Charting Nine Days Of Short Squeezes And Vapor Volume

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Fri, 10/14/2011 - 16:27 | 1775139 Libertarians fo...
Libertarians for Prosperity's picture



Short squeeze in everything but MBIA



Fri, 10/14/2011 - 17:16 | 1775347 He_Who Carried ...
He_Who Carried The Sun's picture

...its all a well known bankster-phenomenon: concerted margin calls all across the field... ;-) !!

Fri, 10/14/2011 - 17:19 | 1775362 Precious
Precious's picture

Okay.  Here is the truth.  The insiders whispered / leaked Q3 results to traders who made sure they were frontrunning the earnings announcements.

Just figure it out.  It's right there in front of our faces.  This one week rally was nothing more than frontrunnning the positive earnings announcements.  That's it.  If you had a contact inside these companies, you could make a small fortune.

End of story.  Quit looking for all these BS reasons and irrationality theories.  It's simple greed.  Insiders shared sales information for Q3.  Bye.

Fri, 10/14/2011 - 17:27 | 1775385 LawsofPhysics
LawsofPhysics's picture

No shit, never short the market going into earnings season.  How much of a boost we are going to get is the question.

Sat, 10/15/2011 - 08:02 | 1776659 Mike2756
Mike2756's picture

I don't think earnings will matter, not when the credit markets are locking up,  they might mitigate the downside a bit.

Fri, 10/14/2011 - 17:30 | 1775401 He_Who Carried ...
He_Who Carried The Sun's picture

You talk as if P/E-value were of some importance right now.

While it is true, that I felt things were getting a tad cheap also, one wouldn't go long waiting for Merkozy's axe. There is more at stake here and I need more than a fabricated "beating the earnings by 0.001 cent" to get "all-in" again ... This is called a catapult trade. Sustained by earnings? Sorry, I highly doubt it.

Fri, 10/14/2011 - 17:38 | 1775425 Precious
Precious's picture

We should hook up.  My ring in your nipple.

As far as your comment goes, research GOOG.

Fri, 10/14/2011 - 17:44 | 1775447 He_Who Carried ...
He_Who Carried The Sun's picture

My field is Metals and Comm'ies. No money in Tech...

What is a phone without Spaghetti ...?

Fri, 10/14/2011 - 17:48 | 1775456 Precious
Precious's picture

Aha.  From your profile pic, perhaps everything come down to a "short squeeze".

Fri, 10/14/2011 - 20:00 | 1775794 He_Who Carried ...
He_Who Carried The Sun's picture

*lol* I doubt it would convince me at this point. Try again later....
Seriously, I am riding this volatility with very tight stops, but I am not going all out long again before they've solved Greece. Macro supersedes micro in this and I have a job to lose... Cu then.

Fri, 10/14/2011 - 19:33 | 1775740 J 457
J 457's picture

Just like the last three quarters, earning estimates have been revised so low that most everyone will beat.  The party will be over by next week.  If we open higher on Monday I may buy a few positions and hold into mid week, but most everyone is still too overly cautious knowing a 15%-20% scalp can happen over 2 days, just like on Oct 3-4.  I'm surprised the 1.4 trillion US annual deficit didn't cause a shake-up earlier today.  When people start ignoring numbers that big the end of this fluffed market is near.   Also, nice boobs.

Fri, 10/14/2011 - 22:43 | 1776134 Market Efficien...
Market Efficiency Romantic's picture

you are saying any buy side actor would massively allocate in risk right now based on GS suggestion of - as anticipated - positive Q3 earnings? And they would do so knowing that any news out of Europe could kill the market immediately.

Lets wait and see what stats will tell and how the regulatory body (probably not at all) will react to at the end of the month/quarter. I bet, the extreme market dynamic will not be possibly explained by allocation changes, so only the bias in market making will be able to explain it. But with the volume asscoiated with market making, a newly ermging long-bias will in relative terms not appear to be relevant and easily explained with the then in the course of the upside move required liquidity at the ask.

Thank you and fuck you banksters. As said below, my theory is, it is again all Timmeah with his perceived outsmarting of markets. What is possibly wrong with him that he has become so over-self-confident and show an almost desperate need to demonstrate that he is playing the wild and uncontrollable market beast.

Fri, 10/14/2011 - 17:26 | 1775384 Joeman34
Joeman34's picture

Are those your real nipples??

Fri, 10/14/2011 - 17:31 | 1775407 He_Who Carried ...
He_Who Carried The Sun's picture

Don't ask, you won't sleep anymore!

Fri, 10/14/2011 - 19:04 | 1775652 Yamaha
Yamaha's picture

Can't even see those at home with an expensive dinner with good wine...........

Fri, 10/14/2011 - 19:29 | 1775727 Roscoe
Roscoe's picture


I laughed so hard beer came out of my nose. I nominate your comment as Word of the Day.

Thanks for a good chuckle at the end of a tough week.


Fri, 10/14/2011 - 22:39 | 1776125 caerus
caerus's picture


Fri, 10/14/2011 - 18:49 | 1775617 Don Birnam
Don Birnam's picture

Volume is truly running on fumes. High-liquidity blue chips are simply falling asleep: JNJ traded 6.6 million shares this session; average volume, 15.2 million. Of course, the stock was up a bit less than one percent.

A low conviction market, to say the least.

Fri, 10/14/2011 - 22:08 | 1776078 covert
covert's picture

keep shorting the dollar


Fri, 10/14/2011 - 22:30 | 1776111 caerus
caerus's picture

the ES since august has been absurd...vacillation on vapor volume (except on the down days) stuck in a range for more than two months now...nothing of any import being solved or even considered...shorts getting squeezed despite the fact that they are entirely justified and correct in their positions...ES will NOT hold the neckline...

Fri, 10/14/2011 - 22:41 | 1776131 caerus
caerus's picture

oh yeah...check out the large traders vs small traders/hedgers on ES COT

Fri, 10/14/2011 - 16:28 | 1775140 ghostfaceinvestah
ghostfaceinvestah's picture

Get used to it, this is the same thing that happened all through the second half of '09.  Seems like it is on someone's agenda to keep the stock markets from crashing.

Fri, 10/14/2011 - 16:31 | 1775154 jdelano
jdelano's picture

they can't, and it will crash.  The minute you're sure we're ramping into the end of the year.  They're driving it up for greek default so crash will only bring us to 950. 

Fri, 10/14/2011 - 17:04 | 1775307 devilsindetails
devilsindetails's picture

It WILL crash... eventually. Not now.

Fri, 10/14/2011 - 17:28 | 1775388 jdelano
jdelano's picture

Should we start a betting pool on who calls closest to the date? I'll put up the prize--ZH t shirt to the winner. But I want November 14th, and we have to define crash. First circuit breaker trip on the Dow?

Fri, 10/14/2011 - 18:03 | 1775494 eurusdog
eurusdog's picture

Ill take November 18 2011. Agreed on first circuit breaker!

Sun, 10/16/2011 - 03:44 | 1778428 lano1106
lano1106's picture

anything special backing this prediction or this is just a gut feeling?


Fri, 10/14/2011 - 16:34 | 1775180 SheepDog-One
SheepDog-One's picture

1220 is the top of this channel and theres no further benefit to pump it higher on fumes, just wash, rinse, repeat. WTF look at the long range chart we're right where we were months ago, and going further back 1999 market levels. Big deal.

Fri, 10/14/2011 - 16:38 | 1775201 ghostfaceinvestah
ghostfaceinvestah's picture

It's a big deal we are at 1225 today and not 925, a very big deal, and Bernanke knows it.

Fri, 10/14/2011 - 16:50 | 1775255 SheepDog-One
SheepDog-One's picture

How is 1225 a big deal over 925? Its a dead empty market the numbers mean nothing! 

I guess if I had an old rusty VW bug for sale at $10,000 and raised the price to $15,000, I'd suddenly be richer?

Fri, 10/14/2011 - 17:42 | 1775442 TheLooza
TheLooza's picture

You would be, according to JP Morgan.


Also, can I get a ride to the mall?

Fri, 10/14/2011 - 18:19 | 1775538 ghostfaceinvestah
ghostfaceinvestah's picture

300 S&P points means a lot to corporate, state, and local pension plans, it means a lot to university endowments, it means a lot to charitable foundations, not to mention individual 401ks, etc.

You seem helplessly naive of the impact the equity markets on our modern society.  Forget all those statistics like "the top x% own y% of the stock market", the truth of the matter is our society is highly leveraged to equity valuations.

Bernanke understands this, apparently you don't.  Enjoy your grumbling though.

Fri, 10/14/2011 - 22:53 | 1776165 Market Efficien...
Market Efficiency Romantic's picture

That's exactly what I realized and I am beginning to realize that it appears wishful to the money and power elites to involve the system into its game at the top. But from an incentive-theoretical point of view, the control over the regulation of a market by a government, whose legitimization and support is directly correlated with the fate of the market, makes the potential and incentive for market making instead of EMH rather likely. Such welfare involvement prohibits EMH effects to one side and by that either creates an endless bubble or convinces capital to move to a more reliable and transparent playing field. Even with the US being the largest equity market, I would in the medium term argue for the ladder outcome.

Sat, 10/15/2011 - 06:45 | 1776612 DollarDive
DollarDive's picture

The points do mean something.  I think that the meaning gets more watered down - the longer the recession persists.  The longer that it continues - the higher the probability is that people are spending down assets - thereby reducing the significance of the financial markets to the middle class.  With more than 50% of the households earning less than 50k, there's not a lot of savings going on.  Assets are being spent down.  

The middle class is less enamored with wall st each day.  Check out the protesters.  They're not exactly future Warren Buffets.... right ?  

The money of the wealthiest is being managed and gamed by the hedge funds.  Ultimately it may be 10 or 20 of the largest and most sucessful hedgefunds fighting it out for supremacy.

Sat, 10/15/2011 - 04:15 | 1776504 mjk0259
mjk0259's picture

Yes and then issue bonds on the rusty VW and lower the price back to $10,000 and book the reduced value of the bonds and you have income as well. Buy the bonds back. Repeat. Spokesman on CNBS in between steps to hype in desired direction the value of rusty VW's.

Fri, 10/14/2011 - 17:08 | 1775319 LawsofPhysics
LawsofPhysics's picture

Yes it is, now about tomorrow, the rest of earnings season and the new year.  With 400 billion more entering the system I am pretty sure who is squeezing the shorts.

Fri, 10/14/2011 - 17:18 | 1775357 jdelano
jdelano's picture

Come on--you really missed the part about 400bil leaving the system first?

Fri, 10/14/2011 - 17:29 | 1775393 LawsofPhysics
LawsofPhysics's picture

Okay fine, the coming and going really doesn't matter does it, just stay ahead of it.  Personally, I am more short than long, not as much as I was in June, but still short, just the same.

Sat, 10/15/2011 - 10:42 | 1776809 unununium
unununium's picture

Methinks the reaction to QE 1 and 2 would have been a tad different if Fed had announced it was buying $900B of 30yr bonds.

Fri, 10/14/2011 - 16:29 | 1775145 jdelano
jdelano's picture

Nope.  I still say range, range, range.  horsey go back down soon.

Fri, 10/14/2011 - 16:51 | 1775259 SheepDog-One
SheepDog-One's picture

Wash, rinse, repeat. This is only a crowd control show, but theyll be happy to take as much long and short money in the meantime as they can.

Fri, 10/14/2011 - 17:19 | 1775361 Manthong
Manthong's picture

“we would say it is a casino, if only it was even 10% as fun.”

 - And we don't even get free drinks, a nearby cheap buffet or lobby hookers.

Fri, 10/14/2011 - 16:29 | 1775146 Hansel
Hansel's picture

Crack-up Boom!

Fri, 10/14/2011 - 16:30 | 1775147 danger close
danger close's picture

Short covering rally, lmao. This bipolar website is as bad as the market; dangerous for your health. One day nothing but doom and then blame on short covering. Fear mongering would be more appropriate for you. Past two years market exploded and entire time nothing but crying here. This site pimped this bullsht Short covering rally last month only to see another low. Nice call! Sick fking clowns.

Fri, 10/14/2011 - 16:31 | 1775158 SheepDog-One
SheepDog-One's picture

Well what are you saying IS causing a run up on no volume then? Bulls buying hand over fist? No thats obviously not it.

Fri, 10/14/2011 - 16:32 | 1775169 jdelano
jdelano's picture

um...short covering rally would hardly preclude new lows.  dumb ass.  

Fri, 10/14/2011 - 16:36 | 1775187 HedgeAccordingly
HedgeAccordingly's picture

thats how short covering works you fucking idiot. tyler is simply highlighting how wallstreet gets everyone short and squeezes them until they puke. then crashes back down.. the market has exploded higher by QE easing and spin. This website gets record traffic and grows every month. Somone is listening, if this sit was a bunch of bullshit i dobut it would get over a million pageviews a day. you can actually make money by getting long when tyler posts short interest at record highs because you know a squeeze is coming.. 

Fri, 10/14/2011 - 16:53 | 1775265 SheepDog-One
SheepDog-One's picture

I dont even believe this line that we have world record shorts available to squeeze daily....this is the FED short. They do it for free, its your money they pile in short and then squeeze.

Fri, 10/14/2011 - 17:46 | 1775451 oldman
oldman's picture

That is a pretty smart thing you wrote   green for sure

How do I get my fucking money back from the Fed?

Don´t tell me I have to take it because I will.

You´re a smart dude Sheep      om

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