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Idiot Market Jumps On 12 Hour Old News Of Yet Another Chinese Euro Bailout, Since Refuted

Tyler Durden's picture


Apparently the latest news driving the market is this from AP, which hit the tape 12 hours ago:

China and other emerging powers have agreed to help eurozone countries facing a debt crisis by taking part in a bailout fund, the China Daily said Wednesday, citing a source close to EU decision makers.


The state-owned English language newspaper said leading emerging economies would help to finance the rescue fund through the International Monetary Fund, which would boost their voting rights in the Washington-based lender.


The agreement may be written into the final document at a second emergency summit of European leaders, due to begin later Wednesday, the unidentified source told the newspaper.


Further details on China's investment were not provided.

This would be wonderful, if only it wasn't refuted 3 short hours later by none other than Reuters:

China has backed efforts to tackle the euro zone's debt crisis but there is currently nothing concrete concerning support for a special purpose investment vehicle (SPIV) of the euro zone's bailout fund, a Chinese diplomat said on Wednesday.


"China always supported the EU's effort to deal with the crisis and has done its bit," said the diplomat, who is based in Brussels. "China will continue to do so but, with regard to the special purpose vehicle, there is nothing concrete and detailed."



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Wed, 10/26/2011 - 13:47 | 1813301 GeneMarchbanks
GeneMarchbanks's picture

Cue the ping-pong players!

Wed, 10/26/2011 - 13:50 | 1813323 redpill
redpill's picture

Don't be like that Tyler, can't we just PRETEND it's new?  The only thing we have to fear is reality and math!  If we conquer those, stocks will go to the moon!  Stop trying to hinder progress!

Wed, 10/26/2011 - 13:54 | 1813343 Ahmeexnal
Ahmeexnal's picture

hope it goes higher....I want to grab FAZ at 40.

Wed, 10/26/2011 - 16:27 | 1814125 CPL
CPL's picture

TZA slides faster, volume is about the same.  Both FAZ and TZA are at the "buy" level again depending on the time of day you are looking...


Wed, 10/26/2011 - 14:36 | 1813607 Smiley
Smiley's picture

"The only thing we have to fear is reality and math!"



Wed, 10/26/2011 - 13:56 | 1813356 kengland
kengland's picture

Is the music in the background the equivalent of Chinese rasta? LMAO! Nothing says Rasta like Yangzee

Wed, 10/26/2011 - 13:59 | 1813375 GenX Investor
GenX Investor's picture

You never go FULL RETARD!

Wed, 10/26/2011 - 14:29 | 1813573 tmosley
tmosley's picture

Just another RICroll.

Wed, 10/26/2011 - 13:49 | 1813303 NEOSERF
NEOSERF's picture

EU bids to slash Greek debt by third
Leaders target 120% of GDP ratio by end of decade - FT front page

WHAT A JOKE...and I worried about my shorts...

Wed, 10/26/2011 - 14:08 | 1813446 Uncle Sam
Uncle Sam's picture

I'm no fan of Paul Krugman, but I don't doubt these numbers.

Re: Iceland/Ireland CDS -

NYT, Oct. 25 - 'Prices are down from a spike last summer, but still very high. And for the record: as of posting time, the Irish 5-year CDS was 776, the Icelandic 5-year CDS 280.'

From Golemxiv:

'Unemployment in Iceland is 7% while in Ireland it is about 14%.'

These numbers are not lost on anyone in Europe. They all know what the answer is, it's just a matter of time. First ones out win.

Wed, 10/26/2011 - 13:48 | 1813305 Stoploss
Stoploss's picture

I thought it was because i farted. Sorry.

Wed, 10/26/2011 - 14:09 | 1813306 hambone
hambone's picture

The idiots are those humans who read this news earlier and didn't know it's healing, soothing powers...only later artificial computer genius knew the significance and thus the rally?!?  Fukking HFT, algo genius knows no timeline.

Pity Tyler(s) for they stumbled accross this pearl but threw it back into the sea!!! 



U.S. stocks rally on Europe-related reports

Rally time bitchez...Federally mandated too!!!

Wed, 10/26/2011 - 14:19 | 1813520 Manthong
Manthong's picture

I can hardly wait to see how the market reacts to this:


Just in: AP (submitted 9-Nov-1513) Spanish emissary Hernando Cortez has informed the European financial leadership that he has secured gold backed funding from Banco Montezuma Mexicana sufficient to recapitalize all Eurozone countries and banks.

Wed, 10/26/2011 - 14:44 | 1813676 long-short
long-short's picture

hilarious.  its baffling me that the markets continue to melt up.  especially as the haircut clause will be creating a domino effect on recaps and sovereign debt confidence to be sure, per dow jones: Bigger Haircuts Would Make Greek CDS Trigger More Likely:  

Wed, 10/26/2011 - 13:48 | 1813307 NDXTrader
NDXTrader's picture

Not to mention Brazil, India and Russia have all said repeatedly they will not participate

Wed, 10/26/2011 - 13:48 | 1813308 machineh
machineh's picture

Well, it gave us a nice countertrend a-b-c intraday pop.

Back to the lows, bitchez!

Wed, 10/26/2011 - 13:59 | 1813309 TruthInSunshine
TruthInSunshine's picture

Knowing that underlying fundamentals always catch up to and beat down unicorns, rainbows & pixie dust, I find the short term moves (whether 3 years on a longer chart or 3 minutes on a much shorter one) comical.

Math, while cold and sterile, at least never lies (statistics do when 'massaged,' but that's not math; that's man warping or abusing math, and falsifying some part of the equation towards an ulterior motive), and that's where to always look to in order to glean the truth.

Math says the only 'solutions' to the EuroDebtapocalpse are a) extremely painful for equity and credit markets, or b) extremely painful for equity and credit markets.

Take your pick, and get your half-life bets on!

Wed, 10/26/2011 - 14:01 | 1813390 qussl3
qussl3's picture

Or they could print and make it extremely painful on the masses instead.

The rich cant possibly be taking a haircut can they?

Wed, 10/26/2011 - 13:49 | 1813314 FunkyMonkeyBoy
FunkyMonkeyBoy's picture

Well, reuters, like the guardian, should be another media outlet that should be shutdown for market manipulation...

... well, if this wasn't a fascist society it would anyway.

Wed, 10/26/2011 - 14:27 | 1813567 TeamDepends
TeamDepends's picture

Fascist, socialist, communist, is there really any difference?  We believe that there are but two forms of government:  1) People on top-government on bottom or 2) government on top-People on bottom.  As Americans, we firmly believe our Founding Fathers tried their level best to give us #1.  How it slipped through our hands is well documented and sad sad sad.......

Wed, 10/26/2011 - 13:49 | 1813315 Panic Panic Panic
Panic Panic Panic's picture

Seriously, WTF?

Wed, 10/26/2011 - 13:52 | 1813335 Incubus
Incubus's picture

you must be new around here.

Wed, 10/26/2011 - 14:03 | 1813411 ReallySparky
ReallySparky's picture

you owe me a monitor.  Just spewed diet soda all over it.  Funny.

Wed, 10/26/2011 - 13:50 | 1813317 Boilermaker
Boilermaker's picture

If only I knew they were going to do that 10 minutes prior.....

Wed, 10/26/2011 - 14:01 | 1813396 Blano
Blano's picture

10 minutes earlier was when I bought my SPY puts.  Sheesh.

Wed, 10/26/2011 - 13:50 | 1813318 TradingJoe
TradingJoe's picture

At 1275ish the lastest I'd put on some nice shorts, for starters!

Wed, 10/26/2011 - 14:02 | 1813361 hambone
hambone's picture

Totally - when the S&P hits 12,750(ish) I'm totally going short!!!

Wed, 10/26/2011 - 13:50 | 1813319 YesWeKahn
YesWeKahn's picture

Are you sure? Maybe they have another rumor not public yet.

Wed, 10/26/2011 - 13:51 | 1813325 Godisanhftbot
Godisanhftbot's picture

 In order to trade this market, you have to BE an idiot or hire one.

Wed, 10/26/2011 - 13:53 | 1813336 jdelano
jdelano's picture

if that's true than Tilson really must be a genius...

Wed, 10/26/2011 - 13:51 | 1813326 Dr. No
Dr. No's picture

Algo search routines must be glitched and running behind 12 hours?

Wed, 10/26/2011 - 13:52 | 1813328 Odin
Odin's picture

Idiot market or algos?

Wed, 10/26/2011 - 13:52 | 1813333 Mark123
Mark123's picture

Um, I thought there was supposed to be a shock and awe decision out of Europe today?


Do they normally wait till the evening? 

Wed, 10/26/2011 - 13:54 | 1813338 Ted Baker
Ted Baker's picture




Wed, 10/26/2011 - 13:56 | 1813352 jdelano
jdelano's picture

stick to funky ties and fashion, ted.  Economics seems to be a little beyond your grasp.

Wed, 10/26/2011 - 13:58 | 1813372 NDXTrader
Wed, 10/26/2011 - 13:54 | 1813340 JPM Hater001
JPM Hater001's picture

I heard from my brothers dry cleaners cousin's girlfriend who was just in getting her nails done and she heard from the girl doing her nails that he best friends neighbor in China who runs a rickshaw overheard some men talking about a bailout.

So this must be true.

Wed, 10/26/2011 - 14:09 | 1813452 s2man
s2man's picture

Buy the rumor!

Wed, 10/26/2011 - 13:54 | 1813342 TooRichtoCare
TooRichtoCare's picture

I heard it's cos Germany is gonna take over Crete & Mykonos in exchange for bailing out the Greeks all on its own, and the French & co don't have to do anything now, and can spend their money bailing themselves out.

And now they won't have to have a designated German who wakes up at 5:00am and puts out towels all on all the prime pool-side loungers whilst the rest of them sleep until 10:00am.....they'll own the whole damn thing & will tell the Brits to bugger off and put their beach towels by the entrance to the toilets!

Wed, 10/26/2011 - 13:55 | 1813344 NDXTrader
NDXTrader's picture

I bet the statement says "We sure would like the emerging economies to put money in our SPV" - market up 40 points on the wish

Wed, 10/26/2011 - 13:55 | 1813346 Piranhanoia
Piranhanoia's picture

I made the mistake of keeping a stock for 23 seconds. sorry.

Wed, 10/26/2011 - 13:55 | 1813350 slaughterer
slaughterer's picture

Let Liesman run with this old news, and see if the algos can push S&P past 1238 to break through the bearish H&S on the 5-day. 

Wed, 10/26/2011 - 13:55 | 1813351 dereksatkinson
dereksatkinson's picture

SPY was just filling the gap up and is bouncing off of that.  Not every move is based on news.

Wed, 10/26/2011 - 13:59 | 1813379 sabra1
sabra1's picture

you mean the HFT's which are linked to all trading accounts, are engineered to run through all stops and limits!

Wed, 10/26/2011 - 13:56 | 1813358 PulauHantu29
PulauHantu29's picture
Argentina Orders Oil, Mining Exporters to Repatriate Funds Q


The decision by Fernandez, who nationalized the $24 billion pension fund industry and has called for a limit on purchases of farmland by foreigners, is part of an effort to slow capital flight estimated at $3 billion per month that is draining central bank reserves. The policy may make it harder to attract foreign direct investment to Argentina that the United Nations estimates fell 30 percent in the first half of the year.


...for those thinking about moving to Argentina....



Wed, 10/26/2011 - 14:01 | 1813398 machineh
machineh's picture

The other side of this story is that they will have to let the peso slide ... maybe to 6 to the dollar ... making Argentina cheaper for foreigners with dollars or euros.

Wed, 10/26/2011 - 13:56 | 1813359 sabra1
sabra1's picture

next rumour is that the 1932 depression has ended!

Wed, 10/26/2011 - 13:57 | 1813363 prophet
prophet's picture

[[ news flow trading is taunting an attack ]]

G-20 and the big few central banks along with some SWFs are huge, insidious and there will some truly awesome and shocking steps taken as failure is not an option

contract laws, financial accounting standards(a complete fraud anyway), treaties, ownership,  and anything else in the way will be plowed over 


Wed, 10/26/2011 - 13:58 | 1813369 mhoughgr
mhoughgr's picture

Dow always jumps between now and end of day .. especially if theres something bad happening (euro clown act),  plunge protection team putting US tax dollars to good use.

Wed, 10/26/2011 - 13:58 | 1813370 Jim in MN
Jim in MN's picture

I heard that Khaddafi's bloated body has stirred in the hot desert sand.  It's gruesome visage uttered one painful line:




Wed, 10/26/2011 - 13:58 | 1813371 slaughterer
slaughterer's picture

Stay short: if a refuted rumor is the last hope "plan" then the EU is toast.  Stay tuned for the crash when the world discovers there is no "comprehensive, definitive, world-historical" plan.   

Wed, 10/26/2011 - 13:58 | 1813374 Trad3er_1337
Trad3er_1337's picture

love how the eur always puts on a PERFECT 100 pont move... every time like clock work

Wed, 10/26/2011 - 13:59 | 1813376 Jim in MN
Jim in MN's picture


Wed, 10/26/2011 - 14:00 | 1813378 chinaboy
chinaboy's picture

It does not have anything to do with China. It may not have to do with any news. The markets (currency, stock...) are hijacked by a group of traders. You never know whats going on in their mind. They are dictators (please remeber to lecture me of free and efficient market).

Wed, 10/26/2011 - 13:59 | 1813380 Hedgetard55
Hedgetard55's picture

Market is like a drowning man clutching at anything it can get it's hands on to keep from going under. A market not of fundamentals but of interventions and rumours of intervention.

Wed, 10/26/2011 - 14:00 | 1813381 monopoly
monopoly's picture

Ping Pong players. Perfect, just perfect. lolol

Wed, 10/26/2011 - 14:00 | 1813383 misnomer
misnomer's picture

Maybe this is part of "the planning of a plan"?

Wed, 10/26/2011 - 14:01 | 1813386 Tense INDIAN
Tense INDIAN's picture

but how in the world would u know that ITS THAT particular could be anything ,.,OR NOTHING 

Wed, 10/26/2011 - 14:36 | 1813610 IrritableBowels
IrritableBowels's picture

CNBC just confirmed it. And that the news had been out for awhile.  Nice try, though.

Wed, 10/26/2011 - 14:00 | 1813387 Madcow
Madcow's picture

What part of 'deflationary collapse of the monetary system' is so difficult for people to understand ??

Wed, 10/26/2011 - 14:01 | 1813389 Trad3er_1337
Trad3er_1337's picture

same old crap... dump, massive rally


Wed, 10/26/2011 - 14:01 | 1813395 Thought criminal
Thought criminal's picture

This is beyond ridiculous... how many times have we heard this rumor already?

Wed, 10/26/2011 - 14:01 | 1813399 sabra1
sabra1's picture

the engineered endgame is for a worldwide central bank! all else is an illusion!

Wed, 10/26/2011 - 14:02 | 1813401 mayhem_korner
mayhem_korner's picture



Keep feeding the gumball machine the same slug (with the string attached)...

Wed, 10/26/2011 - 14:02 | 1813406 Crash N. Burn
Crash N. Burn's picture

Why Gold and Silver - Full DVD - Mike Maloney for anyone who feels the need for a reality injection.

Wed, 10/26/2011 - 14:03 | 1813413 TooBearish
TooBearish's picture

Subject: draft of euro zone summit statement being leaked     
Euro zone plans to leverage EFSF bailout fund "several fold"; 
finance ministers                                             
to decide details in November  EFSF will have flexibility     
to deploy two models-risk insurance  and SPV- simultaneously, 
according to leaked draft Further enhancements to the EFSF and
its resources possible through cooperation within the IMF     

Wed, 10/26/2011 - 14:05 | 1813421 CTG_Sweden
CTG_Sweden's picture

I could understand if the Norwegians would give up their oil wealth and hand it over to the EU in return for nothing. My impression is that Norwegian politicians in the past have been subject to sexual extortion a very large scale similar to what happened to the top spy Arne Treholt.

But the Chinese? I would expect them to ask for something in return, such as all big media in Italy, control of the Internet infrastructure in Italy and some Italians banks in return for a bailout. If they have no control over the debtor´s politics there is no guarantee at all that they will get their money back.


Wed, 10/26/2011 - 14:05 | 1813423 NDXTrader
NDXTrader's picture

Ahhhhh....but this rumor is from the Irish Times. And it has the added benefit that the Chinese are probably asleep right now and can't refute it again

Wed, 10/26/2011 - 14:06 | 1813431 Alvaro de Esteban
Alvaro de Esteban's picture

As I worte before, this is European efficiency

Bernie needs trillions to move up markets, europeans just a well timed (even an old one) and delivered rumour

Wed, 10/26/2011 - 14:06 | 1813432 TideFighter
TideFighter's picture

Drones will be cheaper when made of carbon fiber and outsourced to China. You just won't see them in their air shows. 

Wed, 10/26/2011 - 14:07 | 1813439 devo
devo's picture

I think it'll sell off before the close.

(but you never know what a computer will do...)

Wed, 10/26/2011 - 14:08 | 1813443 orangedrinkandchips
orangedrinkandchips's picture

HEY!! WE LANDED ON THE MOON!!!  lloyd Christmas......


why not rally straight up (now tell me) on that news?


Wed, 10/26/2011 - 14:11 | 1813470 John Law Lives
John Law Lives's picture

The whoremasters who run the show have figured out what it takes to pump the market:

1. Float rumors of more QE

2. Float rumors of more bailouts

3. Repeat

100% FUBAR market.

Wed, 10/26/2011 - 14:12 | 1813474 citrine
citrine's picture

Chinese economy is not in such a great shape, as we all know.  Russia is facing a deep recession, according to Russian Railway CEO. Brazil is facing its own challenges, and explicitly stated that EU does not need it to participate in the bailout.

Wed, 10/26/2011 - 14:13 | 1813483 Stockspeare
Stockspeare's picture

Actually, the market jumped because Germany gave merkel a blank check at 2pm est. Sold my FAZ then too. The bailout is comming...better to short after the news.

Wed, 10/26/2011 - 14:26 | 1813565 Stockspeare
Stockspeare's picture

We might get a move to Dow 12,200-12,300 before you can put on a short with any kind of confidence. The frustration is very high. Not sure how traders could be be buying into the financials with all that DVA crap. The Momo stocks are tanking and the fundamentals will show themselves soon. better to stay out of the way of this manipulation and hit the short either thurs or fri.

Wed, 10/26/2011 - 14:39 | 1813628 Maddeafandblind
Maddeafandblind's picture

The company I work for sells Indonesian steam coal to the Chinese for their power stations - and demand there has collapsed in the past three months.

So much for the idea that Chinese growth is the new 7th Cavalry that will save the world economy.


Wed, 10/26/2011 - 14:49 | 1813708 bankonzhongguo
bankonzhongguo's picture

This is a big test for China.

The main question becomes; 'How stupid is the Chinese leadership?'

If these guys get hoodwinked into a Europe bailout - even through more IMF contributions - with ZERO transfer of physical gold to China, then China lost (again).

Its like another Opium War, only the opium is EUR-USD.

China is still recovering from a 100 years of post Opium War financial and spiritual depression and then this?  That war was the forced transfer of Chinese silver for drugs. 

Has the silver come back?

If I was sitting in Head Office again, I would not bust a move on any of this 'barbarian sovereign debt' without the gold collateral being held in a China-based vault.

Funny how it keeps coming down to gold.

Wed, 10/26/2011 - 15:43 | 1813961 Village Smithy
Village Smithy's picture

Knock, knock, knock, Penny. Knock, knock, knock, Penny.

Wed, 10/26/2011 - 16:42 | 1814166 Waterfallsparkles
Waterfallsparkles's picture

Seems to me that Stocks seem to Hover rather than sell off waiting for the 2:00 or 2:30 news spike.  Or sometimes the sell off.

With a 2 or 2:30 news spike it is hard to sell them off in the last 1 and 1/2 hour.  Or with the news that causes a sell off, hard to get them to rally.

Interesting how they are creating trading opportunities. 

I think that there are a lot of Hedge Funds and Banks that need to liquidate some of their positions.  They need these spikes to sell into.  They always need to sell into strength not weakness.  Unfortunatly Shorts are taking a beating.

I like these spikes as they are trading opportunites.  You know they are spiking it to sell so short and wait for them to sell into the strengh.

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