (Bank of America) lemmings, let's follow them and see where we end up...
Having drawn attention to it, one can bet it won't work any more.
DavidC
Based on this insanely bullish commentary, I wondered if David Bianco had somehow been re-hired.
DOW chart reveals very overextended price action and another Wile E Coyote scenario...
http://stockmarket618.files.wordpress.com/2011/11/2011-11-09_dow_4_zb.png
All that's happening is predictable, as there are 7 stages that every
major economy goes through. Those who know how it works profit & massive
wealth is transferred to them. Several months ago I learned this
information from a millionaire whose site I found & am sharing it with
everyone I know.
His free video
"How To Create Incredible Wealth in Today's Economic Crisis"
is at:
http://theelevationgroup.net/presentation/register.php?a_aid=160667&a_bid=290b868b&chan=y
Hope this info helps everyone as much as it has me.
Dr. Nancy
and
just as they tell everyone to do that... it doesn't....
ZH has been talking about the post Europe-close rally for how long now? Long time.