Goldman Market Summary: "Long-Only Buying Vs. Hedge Fund Selling"

Tyler Durden's picture


Curious how the world's most important trading desk saw the action today? Here it is.

Following yesterday’s post-close losses, stocks managed to open quite well. Perhaps the result of a better UMich print. Perhaps the start of a typical Friday squeeze. Or maybe just dip-buying ahead of SPX 1350 / 40 (100d + Fibo support). Unfortunately, the bounce fails to maintain positive momentum. Financials unsurprisingly hardest hit today, with BKX off more than 1%. Telecomm manages a good showing though, but more than 1%. Our flows mixed, and again with the same split as yesterday – long-only buying vs. hedge fund selling. SPX ends down 5 at 1353 (-.34%). The DOW ends down 34 at 12821 (-.27%). The NASDAQ ends flat at 2934.


EURUSD ends the day near the lows, which also means the pair ends the week below the bottom of the old range. Technically, this puts a move back to the January low (1.2624) in the cards. EURUSD lower helping the DXY close higher, again. The DXY now up 10 days running. AUDUSD too finishes at the low, now just a stone’s throw from trading back below parity. CAD outperforms following another solid jobs report. USDJPY trapped in a boring 25 pip range. USDMXN holding above 13.50. USDCLP still in its 480 / 490 range, which is rather surprising following China’s disappointing data and broad LatAm weakness.


Treasuries close higher on the day with 10y yields finishing 4bp stronger. The market rallied for most of the NY session following a sharp selloff on better data. Flows were light on the day; overnight we saw better buying of 10s and selling of 30s from fast money. While Europe primarily drove this week’s price action, a slew of US data next week should provide a change of pace for US fixed income.


Commodities lower ending a bad week on a sour note – WTI down 1.3%, Brent down 0.5%.  Metals continue to be one way gold down 0.9%, silver down 0.5% as Gold is now down 13% from the years highs.  In ags: cotton down 3.5%, sugar down 1.1%, corn down 1.1% and wheat down 0.7% as the WASDE reports continues to weigh on the market.


Yesterday, post-close headlines in US Financials lead IG credit to be bid by accounts. After briefly trading tighter at the equities open, IG continued to trade wider on systemic risk concerns, with IG closing at 108.5. HY outperformed today, only to reverse in the afternoon hours, closing at the day’s lows of 94.812.

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Fri, 05/11/2012 - 17:45 | 2418787 Hopeless for Change
Hopeless for Change's picture

It's time to get things started on the muppet show tonight...

Fri, 05/11/2012 - 17:47 | 2418793 NewThor
NewThor's picture

Hitler is alive and works for Goldman Sachs.

Fri, 05/11/2012 - 18:32 | 2418888 Winston Churchill
Winston Churchill's picture

How dare you besmurch Hitler's name like that.

Fri, 05/11/2012 - 18:58 | 2418933 Xkwisetly Paneful
Xkwisetly Paneful's picture

I am assuming because it is bolded and supports the wrong position of this site,

the zeromoonbats actually believe this tripe?

THe mutual funds have no cash, they have been facing perpetual outflows monthly for quite a while now,

and therefore who are the long only's?

Go with the opposite more likely to be reality, continued mutual fund selling and hedge fund buying.

Which places them on the same side of the FED, the global banking cartel and against zeromoonbats and the retail traders.

Wonder who will win?

Fri, 05/11/2012 - 19:13 | 2418963 Cdad
Cdad's picture

I think what the criminals at Goldman meant to say was "Long only selling and hedge fund selling, but Bernanke bought the tape on the open."

Just a travesty it is...that we still have Goldman Sachs alive and functioning.  Could have been rid of this little nest of criminals in 2008...but the Federal Reserve had a better create a perfect wasteland, thwart all true capital formation, and keep the inmates running the financial asylumn. 

Thank you, Ben Bernanke, for the gift of Goldman...which keeps on taking and taking...

Fri, 05/11/2012 - 20:08 | 2419017 rocker
rocker's picture

That was really good Cdad.   Just remember, Goldman rules the FED, (banking cartel), and the financial world.

Hence, the FED's sole purpose is to accommodate Goldman using the treasury and discount window as a tool.

And speaking of the treasury. Just where do most of our treasury folks come from?  Eh.

Fri, 05/11/2012 - 20:22 | 2419031 lotsoffun
lotsoffun's picture

and mr. cd and mr. rocker.  that's about the whole story.  and the rest of the wall street pack do pretty well for themselves most of the time, but they are just wannabe's.


Fri, 05/11/2012 - 21:44 | 2419150 Xkwisetly Paneful
Xkwisetly Paneful's picture

It is really, really funny this perpetual whining about the FED driving up equities. Of course they drove up equities, even if they didn't directly buy them the money spewing obviously ended up there in some part.

Without the FED there is no bond market and the commodities would be priced close to what they cost to get out of the ground.

Oh but we need more whined the little piggies.

Fri, 05/11/2012 - 22:09 | 2419187 Cdad
Cdad's picture

@ Xkwisetly

So what are you saying with this comment?  Are you suggesting that folks should not be angry or frustrated by this perpetual theft perpetrated by the Fed?  Are you suggesting that it is wrong to want the Fed to stop funding out of control spending by the Federal government?  Are you saying that Average Joe's all over the world should simply make peace with Bernank driven inflation?  And why does this strike you as funny?

And what are "whined little piggies?"  

Sat, 05/12/2012 - 00:15 | 2419387 Xkwisetly Paneful
Xkwisetly Paneful's picture

Those who have benefitted immensly from this policy by owning bonds or commodities and yet cry that same stimulus also sent equities higher. Like you.

Are you ESL? Seem to have a very tough time with the language? I suggest maybe babelfish or something similar.

BTW your posts are flattering but I already have enough ball danglers.

Sat, 05/12/2012 - 18:16 | 2420334 Umh
Umh's picture

You seem to be internally inconsistent. And a bidet should take care of your other problems.

Fri, 05/11/2012 - 22:09 | 2419178 Cdad
Cdad's picture

@ rocker


Umm....I think that is pretty much exactly what I said.

Sat, 05/12/2012 - 04:36 | 2419570 Lost My Shorts
Lost My Shorts's picture

 I have to agree.  The confirmation bias in the zero hedge crowd is astonishing.  When Goldman says what they want to hear, Goldman is an oracle.  When Goldman says the opposite of what they believe, Goldman is a nest of criminals.

Personally, I go with the theory that Goldman is always talking its own book, and whatever they say is designed to make you do what they want you to do.  Truth or falsehood plays no role.  If Goldman talks down equities, it means they want to buy (either because they are short and need to cover, or because they expect a ramp and want to load up.)  If Goldman wanted to short equities on Monday, they would talk them up on Friday.

Fri, 05/11/2012 - 17:51 | 2418799 Beard of Zeus
Beard of Zeus's picture



What have you got for an opening act this time?

A Chinese gorilla dancing ballet?

Fri, 05/11/2012 - 18:06 | 2418841 Joe The Plumber
Joe The Plumber's picture

Lol how can he write so much yet say so little?

Fri, 05/11/2012 - 18:14 | 2418857 Hopeless for Change
Hopeless for Change's picture

by prefacing sentences with words like "perhaps" and "maybe"

Fri, 05/11/2012 - 18:32 | 2418887 navy62802
navy62802's picture

It's time to stock up on shit you will need in a collapse. Weapons, ammo, food, medical supplies, etc. That's what it's time for. You better do it now before it's too fucking late. And the "too fucking late" part will come fast and it will come when you least expect it.

Sun, 05/13/2012 - 00:55 | 2420735 rotagen
rotagen's picture

Goldman Market Summary...Long pointy things shoved up the rear of countries in Europe...Hedgehogs rammed up the derrieres of  the middle class everywhere.

Fri, 05/11/2012 - 17:47 | 2418794 Global Hunter
Global Hunter's picture

That looks like the type of thing a young eager naive guy in a bucket shop would write and blast off a bcc email to about 100 contacts to try and drum up some business when he had no clue or access to what was really going on in the financial markets.  

Fri, 05/11/2012 - 17:57 | 2418816 Joe The Plumber
Joe The Plumber's picture

Nailed it

Sat, 05/12/2012 - 01:17 | 2419461 sleestak
sleestak's picture

Now, please give me a nice commish and I'll buy you a steak next week... 

Sat, 05/12/2012 - 01:23 | 2419463 sleestak
sleestak's picture

Second thought: "The most important trading desk" ???  Has anybody observed what's going on at Goldman?  Wise people are leaving that firm in droves.  Though some remain, most are exactly the "naive" bucket shop types who think that allegiance to that brand will pan out for them in the long career haul.  Those who know better are splitsville.

Fri, 05/11/2012 - 17:49 | 2418798 navy62802
navy62802's picture

JPM is fucked.

Fri, 05/11/2012 - 19:05 | 2418951 LetThemEatRand
LetThemEatRand's picture

Fuck JPM.  

Fri, 05/11/2012 - 21:44 | 2419146 disabledvet
disabledvet's picture

didn't hurt the market did it? "The ULTIMATE put down" given the name, yes? yes? I mean "the actual Morgan would have taken the whole market down with him"...back in the day. Not that I would hold anyone to that standard of course. Still "our stock price collapsed, we at Morgan didn't think it was a big deal and neither did the market" sure doesn't sound good. What's next? "invest in index funds" like i do already? "sounds good to me. these phuckers are retarded!" yes, yes?

Fri, 05/11/2012 - 17:50 | 2418801 buzzsaw99
buzzsaw99's picture

Long only buying, lulz. Yeah, that notoriously strong middle of the month long only buying v. evil hedge fund selling. ha ha They almost make it sound like a real market.

Fri, 05/11/2012 - 17:55 | 2418814 Joe The Plumber
Joe The Plumber's picture

I would almost think the big banks and bloomberg are collaborating on a propaganda message, but i agree this is written at the level of a newbie who doesnt realize how silly he sounds and who also thinks he is wise to the markets.

Goldman has to kiss a bunch of frogs to find another prince. Sadly this frog will likely remain a frog and will be long gone from goldman in a couple of years

Fri, 05/11/2012 - 17:54 | 2418807 slewie the pi-rat
slewie the pi-rat's picture

DXY ^+^


wow!  what a "market" and after yesterday's "post-close losses", too!  L0L!!!

i'll bet Timmah is happy!

billGross looks like he needs CPR over there -->

Fri, 05/11/2012 - 18:01 | 2418818 Al Gorerhythm
Al Gorerhythm's picture

Yawn. Out of financials altogether. Holding onto silver and gold. They make for a shiny memento of yesterday. Tradition.

Fri, 05/11/2012 - 18:04 | 2418833 veyron
veyron's picture

Are you a 1930s jew, and if so did you sew that gold into your clothes?

Sun, 05/13/2012 - 09:30 | 2420941 Al Gorerhythm
Al Gorerhythm's picture

Nah, just a Jerk, according to Munger.

Fri, 05/11/2012 - 18:07 | 2418838 Bam_Man
Bam_Man's picture

That's how they want you to think "they saw it".

It is 100% fraud and deception at this point. There is no one in these markets anymore except for those playing with other peoples' money and Degenerate (with a capital "D") gamblers.

Fri, 05/11/2012 - 18:13 | 2418854 Cdad
Cdad's picture

Uh let me get this funds and other "long only" outfits with almost NO CASH were BUYING, and hedge funds that missed the spring rally are SELLING.  Do I have that right?

So now it is truly correct to absolutely reverse ANYTHING Goldman says to ascertain the truth.  

Thank you, Ben Bernanke, for saving these plague banks so that I could live in this wasteland of your creation.

Fri, 05/11/2012 - 18:37 | 2418899 Bam_Man
Bam_Man's picture

In other news, on Nightly Business Report Dick Bove says that JP Morgan is still a "Buy".

A "Black Box" with an opaque, totally meaningless balance sheet which is allowed to engage in legalized accounting fraud (just like all the other TBTF banks) and you should "BUY" its equity.

This market is for suckers only, because aside from those gambling with other peoples' money, suckers are the only ones left.

Fri, 05/11/2012 - 18:47 | 2418914 Rainman
Rainman's picture

I feel the ghost of Cheeky Bastard's "strong dollar spanking the snot out of gold " manifesto.

Fri, 05/11/2012 - 18:50 | 2418922 adr
adr's picture

Oil down, cotton down, corn down, wheat down. BEST NEWS I'VE HEARD IN A LONG TIME!!!

Fuck the commodity traders, not a single one actually takes delivery anymore. It's all speculators now. Of course us consumers won't see grocery prices drop at all.

I pray for a crash so we can get back to reality in commodity prices. Maybe then the real recovery can start when working people can actually afford to buy things again.

Fri, 05/11/2012 - 18:55 | 2418931 Al Gorerhythm
Al Gorerhythm's picture

You're striking at the ass of the monster. Go for the heart, or the throat.

Fri, 05/11/2012 - 20:50 | 2419085 BLACK_DOG
BLACK_DOG's picture

oh, and my girlfriend went down!

Fri, 05/11/2012 - 19:02 | 2418947 Ted Baker
Ted Baker's picture


Fri, 05/11/2012 - 19:05 | 2418950 Everybodys All ...
Everybodys All American's picture

Dumb money vs Smart money ? I mean who in their right mind is willing to step in front of this freight train.

Fri, 05/11/2012 - 19:35 | 2418988 orangegeek
orangegeek's picture

Gold broke weekly channel support.

Fri, 05/11/2012 - 19:36 | 2418990 dereksatkinson
dereksatkinson's picture

10 days in a row and not taking out that right shoulder?

Last time we had 10 days up we dropped 8% in the dollar index in 8 days

Fri, 05/11/2012 - 20:51 | 2419086 IMA5U
IMA5U's picture

That's the new party line in the market


"Plain vanilla buyers.  Hedge funds selling."


Market is still down 3% in May.  Just wait until the Long Onlys start selling.

Fri, 05/11/2012 - 21:49 | 2419158 disabledvet
disabledvet's picture


Fri, 05/11/2012 - 21:53 | 2419160 disabledvet
disabledvet's picture

Actually I'm not curious at all. I really don't give a phuck. I was fascinated by just how easily Jamie Dimon STILL is getting played by the English however. Thank God a Senator from Tennessee can see right through it. Hopefully he doesn't want to just "join in" cuz the last time this happened it cost the US taxpayer 180 billion dollars. Let me guess..."this was just enough not to crush JP Morgan and wipe it off the map." Yes, yes?

Fri, 05/11/2012 - 23:34 | 2419345 covert
covert's picture

trust goldman?


Sat, 05/12/2012 - 06:10 | 2419590 Cult of Criminality
Cult of Criminality's picture

Silver physical buy day for the Cult !

The milking may not be done yet..Cult does not care

Good day to all

p.s.Yes i am told im an idiot......Thank you Warren ,put your depends on and stfu.... Munger you make us laugh too, crybaby

Laughing all the way to MY personally owned central bank , you guy`s can keep your own .

Sat, 05/12/2012 - 11:04 | 2419730 dcb
dcb's picture

My analysis is very different, but it's hard to explain in words, has to do with the algo's and the set up that was done the day before. Without the trading data on who is wa in fact playing yesterday I don't think you can do an analysiis. I know ZH used to have the tradig data when it was public, but not now.

you need data and acharting to the hour and down to three minute intervals with volume and speed line function. on 5/9 you had the ramp up with the bit of the sell off towards end of day. the next day open (using hourly charting) fell exactly on the resistance line drawn from 5/1. the place where you would renew your shorts. In the set up they use to goose the markets to the next higher level that day is always down for almost the entire day, it goes through you stops generating a sell off. If you chat with the speedline. the days is usualy up only a bit and the close just touches the speed line (this line extended is always the baseline for moving higher). always at the end of this day in the last 10 minutes, in the last minute or so there is a little volume blip where someone buys a shit load of stuff. (you can see this on the voulme indicators if you go down to three minutes. this is the set up for the next higher high. This time it didn't work (JPM?) so the open is much lower. these people are n't allowed top loose money so at the open they ramp up to above the close  before, and a higher high to trigger programmed buy orders. then they can dump and make a nice profit. It's real manipulation. If you watch this pattern enough you will see it, esp the long day down, and the big purchase at the end of the day (ramp signal)


you will see the same set up pattern when it works on 1/30/12 to 2/2/12. you can overlay the speedline function is you have it on that pattern and you will see it over and over again. if you remember it you can in fact trade it alost  by setting you computer.

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