GDP Market Reaction - NEW QE-Off Trade (For Now)

Tyler Durden's picture

From the swings and lows of historical revisions to beats across the board of GDP data this morning, it seems the market's pre-occupation with NEW QE is now being faded (modestly for now). Treasuries are 4-5bps higher in yield, S&P 500 futures down around 5pts, Gold down $10, and the USD up modestly. For now, it's QE-off, though no-one seems convinced as EURUSD falls - which fits better with the Fed won't print but ECB will perspective.



and close up...


and on a different note, Facebook has a $22 handle...

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AU5K's picture

Government Decided Propoganda

ZippyBananaPants's picture

What's up with Melissa 'small lips' Lee's teeth?  Summer teeth, some are here, some are there.

Aziz's picture

Christ, if the market wants QE3 they need to mass sell to drive the S&P down to a significantly lower level, buy the fucking dip and enjoy. 

How hard would that be to co-ordinate? Not very — TBTFs and algos could pull it off in less than an hour. So if it's not happening obviously the market isn't hungry enough for it.

LULZBank's picture

Same for the PM bugs who squeal murder when the Gold and Silver prices go down.

Short them to near zero and then buy the ultimate dip!

But no, there is no sanity on either side.

Overfed's picture

You won't hear me whining about buying silver when it's on sale!

fonzannoon's picture

AZIZ everyone wants everyone else to sell and get the fk out while they sell some calls and put some shorts on GS recommendations. No one is getting out.

nmewn's picture

One point five annualized...wheres my party hat?

BLOTTO's picture

Im at the point where its either


QE3 - off...


War(3) - on


QE3 - on...


War(3) - off.

I think its the former...An X-factor event is on the horizon.


Its one or the other. It smells like the early 1930's with a bit of 2008 mixed in...

And their is nothing new under the sun...

History is repeating itself.

nmewn's picture

Subtracting G makes it one percent and everyones doing backflips...I think someone around here called it right, project negative growth, then beat it and wallah...a popcorn

It does smell ;-)

RacerX's picture

Eh, she doesn't do anything for me. And I prefer Asian women.

Speaking of CNBS, did anyone see Maria and Bwany mix it up? Pretty funny. Good for her for holding his feet to the fire. She was too nice to this clown, imo.

bnbdnb's picture

What happened to me? This conversation suddenly made me all hot for Maria.

LULZBank's picture

You also need to get laid, mate.

battle axe's picture

But, But, Facebook has a 22 handle....



Id fight Gandhi's picture

Too many companies missing and guiding lower.

fonzannoon's picture

If the fed does not print and the ECB does the dollar will strengthen once the stupid ass clowns actually understand what currency dilution does to the currency. People are already getting a glimpse of what a strong dollar will do to earnings.

Funny for a short while the masses will actually benefit from prices coming down until Ben takes a bat to their heads after the election.

Dermasolarapaterraphatrima's picture

Stronger dollar + tax on internet sales beginning Sept + lapse of tax breaks + plunging consumer spending = trouble.


Ben has no choice but to hold the dollar down as well as Uber NIRP.

SmoothCoolSmoke's picture

News Flash - Monty Python Ministry of Silly Walks now in charge of markets.  JH Christ this shit is just ridiculous.

Lohn Jocke's picture

The economy is a dead parrot. It is no more. It has ceased to be. This is a late economy!

engineertheeconomy's picture

They buried it in a graveyard about a hundred years ago

agNau's picture

One must think.
This is now a centrally planned economy by design. The smoke and mirrors of chaos is there to aid it's implementation. Just as the global controls of population accelerate (cameras, drones, TSA, HS,...), so does the move toward control of commerce and money on a global scale.

The chaos has increased, and the move to control has increased.

Simply step back from the fray and observe the entire display. It will soon be all out of our hands, and completely in the hands of our "handlers".
Comforting thought!
Here, have a burger.....want fries with that?

Hype Alert's picture

New script for a movie:  Weekend At Bennies where they prop up a dead economy!

news printer's picture
Open Letter to the President Of European Central Bank July 27th, 2012 by Rybinski | Posted in: monetary policy

To: President of the European Central Bank, Mario Draghi

Dear Mr. President,

The public is increasingly convinced that the financial sector in developed countries violates basic ethical principles and take action against the law. Investigations are conducted by prosecutors, and those he held the highest offices of financial institutions shall resign. Today we know that the most important of the world interest rate, LIBOR, was subject to manipulation by which banks achieve financial benefits at the expense of customers. It is not clear what role in the affair played by central banks, I hope that this will be explained effectively in the investigation that continues on both sides of the Atlantic.

Lord's statement yesterday shook the financial markets, dramatically changed exchange rates, stock indices, interest rates on government bonds, derivative instruments. In the current context where Europe could be plunged into the depths of the financial crisis of biblical proportions, it is very important that the standards of conduct of monetary policy in Europe has been maintained at the highest level. Therefore, I believe that you should take the following actions:

- Make public the ECB who knew that he would give you yesterday's comment

- Publish a list of billing all the people who know that this comment will be delivered,

- Publish a list of people outside the ECB, with particular reference to the representatives of the financial sector, which in recent days met anyone who has information that will be delivered this comment

Such monitoring should cut all speculations appearing on the Internet, which suggests that the standards of conducting monetary policy in developed countries have significantly reduced.

Prof. Krzysztof Rybinski

Rector of the University Vistula, Vice President of the NBP in the years 2004-2008

SDRII's picture

how does gdp ex auto go up when production is increasing Q|Q?

And bigger inventory build? Was that the premise of the GS downgrades?

The magic of prior year revisions

Neethgie's picture

Eur usd has gone full retard since monday, the market is confused as fuck with violent swings in each direction.

ATM's picture

There is no "market". It is only a playground of robots.

lizzy36's picture

Look at the revisions. GDP is pretty much a useless metric on which to base anything.

Monkeys meet dart board.

Dermasolarapaterraphatrima's picture

Australian House prices dropping as RBA warns:


The Reserve Bank says housing prices may fall further and believes it is risky to assume they won't.

"It is a very dangerous idea to think that dwelling prices cannot fall," RBA governor Glenn Stevens said in a speech today. "They can, and they have."

"We should never say a crash couldn't happen here,

Read more:

Meesohaawnee's picture

oh ben .. can you please ramp up the  NAS-FRAUD a little more???. people need to exit facebook

monopoly's picture

And SBUX, down 10%. MCD down, UPS down AAPL down. But it is all company specific, does not show what the whole economy is doing.  Ahem!

FB is a useless company. Never should have gone public. Lawsuits for a long time. Social Networking, does nothing for this family.


Neethgie's picture

that was the whole reason it went public to cash in on it whilst it was all smoke and mirrors

Jlmadyson's picture

Backfire total.

Oh and Spain now at 24.6% unemployment.

Call it as it is: DEPRESSION.

MillionDollarBoner_'s picture

See Gold got slammed on the news.

How 'bout dat ?!?

fonzannoon's picture

This is awesome. Metals and stocks resuming their surge back up. Bernanke must be scratching his baldness and saying "oh shit". CNBcrap can try to spin this positively but I guess nobody is getting out of the way.

This dude is going to have to hit print with the dow at 14k and oil at 120 after all.

DOT's picture

    The market will remain insane longer than you can pay attention.

    When you blink, the world has changed and you are fqt.



Zero Hedge is like tooth-pics for your eye lids; can't miss that next keyboard replacement opportunity.









SheepDog-One's picture

QENEW-off, buy stawks! I mean, sell stawks? Whatever....YAY!!

Satan's picture

Anyone else feeling a little flashy crashy?

PS Business Insider are calling you out for a fight TD. Go kick their asses.

Jlmadyson's picture

Ohh, this gonna be good son!

hedgehog9999's picture

I hear FAT FINGER is coming back from early retirement......last I heard he was in Ibiza partying with the money crowd while Spain burns...

miker's picture

I think we're looking at high probability of coordinated easing across multiple central banks (incluing the ECB).   If it isn't coordinated, then currencies will be swinging and effecting imports/exports.  Second, by coordinated, the ECB will have cover to do what it has wanted to do but supposedly can't.  Are the Germans going to fight all the world's Central Banks. 

Look to Japan, England, ECB, Federal Reserve, China, etc. to be in the mix.

Things are more than serious right now; they are deadly.  The CB's have to be playing for keeps.

DOT's picture

I hope the CBs remember : some things involve risk.

hedgehog9999's picture

This is possible, only problem is OIL is near $100, food prices are already on their way to new highs without QE and this type of coordinated action , while temporarily moving the indexes a bit higher, it would make commodities soar, hardly what you need to increase earnings and more importantly to feed the masses.......

miker's picture

Commodity prices also have to follow the law of supply/demand.  Yes they may try to rise with devaluation expectations but at the same time will be tempered with soft demand.  Equities are alot more squishy in this regard (PE valuations, etc.).

Actually the CBs want as much inflation as the system will bear.  Right now, that ain't much, but anythiing that can cause some stickiness is being tried.  Food prices haven't really fallen back from 1-2 years back so that may be 'locked' into the system.

But even with these concerns about commodities price increases, preventing a debt deflation spiral trumps all.  If deflation accelerates downward, debt can't be paid off.....defaults rise and at some point, people will get out of the debt.  Game over.

hedgehog9999's picture

" If deflation accelerates downward, debt can't be paid off.....defaults rise and at some point, people will get out of the debt.  Game over."


This comment does not make any sense at all, in that if QEIII or LTRO 2 whatever is implemented by printing and issuing more debt then what?

debt can now be paid back?

it is a case of the head biting its tail, or maybe more to the point fucking yourself  ( I mean Europe) with your own dick. I can picture the movie .....

miker's picture

Please excuse me for using the term "easing".  Really meant to use plain talk:  Printing!

Meesohaawnee's picture

thanks ben.. i new you could give me a +26 on the Nas-fraud futures.. sell away muppets

Need More Cowbell's picture

Why is Tyler saying that S&P 500 futures are down?    They are clearly up this morning.

hedgehog9999's picture

Tyler was a vit early when the story was put out, SPX had to do one more spike to fuck up the few hopefuls that are still buying at 1360 -1364. 

correct 1360 -1370 11AM EST

but gold can NOT breakout from horizontal resistance.....

It does seem we have a case of :

     (stairs up, elevator down) underway...