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Hilsenrath Once Again With The 3:55 PM Sticksave

Tyler Durden's picture


Just like last time around when stocks were plunging with no knight in shining armor in sight, until the Fed's faithful mouthpiece-cum-scribe Jon Hilsenrath showed up with a report, subsequently disproven, that more QE is coming minutes before the market close on July 6, so today stocks appeared poised for a precipice until some time after 3 pm it was leaked that none other than Hilseranth once again appeared, at precisely 3:55 pm, with more of the same. Ironically, the market only saw the word Hilsenrath in the headline, and ignored the rest. The irony is that this time around the Fed's scribbler said nothing that we did not know, namely that the Fed can do something in August, or it may do something in September, or it may do nothing, none of which is actually news.

From the WSJ:

Fed Officials See Action If Growth Doesn't Pick Up Soon

3:55 PM Eastern Daylight Time Jul 24, 2012

Federal Reserve officials, impatient with the economy's sluggish growth and high unemployment, are moving closer to taking new steps to spur activity and hiring.  

Since their June policy meeting, officials have made clear-in interviews, speeches and testimony to Congress-that they find the current state of the economy unacceptable. Many officials appear increasingly inclined to move unless they see evidence soon that activity is picking up on its own.  

Amid the recent wave of disappointing economic news, conversation inside the Fed has turned more intensely toward the questions of how and when to move. Central-bank officials could take new steps at their meeting next week, July 31 and Aug. 1, though they might wait until their September meeting to accumulate more information on the pace of growth and job gains before deciding whether to act.  

Fed officials could take some actions in combination or one after another. Fed Chairman Ben Bernanke, in testimony to Congress last week, listed several options under consideration, including a new program of buying mortgage-backed or Treasury securities, new commitments to keep short-term interest rates near zero beyond 2014 or an effort to push already-low benchmark short-term interest rates even lower.  

Determined to keep trying to get the economy going without causing inflation, the Fed is exploring other novel measures. One idea mentioned by Mr. Bernanke in his testimony would be to use a facility the Fed calls its discount window to provide cheap credit directly to banks that make new business or consumer loans. But it isn't clear such a program would do much good when banks already have ample access to cheap credit and this kind of program doesn't appear to be winning favor at the moment.  

Mr. Bernanke told Congress he wants to see more progress in reducing unemployment and he expressed frustration the economy appears to be "stuck in the mud." The Fed chairman has spoken in the past about the importance of the economy achieving what he calls "escape velocity"-growth that is fast enough to give the economy forward, self-reinforcing momentum.  

New worries are emerging at the Fed that the economy is falling short of that speed. The Commerce Department is expected to report this week that the economy grew at a rate substantially below 2% in the second quarter after expanding just 1.9% in the first quarter. The unemployment rate, at 8.2% in June, has moved little since January. Retail sales have been soft in recent months and financial markets, particularly in Europe, have become strained in past weeks. Some officials believe the outlook for growth has worsened a bit since the Fed's June meeting, when the central bank marked down its economic projections.  

Several officials have expressed both frustration with the disappointing recovery and a willingness to act if growth and employment don't pick up. Sandra Pianalto, president of the Cleveland Fed, said in public comments earlier this month she would be prepared to act if weak economic data persisted. Dennis Lockhart, the Atlanta Fed president, said more action could be needed barring a "step-up of output and employment growth."  

Fed "hawks"-who tend to worry more about inflation and have opposed more action to stimulate the economy-have softened their tone and acknowledged the frustration. "I know people feel like we haven't made enough progress," James Bullard, St. Louis Fed president, said in an interview this month. He said he would be prepared to act if inflation falls too low or if a new shock hits the economy.  

There are several reasons why Fed officials might wait for their September meeting to decide whether to proceed. By then they will have seen two more monthly unemployment reports and two more months of data on output, spending and investment. Fed officials update their economic projections at the September meeting and Mr. Bernanke holds his a quarterly news conference after, which would give him an opportunity to publicly explain the Fed's thinking.  

Moreover, some officials believe the Fed's June decision to continue a program known as "Operation Twist" through year-end could help the economy and want to give it time to work. Under that program, the Fed is buying $267 billion worth of long-term Treasury securities and selling an equal amount of short-term securities in an attempt to push down long-term interest rates to spur spending and investment.   The most controversial option on the Fed's list is a large bond-buying program in which the Fed would acquire long-term securities with newly created money-a step known to many as "quantitative easing," or QE.  

In the Fed's first round of QE in 2009 and early 2010, it bought $1.25 trillion worth of mortgage-backed securities and $300 billion of Treasury securities and debt issued by Fannie Mae and Freddie Mac. In its second round in 2010 and 2011, the Fed bought $600 billion of Treasury securities. A third round could involve similarly substantial sums. Many officials have signaled a preference for buying mortgage securities. One reason: They fear that if they buy many more Treasury securities, the Fed could become too large a presence in that market and disrupt trading.  

For years, critics have warned that such programs would spur inflation, a collapse in the value of the dollar or a new financial bubble. Most measures of consumer price inflation, however, are close to the Fed's 2% goal, and broad measures of the dollar exchange rate have strengthened in the past twelve months, which has dampened the power of these warnings.  

Mr. Bernanke, meanwhile, has argued that the programs are helpful, while acknowledging their effects can be limited under certain conditions, such as when interest rates are already very low and demand for credit remains weak.  

A new round of bond-buying would be politically controversial so close to the November presidential election. During Mr. Bernanke's testimony last week, Democrats made clear they wanted the Fed to act and Republicans said it should proceed cautiously. The Fed chief has said repeatedly that the central bank will seek to do what is best for the economy, regardless of political pressure.  

Another option is a change in the Fed's public communication about its plans. Since January the Fed has been saying it doesn't expect to raise short-term interest rates until late 2014. The Fed could change its policy statement in September to move that date into 2015. Such pronouncements about the expected path of short-term rates tend to reduce long- and medium-term interest rates. The Fed thinks this supports near-term spending and investment.  

Officials also are looking at changing the interest rate paid on money banks deposit at the Fed. This interest on reserves is now 0.25%. Some critics say the Fed shouldn't be paying banks even this small amount for money that they choose not to lend.  

Fed officials haven't been very enthusiastic about this idea. Some officials think the benefits of reducing the rate would be small, and some worry cutting the rate could disrupt short-term money markets. Still, officials might choose to reduce the rate in combination with other moves in an effort to give the economy a little extra lift. The European Central Bank cut its bank deposit rate to zero earlier this month.   The Fed could also try to push its benchmark interest rate, the federal funds rate, a little lower. Since late 2008, it has targeted a range for the rate between zero and 0.25%. It could narrow that range closer to zero.   


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Tue, 07/24/2012 - 16:09 | 2646769 HD
HD's picture

Maria actually wets the NYSE floor screeching QE! WSJ said QE!!! When you have Liesman come on to be the voice of reason you know she's just lost it. Disturbingly hilarious.

Tue, 07/24/2012 - 16:10 | 2646779 flacon
flacon's picture

Hey HilsenWrath, guess what? FUCK YOU!

Tue, 07/24/2012 - 16:19 | 2646834 FL_Conservative
FL_Conservative's picture

He better never be jaywalking where my bus is traveling.

Tue, 07/24/2012 - 16:20 | 2646843 flacon
flacon's picture

I'm breeding killer hornets. Just wait until he puts on his underwear tomorrow morning.... LOL!

Tue, 07/24/2012 - 16:23 | 2646852 gmrpeabody
gmrpeabody's picture

Apparently, talk really is cheap....

Tue, 07/24/2012 - 16:25 | 2646867 iDealMeat
iDealMeat's picture

How are these "announcements" not market manipulation again?

Tue, 07/24/2012 - 16:49 | 2647021 gmrpeabody
gmrpeabody's picture

I am sure his kids trust or his mothers IRA turned quick profits.

Tue, 07/24/2012 - 17:27 | 2647199 The Monkey
The Monkey's picture

What a cast of idiots. I'm disgusted my country supports an institution that encourages recklessness, either via incentives to take on credit, or incentives to speculate.

The Fed is a discrace.

Tue, 07/24/2012 - 17:44 | 2647249 TruthInSunshine
TruthInSunshine's picture

- Ben 'Michael Corleone' Bernank;


"That's a terrific story. And we have newspaper people on the payroll, don't we? And they might like a story like that."

Tue, 07/24/2012 - 21:37 | 2647743 cbxer55
cbxer55's picture


Michael Corleone joined the Marines and fought in Nam.

He's a hero!  ;-)

Wed, 07/25/2012 - 03:33 | 2648218 TruthInSunshine
TruthInSunshine's picture

I think it was WWII and the U.S. Army, no?

Ah well, minor point.

Wed, 07/25/2012 - 14:11 | 2650088 cbxer55
cbxer55's picture

You are correct. It's been a long time since I last saw the movie. 

I did buy the entire set at Sams Club a few weeks ago. Have not watched them yet.

Tue, 07/24/2012 - 16:33 | 2646899 financial apoca...
financial apocalyptic contagion's picture

he wasted a 1000 words on shit most people would use 12 for:
"I have frickin clue when Bernanke will print but i'm sure he will"

dumb bastard.

Tue, 07/24/2012 - 16:38 | 2646952 Debt-Is-Not-Money
Debt-Is-Not-Money's picture

He's a male whore!

Tue, 07/24/2012 - 16:45 | 2647001 TruthInSunshine
TruthInSunshine's picture

I hereby officially decree Hilsenrath, infamous scribe of The Bernank's jawbone (and soon-to-be 'Bartleby The Scrivener' - i.e. I would prefer not to" when TSHTF), The Interrupting Chicken.

Tue, 07/24/2012 - 19:54 | 2647550 max2205
max2205's picture

This is becoming beyond criminal.

Fu k they put regular people in jail for this fucking BS

This shit has got to stop!

Tue, 07/24/2012 - 16:25 | 2646862 ihedgemyhedges
ihedgemyhedges's picture

No need to hurt him like that.  He probably bought a bunch of Netflix last week.  He's getting his pain right now.............

Tue, 07/24/2012 - 16:48 | 2647033 gmrpeabody
gmrpeabody's picture

I'm hoping he piled in on Apple 30 minutes before he let the story go.

Tue, 07/24/2012 - 17:32 | 2647215 The Monkey
The Monkey's picture

Whether or not this idiot owns Apple, he is encouraging others to load up.

The Fed needs to be dismantled and the cast of clowns locked away.

Tue, 07/24/2012 - 16:19 | 2646835 francis_sawyer
francis_sawyer's picture

Frau Blucher [horse whinnies]...

Tue, 07/24/2012 - 16:23 | 2646844 Soul Train
Soul Train's picture

Central Planning - proven by the USSR, Euroland, etc - does not work.

These guys are pretending to micromanage???


Spin, smoke and mirrors, angles - it is today's God the Profit financial poetry in motion.

Tue, 07/24/2012 - 16:11 | 2646792 fonzannoon
fonzannoon's picture

Can we all agree now that the fed DOES NOT need stocks to drop to give them cover to do QE? If they did why would they keep interrupting it from happening?

Tue, 07/24/2012 - 16:13 | 2646803 flacon
flacon's picture

When questioned, Bernanke the other day said he had only ONE TOOL LEFT, and that was COMMUNICATION (propaganda lies). 

Tue, 07/24/2012 - 16:18 | 2646828 john39
john39's picture

bingo... who needs QE when simple lies are enough to keep the market up?

Tue, 07/24/2012 - 16:25 | 2646861 fonzannoon
fonzannoon's picture

John wait until Sept comes and goes and he does nothing.

It will be epic.

Tue, 07/24/2012 - 16:41 | 2646973 Debt-Is-Not-Money
Debt-Is-Not-Money's picture

Lies = market viagra!

It's not gambling, it's investing!

Tue, 07/24/2012 - 16:18 | 2646830 ZippyBananaPants
ZippyBananaPants's picture

I heard some whore on CNBC talking about this.

Tue, 07/24/2012 - 16:31 | 2646886 JohnnyBriefcase
JohnnyBriefcase's picture

I read an article from CNBC a couple of days ago that said if the economy doesn't improve we might be facing a recession.

Tue, 07/24/2012 - 16:36 | 2646932 financial apoca...
financial apocalyptic contagion's picture


cnbs has lost it.

thats why santelli is mad as hell 24x7, the rest of them are fucking jokers and he can't take it anymore.

Tue, 07/24/2012 - 16:44 | 2647003 Debt-Is-Not-Money
Debt-Is-Not-Money's picture

That's it, Santelli is Howard Beale!

Tue, 07/24/2012 - 17:58 | 2647288 John Bigboote
John Bigboote's picture

It is best to bite one's tongue if one wants to keep an income. No managers want to keep paying a guy that doesn't believe in growth opportunity. Your manager has the same problem. Just need to keep playing along. It will come down on its own. No need to sacrifice yourself out of principle just yet.

Tue, 07/24/2012 - 19:10 | 2647435 Tippoo Sultan
Tippoo Sultan's picture

Not to put too fine a point upon it, but, who watches CNBC anymore ?

Tue, 07/24/2012 - 19:16 | 2647453 JohnnyBriefcase
JohnnyBriefcase's picture

I recently cancelled my cable so now I browse the internet MSM for laughs. Naturally CNBC was my first choice for quality lolz,

Tue, 07/24/2012 - 19:50 | 2647536 smiler03
smiler03's picture

I look at daily, top left corner, for the laughable "market overview"

The tabs are US/Europe/Asia/Gold/Oil

Today we have:

US - Stocks Recover, but Dow Logs 3rd Triple-Digit Loss

Europe - European Shares Close Slightly Lower

Asia - Asia Gains Capped By Spain Contagion Fears

Gold -Gold Edges Up on Euro-Zone Fears, Dollar Limits Gains

Oil - Oil Settles Near $89, as Euro Zone Worries Weigh


So it's official, every market is affected by Europe, except the US. It amuses me anyway ;O) 

Tue, 07/24/2012 - 23:13 | 2647908 GMadScientist
GMadScientist's picture

"I heard some whore on CNBC talking about this."

You're going to need to be more specific.

Tue, 07/24/2012 - 16:22 | 2646848 bdc63
bdc63's picture

fonzannoon says "if they did why would they keep interrupting it from happening?"

Are you serious?  That's your read of when what just happened at the end of the day today?

Tue, 07/24/2012 - 17:05 | 2647120 fonzannoon
fonzannoon's picture

my read is qe is coming. announced...unannounced...i don't care when either. i will leave it to everyone on here to work out the details

Tue, 07/24/2012 - 16:40 | 2646966 Solon the Destroyer
Solon the Destroyer's picture

Because the Fed would rather do nothing coming up to the election. They'd rather have Hilsenrath headfakes do the work instead.

Tue, 07/24/2012 - 17:08 | 2647129 fonzannoon
fonzannoon's picture

how many headfakes does he get....10? 20?  i don't think so. he has until sept. thats just my humble opinion.

Tue, 07/24/2012 - 16:14 | 2646806 Sofa King
Sofa King's picture

O'boy, cats out of the bag.  Now the world knows what she sounds like when she cums.

Tue, 07/24/2012 - 23:14 | 2647910 GMadScientist
GMadScientist's picture

A nickel slot jackpot.

Tue, 07/24/2012 - 17:34 | 2647224 dow2000
dow2000's picture

Hilsenrath? His name is more ominous than Voldermort...

Tue, 07/24/2012 - 18:01 | 2647300 Joke Heros
Joke Heros's picture

Barfiroma is absolutely unwatchable. Screeching and raising the pitch of her voice when she disagrees with her 'guests.' And what studio manager thought it'd be wise to give her a "Final Thought" opinion segment to end her show? She should've been canned (like the rest of them) after the crisis of '08.

Tue, 07/24/2012 - 20:39 | 2647640 smiler03
smiler03's picture


"Screeching and raising the pitch of her voice when she disagrees with her 'guests.'"

Judging by American Film and TV that seems to be the norm for American females. A very scary species, no wonder most male ZH readers are unhappily married.

Tue, 07/24/2012 - 16:10 | 2646772 knukles
knukles's picture

Yes, Jon said absolutely nothing that was summarily disporven by the Fed.

Tue, 07/24/2012 - 16:10 | 2646773 Neethgie
Neethgie's picture

when will the market stop falling for this idiot's writings im sure it cant be long, the reaction was muted at best today, he might very well have used up his credibility, which i sincerely hope he has;.

Tue, 07/24/2012 - 16:13 | 2646799 NotApplicable
NotApplicable's picture

Umm... you've got the entire thing backwards. There is no market left to react to these idiots.

Instead, the idiot provides cover for the rigged casino as it mimicks a market stupidly responding to an idiot.

Tue, 07/24/2012 - 19:19 | 2647457 graneros
graneros's picture

"Instead, the idiot provides cover for the rigged casino as it mimicks a market stupidly responding to an idiot."


What a great and oh so true line. Wish I had said that.

Tue, 07/24/2012 - 16:10 | 2646774 Cursive
Cursive's picture

Hilsenrath = Blue Horseshit

Tue, 07/24/2012 - 16:23 | 2646855 bdc63
bdc63's picture


Tue, 07/24/2012 - 16:10 | 2646775 Meesohaawnee
Meesohaawnee's picture

its not "stimulative" my god im so sick of this . it only "stimulates" insider stock options and the screwing of the middle class. . Fuck quit lying you piece of shit!

Tue, 07/24/2012 - 16:11 | 2646780 JustObserving
JustObserving's picture

Totally manipulated market.  Why call it a market?  Call it the Federal Reserve Store.

Tue, 07/24/2012 - 16:19 | 2646833 john39
john39's picture

federal reserve game show

Tue, 07/24/2012 - 16:10 | 2646782 Zola
Zola's picture

I cannot wait for the time the QE beggars have to contend with high and rising price inflation so they can all chew on their stupidity.

Tue, 07/24/2012 - 16:23 | 2646847 spastic_colon
spastic_colon's picture

like in 30 years, by then we'll forget where it started, or be dead.

Tue, 07/24/2012 - 16:11 | 2646783 Cdad
Cdad's picture

Just ridiculous.  And Hilsenrath is still employed why?  For stick saving collapsing markets with this shit?  Over and over?  

I just heard the market death knell.

Tue, 07/24/2012 - 16:15 | 2646811 NotApplicable
NotApplicable's picture

Just heard?

Must've been an echo.

Tue, 07/24/2012 - 16:11 | 2646784 Calidreaming
Calidreaming's picture

Hope Hilsenrath gets hit by a truck.   this is getting ridiculous

Tue, 07/24/2012 - 16:11 | 2646786 lizzy36
lizzy36's picture

QE does not create growth.

Inflation is NOT growth.

I wish to hell hilsenrath would print something like that. QE is stimulus, like viagra, it allows an 83 yr old to mimic a 33 year old man (for short bursts of time), but it does NOT make an 83 yr old man 33!

Tue, 07/24/2012 - 16:18 | 2646827 Bam_Man
Bam_Man's picture

It is all about increasing nominal GDP at this point. That is their only objective. If it comes with a boat load of inflation, they couldn't care less. If it doesn't, so much the better.

Wed, 07/25/2012 - 01:48 | 2648156 The Monkey
The Monkey's picture

They can't even create sustained inflation. All they can do AT BEST is get indebted consumers and businesses to take on a little more credit and spend a little more income (at the margin). All this volatility suppression has a serious payback, and the Fed and their minions are about to get theirs.

Tue, 07/24/2012 - 23:15 | 2647913 GMadScientist
GMadScientist's picture

I'd like to propose legislation that requires drug manufacturers to lace that crap with the male pill for public safety.

Tue, 07/24/2012 - 16:11 | 2646790 pods
pods's picture

So the levitation either starts at European close or the 3:30ish ski jump.  

Surely just an organic rally.


Tue, 07/24/2012 - 16:12 | 2646793 TrillionDollarBoner
TrillionDollarBoner's picture

This is getting sick. How can reality ever return when all they have to do is fake it?

This could go on a long time...

Tue, 07/24/2012 - 23:16 | 2647920 GMadScientist
GMadScientist's picture

With a vengeance, and soon.

Tue, 07/24/2012 - 16:11 | 2646794 SteveGennisonBa...
SteveGennisonBallWasher's picture

Serious question here.... I'm not a trader by any means, but is there a way to buy the DJIA from 3pm-4pm daily?  If so, thats easy money.

Tue, 07/24/2012 - 16:16 | 2646819 NotApplicable
NotApplicable's picture

It's called picking up pennies in front of a bull-dozer.

Sure, it's usually easy enough to stay out of harms way, but screw up just once...

Tue, 07/24/2012 - 16:18 | 2646825 knukles
knukles's picture


Tue, 07/24/2012 - 16:22 | 2646850 fuu
fuu's picture

Fucking L.O.L.

Tue, 07/24/2012 - 16:12 | 2646795 GtownSLV
GtownSLV's picture

Called it right for once and closed my shorts on the whole "three days 100 pt loses" for fear of getting whacked with the Hopium stick.

Tue, 07/24/2012 - 16:12 | 2646796 Jlmadyson
Jlmadyson's picture

"In combo or one after another."

Sounds like... very familiar.

Oh yea the last half a decade.

Nothing new.

The Fed is a failure.

Tue, 07/24/2012 - 16:13 | 2646801 SmoothCoolSmoke
SmoothCoolSmoke's picture

SP has given back all the BS rumor pump AH as NFLX shit it pants.

Tue, 07/24/2012 - 16:13 | 2646802 RobotTrader
RobotTrader's picture

Bonds are calling BS on this "rumor", still closed near the highs of the day.


The incredible bull market in "Paper" continues unabated.

Huge wealth gains across the board for those with faith in Uncle Gorilla and Ben Bernanke, the "Greatest Central Banker" ever.

Tue, 07/24/2012 - 16:15 | 2646813 eclectic syncretist
eclectic syncretist's picture

How's that NFLX position workin' out for ya dude!

Tue, 07/24/2012 - 20:47 | 2647654 smiler03
smiler03's picture

I wish I knew what the fuck you are on about. Is it something like buying UK law Greek bonds, with a guaranteed pay out? Or is it speculation on the value of a bag of shit? I honestly don't know. In plain English...

How do you make money from something that returns 1.2% every year for 30 years?



Tue, 07/24/2012 - 23:18 | 2647926 GMadScientist
GMadScientist's picture

Hint: use someone else's money!

Tue, 07/24/2012 - 16:15 | 2646808 EZT
EZT's picture

does the WSJ have a proptrading departement...?

Tue, 07/24/2012 - 16:25 | 2646868 spastic_colon
spastic_colon's picture

yes....JP Morgan

Tue, 07/24/2012 - 16:15 | 2646814 Ineverslice
Ineverslice's picture

Hilsenrath, you are such pussy-jailbait.

Tue, 07/24/2012 - 16:15 | 2646815 Dr. Engali
Dr. Engali's picture

Let's see..what will prevent the slide tomorrow? An announcement that the Europeans are going to have a summit to schedule their next summit?

Tue, 07/24/2012 - 16:16 | 2646818 Meesohaawnee
Meesohaawnee's picture

steve .. maybe DVY ??   ... i got tears in my eyes laughing so hard robo. awesome.

Tue, 07/24/2012 - 16:19 | 2646826 khakuda
khakuda's picture

Hmm, let's see, to create jobs we could cut idiotic regulations, or maybe be clear about what tax rates will be, or reduce the size of government generally and entitlements, specifically so that people would have some incentive to work.  Maybe we could do some tort reform or some other smart stuff.

Nah, we'll just print money, causing a 'surprising' spike in commodity prices, thereby slowing the economy, so we can blame speculators to justify even more regulations!

It just HAS to work this time!!!

Tue, 07/24/2012 - 16:18 | 2646829 Meesohaawnee
Meesohaawnee's picture

and steve if your really agressive bull like robo im sure you can find something here. careful

Tue, 07/24/2012 - 16:19 | 2646837 RobotTrader
RobotTrader's picture

"Build America Bonds", California munis, and the high-yield muni-bond indexes all made world record highs again today.

Tue, 07/24/2012 - 16:31 | 2646890 eclectic syncretist
eclectic syncretist's picture

How's that double top on AAPL looking? 

Put one of my wife's retirement plans 100% into TIP about 2 years ago.  You're late to that party too.

Tue, 07/24/2012 - 20:51 | 2647657 smiler03
smiler03's picture

I still have no fucking idea what Robo is prattling on about. He must be a Tyler wearing a pair of falsies.

Tue, 07/24/2012 - 23:22 | 2647934 GMadScientist
GMadScientist's picture

Robo is the troll's troll. Reviled by all, an institution. Truly, a slop-jockey par-excellence.

Tue, 07/24/2012 - 23:22 | 2647936 GMadScientist
GMadScientist's picture

Is the punchline that you're divorced now?

Tue, 07/24/2012 - 16:20 | 2646838 youngman
youngman's picture

Its really kind of sad what we have become...dogs salivating at any mention of QE....and now we wait for the biggest toy makers quarterly report...

Tue, 07/24/2012 - 16:23 | 2646853 knukles
knukles's picture

Aren't QE and toy makers earnings the same?
I don't get it....

Tue, 07/24/2012 - 16:20 | 2646841 monopoly
monopoly's picture

The Fed should be indicted for the crap they throw out and destroying capital for both bulls and bears. Why don't they just shut the fuck up until they DO something real. 

Tue, 07/24/2012 - 16:22 | 2646851 Winston Churchill
Winston Churchill's picture

Fool me once,shame on you.

Fool me all the time , and call me Algo.

Tue, 07/24/2012 - 16:23 | 2646854 Hetty Green
Hetty Green's picture

Why am I not surprised?  These late p.m. "bounces" are getting tiresome...  QE rumors at levels >1,300?  Please!


Tue, 07/24/2012 - 16:25 | 2646858 khakuda
khakuda's picture

btw, Operation Twist II didn't even give a month of juice

Tue, 07/24/2012 - 16:24 | 2646859 thad78
thad78's picture

The "heavy finger" started 30 min earier than JonJon's report-Dow jumped 40 around 3:22 , cont. up, then lost 20ish last few minutes. My guess? Just a case of BTFD and maybe apple?

Tue, 07/24/2012 - 16:36 | 2646924 CrashisOptimistic
CrashisOptimistic's picture

That was when the secretaries monitoring the conference call moved to act.

Half hour later the rumor was released.

Tue, 07/24/2012 - 16:24 | 2646860 Aunty Christ
Aunty Christ's picture

but but but the S&P closed above its 50 DMA just in the nick of time...

Tue, 07/24/2012 - 17:19 | 2647175 ReactionToClose...
ReactionToClosedMinds's picture

'paint' those 'technicals'

Tue, 07/24/2012 - 16:28 | 2646878 FinalCollapse
FinalCollapse's picture

Someone needs to open a criminal investigation as this guy is manipulating the markets and probably making a nice profit (or his buddies) on the side.

Tue, 07/24/2012 - 16:36 | 2646937 GolfHatesMe
GolfHatesMe's picture

Was this at 3:55 or 3:30?  The chart says 3:30. comments on the story at wsj mention that it was out at 3:30

Tue, 07/24/2012 - 17:07 | 2646982 dcb
dcb's picture

I have no idea why you say this. you do a lot from joe saluzzi and how the algo's trade the day around a fixed point, so if you draw the channel it made sense at the end of day ramp fest just based on that.

after the first couple of days, or until there is a break out, the close of the day is almost always above the prior days low, it's because stop losses are put there, and by stops to buy more short. so the algo's sucker you, simple hft programs.

It is almost impossible to make money buying more of an inverse fund (unless you hold) by buying at the lower low (break out excepted). the algo's almost never allow that.

2hen I plot the ascending channel on both eev and sky, just about yesterdays open was into my closeout short zone. we broke last weeks low, which almost always at least in the initial algo silliness slow drop, means we will bounce up to a lower weekly high. Once more shorts are closed out at the neew weekly low, so the algo's buy and do a quick short squeeze ramp. once more goes on a few weeks, and then we have the break down.

the algo's spent two months, eight weeks jerking around at s and p 1385 until it dropped, meanwhile europe and asia were hitting lower lows and lower weekly highs.

if you plot the ascending channel on the s and p we are nearing the bottom of the channel, which was the support line, so you can expect no matter what happens we will dick around while the algo's rip the consumer off for a few weeks until a real trading trend is established

we should touch that line at about 1320.

look we have all seen the algo's so much by now we should know the silly  pattern often enough

you can almost count each day on closing the short at 1400 est, and rebuying close to 16:00 every day

besides on the s and p 500 draw a line from yesterdays high to todays high, and draw a paralell line on the low as well it forms a perfect channel. you pretend it has anything other than to do with computers, which sometimes drives me insane. if it was the notice, it wouldn't hit the channels perfectly to the penny for god's sake


so you could open up a small bit and then sell off again. when I do these channels I stop loss at the low three days prior. we are at day two

so unless we have a real break down here, the algo games say you shouldehave closed off a portion of the shorts, and started to go long, with with a buy stop on the upside (outside of teh channel, or on the descending channel lines. the algo's pretty make sure if yoyu do this you don't loose money. the other w2ay I like to trade is to draw triangles when I do this it gives me a trade bottom on and and p at 1323, 2we are near that now, and if you draw that base line support, believe it or not that triangle apex falls on exactly that spot. you can also draw a paralell channel from this weeks high and the low on 7/12 this top channel ine connect the peak on 5.4 with the leak on 7/20

I think it will break down, the issue becomes how long it takes until it happens and how long we dick around, but usually the algo's do all they can to keep us in a channel and dick around until the big move when everyone has all gone short and sold for max profit.

last year we dicked around for 5 months before we made the real move 2/11 to 7/11.

we all know it should go to about 1150

on 6/8 we really broke that big support line which has always had a hug drop follow, it didn't happen this time, god knows why, it took us from 7/10 to 8/11 to get back to a trading base. so we could be dicking around until 9/12 (13 months again to get back to where we should)

Tue, 07/24/2012 - 16:51 | 2647048 FRBNYrCROOKS
FRBNYrCROOKS's picture

Why do you read that rag? I cancelled my subscription over a year ago because they kept taking down my post when I bashed the frbny and BB. Fuck the wsj!!!! You are a sucker if you pay to read that crap!!!!!

Tue, 07/24/2012 - 17:18 | 2647172 ReactionToClose...
ReactionToClosedMinds's picture

Query:  what does Michael Milliken have to say about all this?  very strange days

Do you feel like Wiley Coyote as he turns to look at Road Runner still standing on the cliff after he almost caught RR once again ....?


Tue, 07/24/2012 - 17:31 | 2647208 SwingForce
SwingForce's picture

This unbelievable too:

While Frieden said no work is being done for a bailout of the Spanish government, policy makers in the 17-nation euro area must be prepared to move quickly.

Tue, 07/24/2012 - 17:38 | 2647236 Scalaris
Scalaris's picture

Yep, increase those banks’ leverage ratios to infinity.

That'll fix that pesky lacklustre growth conundrum.

Tue, 07/24/2012 - 17:45 | 2647247 kjlowther
kjlowther's picture

What utter drivel. Most likely short covering on technical resistance (ES futs bouncing off monthly pivot point).

Tue, 07/24/2012 - 19:32 | 2647490 Frank N. Beans
Frank N. Beans's picture

who is Jon Hilsenrath?

Tue, 07/24/2012 - 19:39 | 2647511 smiler03
smiler03's picture

The US markets are a global joke. Don't let the Americans in on it though ;O)

Tue, 07/24/2012 - 21:05 | 2647659 which way weste...
which way western man's picture

jon the jew with the very punchable adam's apple is a gasparino for a new generation.

Tue, 07/24/2012 - 21:27 | 2647719 IMA5U
Tue, 07/24/2012 - 21:36 | 2647742 which way weste...
which way western man's picture

Typical khazarian "jew" genotype.  They look like sickly, smiling rodents.

Tue, 07/24/2012 - 21:49 | 2647761 BeetleBailey
BeetleBailey's picture









Wed, 07/25/2012 - 02:07 | 2648171 Venerability
Venerability's picture

I think they now HAVE TO do something next week, accusations of "Politics" be damned.

GM is a big deal for them. And the Richmond Fed report was abysmal.

The main reason they've held off is The Usual: Oil. But they can now allow the Brent above WTI spread to blow out to 20 again, calming WTI, even though they know that WTI doesn't count anymore - on the low Euro alone.

And there is so much legitimate concern about the Middle East, right before the Olympics, that no one in the general public is going to blame them for $4 gasoline prices over Labor Day. Labor Day is a stay-near-home holiday, anyway, for most people. Driving is just not a big deal. And people shop a lot in early September because of Back to School sales.

The above takes care of excuses for two of three important Indicator sectors: Brent stocks and Consumer Discretionary stocks, both of which should be "permitted" to start rallies very soon.

The third important Indicator sector is the PM stocks. And they DESERVE a nice rally - a NORMAL and TYPICAL Late Summer Rally - on the pure fact that they are at 40-year lows in terms of the major PM indices' ratios to the underlying metals PLUS the fact that they were the ONLY sector not to rally in the entire first half of 2012.

So there are wonderful "excuses" all over the Market now allowing the Fed to act as strongly as it possibly can next week.

Again, Dearest Fed-niks, the US populace DOES NOT CARE very much about high gasoline prices over Labor Day.

But the US populace cares very, very much about avoiding another Crash of 2008.

So should YOU.

Wed, 07/25/2012 - 17:34 | 2650957 Catflappo
Catflappo's picture

"They fear that ...  the Fed could become too large a presence in that market and disrupt trading".


Yeah that would be a disaster.   Better to retain the status quo - a transparent and unmanipulated market with an absolute minimum of Fed involvement.

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