FT Causes Massive Short Squeeze With Mother Of All End Of Day Rumors

Tyler Durden's picture

Here are the key selected sections from the FT story that sent the Dow Jones soaring 400 points from its intraday lows: "Although the details of the plan are still under discussion, officials said EU ministers meeting in Luxembourg had concluded that they had not done enough to convince financial markets that Europe’s banks could withstand the current debt crisis... “There is an increasingly shared view that we need a concerted, co-ordinated approach in Europe while many of the elements are done in the member states,” Olli Rehn, European commissioner for economic affairs, told the Financial Times. “There is a sense of urgency among ministers and we need to move on.” Mr Rehn cautioned that while there was “no formal decision” to begin a Europe-wide effort, co-ordination among EU’s institutions – including the European Central Bank, European Banking Authority and the European Commission – on necessary measures had intensified." So, there is .... nothing definite, just more speculation, more rumors, and more innuendo. But hey, it worked last week with the Liesman rumor. It obviously would work for the FT which has become the End of Day rumor source du jour, first with China bailout rumors (since denied), then with recapitalization rumors (denied), and now with this joke. Pathetic.

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gmrpeabody's picture

What is that stench coming from WS?

max2205's picture

Somebody put Mentos in a liter of coke....IWM screamed today

redpill's picture

That was the most retarded 30 minutes of stock trading I've ever seen in my life.

scatterbrains's picture

MS is now a proxy for FAS 3x bullshit

nope-1004's picture

Broken market, period.

Buy PM's.  Sleep well.


Fukushima Sam's picture

Further proof that everything is "fine".

BigJim's picture

...officials said EU ministers meeting in Luxembourg had concluded that they had not done enough to convince financial markets that Europe’s banks could withstand the current debt crisis...

ie, get the FT, Establishment rag of choice, to print some rumors.

They recently had an article called: "Gold bugs beware: Can we consign yellow metal bubble to history?" written by some laughably ignorant economics PhD, who essentially just rewrote an article the FT had published a year ago. I was amused to see that at least 90% of the commenters came down on him like a ton of... well, gold bricks.

When even the FT's readership understands the idiocy of trusting fiat currencies to hold value, you know there's a fundamental shift in monetary understanding. Positively warms the heart.

TheFourthStooge-ing's picture

Olli Rehn: Everything will be fine! All we have to do is lie harder!


Mesquite's picture

Green shoots..???

PS. Not Pathetic.. I say Hilarious..!!!!!

Alea Iactaest's picture

Shut up! First rally of the newest bear market. Party on!

GenX Investor's picture

ES promptly selling off after hours.  Time to reset the draw bridge and do it all again tomorrow.

crazyjsmith's picture

"Liiiiieeee to me, I promise, I'll believe. Liiiiiieeeeee to me, but please, don't leeeeeeeeave"

As the song goes.

Manthong's picture

Anybody notice that amazing last hour GS melt-up?

Gee, maybe Reggie should be loading the freezer up with calimari. </sarc> 

I am more equal than others's picture

The flailing of a dying man.  Mortally wounded it grasps at anything and everything.  His problems have not been resolved.  His cancer grows.  He fights against the night.  This will not pass. 

erg's picture

Moribund geriatrics. A few years back I remember posting something like "...nothing has been fixed. Nothing has been cured. I sense a new bubble forming. Let's call it Anak Krakatau."




DeadFred's picture

30 minutes of retarded stock trading translates to a market that is falling apart. I just hope some small portion of this stays overnight. It looks to me we have room for a 6 or 7% one day drop now. Very bullish for a crash.

lano1106's picture

I am not buying the idea that there is enough stupid investors with very deep pockets to move the markets in such powerful way in a very short period of time.


I think that there is a distinction between cause and justification, which are 2 different concepts.


The justification for the last hour rally is the silly rumor published in FT. The cause is something else...


I can imagine a huge pump machine operated by a well funded criminal organization and when they press on the machine start button to launch the buy program, it triggers simultaneously a fake rumor in a well respected publication to provide a justification to people craving for an explanation for what they are seeing.


Nobody For President's picture

Once upon a time, there were these things called "Fundamentals".

Remember fundamentals?


Today, I watched the Russell 2000 - an index of 2000 small cap stocks, move over 7% in 42 minutes.

SEVEN God damn percent! 

With no real news behind it, only a rumor from Europe that "By golly, we are gonna do something about this shit, maybe."

Killed me north of 65 grand, which irritates the HELL out of me.

It ain't about the money, money is just a way to keep score, but I really, really hate to lose my ass to a bunch of HFT Mothers that are way too big for the SEC to bother, being busy watching their porn and all. It is sort of like watching porn to see over 4 million shares (of TZA) go red in the last 42 minutes, topped off with 1million in the last 3 minutees. "Just adding liquidity here, move on, nothing to see here."


And AFTER the market closes, Moody downgrades Italy 3 notches, from A2 to AA2. Thanks for waiting, bitchez.

I think Wall Street needs some new decorations on the lamp posts - but that's just me...


twotraps's picture

totally agree, I have been expecting that kind of move, only Down.  

bid the soldiers shoot's picture

I remember fundamentals.

That was when 8 points on the Dow was a major move up. And 15 points was "Excuse me, I have to pee."

lano1106's picture

I feel the pain and the anger. I have lost some money too today, hopefully only temporarely.


It is no way possible that honest and intelligent investors are able to move an index this fast and that much in such a short period of time.


They keep changing the rules of the game. I am started to get used to the 10:30AM rally and the last hour rally. One indicator that I have seen to detect these rallies is that as they happen the DXY or the UUP moves in the opposite direction.



That is what has happened today and this how I knew last friday that there would be no such rally last friday.


That been said, I am doing my best to protect my capital in the equities but seeing the state of things, I am starting to be disgusted by the rigged system. I have little remained confidence in the system fairness and I am starting to say to myself that probably the best way to express my disgust is to play as less as possible this unfair game.


Mentaliusanything's picture

Charge them a penny a trade - that will cut the carotid and kill the beast - Just a penny and we can discover prices again.

P.S - They havn't the balls to stand up to the street

rocker's picture

These assholes at the Financial Times did this the last time the market was going to crash.

While it is not funny. It doesn't fix anything. 

Today's action did not show a captiulation sell off. Meaning it is far from over.

I want to buy stocks for a rebound, but can NOT until their is a real capitulation sell off.

The market is still rigged and only a FOOL's loss to buy in.

It is really a shame that the markets are so broken that the only way to get them up is buy the HFT"s causing a short squeeze. 

We may not be able to invest until next year at this rate. 

rocker's picture

In conclussion to my previous post. My shopping list goes in the garbage until I see new bottoms form.

They are not in yet.  What a pitifully broken market.

scatterbrains's picture

This sort of churn and bear stop raiding is needed to clear the down pipe. I agree this was not enough volume to tag it as any kind of "key reversal"   Looks more like the volume bars are slowely building as the daily ranges plunge farther.

CPL's picture

Judging by the trade map, the HFT's were busy shorting each other.  Don't know anyone stupid enough to trade in that slop.  hopefully they cost themselves a small fortune and dropped their own hedge in the typical knee jerk reaction we've all come to expect from the HFT's.

Manthong's picture

IMHO there is no investing in this market.. it is all over except for the death twitches.

Speculating and stashing are the only alternatives today. 

DeadFred's picture

Think about after Thanksgiving. Wait until the CNBC folks are crying real tears on the show, then buy.

oldman's picture


me too. I'm waiting patiently watchin gold drop like a stone and gold stocks melt down and I'm thinking---'hmmmm, no capitulation from the volume----must be selling winners to meet margin---la te da---oh, well--just be patient, oldman'

out to the beach for a coffee and upon return---down 220 and I look at another screen and down 103---and then whoosh!!

Well, it's OK because it shows that these dudes are hanging by Death's toenails---Ive never seen anything like this on a rumor even in a roomfull of wanna-be commodity brokers-in-training.

And I looked up at my old friend Death and he was smiling his grim smile with a wink in his eye----this is going to take a while but the end is in view.

Patience is more than a virtue---it is a discipline           om


SWRichmond's picture

Now they have to manage the markets with daily jawboning...it shouldn't be long now until martial law is declared.

Buck Johnson's picture

All what the EU have is ot float a rumor a week to try to see if this will keep the market going.  Next week they will say something else.  This whole thing is truly a joke.

SkySavage's picture

And down we go again tomorrow...

fyrebird's picture

My company stock (i just work there) was ramped along with the rest, right up to closing. I mean, the entire end of trading was straight up, on no news at all. Then at the end of trading the algos take a breather. The instant they peel off for the day the after-hours trade is sharply down, the entire ramp is eaten in a few minutes.

That's the difference between the machines and the humans.

And notice, they can push it up but they can't hold it up. Not that they care; the final print of the day will get news for 12 hours before reality (the after-hours selloff) comes home to roost in the morning. Rinse+repeat.

Wait. I should have exercised some options on the close! Shit!

HedgeAccordingly's picture

christ have mercy is all i have to say. this chart is real natural http://www.hedgeaccording.ly/2011/10/emini-face-rippage-spy.html

Cosmicserpent's picture

Holy Crap!  I was waiting till the end of the day to add some puts, and that chart is going nowhere but down. Holy. Crap.

fuu's picture

Look at that dollar puke at the end.

HedgeAccordingly's picture

very very coordinated move... the DX was being sold off systematicall. i saw a bidder show up in the ES CL AAPL and huge seller flash size in DX .. you really think all traders are on the same page like that? bahahha.. i need a drinnk

gmrpeabody's picture

Post removed: because none of this can be real.

Ag Tex's picture

If this was a book, I would put it down.  If it was a movie, I would walk out.

GeneMarchbanks's picture

Yes. PPT is an incredible force. And now you know that.

Threeggg's picture

Man, the market movers have the best timing !  LOL

What a sham !

mynhair's picture

Double down fade.

CClarity's picture


youngandhealthy's picture



pschwammerl's picture

This is getting more ridiculous by the day. Aliens, someone?

Manbarepig's picture

GDP positive! More alien rumors!


Or since its the FT, is that rumours?