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QE3 Levitation Day 2
Yesterday we said that the "2010 Post-Jackson Hole No Volume Levitation Has Begun." Sure enough Day 2 is in the books. And anyone who recalls those fun days of deranged volatility from a week ago, when the DJIA moved +/- 400 points in a day, you can kiss those goodbye. The new no volume levitation regime is the same as the old no volume levitation regime, experienced so well between August 2010 and March 2011. The market will proceed to price in central planning in its most recent iteration of QE3 day, after day, after day, until September 21, and if nothing is announced then, until November 2, and then December 13, and so on, because the levered beta pursuit, aka "career risk" trade is now back on. It also means that the Fed will soon have to resume monetizing the $2.4 trillion in debt, well above the total excess reserves held by banks currently, that will be issued over the next year (did our good readers forget about all that debt that needs to find a buyer?). And while stocks are picking up the now standard 10 ES points per day, gold will one day very soon declare its independence from this centrally planned bullshit and just take off on its way to a self-imposed gold standard, which also means first 4, then 5, then increasingly more zeroes when expressing its price in reserve bank toiler paper terms. Incidentally, just like last year "nobody" could see QE2 happening, it may be time to put some money in Paulson & Co. which has been all but left for dead - somehow he always pulls out the centrally assisted hail mary in the last minute.
What is truly sad is that our fearless centrally planned leaders have officially run out of ideas and the only thing they can do is regurgitate the same policy error that did not work last year.
Oh well, at least everyone knows by now how it all ends: stocks unchanged for the year, gold up 30%
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waiting on benny bucks...
they're coming...
http://azizonomics.com/2011/08/25/to-qe-or-not-to-qe/
GOLD BITCHES!!!
Gold's only going up because labor day's coming up and Irene "wiped out" the east coast. There will be a shortage and everyone knows that. Can't pull it out of the ground without labor. And labor day removes labor. After that, it will crash right back to $185(,000) where it belongs. Transitory tradition, what a barbarous relic that unedible piece of shit metal.
Or as Uncle Buff says: "It doesn't "do" anything! It doesn't even pay a dividend! It just sits there collecting dust! We could fit all of it in a 16m cube for crying out loud."
He forgot that it's the exponential opposite of inflation :(
who knows what the central planners do with gold...
be careful out there
tekhneek:
jp morgan: "money is gold, nothing else"
so in reality, gold is a hedge not against inflation but against deflation — when gold rises and rises, the price of everything — put up against money, or i.e. gold — is deflating because money buys more and more. at one over-inflated stage, the DJIA:AU was 1:50. Now it's 1:5. It's going to parity. Maybe even 2:1
Heads up, Secret Service is going after gold coinage, specifically, liberty coinage. Anything containing the words "Liberty" or "In God We Trust" are now considered contraband.
The article can be found at www.prisonplanet.com
All we need is a smug and smiling David Tepper on CNBC... when do they pull that one out?
@ deilidh_trail,
Thomas Donlan in last weekend's Barron's thinks that a surrpticious QE3 is ALREADY UNDERWAY. I think he is right.
But, such benny bucks will not reach us shrimps. So, what works? Gold...
You remember the RBS commercial:
"Don't talk, but act"
maybe this is now the new standard of the FEDS
wonderful. gold going up on low volume, same with crude.. dollar up today.. weird day.
justvreceived a email from us mint that the 2011 uncirculated eagles, NOT PROOFS are priced at 6 t fucking dollars each or slightly more than the proofs....
$60 benny bucks each will be cheap soon.
The 24hgold/eBay price vs. spot gold price widget shows only a 5% premium or so for Eagles to spot price of gold. This widget is imperfect, but may herald a divergence between physical vs. paper prices before long.
24hgold.com -- the widget is at the bottom of the home page.
Yeah. I was agonizing about paying $17 for proofs back in 1997. Damn those were expensive!
gold up, indices up, treasurys up, oil up, usd index up....
the correlation trade is kaputt
and the high frequency traders need to think about what happened....
We are seeing now the DEAD CAT BOUNCE.
It is that simple,
Hopium Bitchez ...
That all may be true - but with volume so utterly putrid (I Know - CNBC says it is to be expected in this Holiday Shortened Trading Week) - but that not withstanding - the volume to me seems to indicate that we very well may be in the throes of The Mother of ALL Distribution - and that once it ends - we WILL see a market colapse the likes of which has never been witnessed in modern history. 1228 - 1229 is my back of the napkin level to watch.
I think thats exactly what we're looking at, while Ben has everyone back to sleep dangling his QE3 carrot on a stick, theyre distributing like crazy with no intention of a $3 trillion printfest. I dont know what people are thinking, its not 2009 anymore, and it cant be done!
1227.61 is what our computer spits out. At least we are on the same page.
based on fib #s? just curious..
If you count the move off the 1101 low as an ABC - and if C = A - then you get 1229ish and yes - a .50 fib retrace comes in at 1228 and change as I recall - so there are two reasons to think the 1228 - 1229 area may be it -- but we won't know for sure until BEN and the machines confirm and we see more than 15 contracts trade on the way dwon.
70 point drop in the last 15 minutes on the Dow. The machines left the office early today.
All bets are off. The only sure thing is more bad economic data, monetary stimulus and the constant rise in the price of gold. Plan accordingly.
i give em one more day...two at the most
bear heads exploding everywhere
Why, because the DUH was up +19 points? Big deal. Distribution. Dont get too cocky there believing Bernank is YOUR pal.
@ bear heads exploding everywhere. This is the only way for the HFTs to steal money out of the market for now.
It's the ONLY way they can take the market up. Got to love the same old, same old crap they take up.
Parabolic stock: AZO and they talk about gold being such. They just put one in near where I live, one block away from a new AAP.
The Advance Auto part store is where the Rent-A-Center was. RCII was only open for one year. The town could not support it.
Better yet, the auto parts stores are canabalizing themselves. Now AZO and AAP both have other stores within 5 miles.
It's Unbelievable that they would do this. Wait till this does not end well. They will look worse than Sears Holdings.
What happens when the shorts are out and there is NO bid under it all. Hmmmm. Then the market explodes !!!
Loooooooot's of unemployed trying to keep thier cars running themselves these days.
Rocker:
Better yet, in my neck of the woods, everywhere that Advanced Auto builds is either right next to another auto parts store, or right across the street from one. I noticed it right away when AAP first came to Oklahoma. They built across the street from an O'reillys on Air Depot Boulevard. They built right next door to an AZO on NE23rd and Douglas Avenue. I thought, "how rude and in your face can another company get?" To this day I refuse to shop in AAP stores, have not stepped foot in one yet.
Hope they go under big time.
You saw a nice dose of it at the close. Again, and because the stock market is driven by mentally retarded lemmings, everything [less gold and the dollar] traded as one.
Check any equity chart in the last ten minutes. As ES came off, liqiudation was the order...dumping all the over pumped shares into the puke buckets known as the ETFs.
Disgusting. As always, and with these same criminal bankers in charge of our markets, capital will not form and the Greater American Depression will roll on.
I'm beginning to think that was the plan this whole time. Squeezing someone quickly and really hard makes them pop.. applying a moderate amount of pressure over a long time makes them give in, give up and/or beg.
It is just more of the same...the continuing crime wave perpetrated by Wall Street.
Distribution big time....while stock bulls arrogantly primp and preen about their stocks going up and how bears are now screwed, good luck to them when the rug is pulled and theyre hitting the sell button like the ETrade baby losing everything in a bidless tanking market.
Bidless is exactly how I would describe equities in the AH session. Every one I follow is sitting there with nothing but air beneath it as the ES bid vaporized in the last ten minutes of the market.
And of course, our supposed financial advisors who were panic buying into the market today are showing just how much value they add to the whole "investing" thing.
Euro down
Asia down
Europe down
Banks down
PM up
SP500 up
What's wrong with this picture???
<-- QE3 Won't happen. Goldman is spreading Hopium & taking other side of trade.
<-- ZH is correct & what TIS said above defies the laws of The Bubbles&BananasBernank.
<-- [3rd Category] Let the QE3 and guillotines fly, bitchez.
I don't see it happening next month. If it was there would ne BIG hints coming out. Only the rumor mills are pumping qe3 here.
Don't forget Sep 7 (next Wed), Germany could throw a wrench into everything with their Supreme court votes and Bundesbag votes
Waiting on Zimbabwe dollars to fly out of his helicopter.
Ben, meet General Douglas Haig.
A monetary Somme, per se?
"STOCKS AND GOLD RISE AMID UNCERTAINTY: Here's What You Need To Know"
The above heading was copied from Business Insider - I'm not joking - and apparently uncertainty is bullish so I guess when we get the first couple of bank collapses the rally will go ballistic, no?
is there enough hopium left in the central planners tank to overcome a really bad NFP print on fri? QE3 or no will they be able to levitate the markets through a negative print?
I, for one, do not believe so. Again, the QE3 catalysts needs to occur...selling, risk aversion, fear and loathing, bears all over the BlowHorn [CNBC]....a sub 1100 S&P close. Today's algo driven, ES floating pop on talk of QE3 was for the suckers. It was for all the under performing active managers panic buying into the market, sold a bill of goods by the faster HFT boys.
We have had yet another short squeeze over the last five days...nothing much more than this.
At this rate by Sept 21 the DUH should be comfortably back over its all-time bubble high of 14,200 or whatever....ust in time for emergency trillions needed to 'rescue stocks' again.
HUH??
Lol. If the stock market is still up here in late September...there will be no QE3. In fact, I believe there is a chance that no QE3 will ever occur.
Put me down for a "sell everythiing" market over the next two sessions.
Ben is LOVING his present 'QE3 carrot and stick' routine, THAT is his only real 'tool' at this point a hint and a wink at something that will never happen.
As I have been saying for months...Ben needs the dollar to be a lot stronger against a boat load of currencies [the dixie] before he can even consider pulling that trigger again. To do it now with stocks high and the dollar weak would create a dollar crisis which would consume ANY and ALL effects of the money printing effort...instantly. There would be no point in launching the next easing move without that dollar higher.
I know we are all talking about how it was talked about, but all we are seeing is a combination of short covering and the slower lemmings climbing aboard the rally...too late...as was the case when the slow lemmings were selling the market short in the hole two weeks ago.
And in the meantime, the Ron Paul story is picking up steam, as this conversation about the Fed is out there in John Q's public...and the political risk at the Fed is about as high as it has ever been. No one here seems to consider that.
One more day of "must close greeeeeennnnnnn" & "must make them bbbooonnnuuuusssseeeessssssss" then it's dumping time! We'll see each other @ S&P 1050 or 950 or 875ish?! :)))
Then, and only then we'll get more of the same...QE something! It is as always political, we can see that each and every day, and now with TPTB fighting for survival, litteraly, they won't waste what mere powder they have left but use it "wisely" (:))) ) aka, markets Must Fall to scare the shit out of EVERYONE, then we get the "green light"! Capisci?!
Yep exactly. BTW you know what was funny from the last drops a few weeks ago? No one even noticed. One day the DUH was down -400 or so, I went around asking people about it and they werent even aware. The few who did said 'Oh well, it will come back tomorrow'...no one is scared of markets theyve been conditioned to expect a recovery of ANY drop quickly...so if they want to really scare people its going to have to ba an incredible series of drops with the media going crazy about it. Fasten seat belts...maybe even put on G-suits.
i, for one, was getting a little bored
Duplicate.
Agreed. There are many 401k folks out there who don't like the idea of money printing, but come around to it when they see a 10-15% drop in the markets and their 401k. For a big, public qe3 to happen, there will need to be enough fear and panic among average folks to provide the political cover needed.
401K Bathrobe Brigades will be shocked to discover theyre the sheep in line to be sheared big time.
"Hello, Staples? Yeah, it's Ben. I need 500 toner cartridges. Stat!"
QE2 was responsible for much of the current slow down in the global economy. Go back and take a look at oil and food pricing from the Bernanke anouncement last year and the weaker $ fueled other price increases. Food and energy are a much larger part of consumption by low income people and/or for many people outside the United States. This reduces consumer discretionary spending for other goods and was a large factor in slowing global growth. Bernanke was aimed at the $, long rates and the stock market to rid concern of deflation and to improve consumer attitudes--especially for the high end. It was all at the expense of the average consumer and it is now evident that consumer confidence has collapsed. Quantitative Easing was not successful and will not help now. It is for Bernanke's friends on Wall Street.
Dear Ben, Please Print us More Money
!
....and who is doing god's work?
wow..check out ES after the close today..
Who knows what lurks in the Bernaks heart...Hey is Timmhy gone already or just in a cave at Camp David. Where is he? Not that we need him or him that appointed him.
TD you are right on the hopium trade.
And Thomas Donlan is probably right @ Barrons. Friday will be verrrry interesting.....
Fed to a grizzly in Jhole?
You spin me right round baby right round like a record baby right round, round, round!!!
You know we never did get that dip in gas prices to go with the drop from $90 or so odd dollars to $76. Now that we are back up to $90 I expect the price to go up higher than the price should be at that per barrel cost because they will say oil traded up $15 in two weeks.
I went to Bob Evans this morning and the price of the Farmer's Breakfast went up $1.50 from last week. I saw Florida OJ priced at $5.85 for a half gallon and milk is back up over $3.50 per gallon.
I CAN'T WAIT FOR $10lb HAMBURGER!!!!!!
I don't know why restaurants even put prices on menus anymore. Well they print them in china for a couple cents each, but by the time they get here the prices will already need to be changed.
WEIMAR HERE WE COME BITCHEZ!!!!!
you're using the incorrect inflation indicator.
You need to use the Biden-adjustment. Start will all products consumed by households. Then remove any products that have gone up in price. Include any products where the price has gone up but your consumption has gone down, so you spend exactly the same amount of nominal dollars on the item (these are reflected as no-increase in price, since you're spending exactly the same amount, $4 for that 14oz box of cereal, vs $4 for a 16oz box of cereal last year = no price increase).
Ignore fuel and energy costs in your calculation, except when they move down. I.e. when gas went from $2 to $4 a gallon ignore it because its too volatile. But when it drops from $4 to $3.50, then factor in that 12.5% decrease (deflation) in energy costs in your calculation, and you will see we are at significant risk of deflation!
Ben Bernank & The William Dudley Core Inflation Adjuster:
Was measured in: Now Measured in:
Steak Alpo
Silk Burlap
Gasoline Horse Feed
Heating Oil Horse Dung
Apple Pie Kidney Pie
Gold Chinese Drywall
Restaurants even fast food is rather cheap. Just look for deals and coupons. Fuck the tip.
Nothing worse than being handed a bernanke buck as change from your waiter when it smells like shit, is worth shit, and probably still has lube all over it. Please make sure to tip your waiter any change that smells like shit. It's their fucking tip!
Silver to $80.00 in 12 months ...?
Then JPM gets a bailout or GOES BANKRUPT!
Then Jamie becomes US Treasury Secretary or Jamie is shining shoes...
Gimme a shine, Jamie...
Relatively speaking, when the alternative is no career without it, where's the risk?
Really sad state of affairs. Banks forced to buy Ts. Computers are the only things buying stocks. It seems the only rational entities in all this are the CBs that are buying PMs. When have governments gotten anything right? Maybe we should be worried.
And the billions of little guys planet wide, take it ... you know where.
Berny won't do a QE3 for the comming weeks. Reason? September is the worst month of the year for the stock market.
Next month will first be the big crash and than they'll start talks.
Obama will be rested out from his vacation, and Europe will also go into the ropes.
Oktober is the month we'll inflate some more!
How about I levitate this middle finger in Bernanke's fucking face
did es just dump back to this morning's open lol what a waste of electricity
Pop corn time. Give your patience a training. SSE composite just broke 20 year old support line since 1991. During '08 just touched the line and the s n' peess went down instantly! If it doesn't come up in support in the next few days we are talking about a gigaseismic shake...
Cdad et al... Why are you specifying the levitation will stop or pause in two days?
This is a classic "end of month" fantasy pump to fill the bonus pools.
Then they'll have to bang it down a few to get the shorts to reload so that the markets can be banged up into the Bernank fairytale, all to set up for a spectacular post-fed, end-of-September-quarter orgasmic moon shot.
Looks like september came early this year. Now are we going to have a santa rally already?
When will don't fight the fed become fight the fed. Down we go
Any comments on the late action in the equities?? Not an equities market guy myself but damn! they came undone hard!
It's a mad world (Tears for Fears)
It's a Mad, Mad, Mad, Mad, (Market) World
(Stanley Kramer)
With a gaggle of idiot comedian politicians, clown PhD economists, kleptocratic thieves and TBTF fraudsters to mention...
http://www.youtube.com/watch?v=t7Ig2JJRpdo
...at this point what is there really left to say? We are in the Black Hole ...Bitchez. We have been cheated on by a market whore that has fallen for the beast ...and it's oooover. http://www.youtube.com/watch?v=73GJqMPp-F0
yeah, today was kinda a silly day with what the futures were etc. the US market has become the plunge protection team.
and it's starting to top out. Again, will be watching Asia, on equity weakness. US indexes have lost the plot, telling will be mid week selling right up to Sept 20 or when ever QE3 is pumped.
Any additional, actual. verifiable, not jaw bonified QE will be the short of the century.
Bernanke Put Ass-Hat Market
HFT, Kleptocrat, political idiot, market manipulation at its finest...
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