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Exhibit A: The Market Has Become A Centrally-Planned, Liquidity-Addicted, Temperamental Abortion
We will have much more to say about the impact of central planning on price (lack of) discovery and general market manipulation shortly, courtesy of the just released latest must read report by our friends over at Artemis Capital Management, we wanted to show our readers Exhibit A of what everyone has intuitively known for years, yet been unable to put it to paper. Until today. Below is Exhibit A that courtesy of global, relentless central-planning, the market is now nothing more than a liquidity-addicted abortion, whose future discounting capabilities have been utterly destroyed, which no longer reflects any economic fundamentals, and which is merely a fake construct in the Eye of the Benholder. It also throws temper tantrums in the form of VIX surges any time the promise of liquid heroin is taken away.
Exhibit A
Source: Artemis Capital Management
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Fuck you Bernanke!
Just One Fixhttp://youtu.be/T2UA-7Q3ncU
Never trust a junkie.
I really think he must be crapping his pants right about now.
High Frequency Shearing, courtesy of the Federal Reserve
Can't find the Artemis report and would like to read it...
Ben Shitter Bernanke: a tool who shits Benjamins in a vain attempt to prove the status quo works.
An apple for your thoughts, Ben Shitter?
SilverTree; Just one MORE fix.
Not yet but we will. When Men finds a collective way to beat the algos/machines that will be the day.
The only way to win is to not play the game.
The Pusher - YouTube http://bit.ly/ozX3UV
Theres really no point in looking at charts and indicators at all, all of this means nothing, there is no market left theyve destroyed it totaly.
There is no market. Banks create risk games, like that IG9 index, where big banks are the house, and make $$ on every transaction, and muppet wagers.
The Baroque aristocrats had their parlor card games, like black jack. Modern crony capitalists have these exotic financial engineering products in which to bet, but fundamentally, it is all synthetic risk games, n-th degree removed from reality.
There is no spoon.
... n-th degree removed from reality, and the material conditions, which market enforce, and the order of things. That is 'true' price discovery. Not the speculative-distorted pricing we see today, propped up by easy credit, and reckless Central Banks, and fiscal authorities.
The threat of systemic collapse
From world-wide liquidity traps
Means options are moot
There's only one route
The FED must keep open the taps!
You are a god amongst men. /hat tip
I'm stealing that...
What's astounding is that almost to a CEO there is agreement that although the financial policies they advocate (QE, debasing currency, artificial interest rates) are good in the short term they are disastrous in the long term. As much as they detest Obama, they crave State intervention to prop up stock prices. I've heard numerous guys on CNBC say things in this vein and you want to shake your head in disbelief.
I would disagree about the charts part. The S&P just hit the 50dma exactly, and bounced. It's heading back for another try. If it breaks though then this 'correction' (centrally planned profit taking moment for the bankers) is going much farther down. If not the rally will continue. The algos work with charts and the whole purpose of these short term announcements and liquidity pumps is to move the charts and provide key words so the algos will move things to the desired points.
There the 50 is gone. We will see 1300 shortly.
"There the 50 is gone. We will see 1300 shortly."
Too bad its not as simple as that. From day to day, no one knows for certain which way the market is heading.
One breath of QE and you see a spontaneous 25pt SPX bounce.
My point, my belief, is that the 50 would not have been broken and confirmed with a kiss from below unless that was the plan and desire of the manipulators. The algos shy away from resistance and support levels like vampires from garlic and won't touch the 50 unless a carbon-based someone forces an upward rise through it. Who's going to do that now? This is a rigged and manipulated market and taking the S&P down through the 50 means the the manipulation is now to take the muppets money with a solid correction. I don't see any supports before 1300 so likely that's where it goes. There are no guarantees it stops at 1300 but I expect another short squeeze like June of last year before the real drop. This is how I read things. I'm not God so my saying so won't force it to happen, but time will tell if my take on things play out. It's here in print now so my fellow ZHers can think on it and maybe even tell me why I'm wrong if I am.
The point being? ..................
There is NO market, it is a casino where suckers go to lose their money.
The psychology of allowing you to win on a random basis to keep you playing has been known for decades.
The charts are there to make you think you have a chance. You my friend have yet to leave the matrix, you still think that somehow this is reality.
Knock, knock ...... wake up Neo.
"Markets Are So Rigged By Policy Makers That I Have No Meaningful Insights To Offer" - Bob Janjuah
In a year of elections expect it to get worse...not better.
All you can do at this point is follow the Fed.
Want a better chart? Think the FOMC meetings have any bearing on the market moves?
FOMC Meeting Chart
Liquidity is the key. Market does nothing till the spicket is turned off.
Temper tantrums for the whole market!!!
FED BS %?!? I thought the FED was 100% BS...
The grand plan. This is a must watch
http://www.youtube.com/watch?v=tGk5ioEXlIM
Give me liquidity or give me death.
'Below is Exhibit A that courtesy of global, relentless central-planning, the market is now nothing more than a liquidity-addicted abortion, whose future discounting capabilities have been utterly destroyed, which no longer reflects any economic fundamentals, and which is merely a fake construct in the Eye of the Benholder.'
It always has been, the only real variables being to what degree and an occasional non scripted 'surprise'.
Yea maybe markets always have been manipulated somewhat, some control from the top...but no way can anyone tell me its always been this clown circus 0% free money liquidity injected coma patient clown market that without total life support would immediately flatline. Its never been anything like this, and no one can tell me any differently because even just 10 years ago markets are nothing like this crap today....I know! I was there!
As someone who has watched the markets since the late 70's, I have to agree with you, SheepDog. Manipulated? Sure, the Big Boys, brokers charging ridiculous commissions, mutual funds charging outrageous fees, Old Boys Club, etc.
But nothing like this with the markets in a cash-induced coma and traded mostly by goofball algos.
The convulsions will be horrific when the addictive liquidity is reduced or removed.
Set algos to SELL!
This market is a hanger abortion
Yep 120% BS.
Been waiting for The Fed BS chart, full of its own crapulence..
How can you trade or even invest in a manipulated, broken market. VIX ripped me last month. Do not touch it now. I got 26 guns loaded and ready on my pirate ship, ready to short, but until the momo crap breaks, just sitting and doing nothing.
And you know what really sucks? These little market manipulating sphincters will probably conduct 'the big one' during some overnite where no one but them can benefit from it!
I'm right there with you, though I did buy some NFLX puts last week, which are doing okay. Other than that, watching and waiting.
Wow, the VIX is the new "heartbeat of America".
I don't really understand those topography maps, Tyler. Can't we just use piecharts?
IBEX dying today..
one of your better headlines
But hey SVU popped over a dollar on negative Q4 earnings, but the guidance for 2013 was above estimates so all good.
Well, if it's an abortion, I guess we need Rick Santorum to come in an outlaw it.
We already tried outlawing this ridiculous economy. We passed this thing called the Constitution quite a while ago, which was pretty clear and specific about this kind of stuff. Didn't work.
what did the sword say to the pen?
Or take it home and play with it.
"It is better to live Rich, than to die Rich". -Samuel Johnson
"whose future discounting capabilities have been utterly destroyed, which no longer reflects any economic fundamentals"
Nailed it right there Tyler.
The ZH community should work on giving a name to this abomination. We can't, in good conscience, keep calling it a "market".
How about "the Matrix".
That would be the larger system, with the media controlling the sheeple minds into believing that they have a choice between Romney and Obama, or that there exists a market, etc.
Marks R us
I think of it as HAL now.
If we try to shut it down, it will destroy civilisation and the last thing the few remaining humans will hear is Daisy, Daisy ...
I've been looking for economic stats that can't be manipulated by Obama and Bernanke (as unemployment, inflation, GDP are). Here's a few I put together, they make me want to shit my pants. http://www.futurnamics.com/slfed.php
Yikes, nice charts, you just won't ever see them on MSM.
This market top is one for the history books:
http://chart.ly/63r63nt
the market cry like wah wah
Folks used to go for jail for less
Wait .... Folks go to jail for less ... Now ... The more they steal the more they get to claim it was their's all along
QEnth to the rescue
Inflation and debt are the cure ... Right up till they fail
Here's hoping it is sooner than later
I listened to the talking heads last week and decided it was time to short based on all of them saying it's not too late to get in on this rally! In UVXY at $13.40 and won't sell till it hits $80
Liquidity has become like cuban pesos. Nobody wants it anymore, neither Primary Dealers do.
What the fuck would they do with it?
QE3 to set sail before too long.
Ben watching as Blythe breaks a bottle of Champagne on the bow; probably headed for a transatlantic trip to troubled Eurozone and back to New York to help out those poor downtrodden investment banks and insurance companies.
What are the primary dealers going to do with excessive dollars? Who is going to exchange them for real stuff?
Buy stocks? For what? To dump them on whom?
What real stuff?
Everything is digital now so it is easily created or destroyed with keystrokes.
Surely, $1.2 Billion dollars vaporizing at the hands of Corzine and J.P. Morgue has demonstrated this, not to mention FED Ctrl-P$ infinite liquidity for their Wall Street and ECB cronies.
...looks like Dick Cheney's old deFIBrillator shocking his dusty arse during times when good people are not being slaughtered. http://www.youtube.com/watch?v=aLmSRt1MMrw
Go VIX, go! I've been holding UVXY for way too long. Hoping it gets up to $160.
One has to wonder why Brian Sack would ever leave such splendor.
There is no market, there is only the bernank.
“Trust is gone, it now has to be earned.”
Well formulated.