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Did QEternity Finally Kill Stocks? S&P Futures in 1 Point Range Last 2 Hours

Tyler Durden's picture


Volumes are dreadful this morning in cash and futures. S&P 500 e-mini futures (ES) have seen a ridiculously low 5pt range since the open last night but in the last 2 hours, the ES has traded in a 1 point range between 1456 and 1457! Meanwhile Dow Transports are deteriorating again...


Clearly dominated by the algos as ES clings to VWAP...


but Trannies are losing steam again...


Charts: Bloomberg


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Mon, 09/17/2012 - 13:21 | 2803958 Dalago
Dalago's picture

Someone is asking for directions.  Which way to Gold?

Mon, 09/17/2012 - 13:24 | 2804002 vast-dom
vast-dom's picture

when algo parameters are set to SHORTING vs current word cloud float up, we shall see SP return to 600 quickly. 

Mon, 09/17/2012 - 13:37 | 2804057 Mark Carney
Mark Carney's picture



-P Krugman

Mon, 09/17/2012 - 13:44 | 2804085 Manthong
Manthong's picture

Ha Ha.

I can just see all those quants scratching their heads trying to figure out transforms for infinity.

Mon, 09/17/2012 - 13:51 | 2804122 TheSilverJournal
TheSilverJournal's picture

It's the rise of the European Monster that's killing stocks. QE is a dollar killer, and of course since stocks are measured in dollars, QE will send stocks up and up and up (although down in real terms).

When Spain begs for a bailout and accepts conditions (handing over its sovereignty), there will be nothing left to hold the dollar from crashing through the floor.

Mon, 09/17/2012 - 13:59 | 2804144 malikai
malikai's picture

O/T but um.. Brent just flash crashed almost $6. WTF happend?

Mon, 09/17/2012 - 14:03 | 2804153 JPM Hater001
JPM Hater001's picture

Was it a chart anomoly or does any one know why today started with 10,000,000 trade volume at the outset on the DOW?

Hmmmm.  Suspicious...almost imperceptable.  Look at the daily chart right off the bat.  You would almost miss it.

Mon, 09/17/2012 - 14:07 | 2804155 GoinFawr
GoinFawr's picture

World Peace broke out!

Mon, 09/17/2012 - 15:25 | 2804557 AmCockerSpaniel
AmCockerSpaniel's picture

You just may have the right tree to be barking at.

Mon, 09/17/2012 - 15:58 | 2804702 JPM Hater001
JPM Hater001's picture

Yea for world peace!

And now we return you to your regularly scheduled war.

Mon, 09/17/2012 - 14:21 | 2804243 malikai
malikai's picture

Correction, flash was about $3.50ish.

Still, any word? Margin hike time?

Mon, 09/17/2012 - 14:36 | 2804318 insanelysane
insanelysane's picture

Someone must have gotten hold of the memo announcing the SPR release for October.

Mon, 09/17/2012 - 14:58 | 2804412 TheSilverJournal
TheSilverJournal's picture

+ 1

My guess is on the insiders just found out the SPR release is a done deal.

Mon, 09/17/2012 - 15:07 | 2804471 insanelysane
insanelysane's picture

Kudos, WH making a statement that they didn't tell the insiders anything.  Nancy P and John B are high fiving and heading to Filomena's to celebrate.

Mon, 09/17/2012 - 15:30 | 2804579 TheSilverJournal
TheSilverJournal's picture

You know it's true when it's officially denied.

Mon, 09/17/2012 - 13:58 | 2804060 NotApplicable
NotApplicable's picture

One point range?

Market stability achieved!

Heckuva jorb, Timmah and Benron!

Mon, 09/17/2012 - 13:25 | 2804009 JPM Hater001
JPM Hater001's picture

Ben will never ask for directions until he thinks he is completely lost.

By then we will be somewhere in Juarez Mexico and I sense there may be people who want to take our tires...

And lives

Mon, 09/17/2012 - 15:05 | 2804449 Stock Tips Inve...
Stock Tips Investment's picture

These are typical market movements. Add a little, pause, step back a bit and comes back up. Still do not see a change in the character of the market to start a major correction. GLD faced a first level resistenia at $ 175 and a much more important in the $ 185.

Mon, 09/17/2012 - 13:16 | 2803961 holdbuysell
holdbuysell's picture

QEternity: Nice. Quick, Tyler, trademark it.

Mon, 09/17/2012 - 13:57 | 2804137 Frozen IcQb
Frozen IcQb's picture

FYI- It's been "QE to Infinity" for years by Jim Sinclair

Mon, 09/17/2012 - 14:02 | 2804151 NotApplicable
NotApplicable's picture


Mon, 09/17/2012 - 13:18 | 2803971 mrktwtch2
mrktwtch2's picture

plus no jews today..rosh hasnana or whatever you call it ..its a holiday for them and when they arent around volume dries up (gee i wonder why)

Mon, 09/17/2012 - 13:41 | 2804076 Dalago
Dalago's picture

AND tomorrow.

Mon, 09/17/2012 - 13:47 | 2804102 uno
uno's picture

opex week takes over, next week starts the window dressing end of the month

Mon, 09/17/2012 - 14:02 | 2804150 gatorengineer
gatorengineer's picture

end of the quarter.... Fixed it for ya

Mon, 09/17/2012 - 13:18 | 2803976 Robslob
Robslob's picture


This is what happens when ALGOS get confused...Bad news is no longer good news and the MARKET has no way to assign VALUE or RISK to any announcements anymore!!

Mon, 09/17/2012 - 13:23 | 2803989 LawsofPhysics
LawsofPhysics's picture

Price discovery?  What a novel concept.  Sorry, but once fraud and moral hazard take over the value of paper promises will revert to their true value, fucking zero.  The last time the world had real price discovery there was something called a gold/silver window.

Mon, 09/17/2012 - 13:26 | 2804015 JPM Hater001
JPM Hater001's picture

"This is what happens when ALGOS get confused"


Mon, 09/17/2012 - 15:06 | 2804457 The trend is yo...
The trend is your friend's picture

"Get the brokers back in here, turn the machines back on...turn the machines back on"

Trading Places

Mon, 09/17/2012 - 13:19 | 2803979 Jason T
Jason T's picture

Aggregate demand is gonna collapse ..its already been collapsing. 

Mon, 09/17/2012 - 13:59 | 2804143 MachoMan
MachoMan's picture

No one has any savings...  no one wants to get what little money is available to be thrown into the market completely scalped coming and going, as well as to face the inherent risks of a market with prices obfuscated from but a select few...  no one wants to give any juice to the people performing the transactions knowing the way they behave...  further, the cost of living continues to increase which puts additional pressure given the lack of savings and those with any assets (probably on fixed income) necessarily must withdraw unless performance can outpace general price increases (not likely)...  in addition, we have a whimsical regulatory market that may change its mind tomorrow regarding the tax rate and other matters concerning your assets...

Mon, 09/17/2012 - 15:29 | 2804575 Nobody For President
Nobody For President's picture

Don't tell my Mom I'm a day-trader, 

She thinks I play piano in a whorehouse.

Mon, 09/17/2012 - 13:20 | 2803984 Squid Vicious
Squid Vicious's picture


Mon, 09/17/2012 - 13:22 | 2803985 CClarity
CClarity's picture

Since Bernanke and Draghi pronouncements and policies have disconnected markets from economic reality, I suppose it doesn't matter a whit that the S&P range is so narrow on low volume.  Real traders will turn to gambling on sports teams and political races and weather predictions, where at least stats and such can be studied with more reliable correlations than the fraudulent equity markets.

This is just more disruption, intended or not by the Fed and financial cabal, and this time it is brokerages and "public" market mechanisms that are being disrupted into bye-bye land.

Mon, 09/17/2012 - 13:21 | 2803990 not fat not stupid
not fat not stupid's picture

Pausing to let millions of sidelined retail investors back into the "action".

Mon, 09/17/2012 - 13:27 | 2803992 Snakeeyes
Snakeeyes's picture

Remember HAMP when loan servicers were overwhelmed by foreclosures/refis? The Fed just repeated the Administration's clubbing of the servicers. 

Distort! Distort! Distort!!!!!!!!!!!!!!!!!!!!!!! Fed is engaging in shadow fiscal policy by supporting Obama's loan mod programs.

Mon, 09/17/2012 - 13:22 | 2803996 lsbumblebee
lsbumblebee's picture

I believe volume is scheduled for tomorrow followed by a move higher on Thursday.

Mon, 09/17/2012 - 13:24 | 2804004 Id fight Gandhi
Id fight Gandhi's picture

It would be the ultimate black swan for qe3 to have the exact opposite effect and crash the market.

Mon, 09/17/2012 - 14:26 | 2804266 cdude
cdude's picture

That could never happen! Everone is sure Capt. Ben is ready to launch the lifeboats with plenty of time to spare. 

How can markets drop when NOBODY is afraid to hold? Right,right, right- anyone, anyone?   



<sarc> (is this necessary?)

Mon, 09/17/2012 - 16:00 | 2804713 JPM Hater001
JPM Hater001's picture

They probably forgot to tell you the lifeboats weren't ashteically pleasing so they cut the number in half...and your in 3rd class.

Mon, 09/17/2012 - 13:24 | 2804007 q99x2
q99x2's picture

Dead cat dead. Road kill in the sun with legs up.

Mon, 09/17/2012 - 13:26 | 2804013 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Come one Bernanke, print those dollars!  We all need to "feel better" about our 401(k)s.

Mon, 09/17/2012 - 13:30 | 2804030 Jim in MN
Jim in MN's picture



"It's dead Jim."

Mon, 09/17/2012 - 13:31 | 2804032 phoolish
phoolish's picture

Obviously it wasn't big enough.

Mon, 09/17/2012 - 13:38 | 2804063 Sockeye
Sockeye's picture

Credit demand?

Mon, 09/17/2012 - 13:34 | 2804035 Vincent Vega
Vincent Vega's picture

Unleashed Stagflation on All.

Mon, 09/17/2012 - 13:32 | 2804036 insanelysane
insanelysane's picture

The Fed is allowing a down day as the statisticians are getting twitchy when tracking the probability of having an up day, every day, to infinity.  The Fed will step in an buy if the HFT start to sell off and of course the circuit breakers will kick in as well.  Market will continue higher till at least the elections.

Mon, 09/17/2012 - 13:43 | 2804081 Lost Wages
Lost Wages's picture

Everything's back to normal. Stocks down. Yields down. Must be time for that crash everyone's been talkin' 'bout.

Mon, 09/17/2012 - 13:44 | 2804090 morning_glory
morning_glory's picture

This corpse needs juicing. Who will be first to start the QE4 rumours?

Mon, 09/17/2012 - 14:41 | 2804329 cdude
cdude's picture

QE4? Haven't you heard,we now have QE On-Demand®. 

The Fed just put a heating pad under the corpse. See, its not dead. Thermometer indicates a slow but steady recovery, but let's keep the heating pad on anyway.

Mon, 09/17/2012 - 13:45 | 2804094 caimen garou
caimen garou's picture

just watch fox b when they go to nicole p on the floor on the nyse, most of the traders on the floor have one thumb in their mouth and the other up their ass playing switch! wont be long when they are standing in the unemployment lines.

Mon, 09/17/2012 - 13:47 | 2804095 spekulatn
spekulatn's picture

Reggie's AAPL doing well  ;)

Mon, 09/17/2012 - 13:46 | 2804096 ekm
ekm's picture

How many times do we have to repeat it. This is no different from 2008.

Thx to Zerodhedge introducing us to Flow vs Stock we can conclude:



The more securities they buy and remove from the market, the lower the volume will get, hence the deeper the crater when it crashes. No different from 2008. They gave money to Bear Stearns and Lehman until there was nothing left to buy.

Question: Since there are no more suckers, what is left to buy in the market that Primary Dealers have not bought already by the use of continuous flow?

Mon, 09/17/2012 - 13:49 | 2804108 Bear
Bear's picture

ES is in 'Flash Mash'

Mon, 09/17/2012 - 13:52 | 2804123 gwar5
gwar5's picture

Eternity is now priced into stocks

Mon, 09/17/2012 - 13:53 | 2804128 sink critically
sink critically's picture

The process of debasement will undermine the con(fidence) in the following order:

1. electronic indirect financial instruments (stocks)
2. electronic direct financial instruments (treasuries, all non-paper assets including banking account balances)
3. all paper assets including legal tender

The real question is, when will the tangible assets decouple from the intangible? And even more thought-provoking, what will THAT look like?

Mon, 09/17/2012 - 13:56 | 2804134 rsnoble
rsnoble's picture

"We need to find new buyers"

Or force them?  Who know's what they'll do. First thing raid social security and put it in the blackhole, maybe transfer a few digital zeros out of Israel and claim they are buying are overpriced fucking garbage. Don't worry, these deuchbags aren't done yet lol.

Mon, 09/17/2012 - 14:07 | 2804172 Headbanger
Headbanger's picture

They're out there on Wall Street right now by the name Occupy Wall Street so at

least they want something there!

Mon, 09/17/2012 - 13:58 | 2804141 GoinFawr
GoinFawr's picture

WTI flash crash

Mon, 09/17/2012 - 14:13 | 2804195 fuu
fuu's picture

And gold, silver, equities...

Mon, 09/17/2012 - 14:16 | 2804213 gjp
gjp's picture

Mostly commodities and FX.  Equities, barely registering, still in near-coma condition.  They only participate when it's going up.

Mon, 09/17/2012 - 14:22 | 2804248 LongSoupLine
LongSoupLine's picture


yep...WTI just went WTF!

Mon, 09/17/2012 - 14:05 | 2804161 Kromme Vinger
Kromme Vinger's picture

wtf.  ok, what or who just got taught a lesson in crude?


Mon, 09/17/2012 - 14:07 | 2804170 bnbdnb
bnbdnb's picture

Wow, nuts

Mon, 09/17/2012 - 14:05 | 2804162 JamesBond
JamesBond's picture

currency wars -  back in vouge 



Mon, 09/17/2012 - 14:07 | 2804163 DUNTHAT
DUNTHAT's picture

The Detail

Check the action of the category Asset Mgr Long

If that isn't uncle ben and the boys???


<iframe src="" width="640" height="480"></iframe>

Mon, 09/17/2012 - 14:13 | 2804196 Let The Wurlitz...
Let The Wurlitzer Play's picture

Dont worry, the retail investor will now swoop in to buy any and all shares held by mutual funds and hedgies just in the nick of time (to lock in their 2012 gains).  Now that QEoo (infinity) is in full force the reatil sector will have lots of new jobs and boat loads of excess investing money.

Ha! Ha!



Mon, 09/17/2012 - 14:16 | 2804216 mtomato2
mtomato2's picture

Forgive me if someone has already said this;  I perused all the comments heretofore and havent seen it...  If we now have QEternity, doesn't that mean that there is no longer anything for the stock markets to anticipate, and therefor front run?  Doesn't a "New Normal" mean... um, "Normal?, i.e. no reason to expect anything new and exciting? 

What's left for markets to hope for?  Certainly not organic recovery.  What, realistically, could make "moar"kets rise from this point except maybe a real live resurgence in consumer employment and spending?

Mon, 09/17/2012 - 14:29 | 2804279 Nothing To See Here
Nothing To See Here's picture

As Marc Faber said, what is still unknown is when all of this will come undone. Could be Dow 15,000, Dow 20,000 or Dow 100,000. What makes markets rise is the unlimited inflow of fiat money into it.

Mon, 09/17/2012 - 14:30 | 2804285 BlandJoe24
BlandJoe24's picture

been wondering the same thing.  now that if there's "bad" news, there's no more going up just becuase "bad" news means QE.  QE happened.  as Tyler mused the other day after QE: "Does this mean bad news is bad again?"

Mon, 09/17/2012 - 14:19 | 2804237 HaroldWang
HaroldWang's picture

Jewish holiday kids through tomorrow. That's why we have such light vol. 

Mon, 09/17/2012 - 14:29 | 2804277 Meesohaawnee
Meesohaawnee's picture

commodities selling off.. is the margin hiker in chief revvin up?

Mon, 09/17/2012 - 14:46 | 2804351 MrMorden
MrMorden's picture

How in the world are PMs flat/trending down in this environment.  I was expecting more upward move today.

Mon, 09/17/2012 - 14:50 | 2804380 sockratte
sockratte's picture

it means, it isnt sufficient, you need 100 times bigger QE ;)

Mon, 09/17/2012 - 14:54 | 2804400 Odin
Odin's picture

Someone dropped a EMP on Wall Street and killed the algos...

Mon, 09/17/2012 - 15:20 | 2804528 helping_friendl...
helping_friendly_book's picture

nice idea!

We could rent some space, steal power from the tunnels and build a huge f-ing magnet to whack all the colocated wires going to the servers. We might be able to induce enough current to fry the servers.

Mon, 09/17/2012 - 16:45 | 2804907 GoinFawr
GoinFawr's picture

Nah, too complicated. Probably just an office microwave with some Chimmy Churry sauce clogging the door's safety switch; door popped open but the power stayed on...

Mon, 09/17/2012 - 15:22 | 2804542 Downtoolong
Downtoolong's picture

I'm looking and luaghing at some of the hot money favorites that rose las week only to fall hard today.

QE Stimulus On, profits taken, now what is everyone going to do for the next four years, eleven months, and 361 days?

Mon, 09/17/2012 - 15:33 | 2804588 helping_friendl...
helping_friendly_book's picture

This always makes me laugh!!!!

bump me if you like it!

Mon, 09/17/2012 - 18:24 | 2805257 muppet_master
muppet_master's picture

Last Fri

9/14 I said to sell EVERYTHING !! i called spx 1475, eur 1.315 = THE TOP !!

some people don't know how to BUILD POSITIONS and RIDE...that's why they are stupid daytraders and make peanuts !!

just wait for a series of massive drops to spx below 1050 and eur to below 1.05 = then i'll come back and announce i'm covering shorts !


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