Equity Market Goes Winehouse

Tyler Durden's picture

Sometimes we just shake our heads. Other times, we just sob anxiously into our handkerchieves. This afternoon's rumor-ramp-denial-no-dump was absurdity at its very best. A 16pt rip in ES on the basis of rumor of another bigger bazooka from the IMF (courtesy of Nikkei not the FT this time as we all know what their rumors are full of) was ignored by pretty much every other asset class. We tweeted almost instantly that the denial would be forthcoming in 10 minutes and sure enough it was. But wondrously, what goes up, does not come down as ES gave back a measly 5pts leaving it very far bereft of broad risk asset's perspective of value.

We use CONTEXT here to show the divergence from risk assets in general but we note that TSYs, EUR, even commodities hardly budged on this rip higher in ES until it had well and truly gone ballistic. As is clear from the chart below, TSYs were not impressed at all (no selling and risk rotation there), DXY (driven mainly by EURUSD obviously) didn't budge initially and even when it did, hardly got enthusiastic, and ES which tore higher hardly gave any back on the denial from the IMF.

Credit indices (which seemed thin all day and were just being reracked by dealers in our opinion) did follow suit but HYG did not. We also note that around the time the rumor hit HYG and JNK were being pretty aggressively sold (majorly underperforming) and given our previous perspectives of the support we believe the ETFs have on the HY secondary bond market, why are we not surprised someone tried the stick-save rumor.

Unsurprisingly, financials benefited most from the rumor and again unsurprisngly gave almost none of their gains back into the close after the official denial...


As for the rumors, first ZH predicted the original one (granted we miscalculated that now even the Japanese media has become a sellout whore to the highest bidder) at around 2:40 pm:

And then the denial at 3:49:

Our tweet says it all...

We assume this will be called 'resilience'...we have a slightly different term for it...

Peter Tchir, of TF Market Advisors, offered a short-and-sweet perspective on this incessant rumor and its folly:


I do not believe that the IMF can create a new plan above its existing unallocated money without new commitments from its members. The EU is effectively out. The US will struggle to approve anything. China, Russia, and Brazil are not necessarily in position to increase their commitments as they all have domestic problems. Japan and the UK just keep hoping the bond vigilantes continue to leave them alone.

The IMF may borrow from someone, but not to get leverage but because their members are reluctant to fund existing commitments!  The IMF is going to need money for existing plans. Countries aren't going to be happy to issue bonds so that they can give the IMF money.

This is all circular and that circularity is coming back to haunt those people desperately trying to come up with new ways to extend and pretend.

How much has France committed to but not paid for? Has anyone added up their unfounded liabilities to EFSF, IMF, EU, EIB, Dexia?  I'm guessing the number is meaningful and that I have missed potential commitments.


Charts: Bloomberg

(h/t John Lohman for the title)

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ghostfaceinvestah's picture

The equity crash is going to be epic

jtmo3's picture

Agree. As long as we can print and there's a breathe in Big Ben's or Obama or Geitner, they will not allow equities to dump. If you haven't got the message by now over these last few years, there's no hope for you at this point.

homersimpson's picture

Strongly disagree. The world equities market is bigger than those 3 clowns you mentioned - no matter how big their printing press is.

Mr Lennon Hendrix's picture

I think we need to test both equitie and Michelle Obama for HGH use.  They are freakishly too strong right now!

Jay Gould Esq.'s picture

Arugula to Mish is like spinach to Popeye. The end robust physical result appears to be identical.

Smiddywesson's picture

The collapse will come in banking, then it will spread through everything else.

SeverinSlade's picture

Once again, ZH proves to be the best news source on the planet.  Now, if only the HFT Algos would begin following ZH on Twitter...Maybe the S&P would revert to fair value.

sitenine's picture

Fair value? You mean like mark-to-market? There is no money to be made in fair value. Haven't you figured that out yet? This is not a market, it is a casino at an insane asylum. Anyone still dealing in paper is an idiot.

Sardonicus's picture

at least jpm not exposed to PIIGS

the world wide interweb sez so.


They invested in GIIPS instead it says


That's one way to hide potential losses.....from spell checkers anyways

Piranhanoia's picture

hilarity ensues;  Bloomberg quotes Demon, "We only have this much" (waves tiny little violin)   Demon knows how to add everything to make balance sheet look big, and subtract everything he has made a deal he never has to pay.

Since Daemon has given us a number, it is probably what they are actually leveraged, so 25X?   What is a few T between idiots.

WhiteNight123129's picture

She was a great musician....  If only the long retards had any talent aside from their sick equity-at-whatever-multiple-whatever-the-macro-context....If you are a PM stuck with a mandate forced to own stock, move around the rules, scratch your head, use some shorts, create synthetic USD debasement trade at least try to be creative !


IrritableBowels's picture

To donate, visit rickperry.com.  Bwa hahaha.

Cdad's picture

HYG and JNK were being dumped when today's miracle, 9th iteration of the IMF to bailout Europe bullshit was announced.  Probably not disconnected.

oogs66's picture

Rarely is. Hy cash never followed CDs or hyg - Dunbar longs about to be punished

Madcow's picture

the equity markets will get Sandusky on anyone still "invested"

SheepDog-One's picture

We're deep in full retard territory now.

FMR Bankster's picture

They are working hard to bring in the last of the short bus crowd not already in the market. Light volume ramp.

SeverinSlade's picture

The markets are building up a tolerance for Hopium.  They now require a daily fix in order to keep the ponzi going.  Can't wait until the hopium is cut off and the markets begin going through major withdrawals.

ebworthen's picture

Poor Amy.

Either there will be an overnight rumor of good results for tomorrow's meeting or vice-versa.

Whichever it is, the HFT machines will dump or buy the volatility 100 times faster than anyone else.

Volatility is making them $$$, completely devoid of reality, facts, or fundamentals.

philgramm's picture

Stock Market represents the illusion of confidence in this mercantilist/fascist gov't.  Can't let that baby go down!!!

John Law Lives's picture

The whoremasters of Wall Street must get quite a kick out of all this.  There definitely are two sets of rules in this world, and the elite are on the winning side... for now.

This is worth watching again.  This scene is eerily prophetic.



Tuffmug's picture

Douglas flubbed his line. It's not "Greed is Good!". It's "Fraud is Good!".

John Law Lives's picture

I believe the "Greed is Good!" line was based upon a similar comment in a speech by Ivan Boesky.  It was a catchy quote in the film.

Wall Street is Fraud Street.

oogs66's picture

It was back when wall street raped and pillaged without zero interest loans from the fed. Evil? Maybe. Funded by us? Not back then

Marge N. Callz's picture

The only think coming from the EU Summit will be Sarkozy after getting a dry German handy from Merkel.

DavidC's picture

Which is why, when the crash comes, it's going to be bigger than anyone anticipates.

It shows where the algos and the PPT have their focus.

Absurdity at its best says it all.


deepsouthdoug's picture

Money for nothing and the (rumor) tips are free. 

ssshhhh's picture

What consist the context index? 

ramblinon's picture

It'd be hilarious if my short-positions weren't getting hammered.

TheLooza's picture

these fucking rumors have cost me so many thousands the last year i can hardly stand it...



ElvisDog's picture

The thing is, what this crap does is to create a gigantic air pocket under the market, because there are no real-live, human beings driving these stocks up. All it does is make a crash more likely.

rambler6421's picture

Who cares about rumors?  They don't matter.  PPT was hard at work today keeping silver down, and the market up.  Good job government!



economics1996's picture

I agree.  Silver coins for me.

Mr Lennon Hendrix's picture

Equitie is about to double top or breakout.  Let's analyze....

Normally given the fact that we are deep in what will be known as the Greatest Depression I would assume a double top, but the Central Banks of the world are once again using the Federal Reserve's emergencie lending facilitie like there is no tomorrow (there isn't), so Fiat could get crushed as the race to the bottom could intensify.

Add wars, and rumors of wars, and oil and PMs could get bid, further crushing the Fiat Ponzi.  There is a chance however that all of this is put on pause for the financiers love to buy low.  Add the bond market is quite large and a drop in USTs and Munis could end the system itself. 

Policie makers are between a rock and a hard place.  They're best bet is to keep the market moving sideways, but something has to give sometime.  Anyone's guess is as good as anyone elses.

bsdetector's picture

QE3 must have commenced without our knowledge. If the FED could inject trillions of dollars without notice they can obviously do what ever they want whenever they want. As time continues the markets might go up and down within a range but they will never go down-down. A down-down market means the 1% has lost control. 

Milton William Cooper's picture

time to sell SPY calls.....

Esculent 69's picture

Why do none of you ever ? that all this currency destruction is intentional.  If you listen to planners, what do they do? they plan and what they are planning for is one world gov't. whether they succeed or not they are trying. what better way to take away countries sovereignty that to collapse and bailout economies only to have other make you countries financial choices for you.  this is atlas shrugged. even though atlas shrugged in 09 the fed is doing everything it can to keep their phony crony capitalism and ponzi scheme afloat.  which was created by progressives who gave us a progressive income tax which is the 2nd pillar of communism. what's the first? abolish private propery. How better to get rid of private property in america than to force banks to give home loans to people who cant afford them only for them to be forclosed upon and nobody knows who owns whose mortgages and the banks who used to own them are now owned by the Government Sponsored Enterprise known as Fannie Mae. BTW the gov't under BJ Clinton forced banks to make loans to poor people. that is not an accident. WTFU

arkel's picture

This whole thing is a joke. Complete joke.

How anybody involved in the markets has not figured this out yet is beyond me. Anybody still doing robotrading should shut down the computer, collect their cash and go buy physical PMs while waiting for all this nonsense to collapse. 

You know you're living in 1984 when you expect the Euro to rise after the ECB finally decides to print or when UST go up after the US is downgraded by S&P.

Gold /silver should be so much higher right now as they are the only true asset with any integrity left. 

End rant

IQ 101's picture

Please spare us the Amy Winehouse analogies,and the Vincent Van Gough analogies and any artist analogies, Artists and bankers, not fucking happening, whats next ? Jim Morrison as Hedge fund trader symbol?

Elvis left the building, so did Amy, so did Renee Magrit and Charley Parker

To put the names of these people alongside the names of those in the


Artists are a bit mental because unlike sheeple they can see the FILTH?

Just sayin.


Dont put artists names next to the names of Treasonous shitbag scum. please, I object strongly.

DavidC's picture

It's Vincent van Gogh, not Gough. It's Rene Magritte, not Renee Magrit, and it's Charlie Parker not Charley Parker. If you're going to draw on artistic analogies at least check your spelling!


IQ 101's picture

It is Miller high life, not Miller light, but you understud my point in the maleable English language ?

WTF Nigga? this ain't France.



minosgal's picture


Refudiate all you want, but homage to individuals includes knowing and spelling their names correctly.

IQ 101's picture

Oh, and fuck you, it is Gough, phoneticaly, I can not wait until i get to BBQ the fatty  scullcaps of your obese ilk.

kiss my ass, David Ceedy mo fo.

DavidC's picture

Oh dear, we don't like to be corrected, do we? It's malleable, not maleable, understood, not understud, skullcap, not scullcap, etc, even spell checking picks these up.

Incidentally, I'm not obese, I'm English.