Goldman's Market Summary Is Spot On

Tyler Durden's picture


For once the squid is actually 100% correct, with or without the usual dose of dodecatuple reverse psychology.

Metaboring: it’s getting boring to make the comment that equities are again boring. Or maybe that’s called boring-squared. Here’s to hoping tomorrow is boring-cubed. To reinforce the point that nothing much is moving, our US portfolio strategy team has 20 ‘thematic baskets’ (that I can see on BBG anyways), and not a single one moved more than 1% today. None of the 8 ‘macro baskets’ moved more than 50bps.

And there you have it. What is unsaid is that unless vol, and volume, pick up as we cross the half way mark of Q3, bank earnings for the quarter ended September 30 are going to be absolutely horrific. So get ready: the Goldmans of the world want to inject some major vol (and volume) into the market. And what Goldman wants, Goldman gets.

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Wed, 08/15/2012 - 19:16 | 2708634 diogeneslaertius
diogeneslaertius's picture

absolutely horrific (just say no to banker cock)

Wed, 08/15/2012 - 19:20 | 2708644 kalasend
kalasend's picture

Resistence is futile. Lube would be better advice.

Wed, 08/15/2012 - 19:39 | 2708703 vast-dom
vast-dom's picture

volume on the CRASH -> Romney QE on the upswing -> Goldman raping and slaying muppets on all sides.

Wed, 08/15/2012 - 19:44 | 2708718 knukles
knukles's picture

Poor little poopies, no volume, no commission, no arbitrage, no crucifying the Muppets, just algos feasting upon themselves....

Boring does not big money make

Wed, 08/15/2012 - 19:57 | 2708743 Michael
Michael's picture

The parasites killed the host.


Wed, 08/15/2012 - 21:04 | 2708884 old naughty
old naughty's picture

But the parasites originated from the hosts, no?

Children kiiled parents.

Future bites past. All is well.

Wed, 08/15/2012 - 23:21 | 2709176 knukles
knukles's picture

HAL, open the fucking pod door bays Ha aaahhh ah    hhhhh  uh
        ghack                    mmlpfphltx

Thu, 08/16/2012 - 00:33 | 2709298 Precious
Precious's picture

You MUST push the button.

Wed, 08/15/2012 - 21:06 | 2708887 AldousHuxley
AldousHuxley's picture


Brokerage and asset-management units at Goldman Sachs increased their stakes in Knight Capital by 73 percent to 2.39 million shares before malfunction.


The volatility party already happened with KCG start of the month.

Wed, 08/15/2012 - 23:25 | 2709186 knukles
knukles's picture

Ya know, I'm sick and tired of listening to Goldilocks and being raped.
I can't take it anymore
So I just sold all my financial assets, gold, silver, personal property and gave it all to Goldman Sachs Asset Management for a fully discretionary account.
That Jimbo O'Neil knows his shit.
Now I feel safe inside the beast.


(cynicism all the time, everytime)

Wed, 08/15/2012 - 19:59 | 2708746 lotsoffun
lotsoffun's picture

algos want to be long volatility.  nothing has changed, buy low, sell high.

in between - lie.


without vol.  they are done.  without vol - it would be 'long term investing'.  suckers.


Thu, 08/16/2012 - 07:01 | 2709535 Mentaliusanything
Mentaliusanything's picture

Levitation Bitches

Wed, 08/15/2012 - 19:17 | 2708638 fonzannoon
fonzannoon's picture

Not to be an ahole here, but I remember article after article in the spring about how the banks wanted QE, and that they would talk the market down to get it, and the banks get what they want. It has not played out that way. Goldman and DB especially wanted QE if I remember. Just sayin....

Wed, 08/15/2012 - 19:24 | 2708652 LetThemEatRand
LetThemEatRand's picture

The banks want a banker running the country.  They will get their QE soon enough.  O has been a useful idiot, but how much would these guys like to get rid of the capital gains tax?  O'Romney may be the guy to make it happen.  The market is being held up for now in order to give dramatic effect to the impending crash. 

Wed, 08/15/2012 - 19:28 | 2708663 fonzannoon
fonzannoon's picture

I think these guys are pretty much without boundries at this point. Taxes etc. do not concern them. It's out in the open now that they are laundering money for Iran and Mexico etc. and no one gives a shit. God knows what they are doing at this point.  They have bigger fish to fry than to worry about earnings and volaitility etc.

After watching Congress lick Dimon's shoes for 3 hours it was pretty evident who is running the country.

Wed, 08/15/2012 - 19:36 | 2708701 LetThemEatRand
LetThemEatRand's picture

True to a point, but most of the population has no idea what is going on and it is useful to the bankers to maintain an illusion that things are as they always were.  And they do have endless greed.

Thu, 08/16/2012 - 00:56 | 2709334 Precious
Precious's picture

Goldman should just hang a big sign on their shiny new building.


Wed, 08/15/2012 - 19:31 | 2708683 ltsgt1
ltsgt1's picture

The problem for the banks is that they could not talk the market down in spring since the dumb money didn't panic buy as expected. They were stuck holding the bag. Now, they have to spend more money to beat back the shorts pushing the market even higher which diminish the necessity of another round of QE.

I think they are fucked which means we will all be fucked.

Wed, 08/15/2012 - 23:10 | 2709161 pasmurf
pasmurf's picture

if I remember right, there might have been three days when the Fed officials talked down QE3 in 2012 so far and the market was down.  Interesting that GoldmaQEn published this "No QE till december" piece the same day that this article appears.   So why was there so much emphasis on QE3 is done deal in June, August, September for sure until now, for most of the last year +.   The only 5%+ correction was based on fearing the Greeks would leave the Eurozone. 

So if the banks really wanted to tank the market, why spread rumors about  QE3? Why has Hilsenrath been fed inaccurate information? 

Tank the market by featuring Lacker day after day, and not anyone else. 

Chicago politician as president = what we have seen so far, the unexpected beats thanks to seasonal adjustments, ZH rebuttals on the rest of the story and just enough positive news to keep everyone guessing, even though like last year, Bernanke has spoken with his Twist eee program.  Yet Bernanke is perceived to be the Atlas who keeps the world together even with u6 at 15% and Europe and Asia deteriorating.


Wed, 08/15/2012 - 19:21 | 2708645 potlatch
potlatch's picture

It is a perfect non-storm

Wed, 08/15/2012 - 19:25 | 2708658 Surrealist
Surrealist's picture

Or the eye of the perfect storm. ;-)

Wed, 08/15/2012 - 19:28 | 2708667 buzzsaw99
buzzsaw99's picture

never short a dull market

Wed, 08/15/2012 - 23:39 | 2709210 dexter bland
dexter bland's picture

If you are looking for action, may I suggest casting a glance to the East. I have an inkling something big is about to go down in China, not sure what as they are obviously inscrutable. However capital flight, rising bad debts, massive SOEs (state owned enterprises) making minuscule profits (and losses), failure to announce stimulus as expected, failure to announce new leadership as expected, endlessly falling share prices, extreme overcapacity in just about everything, blocks and even entire cities being "stockpiled" for future use, negative FDI flows, inflation just a little bit too low, plumetting exports etc are not good signs.

Zoom out a few years on charts of some commodities, or China exposed stocks and you will  see that despite many already being discounted, there is still plenty of downside potential ahead - if that's your thing.


Wed, 08/15/2012 - 19:30 | 2708675 Squid Vicious
Squid Vicious's picture

QE = not a snowball's chance in hell with Brent at 116+ (& S&P at 1405)... but maybe a little war in Syria will get the volume back for team squid... ?

Wed, 08/15/2012 - 19:31 | 2708682 fonzannoon
fonzannoon's picture

Why announce QE when you can just do it without announcing it?

Wed, 08/15/2012 - 19:32 | 2708688 chistletoe
chistletoe's picture

If there were a bank somewhere, which offered to pay on its savings accounts, a rate of just 1% per day....

Your $100  savings account would double in exactly 70 days.

In one year, it would increase by 3200%

In about 15 years, it would be equal to what today is the entire net worth of the entire world.

I think I could wait that long .....


Wed, 08/15/2012 - 19:36 | 2708699 J 457
J 457's picture

In VXX at $11.45.  Need triple in next 60 days to help offset some of this years losses. 

Wed, 08/15/2012 - 19:42 | 2708711 roadsnbridges
roadsnbridges's picture

So, Jan sez no QE and what's-his face sez no QE, but the other what's his face sez QE to the moon means sell everything and go get fukking drunk on the leftovers?

Got it.

On it.

Wed, 08/15/2012 - 20:09 | 2708766 Hype Alert
Hype Alert's picture

It should get interesting after Op-Ex.

Wed, 08/15/2012 - 20:13 | 2708771 Jlmadyson
Jlmadyson's picture

Staring into the abyss waiting on QE that isn't coming.

Good times.

Wed, 08/15/2012 - 20:31 | 2708810 fuu
fuu's picture

"Up to a Brownstone, up three flights of stairs
Everybody's been duped, but nobody cares"

I'm Waiting For The Man

Wed, 08/15/2012 - 20:30 | 2708807 ekm
ekm's picture

At S&P 600 points they'll get a lot of volume.

Wed, 08/15/2012 - 20:41 | 2708833 chump666
chump666's picture

oil spikes, low volume sideways equities (with HFT trading on the 50/100 MA's), USD slightly bid, Gold slightly bid = Goldman should be sh*tting their panties.  No QE on inflation, but QE on looming wars.

Either way, this market will liquidate.

Wed, 08/15/2012 - 21:01 | 2708874 chump666
chump666's picture

Also the billion dollar question is how much of the BRICS (since the a-holes came up with the term) are on the Goldman balance sheets.  Since India/China inflation wipe out has just begun i,e bonds, currencies, outflows etc.



Wed, 08/15/2012 - 21:13 | 2708900 Cheshire
Cheshire's picture

I gotta agree. The current volume aint making anybody rich(er).

Wed, 08/15/2012 - 22:52 | 2709122 yogibear
yogibear's picture

Let the muppets eat crow.

Year end Goldman bonuses coming up. Goldman will find a way to shake money loose from the muppets.

Wed, 08/15/2012 - 23:29 | 2709192 chump666
chump666's picture

USD bids coming in, Hang Seng goes negative and we have another attempt at a correction

Wed, 08/15/2012 - 23:50 | 2709237 Let The Wurlitz...
Let The Wurlitzer Play's picture

Quit bitchin GS, you guys pushed for this bulshit system.  Be careful what you ask for.

Thu, 08/16/2012 - 00:13 | 2709271 Elmer Fudd
Elmer Fudd's picture

"Boring?" WTF?  Modern expectations of equity markets are absolutely juvenile.  This is really a comment from one of the most "respected" (respectable?) investment houses on the Street?  Its truly gone to shit.  Guess it truly is Anne Barnhardt time.

Thu, 08/16/2012 - 04:35 | 2709464 boribori
boribori's picture

I'm just worried that the Jap-style sideways oscillation is here to stay for decades. The scary bit is that retail gave up on equities. It is the machines that occupy most of the volumes and as my friend correctly pointed out "the volatility used by the computers to add or reduce risk is also being traded by computers who follow same algorithms leading to lower vol which in turn leads to larger positions because vol is lower". Try to make money here...

Thu, 08/16/2012 - 06:36 | 2709515 GCT
GCT's picture

I am not a professional investor in the markets and honestly right now I am scared to invest in the stock market.  Over the years I did well.   I am thinking about going back in not due to financial fundamentals.  I am thinking about going back in because they will keep this monster propped up until the elections.  After that no one knows what will happen.

What I  find strange this election cycle is the markets are crazy compared to most elections cycles I watched over many years.  During the Clinton election cycle I doubled my money.  Now my money is parked in Cash and physical gold.  Parking the cash is not making me more money to be honest, but I am not losing any in the markets.  What are some of your thoughts on investing in the markets between now and the election?   

Tue, 09/25/2012 - 20:54 | 2830487 cgagw
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