ES Soars On Hope, QE3 (Non-Lite) Expectations, Takes Out 100 SMA

Tyler Durden's picture

We wish there was something tangible we could attribute the sudden surge in the E-Mini S&P contract to, but we can't. This is just the latest repeat of the hope as an upside catalyst thesis. Oh, and QE3 of course. We are confident, that unlike all previous times, the market's hope that math does not matter when bailing out insolvent countries, will be justified.

Today, it appears the 100 SMA is the self-fulfilling prophecy catalyst.

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redpill's picture

Play it again, Sam, and up the dosage!

Chief KnocAHoma's picture

Chief like this idea:

Use worthless paper for hard assets, and let foreigners help.

I am The Chief!


LawsofPhysics's picture

Yes, of course, never mind the fact that many of these areas do not have the energy or water supplies to serve the current populations and businesses they already have.  Winning.

Chief KnocAHoma's picture

We aren't talking about new development Einstein. Just trying to liquidate existing overhang.

MillionDollarBonus_'s picture

I'm sitting tight with my leveraged Equity portfolio. Any dips are buying opportunities at this point. Yesterday's Philadelphia Fed survey confirms that the negative economic conditions are merely transitory and I'm looking forward to a VERY profitable 2012. For those of you who haven't bought your financials and retail stocks you need to hurry because this buying window will NOT last much longer.

scatterbrains's picture

Citi not really trying to feel the love today bitches!

redpill's picture

Good advice.  You and Jim Cramer are my primary sources for investing information.  To the moon!

Pure Evil's picture

Yeah, with $1 trillion in deposits backstopping 50+ trillions in derivatives, BAC is a best buy. Cha-ching!

i root for that fat jersey governor's picture

enough said about the bulls are headline driven, I kind of think it is actually the bears who do that now - hoping the headline from EU falls short. The real thing here (since we are buying stocks) is company earnings. until some big names really disappoint, I don't see why this market should break dowon in short-term.

LawsofPhysics's picture

"We aren't talking about new development Einstein. Just trying to liquidate existing overhang."

Doesn't really matter if you are or not fucknut.

CPL's picture

Some of the various side effects from the different market hopium dosages include and are not limited to:

  • Dry mouth
  • Urinary retention
  • Blurred vision
  • Constipation
  • Sedation (can interfere with driving or operating machinery)
  • Sleep disruption
  • Weight gain
  • Headache
  • Nausea
  • Gastrointestinal disturbance/diarrhea
  • Abdominal pain
  • Inability to achieve an erection
  • Inability to achieve an orgasm (men and women)
  • Loss of libido
  • Agitation
  • Anxiety
  • Stroke
  • Hear attack
  • Gigantic eyeball syndrome
  • Fluffy hands.
ZippyDooDah's picture

You forgot....anal leakage!

My favorite.

pods's picture

The condition known as "Hot Dog Fingers."


StychoKiller's picture

You say that like it's a bad thing! :>D

Ruffcut's picture

Just wait until the turkey rally next month. Feathers flying around everywhere. Go double long on gravy to cover those steamin mashed dog turds.

Greenspan Shrugged's picture

We're going to the one year moving average on the ES and then look out below people.  Check out the chart below.

prophet's picture

There is a twenty percent move coming before the end of the year.

IQ 145's picture

Just dumped my BAC @6.45; bought at $5.70. It's boring; and I want the equity to support my new S&P500 short at 1234.

prophet's picture

big up monday risk seems high, where is your stop

GeneMarchbanks's picture

Keyboard. Save the ink, and please donate to Greece.

ZeroPower's picture

To be fair, i would NOT be short over the weekend in case something (temporary) does come from the Merkozy meetings.

lovedr's picture

You are wise.  There is still a little bit of road to kick the can down...but not much.

fuu's picture

We just need to put American road crews back to work making new road sections.

carbonmutant's picture

Roads are passe we need more bullet trains...

PS. I live in California.

Catch-22's picture

I can see plenty of bullets in the future... not so many trains.

machineh's picture

Expect an epic food fight with fisticuffs at the Brussels summit.

It's the last lunch on the Titanic, with the drunk and disorderly passengers stabbing each other with butter knives.

Aductor's picture

You don't think Utopia is priced in at this point?

ZeroPower's picture

Definitely not utopia. The amount of firepower unleashed to run the SPX over 100 handles in such a short time frame is epic. Youll see soon enough when its time to short, when that same amount of money goes towards selling and buying OTM puts.

Buy the rumor sell the news might be in play till Monday, we shall see.

d00daa's picture

don't think he said that, but there is something else going on here as well.  if we gap up here, yet again, and close at highs of day, regardless of what "should" be happening, you have to respect that price action.  you don't have to like it or understand it, but you must respect it.

jdelano's picture

would you want to be long in the (likely) event that nothing tangible comes out of the meetings?

SixFeetFromTheHedge's picture

To be even fairer, anything that comes from the Merkozy meetings has already been priced in. Right now the market has already priced in a 2 Trillion euro EFSF. 

If they come to any lesser conclusion there will probably be a disappointment. :)

rune420's picture

Holding any position that isn't hedged for systemic risk either way is pretty much just gambling at this point, at least for the short term. The market will only do that which angers the majority of its participants at any given time, so my guess is it won't drop untill more shorts are covered. Personally I'm long a couple of US sector ETFs and short a european index, the dollar is killing me today though.

homersimpson's picture

I'm now officially in for a sizeable amount in FAZ. I'll let u know if i'm rollin' large or rollin' in my grave on Monday. Way too much upside for FAZ to not go in now.


Randall Cabot's picture

My gut is that you should have given it a few more days.

1fortheroad's picture

I will take FAS for a thousand x 100 + 3

vote_libertarian_party's picture


Bot reading headlines that Europe is fixed with no pain for anybody.

Options exp Friday momo zaniness.

That's 2 solid reasons to rally right there.

rajc's picture

just short covering 

maxmad's picture

I think all the shorts have covered by now!  This is just a meltup on Inflation.  M1 and M2 are up over 40% for the year.... Nothing magical about this rally, other than your dollars are worth less or worthless!

maxmad's picture

This is from George Ure's site:

Wonder why prices are firming and why outfits like GE are turning in whopper-sized profits?  Simple:  The Federal Reserve is orchestrating a runway money supply.  Yes, indeed, right here in the Federal Reserve's weekly H.6 money supply figures it's revealed that in the most recent three months, the annualized rate of M1 increase is 38.2 percent.  Bad?  You bet!



SDRII's picture

But but but.....from the Fed Minutes

M2 surged in July and August, as investors and asset managers sought the relative safety and liquidity of bank deposits and other assets that make up the M2 aggregate. Notably, institutional investors, concerned about exposures of money funds to European financial institutions, shifted from prime money funds to bank deposits, and money fund managers accumulated sizable bank deposits in anticipation of potentially large redemptions by investors. In addition, retail investors evidently placed redemptions from equity and bond mutual funds into bank deposits and retail money market funds.

Aductor's picture

Complete and utter madness. The invisible rational Kudlowian hand at work for you!

Dr. No's picture

"It funny how everything is roses when you hold onto the guns....just because your winning dont mean your the lucky one..."

Pig Brotha's picture

A G n R quote is just about right for this fucked up Friday

Dr. No's picture

didnt take long to find a connoisseur. 

jdelano's picture

Ben on QE


I used to do a little but the little wouldn't do it so the little got more and more, just keep tryin to get a little better said a little better than before......

Pig Brotha's picture

Right back at ya -


The billions shift from side to side
And the wars go on with brainwashed pride
For the love of God and our human rights
And all these things are swept aside
By bloody hands time can't deny
And are washed away by your genocide
And history hides the lies of our civil wars