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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 | Link to Comment Dalago
Dalago's picture

Someone is asking for directions.  Which way to Gold?

Mon, 09/17/2012 - 13:24 | Link to Comment 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 | Link to Comment Mark Carney
Mark Carney's picture

MOAR STRONGERER!!!!!!

 

-P Krugman

Mon, 09/17/2012 - 13:44 | Link to Comment 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 | Link to Comment 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 | Link to Comment malikai
malikai's picture

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

Mon, 09/17/2012 - 14:03 | Link to Comment 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 | Link to Comment GoinFawr
GoinFawr's picture

World Peace broke out!

Mon, 09/17/2012 - 15:25 | Link to Comment AmCockerSpaniel
AmCockerSpaniel's picture

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

Mon, 09/17/2012 - 15:58 | Link to Comment 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 | Link to Comment malikai
malikai's picture

Correction, flash was about $3.50ish.

Still, any word? Margin hike time?

Mon, 09/17/2012 - 14:36 | Link to Comment insanelysane
insanelysane's picture

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

Mon, 09/17/2012 - 14:58 | Link to Comment 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 | Link to Comment 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 | Link to Comment TheSilverJournal
TheSilverJournal's picture

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

Mon, 09/17/2012 - 13:58 | Link to Comment NotApplicable
NotApplicable's picture

One point range?

Market stability achieved!

Heckuva jorb, Timmah and Benron!

Mon, 09/17/2012 - 13:25 | Link to Comment 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 | Link to Comment 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 | Link to Comment holdbuysell
holdbuysell's picture

QEternity: Nice. Quick, Tyler, trademark it.

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

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

Mon, 09/17/2012 - 14:02 | Link to Comment NotApplicable
NotApplicable's picture

.

Mon, 09/17/2012 - 13:18 | Link to Comment 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)..lol

Mon, 09/17/2012 - 13:41 | Link to Comment Dalago
Dalago's picture

AND tomorrow.

Mon, 09/17/2012 - 13:47 | Link to Comment uno
uno's picture

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

Mon, 09/17/2012 - 14:02 | Link to Comment gatorengineer
gatorengineer's picture

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

Mon, 09/17/2012 - 13:18 | Link to Comment 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 | Link to Comment 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 | Link to Comment JPM Hater001
JPM Hater001's picture

"This is what happens when ALGOS get confused"

This: http://youtu.be/wdXU4R8JBe4

Mon, 09/17/2012 - 15:06 | Link to Comment 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 | Link to Comment Jason T
Jason T's picture

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

Mon, 09/17/2012 - 13:59 | Link to Comment 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 | Link to Comment 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 | Link to Comment Squid Vicious
Squid Vicious's picture

rusha-homa

Mon, 09/17/2012 - 13:22 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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.

http://confoundedinterest.wordpress.com/2012/09/17/unintended-consequences-of-the-feds-qe3-mbs-buying-program/

Mon, 09/17/2012 - 13:22 | Link to Comment lsbumblebee
lsbumblebee's picture

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

Mon, 09/17/2012 - 13:24 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment q99x2
q99x2's picture

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

Mon, 09/17/2012 - 13:26 | Link to Comment 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 | Link to Comment Jim in MN
Jim in MN's picture

Beeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeep.

 

"It's dead Jim."

Mon, 09/17/2012 - 13:31 | Link to Comment phoolish
phoolish's picture

Obviously it wasn't big enough.

Mon, 09/17/2012 - 13:38 | Link to Comment Sockeye
Sockeye's picture

Credit demand?

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

Unleashed Stagflation on All.

Mon, 09/17/2012 - 13:32 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment spekulatn
spekulatn's picture

Reggie's AAPL doing well  ;)

Mon, 09/17/2012 - 13:46 | Link to Comment 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:

FLOW (INFINITE) CAN DEVOUR STOCK (FINITE).

 

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 | Link to Comment Bear
Bear's picture

ES is in 'Flash Mash'

Mon, 09/17/2012 - 13:52 | Link to Comment gwar5
gwar5's picture

Eternity is now priced into stocks

Mon, 09/17/2012 - 13:53 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment GoinFawr
GoinFawr's picture

WTI flash crash

Mon, 09/17/2012 - 14:13 | Link to Comment fuu
fuu's picture

And gold, silver, equities...

Mon, 09/17/2012 - 14:16 | Link to Comment 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 | Link to Comment LongSoupLine
LongSoupLine's picture

 

yep...WTI just went WTF!

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

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

 

Mon, 09/17/2012 - 14:07 | Link to Comment bnbdnb
bnbdnb's picture

Wow, nuts

Mon, 09/17/2012 - 14:05 | Link to Comment JamesBond
JamesBond's picture

currency wars -  back in vouge 

 

jb

Mon, 09/17/2012 - 14:07 | Link to Comment 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="https://docs.google.com/file/d/0B16Nxp5pgJBzWHM0NG4wRDlOVW8/preview" width="640" height="480"></iframe>

Mon, 09/17/2012 - 14:13 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment HaroldWang
HaroldWang's picture

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

Mon, 09/17/2012 - 14:29 | Link to Comment Meesohaawnee
Meesohaawnee's picture

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

Mon, 09/17/2012 - 14:46 | Link to Comment 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 | Link to Comment sockratte
sockratte's picture

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

Mon, 09/17/2012 - 14:54 | Link to Comment Odin
Odin's picture

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

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

This always makes me laugh!!!!

http://www.youtube.com/watch?v=qqF83-FmVpM&feature=player_embedded

bump me if you like it!

Mon, 09/17/2012 - 18:24 | Link to Comment 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 !

http://www.zerohedge.com/news/marc-faber-fed-will-destroy-world#comment-2795103

 

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