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Guess Who Was Buying At The Bottom

Tyler Durden's picture




 

Remember when the retail investor was the butt of all jokes, abused by the "smart money" hedge funds and prop desks to soak up hot potatoes and even hotter grenades? Well, to quote Matthew, those who are last now will be first then, and those who are first will be last: because the dumb money just got very smart. As the latest update from ICI shows, in the last week of May, when all the "smart" money was selling hand over fist, it was the retail investor who bottom-timed the market perfectly.

Perhaps we really are in a New Normal when the one correct indicator of market inflection points are Ma and Pa Sixpack (especially compared to hedge funds who got destroyed in the month of May)...

 

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Wed, 06/06/2012 - 20:47 | 2501658 fonzannoon
fonzannoon's picture

Too bad they were all buying facefart.

Wed, 06/06/2012 - 20:56 | 2501696 disabledvet
disabledvet's picture

that was AWESOME. I can't wait for the next "100 billion."
http://www.youtube.com/watch?feature=player_detailpage&v=AjsH5mT33Pg

Wed, 06/06/2012 - 22:49 | 2502022 Harlequin001
Harlequin001's picture

er, somehow I don't think this is the bottom...

Wed, 06/06/2012 - 23:11 | 2502081 jeff montanye
jeff montanye's picture

the thought crossed my mind as well.

Thu, 06/07/2012 - 06:43 | 2502672 NewWorldOrange
NewWorldOrange's picture

It crossed the mind of anyone who's paying attention and not just paying tribute to Tyler's bone. The article smacks of desperation. Seeing a lot of those lately. WTF?

Thu, 06/07/2012 - 09:23 | 2503177 nugjuice
nugjuice's picture

They can keep this charade going for a long time, and long term shorts can easily get annihilated. At least while this markets' heart is still pumping it's nice to laugh at the so called 'smart money.'

Wed, 06/06/2012 - 23:17 | 2502091 icanhasbailout
icanhasbailout's picture

There's no better customer than a man who can pick up FB at 27 and think he's gotten a steal.

Wed, 06/06/2012 - 23:33 | 2502113 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

I can proudly called dumb I guess. I would rather be an ugly, poor homeless man than ever be one of those motherf*^king banksters.

Wed, 06/06/2012 - 21:05 | 2501729 philipat
philipat's picture

Still very small. The markets have essentially become a circle jerk between the TBTF's who will, presumably, take it in turns to declare profits?

Wed, 06/06/2012 - 21:31 | 2501809 ihedgemyhedges
ihedgemyhedges's picture

I'll take a "crack" at your question TD: Eliot Spitzer.

Oh wait, I thought you asked Guess Who Was Buying Bottom.............

Wed, 06/06/2012 - 23:01 | 2502051 worbsid
worbsid's picture

The only thing wrong with him was paying re-tail.  You would think the Secret Service could get serviced secretly but alas ... TWIAFU 

 

Wed, 06/06/2012 - 22:27 | 2501965 ACP
ACP's picture

No need to worry, the SEC will be right there to make sure this travesty of justice won't happen again.

Wed, 06/06/2012 - 23:16 | 2502087 FL_Conservative
FL_Conservative's picture

Since when is 1275 on the S&P "bottom"?

Wed, 06/06/2012 - 23:35 | 2502116 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

1275 is a temporary bottom. Banksters need to make money off of the short squeeze over the next couple of weeks before Europe goes into complete meltdown.

Wed, 06/06/2012 - 20:47 | 2501659 Goldilocks
Goldilocks's picture

Published on Apr 25, 2012 by CapitalAccount
ZeroHedge Blogger Bob English outlines how Bernanke and the Fed could finally go Bankrupt!
http://www.youtube.com/watch?v=ENA7jtCt0Vw (27:52)

Published on May 21, 2012 by CapitalAccount
JP Morgan's Regulatory Arbitrage of turning Financial Loss into Political Profit
http://www.youtube.com/watch?v=WYw0Ibz-hi8 (28:05)

Published on May 25, 2012 by CapitalAccount
Reggie Middleton breaks down "Muppetology," Face Ripping IPO's, and the Chinese Wall!
http://www.youtube.com/watch?v=kSyPP_1PeWE (28:04)

Wed, 06/06/2012 - 20:47 | 2501661 Conman
Conman's picture

Doesn't it jsut mean that smart money will try to take the money from retail like always?

Wed, 06/06/2012 - 20:49 | 2501668 Cdad
Cdad's picture

Hoping Average Joe sold today...as Wall Street once again goes full on retard buying in a straight line up.

Wed, 06/06/2012 - 20:54 | 2501693 Western
Western's picture

Retail timed it perfectly for a disappointing no-QE announcement in less than a month.

Thu, 06/07/2012 - 02:12 | 2502456 knowshitsurelock
knowshitsurelock's picture

There is still smart money on Wall Street?

Wed, 06/06/2012 - 20:47 | 2501662 Cdad
Cdad's picture

Favorite weekly post...you know...after "channel stuffing" at GM.

Average Joe continues to kick ass!  The criminal syndicate known as Wall Street...continues to suck ass.  My, how the once mighty have fallen.

Wed, 06/06/2012 - 20:49 | 2501667 dwdollar
dwdollar's picture

They won't fall very far with bailouts.

Wed, 06/06/2012 - 21:20 | 2501780 LetThemEatRand
LetThemEatRand's picture

I suspect bailout rumors are all a head fake.  This article suggests why they did it.  A whole bunch of institutional money off-loaded today.

Wed, 06/06/2012 - 22:01 | 2501896 CrazyCooter
CrazyCooter's picture

Tonight I am perfecting my "TEOTWAWKI Beans & Cornbread" ... I stopped paying attention so much to markets. Instead, I buy bulk rice/beans/etc and learn how to cook my comfort foods without fresh ingredients (e.g. cornbread with powdered buttermilk/eggs).

Go Egan, I wish them the best of luck. But it doesn't change the fact that food security is about to become the hottest ticket in the US.

Now, show me how to invest in *that* on an exchange. Oh, right ... carry on.

Regards,

Cooter

Wed, 06/06/2012 - 22:26 | 2501972 Tijuana Donkey Show
Tijuana Donkey Show's picture

Look at Wild Man Steve Brill http://www.wildmanstevebrill.com/ and learn to forage. You can live off the land in your front yard, and get the nutrition you need, as most americans will starve before they eat a single green, vegatarian based meal. Too much of the beans and cornbread, and you might get scurvy.......... 

Wed, 06/06/2012 - 22:57 | 2502041 CrazyCooter
CrazyCooter's picture

I am one of the craziest red necks you might meet in yer life. I was vegitarian for over a decade. I never gave a shit what folks thought about my love of tomatoe, okra, and collards. I think one of the hardest things about moving to AK is giving up my trips to the farmers market; peas, beans, greens, tomatoes, okra. Veggies suck up here. But, you know what, I gave up no-meat and moved to AK to shoot/catch my food and live out of swim distance from zombies.

I will take scurvy ...

http://en.wikipedia.org/wiki/Scurvy

... over not enough calories any day of the week.

Let us all accept, those conditions (i.e. not enough) last a few months and always managed to rectify themselves in history. If the leaders of this country truly let the masses go hungry, all hell is going to break lose in metro areas. Ain't ... gonna ... happen.

I was never veggie for any reason other than what god blessed me for my pallate. I love my veggies. I was also blessed, by god, with a big ass noggin'. I figured out the math about two years or so ago. I am off the bandwagon and really looking forward to bagging some meat ... as soon as I can afford a damn freezer (the ex wife fucked me over good).

Everyone should have a game plan. We can score each other after the house burns down. I hope I place better than most.

Regards,

Cooter

Wed, 06/06/2012 - 20:48 | 2501665 FieldingMellish
FieldingMellish's picture

You are assuming this is the bottom.

Wed, 06/06/2012 - 21:11 | 2501751 YC2
YC2's picture

Yeah, I am not encouraged either way on these reports.  I get the trend is bad in a secular way for equity ownership, but not sure I would use it for timing my buys to get in with the masses, assuming some king of paradigm shift.  This could be where the old game starts again, albeit on lower volume.  

Wed, 06/06/2012 - 20:51 | 2501673 nmewn
nmewn's picture

But can they get out within the next 30 SP points?

Wed, 06/06/2012 - 20:52 | 2501680 Let them eat iPads
Let them eat iPads's picture

Who the fuck is calling a bottom?

 

I have some shit to sell them.

Wed, 06/06/2012 - 22:18 | 2501952 CrazyCooter
CrazyCooter's picture

Dude, let me give you the straight dope.

I live in a small town in AK. 30k people. There ain't a road into or out of this place. Bring on the zombies, they need to swim past the feeder fish to get here! You come in on Alaska Airlines, the Alaska Marine Highway System (ferry), or you hire someone to fly your ass in. That is it. I see "boat planes" all the time in the sky, it is just how it is here.

Recently, there is now an abandoned truck just north of downtown (hint: going from down town to no town is a few bits past a few miles) with a big ass sign on it; www.JuneauGoldBuyer.com.

Let me tell you how it is here; there is not ONE local coin dealer. I looked as soon as I got here. I am stuck buying online. Further, there are two active gold mines that employ a fat piece of the town population; Greens Creek and Kensington.

HINT: anyone following pebble creek can get a hell of a lot of information off the DNR site, of which I just linked to twice. Including that REE mine crap they are pitching; if it aint on the DNR, they ain't filing documents with the state (a.k.a. scam).

Anyway, this is just astounding. Who the fuck, in Juneau, AK, is going to sell a bunch of gold? Seriously? Do you think the miners are going to sell you gold? For fucks sake, there is no GOD DAMN MARKET here. If there was, I would be schmoozing my local bullion dealer.

This candle is lit. That website is a "bulk production" where domains are bought probably on the sole fact of population. Think like a business man. You need to buy gold (a.k.a you are Saudi Arabia looking to cash out). You need peons to sell you gold. How do you do it? Give me a list of all X cities in the US whose population is greater than Y, and hire a bunch of abandoned trucks to park at major interesections with the domain name on it (like its a local business). There isn't time or resources to qualify the value of the investment. Just do it and things average out (a.k.a the business plan).

Thus, my conclusion, that with gold so fucking low, the candle is lit. Buy up, park the metal safely, and watch the returns roll in ... oh, did I say, returns? I meant to say watch the real value of your dollars stay flat, while the nominal score pops a stiffy.

I will be quite happy when I get my first big mammal kill in this season to get my freezer stocked up ... but, like all the other worker bees, I am on the fiat treadmill ...

At least the zombies have to swim here. And the water is fucking cold as hell.

Regards,

Cooter

Wed, 06/06/2012 - 22:30 | 2501982 Tijuana Donkey Show
Tijuana Donkey Show's picture

That might be tough forage. For the big pop, I think that a stockpile of good old fashioned analog pornography is critical. Make sure you have some porn, or life might get real tough.

Wed, 06/06/2012 - 22:59 | 2502047 CrazyCooter
CrazyCooter's picture

Aw shit, I just got roped by a mule. I gotta live this down now.

Asshole.

Regards,

Cooter

Wed, 06/06/2012 - 20:57 | 2501698 I should be working
I should be working's picture

Go Joe-Six pack!!!

Wed, 06/06/2012 - 20:58 | 2501703 RobotTrader
RobotTrader's picture

Wow.  The Fed-worshipping retail investor finally had enough of zero interest rates and decided to start piling into stocks.

Ben Bernanke scores again.

Come hell or high water, Bernanke was going to drive interest rates into negative territory if that is what was necessary to coax Joe Sixpack into buying some CVX or INTC which are paying better than 3.5%.

Wed, 06/06/2012 - 21:01 | 2501713 Let them eat iPads
Let them eat iPads's picture

Yeah, zero interest rates successfully coaxed investors back into stocks in Japan for the last 20 years, didn't they?

 

 

Wed, 06/06/2012 - 21:13 | 2501758 nmewn
nmewn's picture

A Yen-Yuan Ball!!!l...swing yo pardner round & round!!!

Pretty sure that was misogynistic or sexist or sumpin...someone will be around to sort me out in short order...lol.

Wed, 06/06/2012 - 21:02 | 2501714 veyron
veyron's picture

If you take out the stupid Facebook flows, would it still be an inflow?

Wed, 06/06/2012 - 21:11 | 2501750 Nolsgrad
Nolsgrad's picture

ICI.org tracks mutual fund flows, FB is not a mutual fund. 

Try again?

Wed, 06/06/2012 - 21:03 | 2501721 RobotTrader
RobotTrader's picture

Hilarious how the "stupid" retail investor was selling silver in droves during the April-May blowoff in SLV:

http://www.zerohedge.com/article/gold-and-silver-bubble-some-retail-inve...

And now they are dipping their toes in the water and buying stocks.

Very smart.

Wed, 06/06/2012 - 21:03 | 2501722 disabledvet
disabledvet's picture

lotta sharks in that pool. you better know what you're doing if you're going to do it to begin with. the good news is that most not only are not in the market but most do not "do the market." I did note John Paulson just spent a fortune on a house. My guess would be his short euro position is paying off big. "No good deed goes unpunished" and once Germany does CORRECTLY bail out Europe it will be costly. "They are going to be forced to live together now."

Wed, 06/06/2012 - 21:13 | 2501760 GernB
GernB's picture

How cute. You think Its possible to bail Europe out. Aren't you just preceous.

Wed, 06/06/2012 - 21:03 | 2501724 Undecided
Undecided's picture

http://www.thestar.com/news/canada/politics/article/1206907--walkom-step...

 

Stephen Harper’s frank predictions of economic doom

 

Wed, 06/06/2012 - 21:04 | 2501726 JuicedGamma
JuicedGamma's picture

Couldn't have happened to a nicer bunch of aholes.

Wed, 06/06/2012 - 21:09 | 2501741 CreativeDestructor
CreativeDestructor's picture

on a long enough timeline survival rate for everyone drops to zero! no?!

wait till that retail gets raped, no, proper fucked... it's all statistical illusion in a small timeframe.

Wed, 06/06/2012 - 21:09 | 2501742 Nid
Nid's picture

Bottom huh? Some signs say we've only scratched the surface. Likely that retail gets fucked again when they sell Friday's buys at 970.

Wed, 06/06/2012 - 21:10 | 2501747 GernB
GernB's picture

You seem to be assuming you know where the bottom is, and tht was just it.

Wed, 06/06/2012 - 21:12 | 2501755 bugs_
bugs_'s picture

Today there was a car chase on Fox.  This is an infallible daytraders rally signal.  The intermediate bottom IS in.

Wed, 06/06/2012 - 21:18 | 2501777 midgetrannyporn
midgetrannyporn's picture

Either way it goes at least they bought the dips instead of the tips like they used to.

Wed, 06/06/2012 - 21:30 | 2501786 razorthin
razorthin's picture

I sure fukking did!  Boooyaaah!

And no, I don't have a sixpack - I have an MMA-forged 8 pack.

p.s.  It's not the "bottom".

Wed, 06/06/2012 - 21:31 | 2501813 chump666
chump666's picture

Yes!  And we have a very nice range opening up to short again. Now Wall Street we just know you have a another rogue trade cooking somewhere, what with your tail risk leveraged illiquid madness.

Embrace chaos

 

Wed, 06/06/2012 - 21:35 | 2501833 adr
adr's picture

If retail is buying the end is near. The Fed induced rally will make retail think they are getting wealthy, but it will just be a scam by the big players to sucker them in. The con men are looking to unload the stocks that went on a near vertical trajectory from Jan 1 to May. Most are still up 30% or more.

They want retail to buy in order to offload the worthles garbage that is Priceline, Chipotle, Autozone, and thousands of others.

Retail will buy and lose it all once again. In the history of the market it has never happened any other way.

Wed, 06/06/2012 - 21:53 | 2501879 long-shorty
long-shorty's picture

They'll be selling again when we retest the lows.

Wed, 06/06/2012 - 22:08 | 2501918 mayhem_korner
mayhem_korner's picture

to quote Matthew, those who are last now will be first then, and those who are first will be last

 

More specifically, quoted from Matthew (20:16); also in Mark (10:31).  Both are accounts and not the authors' own words. 

 

 

Wed, 06/06/2012 - 22:14 | 2501943 zerotohero
zerotohero's picture

Bottoms up>

Wed, 06/06/2012 - 22:30 | 2501980 davhay
davhay's picture

This is not a good thing. The shit will hit the fan shortly.  Ma And Pa six pack will be caught holding their dicks again. Very Very SAD!!!!!!

Wed, 06/06/2012 - 23:27 | 2502105 tenpanhandle
tenpanhandle's picture

At least pa will be happy.

Wed, 06/06/2012 - 22:30 | 2501981 davhay
davhay's picture

This is not a good thing. The shit will hit the fan shortly.  Ma And Pa six pack will be caught holding their dicks again. Very Very SAD!!!!!!

Wed, 06/06/2012 - 22:32 | 2501984 deepsouthdoug
deepsouthdoug's picture

Hey retail investors - the knife hasn't stopped falling!

Wed, 06/06/2012 - 22:39 | 2502002 otto skorzeny
otto skorzeny's picture

this article is bullshit

Wed, 06/06/2012 - 22:57 | 2502042 Zgangsta
Zgangsta's picture

Where you buy doesn't matter.  It's where you sell that counts.

Wed, 06/06/2012 - 23:56 | 2502085 CvlDobd
CvlDobd's picture

Anyone who downvotes this doesn't understand the math of risk management, and probably has lost 60% of their money in recent years trying to mess around with 3x ETFs.

Wed, 06/06/2012 - 23:45 | 2502131 Herkimer Jerkimer
Herkimer Jerkimer's picture

In case anybody missed Soros' commentary about Europe having 3 months, only the stupid muppets bought back in, and I doubt many did.

 

And then they pull the article?

 

Soros knows!

 

And so does da Muppets!

 

•J•
V-V

Wed, 06/06/2012 - 23:47 | 2502132 Arnold Ziffel
Arnold Ziffel's picture
66-foot concrete dock washes ashore in Oregon, may be from 2011 Japan tsunami

 

http://news.yahoo.com/blogs/sideshow/66-foot-concrete-dock-washes-ashore...

 

Is this journalist dizzy? He's asking, "Can it be from Japan?"   WTF?!

I'm waiting until the core from Reactor #4 floats up on a California Beach.....maybe that will convince him!

Thu, 06/07/2012 - 00:02 | 2502182 Pejorative Requiem
Pejorative Requiem's picture

Hang on now...... that dock was delivered as promissed. Don't blame the supplier if letters of credit are hard to get these days and cause delays in shipment. And wanna talk Green delivery? Absolutely no fossil fuels burned in transport.

Wed, 06/06/2012 - 23:54 | 2502153 Pejorative Requiem
Pejorative Requiem's picture

A contrarian day at ZH: The fit is about to hit the shan, but the little man has bought at the bottom. Do tell. Another number of untold months of "recovery" as we will all decipher the next encoded plan to monetize western debt. Twist, QE quinny, maybe something sexier this time? What will it be called? Maybe we should all be grateful for the extra time.

Thu, 06/07/2012 - 00:24 | 2502236 Schmuck Raker
Schmuck Raker's picture

Hey, Bernanke.....FUCK YOU

Thu, 06/07/2012 - 01:15 | 2502358 skepticCarl
skepticCarl's picture

Very clever post,  Schmuck.  But Bernanke is busy buggering the bears.

Thu, 06/07/2012 - 00:25 | 2502242 q99x2
q99x2's picture

Not that hard to outsmart the ole Bernanke dinosaur.

Thu, 06/07/2012 - 01:14 | 2502357 skepticCarl
skepticCarl's picture

Today marked a major turn for the markets.  Even the previously badly-performing emerging markets are headed back up.  Put the bear dogma behind, and don't miss this rally.

Thu, 06/07/2012 - 04:57 | 2502605 ThirdWorldDude
ThirdWorldDude's picture

I see you've gotten out of your s(k)eptic tank.

Just in time to BTFD.

Thu, 06/07/2012 - 01:29 | 2502388 michigan independant
michigan independant's picture

No one I know bought faceplant. No one I know holds equity overnight. No one I know believes red or blue. Any one who believes the first three was wiped out long ago or shall be as marked. We may turn the other cheek but that was written that we acept stupidity once. Wake up Washington.

Thu, 06/07/2012 - 02:11 | 2502454 Dre4dwolf
Dre4dwolf's picture

False bottom.

 

Thu, 06/07/2012 - 02:22 | 2502467 knowshitsurelock
knowshitsurelock's picture

Yea, retail investors found their bottoms all right, with both hands!

Thu, 06/07/2012 - 03:13 | 2502528 poldark
poldark's picture

There are very few retail investors left. Markets are moving on very low volume and a lot of that is from central banks.

Thu, 06/07/2012 - 05:28 | 2502621 bushboy
bushboy's picture

Hmmmm   Maybe the japs could look at floating trade goods across to USA in the future if cost of oil and shipping becomes to high.

Countries that have natural resources and sea currents flowing across to importing countries could do well in higher energy cost future.

Sailing will come back into vogue I suppose

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