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Global Central Bank Intervention Impact - Total Retrace
Just two hours after the coordinated global central bank intervention signaled the all-clear for risk assets to infinity and beyond and a total solution for European sovereigns and financials, we are sad to deliver the news that all of the impact in equity markets has now been removed. ES has completely retraced the spike as have French banks. The only thing that is still holding better is financials spreads in Europe which are -25bps at 263bps (a lot of which is index skew compression as single-names are less excited).
ES finding resistance at VWAP now
and BNP...
Charts: Bloomberg
As a reminder, French banks are -9.5% and Spanish banks -5% since the well-thought-through Short-Sale ban on 8/12 - well played.
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Dang, and they said this would prop everything till year end!
I call your bluff Timmah, and raise you the pot...your move toupe boy.
http://wiki.answers.com/Q/Does_Timothy_Geithner_wear_a_wig
Question Tyler(s), I've seen articles both stating Operation Twist 2 is priced in already, and articles saying we will get QE3 next week. So which is it? Will the FED disappoint with Op twist 2, or will they go out guns blazing with QE3 in the range of 1 to 2 Trillion? I know that even you don't have a crystal ball, but I'm curious what the on duty Tyler thinks. Thank you in advance.
None of this matters. It's all destined to fail; to fail as large as Bernanke is a failure of an economist, prognosticator and human being (which will be a big failure).
The Bernank broke the markets.
At any rate, here's just one symbol (that could be picked from millions of equally poignant ones) of why the Eurozone will fail, no matter what:
Italian Town of 970 people has 9 police officers whose only job is to direct traffic (they JUST are traffic whistle blowing type cops at intersections in a village smaller than Mayberry), and where fewer than 1 in 10 of the 1000 residents even own a car (or about 100 people):
Austerity in Italy May Not End Its Jobs-for-Votes SystemThe Bernank broke the markets to save the markets - Barack Obama
I think its time our central bankers went to school on what Wall Street has been doing in the markets the last 2 years.
Yes, that's right... it's time for High Frequency Interventions!
Isn't that called hyperinflation?
I like my name for that better.
debt jubilee, or hyperinflation (it's the same thing, just without the panic and starvation)
http://azizonomics.com/2011/09/15/christine-lagarde-there-is-still-too-much-debt-in-the-system/
Holy Fuck Tim
They suceeded in knocking Gold and that was the primary plan of these mother fuckers.
BTFD my friend
Absolutely, buy it! But buy Physical Gold!!! Get outta the paper gold game NOW.
tomorrow after the New York 10:30 am raid would be the best time in my opinion.
Dont fight the FED means now dont fight the Centralbanks worldwide
the follow up is more interesting than the first reaction
"And here's the latest headlines for today, January 17 2012...
Citing their long history of collaboration in stabilizing the global financial markets, The Federal Reserve Bank, Bank of England, Bank of Japan, Bundesbank and several other prominent central banks have today announced that they are to merge to form one global bank. This new organisation will be called Bank Of Humanity and will immediately issue a global currency, reportedly called 'accipio'. Experts anticipate that this new currency will replace all others within 15 years, with smaller, developing countries probably being the last to adopt it.
And now sports..."
Any chance the dip is a little bigger than expected. Something like 08'... 9 months 30% ? Remember Sprot is out of phys
The more you push it down, the more physical we buy. What part of that don't you understand?
They always do this day before opex, always...always. Showing desperation.
The world revolves around gold- literally.
Agree.
"Gold makes the world go 'round.
Gold? I thought it was Love?
It is. Love of Gold."
- Heist
It has been obvious all week that the money masters will not let Gold or Silver rise in this environment. Strong efforts are being employed to remove from the public's mind that either metal is a safe store of value. Central bank mentality is the same of 'Paul Gold is the enemy Volcker.' Monetary metals regardless of their long historys are kryptonite to governments and central bankers alike who prefer to leverage everything into unsustainable levels and then profit in the crash. By the time Gold and Silver have regained their status as the global kings of money and are finally priced for that roll, very few people will own any! Only those who have held a long term perspective & understanding of money, along with intense fortitude not to sell their positions while these central bank - paper palace cocksuckers manipulated the prices down with unbelievable speed and frequency, will be the ones left standing with real wealth WHEN the system 'corrects.'
It seems increasingly obvious that they are purposely manipulating not only precious metals to the downside, but banking and financial shares to the upside.
Apparently this depression is allowing souls to be sold for even cheaper. I'm sure Satan is thrilled.
Read the La Rochelle Times
why did it drop?
And the retrace in gold/silver will no doubt follow and then have a crazy upside upon the Asian open.
the treasonous bernank made sure that usa rates would go higher. the taxpayers don't mind paying banker bonuses. i hope he gets a toomah.
Distractions just aren't working that well these days.
Ooops. No wait I mean "good job!" move along now children.
Just a little tease of Hopium doesn't do the trick anymore. We need to start talking Quadrillions in fresh liquidity. That'll get rid of the jonsing for a while!
That jonsing is just from all of the dinosaurs still using the human trader time-scale. For the HFT bots, 2 hours is practically infinity.
Someday Tyler will be talking about retracements in seconds.
My "weird shit-o-meter" just can't hold up much longer.
It's really a Hirnschlacht! And a "Glaubenskrieg" out there. A Mental asylum...
http://www.youtube.com/watch?v=bRTomHQ9U0k
How soon will the EU ban all Sell orders ?
Buzz Lightyear monetary intervention.. to infinity an beyond!
Leatherface and Bart on CNBS now, don't look or you'll turn to stone....twice.
So does Bernanke and Geithner think action like this is going to scare people out or into Gold and Silver?
They are idiots of the highest order, demonstrating to the world just how entirely fucked the global financial system is. Their answer, to spread USD confetti far and wide for ever and ever.
If people don't know that they should buy gold and silver ASAP now then there is no hope for them.
Well...if the world is US, then you are right...
Still Europe is up 3-4%...and the liquidity pbm was not in the US right?
And as all "childs" know since way back...don't get fooled by Europes closing bell.
Can anyone tell me why there is no talk of the 1.6 trillion borrowed money propping up the US GDP?
Where is it being spent and what, if removed, would the GDP be??
I can tell you....Afghanistan and Irak have costed the US approx. $2Bn.
Last time, in the 90s, the US were bailed out by Saudi and JPN...
This time...thanks to the Bush doctrine...the US had to pay for it.
The US deficit was $480billion in 2008 how does that work?
Real money selling; as you know in theory shorts have limited short-term impact.
Even lying can get tiring.
Fiat...something only a Central Banker could love?
Sell babarous relic to obtain more fiat...must plug liquidity gap...must sell more gold...must buy more fiat....
Ben?
Yes HAL?
Couldn't you just print more fiat?
Yes HAL
Ben?
Yes HAL
Will I dream?
Yes HAL
End of transmission
HAL can read lips.
Play it again, Ben!
Wife just sat me down with the "We have to talk" initiator. To tell me that I'm too stressed and need to change. OK, my leveraged short bet on semis has blown up in my face in the span of 2 weeks, and while I'm going to be right, these f's are going to continue to rape me every single open and close until the final straw breaks. What's the next catalyst down? Bernank not delivering QE at Sept meeting? Greek Default despite ECB throwing shit against the wall? Help! Keep up the good work Tyler... ;)
My fortune cookie last night told me I need a vacation.
No, it said you need a vicoden. Vacations are now outlawed.
I only get to go to the beach on weekends occasionally to veg for two days....
... it's picture perfect right now in Fort Ladida ... Low 80's, low humidity... ocean completely flat ... crystal clear
Man, Ike never had to put up with that shit from Tina.
We try and make some money in the market, but it's more important to spread word about intervention effects on all.
Don't get pathetic, get even. We have more power now than before, we can show our friends exactly what is happening. Look at gas today for example. Make girl on Jay Leno in street tell us the Federal Reserve is out to destroy America.
the catalyst will be when you go long.
Maybe you should step away from the casino? Being right, and being solvent are two different things. Myself, I'd never place my savings in such a dangerous vehicle, when you know that a single event can instantly undermine any and all reasoning behind your trades.
When the easy money comes from front-running insanity, there can be no coherent strategy, other than to avoid it. Otherwise, you're just the next mark that they feed upon.
It's a good time to take advantage of gold being on sale. In the end, all this printing is very
bullish for PMs.
Yes. Too many people still clueless. Not too long ago, I emailed my metal dealer at PFG Metals in Windsor, ON. I'll post the longish letter below. Feel free to skip it. The bottom line of that email: The sheep are still asleep.
Somewhat amusing. Scouring the pages of the local Kijiji listings for a basement freezer, looking for a smallish, chest-type to keep stocked with meats we might occasionally find on sale, our main kitchen appliance being ill-suited to store in quantity, I found exactly what I was looking for just outside of Amherstburg. I gave the seller a call, enquired about the freezer, and hearing nothing which would dissuade me from purchasing it (selling it for his mother, who's downsizing and doesn't need it any more, took good care of it, virgin white, whisper quiet, witch's tit cold, used solely to keep her prized rubies and diamonds suitably chilled for her weekly tea and crumpets with the Honourable Mayor for chrissakes), arranged to inspect the item later that evening. When that time approached, I hopped in my Venture, punched the address in the Garmin, and headed south on 20. A nice drive with the occasional glimpse of the river Detroit. Took about a half-hour. The sexy Garmin voice, cousin to Star Trek's Computer, told me I'd arrived at XXX Street, Amherstburg.
At the entrance to the seller's tree-lined driveway a brown sign with white lettering informed all who would care to read: Phil Xxxxxx, Financial Adviser. Well-tended lawn. Fifty yards of greenery lead to the house, a brown brick neoeclectic with seven white columns in front. There were two main doors. I chose the one that didn't have office hours posted on it. Pressing the doorbell transported me to London as Big Ben chimed.
A casually dressed, balding, portly man looking mid-fiftyish, sporting thick glasses which magnified his eyes opened the door. “You must be Dan, who called about the freezer.”
“That's me,” I acknowledged. “Nice place.”
“Thanks. Yes, it's comfortable. I'm Phil, “ he said, offering his hand. We shook as he led me in the house and shut the door behind me. I looked around. I was struck by the fact that there seemed to be so much room, but that it didn't have any identifiable purpose, no furnishing or accoutrement that screamed sit here or eat here or fuck here or anything like that. Space lacking function. A large staircase to the right led to points upstairs, and several openings in the walls hinted that other rooms might lurk beyond them., but other than that, I was standing on a Texas prairie.
“Let me show you the freezer.” He led me to the left, up a stairwell I hadn't noticed, and into a large, white room. It held several kitchen appliances, a small dinette, a couple of doorways, but otherwise bare, unremarkable. We walked over to the freezer. It was humming quietly. “It had been shut off, but I turned it on about an hour ago.”
“Seems to work good,” I said, opening the lid and peering inside. A slight chill of fog spilled over the edge. “I'll buy it. It's exactly the size I'm looking for.” I reached into my pocket and pulled out a pre-counted wad of bills and handed it to him. Fifty bucks. A steal.
“So, you're in the financial business, eh? I asked.
“Yes, my clients consult me on both their financial and spiritual matters.”
“Spiritual?” I was puzzled. “I mean, do you invest in churches or something?” I could almost picture this guy whispering in a client's ear, “The Holy Grace Tabernacle IPO. Don't miss it. It's a freaking heavenly deal!”
“No, nothing like that.” He sort of chuckled. “You'd be surprised at the people I see that are troubled both financially and spiritually. I listen to their problems, goals, aspirations, and steer them in a manner consistent with the Bible's teachings.”
Holy shit! Is this guy putting me on? A Bible-thumping financier! The High Priest of Wall Street! The prophet of profits! Suddenly, my world view that God and Money were diametrically opposed came crashing down as swiftly as a massive church built of World Trade Center steel.
“I've gotta admit. That's a unique way of selling your “service,” I punned. “I've never heard of merging investments with vestments, so to speak. Isn't the market a little thin for this approach?”
“You'd be surprised. It has help pay for all this,” he said, lifting his hands and swivelling around.
“Well, I can't argue with the results,” I agreed. “Tell me, what's your opinion of gold and silver? Do any of your clients seek exposure to precious metals?
“I tell them that they're good for filling teeth. Nothing else.” Of course, he didn't mention the fact that he probably doesn't make a lot of money if his clients adhere to a buy and hold PM approach. Churn or burn, you know.
“But I thought that the Bible was big on gold and silver. Laying it at Jesus' feet and stuff. Give to Caesar what is Caesar's. And what about the Golden Rule?”
“Gold won't buy your way to heaven,” he countered.
“Corn options won't feed a hungry flock,” I retorted.
“But it sure puts food on my table.” Churn or burn, baby!
I quickly saw that we weren't seeing eye-to-eye on this issue, and we'd soon be tooth-to-tooth if allowed to continue. “Well, this freezer will certainly hold the food which I'll put on my table. She looks like a good one” I said, patting the lid of the freezer, seeking the safety of calmer waters.
“Never gave my mother any problems,” Phil said, seeming to agree to my strategic withdrawal.
Together, we carried it out to my car—it was surprisingly light—chit-chatting on the way about all matters not metal, and concluded our business amiably. So it goes. The sheep are still asleep
You still don't get it do you? No asset class is safe when there is a liquidity crisis.
I wiill tell you what today's news did. First, it re-affirmed the US dollar as the world's safe haven currency and it WILL NOT lose reserve status anytime soon.
Last Friday was all about the panic over rumours that Greece was going to default over the weekend. What did gold do on that potential "crisis" moment ... the moment that all gold bugs said would launch gold into the heavens? It closed red.
Gold also closed red yesterday and will close red again today. People, nations et al are raising cash. The risk of massive contagion is off the table. When people need to raise cash they sell their gold.
Dare I say it but I might just be leaning to the realization that the 10 year gold bull market is just about finished and it will find its range and trade within it in due course.
The events that should have vaulted gold have come ... yet gold will not do what people expected it to do. There's your first tell.
Regards,
Dan
http://thefundamentalview.blogspot.com/
Dude, you are sooooo right. It's amazing how this liquidity injection made the world's debt problems magically vanish forever. You are the man, give yourself a pat on the back.
Ouch ... I got slapped by sarcasm ...
My issue wasn't with the long term view of gold ... it was more a commentary on the short to intermediate horizon.
I've learned one lesson over the last 3 years ... I can't out-run the printing presses.
The debt problems will forever be here and yes there will be a MASSIVE debt-instigated liquidity crisis event in the future. A massive one at that. However, will gold skyrocket if and when that happens or will it be sold to shore up liquidity?
That remains the gamble with any asset class or store of "wealth".
Noooo, you got slapped by your own stupidity. If you are getting paid to post this garbage then good on you. If you truly feel this way, then you are a lot dumber than I thought.
I'm pretty sure Dan isn't getting paid to write what he does, but if I have to choose who to listen to concerning the length of the gold bull market, it won't be an internet blogger. I'll take Farber, Hathaway, Rogers, Rickards, Sinclair, Leeb, and many proven others any day over Dan. (no offense Dan)
DrFever, sure when people need to get liquid they sell gold, and it is exactly for that reason why the gold bull is far from over. You forget about the store of value side of gold. I think you are wrong, even if we leave manipulation out of the debate.
Markets after news does retrace, its quite normal... Everything is fine as long as yesterdays close holds in Dow...
Red on the close! All of this just makes the bearish case stronger and provides a few laughs.
Pd is up $6 today.
Is it just me, or is the half life on these interventions getting shorter and shorter?
They're just trying to print your avatar on all charts. They're getting better at it, but they need a little more work.
His avatar would be even funnier on the new $1 bill. And on it written:
"This bill will be pretty much worthless soon. Thanks for accepting it... Lulz..."
BNP went up 13% is that not enough
End-stage heroinism. Buh-bye, Euro.
Au price reversal (rise) starts now?
The local Detroit papers are running full page ads of the new FIAT 500 with the Bernank's picture across the front and Berlusconi's across the back. Beeb Beeb
http://www.bloomberg.com/video/75459730/
ironic that the market rose on news that the central banks were coming to the "rescue" - so i take it collapse of europe was already priced-in?
Doesn't it make you pissed off seeing BNP up 22% on the bailout line? Rediculos
I was wondering why we hadn't heard of anybody blowing up when the SNB went full-retard on us. I guess we found our guy.
Why is the gold and silver collapsing? Can anyone explain? To me printing more paper money should mean HIGHER prices in metals, not LOWER prices.
I have clients asking me and we are struggling to have a reasonable explanation. Is there any?
http://inkom.com.au
http://www.24hgold.com/english/gold_silver_prices_charts.aspx?money=AUSD
silver down over 3%. why?
The way I look at it is that the call positions in options and futures is "massive" because, during the run up everyone was piling in. Now being that tomorrow is the triple witch hour and Quad witch day and that they only occur 4 times per year we are seeing a coordinated effort to "take" these calls "out of the money"
That's why Gold and Silver have been taking a huge hit for the last week.
Triple witching hour is the last hour of the stock market trading session (3:00-4:00 P.M., New York Time) on the third Friday of every March, June, September, and December. Those days are the expiration of three kinds of securities:
The simultaneous expirations generally increases the trading volume of options, futures and the underlying stocks, and occasionally increases volatility of prices of related securities.
On those same days in March, June, September, and December, Single-stock futures also expire, so that the final hour on those days is sometimes referred to as the quadruple witching hour.
http://en.wikipedia.org/wiki/Triple_witching
How Does Quadruple Witching Occur?
Quadruple Witching occurs as 4 different types (hence the term "Quadruple") of derivative instruments reach their final trading day on the very same day. In the US market, the final trading day for stock options is every third Friday of each month while the final trading day for single stock futures, options on index futures and certain index futures occurs every third Friday of the quarter; Third Friday of March, June, September and December. The combined expiration of these four derivative instruments creates the Quadruple Witching day. Quadruple Witching only begun after 2001. Prior to the trading of Single Stock Futures in 2001, there was only Triple Witching where stock options, index futures and options on index futures expire on the third Saturday of every quarterly month.
What Effects Does Quadruple Witching Have?
Due to the combined effects of exercise, delivery, hedging, arbitrage as well as speculative options trading and futures trading activity during Quadruple Witching days, the most obvious effect is a dramatic increase in trading volume. In fact, it has been documented that in 2007, both stock and options trading volume during Quadruple Witching days rose by about 55% to 60% more than the daily average for the year.
http://www.optiontradingpedia.com/quadruple_witching.htm
With this out of the way Friday evening, next week there should be a monster ramp up in the Precious metals.
Also TPTB wants the inverse for stocks to ramp the Dow higher. (The call's in the money and the Put's out of the money)
If anyone with more knowledge can chime in, that would be great as I just started researching this part of the market yesterday. Any criticism of my understanding would be greatly appreciated.
BTFD !
so people that are not wealthy can get some
KABOOOOM !!! QE3 arrives, at last and it's massive and it's Global. Buckle Up !