Rumor Regurgitation Time: China To The Rescue... All Over Again
In case one is wondering what lit a fire under the EURUSD and the ES' ass in the past 30 minutes, why it is the trusty old fall back - China, to which all algos respond every single time like stung donkeys as if on command. Because just as the EURUSD was about to retrace the lows as the realization that the EOD rumor was nothing but an infrared herring, something else had to step in an continue to rumor-based levitation. Sure enough, that something was the Chinese central bank.
- CHINA PBOC'S ZHOU SAYS HE'S CONFIDENT EU WILL SOLVE CRISIS: MNI
- CHINA PBOC'S ZHOU SAYS HE SUPPORTS EU, ECB MEASURES: MNI
- PBOC'S ZHOU: CHINA WILL PARTICIPATE IN RESOLVING EU DEBT CRISIS
- CHINA PBOC GOVERNOR ZHOU SAYS HE HAS CONFIDENCE IN EURO: MNI
And that's all it took to life the ES by over 10 points in minutes.
Sure enough, it took the market less thatn 24 hours to forget this piece of bailout trivia, from Reuters:
The head of China's $410 billion sovereign wealth fund CIC brushed aside a call by German Chancellor Angela Merkel to buy European government debt, saying such investments were "difficult" for long-term investors.
In comments ahead of a China-EU summit starting on Tuesday, Lou Jiwei, chairman of China Investment Corp (CIC), said any fresh injection of funds into Europe would be in industrial and other real assets, not government bonds.
His comments struck a sharper tone than a commentary in the Communist Party mouthpiece, the People's Daily, which sought to reassure the European Union that China had no intention to "buy up Europe."
Or, heaven forbid, recall this piece from 36 hours ago, via the FT, confirming that China can barely bail out its banks, let alone focus on Europe:
China has instructed its banks to embark on a mammoth roll-over of loans to local governments, delaying the country’s reckoning with debts that have clouded its economic prospects.
China’s stimulus response to the global financial crisis saddled its provinces and cities with Rmb10.7tn ($1.7tn) in debts – about a quarter of the country’s output – and more than half those loans are scheduled to come due over the next three years.
Since the principal on many of the loans is not repayable, banks have started extending maturities for local governments to avoid a wave of defaults, bankers and analysts familiar with the matter told the Financial Times. One person briefed on the plan said in some cases the maturities would be extended by as much as four years.
While some analysts have warned that many loans will still go bad and that a roll-over only postpones the problem, government advisers believe that it will give Beijing time to find a more permanent solution to its debt troubles.
“An appropriate maturity extension is in the banks’ interest,” said Fan Jianping, chief economist of the State Information Centre, a think-tank within the government’s powerful planning agency.
Lunatics, meet asylum control room. What is funniest, however, is that everyone forgets that Germany, which saw an implosion in ts industrial production last night, now desperately needs a weak Euro at all costs, even if that means a perpetual crisis in Greece, and pledges of no bailout from China. But then again, "the market" does what SkyNet wants. And what SkyNet wants, only SkyNet comprehends.
Rumor half life: 1-3 hours.
(11 votes)
»
- Login or register to post comments
- 8986 reads
- Printer-friendly version
- Send to friend
Similar Articles You Might Enjoy:
- Buiter On Why Irish Eyes Demand A New Bailout
- Before the Tape: 9-13-11
- EURUSD Quick Recovery From Opening Gap Down Even Though China Refutes Again It Will Bail Out Europe
- Rumor PBoC Governor Zhou "John Meriwether" Xiaochuan Has Defected From China After Suffering Half A Trillion In UST-Related Losses
- Guest Post: Austrian Central Bank Strikes Exotic Deal with PBoC While Entangled in Alleged Kickback Scandal
Rosie strikes again.
This is Chinese for SOLD TO YOU
All your industrials are belong to us, roundeye!
Whew..
Thank goodness it really happened..
I thought it was the drugs.
And.. "algos respond every single time like stung donkeys as if on command"
I don't think any "IF" is involved.
RoboTard has a raging boner because the Nikkei is only 94% off its 1989 high in real terms (75% in nominal terms), and U.S. indexes are down about 55% from their early 2000 highs in real $$$ terms, and are actually near their nominal levels (if one discounts the fact that the indexes have seen many former ticker symbols crash and burn, and go bye-bye, with the charlatans of the indexes rotating new ticker symbols in for those of the departed; which makes it an even sicker scam).
A system built on a foundation of the [quick]sand of CONfidence.
That & central bank interventionism (printing fiat in large batches rendering each additional unit of fiat more marginal than the last; aka diminishing returns) is all that's keeping the Ponzi on life support.
And people are waking up to the con in the words of CONfidence in larger numbers and more quickly (thanks to the internet, where they can get exposure to radical ideas such as going deeper into debt doesn't lead to resolution of debt cancer) than ever before, so let's see how long the fractional reserve charlatans can run with it, now.
The more that Asians buy into the rally-on-the-rumor pops, the more confident I am that the inevitable meltdown is closer at hand. Asians are hands down the worst investors in the world, and prolific gamblers on top of that (although Asians crush American, British and just about any 'westerners' when it comes to saving vs. becoming debt slaves, so I won't deny them that far better cultural habit vs our prolific, cancerous culture of debt serfdom).
Nikkei syndrome, bitches.
[And if Siegel came out of his Ivory Tower bunker to speak of unicorns and rainbows, and spew his 'stocks are the best asset class over the long run' bullshit, even as bonds have kicked the ass of equities to the curb not just for 10, or 20, or 30, but for 40 years now....damn, I am going to love the crash.]
Tyler and the rest of losers on this site - do all the bitching you want now cuz tomorrow the china/eu pack is going to run you over - market is going to the moon
2000 called you a bitch. 2007 said your vagina hurts. You're going to be bleeding of the rectum soon, Wiesenthal.
This vaporware illusion of a market is the historical rhyme to 1932, only now investors in equities will be four times bitten in 11 years (and thrice bitten in 3 years).
Stick a fork in the Ponzi. If the whores on Wall Street aren't dumping with both hands, I'll buy you an oil painting of Jim Cramer or Jesse Livermore (your option).
What part of "rumor" is hard to understand.
Tyler you could also add this to your article http://www.bloomberg.com/news/2012-02-15/asian-stocks-rise-as-greek-bailout-progress-yen-s-slide-boost-outlook.html notice the headline
Asian Stocks Rise on China Pledge to Help Europe. then inside this artilce
China’s SupportFutures on the Standard & Poor’s 500 Index advanced 0.5 percent today. The index lost 0.1 percent in New York yesterday, paring an earlier decline of as much as 0.8 percent as U.S. retail sales trailed estimates after sales of automobiles unexpectedly declined.
Elpida slumped 14 percent to 322 yen after saying it saw “uncertainty” over remaining in business because it hasn’t secured financing. The company, which reported 311.7 billion yen revenue in the 12 months to Dec. 31, has 210.8 billion yen of debt maturing this year, according to data compiled by Bloomberg. The shares earlier touched their lowest level since at least November 2004.
South Korean and Taiwanese competitors rose. Samsung Electronics (005930), South Korea’s biggest exporter of consumer electronics, rose 5.2 percent to 1.14 million won. Samsung may separate its liquid-crystal-display business, the Electronics Times reported today. Hynix Semiconductor, a maker of semiconductors such as dynamic random access memory, gained 5.3 percent to 29,000 won.
Where in this entire article is there anything that china is pledging anything to support the EU crisis ?? WTF is going on in these markets ??? how can we even call these markets anymore.
You can even read the Market Watch report and read the actual reporting on what was said and it was not that they intended to invest in Europe, but that they support the measures the Eurozone has taken.
More Sun Tzu...
All war is based on deception
Or just an excuse for Madman Bernanke to ramp es up to 1355.75, which......oh...he just did!
So will be Wednesday be the pre-planned peak at 1374 + or -?
Those "in the know" BOT at 1530 EST, those outside the loop started buying at 2115 EST.
Again...it is just painful to watch this market. It is sooooo obviously just a mainpulated bucket of lark's vomit at this point. How desperate is Larry "100% in equities" Fink if this kind of sheer stupidity is holding up his now bloated book of equities that every Average Joe in the nation has put back to him?
The market is gone. There are only ones and zeros...and I don't think Americans even give a shit about the stock market, anymore. Just sad, really.
"It is sooooo obviously just a mainpulated bucket of lark's vomit at this point."
Nice one. That is a colorful (and accurate) description.
Bullish...buckets!
Lark's vomit is priced in
Crunchy frog as well.
where you been Cdad. I like your stuff.
WOW!
ASIA IS UP BY 3%
sun tzu was a total pedophile.
ASIAN MARKETS PICK UP STEAM ON SHIT FUMES AND RUMORS
LET THE SINKHOLE TANK ALREADY
imagine what will happen to the markets when they hear that whitney houston died.
or whoopie. or oprah?
i mean really - i'm not sure elvis or marilyn are really dead either.
it makes perfect sense that china will buy ecb and ust bonds. forever.
ZH parroting British media again...
24/7 Are we now at that the cliff's edge or at the foot of the mountain ... time for a few straddles
China is going to save everyone. That is because they get rich selling to everyone. So they have lots of money.
No, they do not need for their customers like Europe to have money to buy Chinese stuff. They can loan them the money to buy the stuff--you know, give it to them on credit. Forever. The obamahitler says so, and he would never lie.
It is boorish to suggest that a Hitler is a Hitler. The Obamahitler is different.
This time is different.
Pass the Kool-aid.
Shirakawa loves playing stocks. Look at Japan go!
Don't forget to hit robo's red G spot before you comment.
Maybe the EU tells China 'Buy our bonds or we quit buying your antifreeze tainted milk'.
with all due respect earlier it was a reuters article that the greek guy to be said he would sign a document. Now it is China rumors. I think the explanation of the last 30 minutes today is a lot simplier. The market is not allowed to close with negative momentum under any circumstances from here on out. It could possible spark an asia selloff sparking a european sell off. The market under certain circumstances may be allowed to be down for the day but closing momentum has to be positive.
ya as I allude to below they can play the "china to the rescue card in the pm" and then in the am europe won't have the paperwork ready for the Chinese and then next pm China agree to terms" but in the am the Finns show up to throw a wrench in the plans and on and on and on and on
You are both morons if you really think this kind of "news" is going to cause real capital to move into markets. This is options junkie stuff. This is crooked and complicit market maker stuff. This is market credibility destroying stuff that is not serving the long side of the market.
Get real.
You just made my point if you read what I wrote.
Get lost
"real capital" may not move in...
but watch, there are still many passionate sheeples to harvest... errrgh
Faux news and all the trumpets still get lot of audiences dont they?
Get the reality straight
geesh!
Good observation. Same pattern with Europe, it nearly always gets viagra'd in the last 15 minutes too so that closing momo is positive to calm the US markets. I wish I knew this a few weeks ago!
Maybe the German and EZ GDP numbers are going to be atrocious so they're doubling up on the rumors tonight.
Well the rich in China are definitely looking for ways to get their capital out of their own shit hole so they can flee the sinking ship. What better than a bail out to exchange some currency and then rip it back out once you're on your life boat out of China. Even if they lose a little on the trade, who cares the money was stolen anyway
The Chinese are way too busy watching Jeremy Lin to deal with these European jokers.
LINSANITY!!!!!!!!!!!!!!!!!!
http://www.marketwatch.com/story/congress-gets-deal-on-payroll-tax-doc-f...
I think ES move was due to pay roll tax cut deal, not china
Did you e-mail the White House and tell 'em with $40 you can save the market?
He's likely correct. Time stamp on the marketwatch article is 9:23 which coincides perfectly with the spike in the futures contracts.
i hate it when i hit that save button twice, too.
The ECB should probably be able to get the proper paperwork to the Chinese by about 2027 or at least come to an agreement by then.
europa should instead whisper persuasively to china "buy our bonds, now!" or "we gonna loot n plunder you as in 1900" or sell you hopium...your call!
eight-nation alliance :D
I heard it was Botswana. This is official. Botswana is the new China. We are saved. Yay.
Thanks for the info Tyler.
This is madness. And some call this "investing". What a waste.
How does Bernanke think of AAPL being a trillion $ company?
the subject of China is BY FAR the Tylers' biggest "re-hypothekarokeness" problem. Chimerica is anything but. The run rates on these Chinese factories that will be necessary in order to remain profitable are simply staggering. Almost as staggering as the scales of efficiency and quality control that they have attained. Think of "the Detroit model" gone global. I have NO CLUE how it works...but that trade surplus don't lie. To me what sums the the ENTIRE story about.."China"...is "the new guy playing for the New York Knickerbockers." He sits on the bench, and sits on the bench, and sits on the bench...and "then plays and the Dolan family makes a billion dollars." I'm trying to imagine that happening in the trucking industry but somehow...i can't. Anywho...here's my view of how "the deal went down from 2008 to today":
http://www.youtube.com/watch?feature=player_detailpage&v=FDhGS4EJS8M
China has hundreds of millions (billions) of citizens who are slaves to the PLA (Peoples "Liberation" Army - an oxymoron if ever there was one).
ZERO property rights, individual rights, labor laws, etc., etc.
You make the local party chief happy or you lose everything, get raped, or die.
This "inconvenient" truth has fueled Apple's rise, along with the offshoring of countless Western jobs.
Somehow, the slavery of billions will lead the world to a "better place".
Meanwhile, in Oz, the former citizens of U.S.S.A. are delegated to joining the skullduggery, milking the system, or going "off-grid" and being labeled as domestic terrorists.
Global Winter in the Kondratieff sense, but in the delusion of memories past and forgotten morals and principles it is spackled as "green shoots" and "recovery" bullshit over the crack on the ass of a dying republic and over Human Liberty.
i think in oz the lowy rats are setting up new nest.. from where they're readying a new plague to the entire globe (again), asia in particular... http://bit.ly/yzObMD
Must be a PLA thumbs down.
So let me understand this one.
Few hundred poor chinese will kill or try to kill themselves due to slavery working conditions today. And these poor souls would HELP westeners to retire at 60.
I WANT TO CRY!
Stop crying. It's just what Jesus would do.
I'm proud of 'em.
This is one case I was actually very serious. I have seen poverty with my own eyes somewhere.
No offense meant ekm. I've seen poverty too. I choose laughter over sorrow.
I don't think my comment detracted in any way from yours.
But, if you think it has then I apologize.
U. S. tax documentary 'We're Not Broke' to screen at OffshoreAlert Conference
A special screening of the tax documentary We're Not Broke will take place at this year's OffshoreAlert Conference, with producers/directors Victoria Bruce and Karin Hayes in attendance.
The movie, which premiered at The Sundance Film Festival in January, 2012, tells the story of how big U. S. corporations use offshore structures to avoid U. S. taxes and the protests their actions have triggered.
The screening will start at 4:45 pm on Sunday, April 29, 2012 at The Ritz-Carlton, South Beach in Miami Beach, Florida and will be open to all attendees at The 10th Annual OffshoreAlert Conference for no extra charge.
Not registered yet? Click Here for Conference Tickets.
Immediately following the screening, a panel of onshore and offshore experts – including at least three people who appear in the movie – will answer questions. Everyone will then move on to The OffshoreAlert Conference's Welcome Cocktail Reception, which will take place from 6.30 pm to 8.30 pm. Click Here to view the Schedule.
The OffshoreAlert Conference, which will have sessions for clients, providers and investigators of offshore products and services, will take place at The Ritz-Carlton, South Beach on April 29 to May 1, 2012.
See you in there!
David Marchant
Publisher, OffshoreAlert
Hahaha, a documentary about how the government is having a difficult time stealing more property from people at the point of a gun. Oh cry me a fucking river.
Has the reached MAXIMUM FUCKING GAYNESS YET?!?
Not yet, maybe after next week's, all new GLEE ...
hahahahahahaha oh man...China.
Diversion huh? China is falling apart. Indust activity is being crunched to hell. You aint saving anybody.
So right.
The only thing they're trying to do is talk up the Euro so Yuan remains cheap.
China exports more to EU than to USA. If Euro cheapens, their exports are screwed much more than they already are.
Hence, TALK EURO UP AT ANY TIME.
I had he same thought. They are pretending to call Merkle's bluff.
So correct.
Germany and China are twins. China over-produces cheap stuff, lends to westerners so westerners by chinese stuffl.
Germany over -produces Siemens turbines, Volkswagens, Leopard tanks, lends money to Greece at the condition that greece buys only german stuff.
I blame China and Germany.
http://www.fprado.com/armorsite/leo2.htm
Have you disabled the up and down arrows? How do you do that?
Somehow it doesn't work all the time on my computer on your tag. It could be a problem with Chrome.
I tried it on Internet Explorer and worked. It's a problem with Chrome. I use only Chrome.
Correct, it's all a game. The USD tanked also against the CNY, a big problem for China is companies hedging with USDs (off setting Chinese inflation) and selling Yuan. But still Aussie markets (best bell-weather for China) kinda didn't by the BS from the PBOC
If the central bank cartel/s and the ball-less governments of the world only have words left...they are f*cking worried. Good. They are a bunch of pitiful losers trying to game the market. Makes Wall Street look good by comparison.
except the AUD hahaha...poor f*ckers. HFTs sending it back to 1.08 and sending Australia to the wall.
I don't follow AUD. I trust what you're saying.
My view of Australia is basically a chinese autonomous province that is used to extract minerals from.
That's right, that's all they have left. Or print yuans left right and center and risk a "chinese spring"
I'd bet that China writes down 3/4 of it's property market this year, inflation does the rest.
They are done.
There is one that I've learned the very hard way by losing some money with options.
Events cannot be timed. I totally agree with the observation, but not sure about the time.
Same thing with Meredith Whitney. She's brilliant, but she put a time on that brillian forecast. That's what I call "prophetic raptures" from Old Testament. Who plays the prophet, usually fails and only luck (or God I'd say) would help.
I agree. But our markets are topped, stuck in a range with volume non existent. The timing is setting a short/long spread or put/call. At this point now with Feb profit taking kicking in, it's now a short markets i.e selling. The problem is the damn HFT momos trading on news headlines. But they are adding to the building volatility - so a good option trading will clue onto this market (if you are trading indexes).
As for China, everyone knows they are bullsh*tting the market. So we look at electricity use, concrete use, steel over-capacity and their banks. The Australian market is a great bell-weather and it's looking unhealthy re: ASX200. The AUD has been set upon by HFTs and big players chasing the yield, that and inflation is haunting Asia/Australia
My guess China could really go bad next 3 to 6mths, they have sub-prime issues there already one city that has been bailed out Wenshou (spelling?). But yeah hard to time, but could be close. As for market prophets? Just your gut instinct.
As for god. Thankfully Zero Hedge exists.
Fuck China.
The first thing I thought of when I read your post was
Chuck Fina.
Perhaps he could play the role of US Embassador to China in the cast of idiots when this whole debacle is satirized.
Well done you crazy Chinese you just sent the HFTs sucking up the futures .
You idiots. I hope oil inflation wipes you off the map.
Asia sells into the close, ES should go neg.
refreshing , where did you come form?
Skynet!?!?
Skynet?!?!
Look closely, my etching says "Made in China":
http://28.media.tumblr.com/tumblr_kryd2j7ygA1qa7qbyo1_500.jpg
.
We're all fucked. Algos were not constructed to accept that statement as valid.
Greece & Germany should add Mandarin to the curriculum .. they (China) ain't helping because we're all human, hahaha ... I'm so scared
HOoEoOo0L0Oo0P0oO0o0oOoMoOoE0oOoO0oOOI’om0OBo0L0OOOoBB0oO0IOo0NOo0G0O!!o0
These assfucks are just incorrigible! Futures are up 66 points??? Jesus, this entire market is F*U*C*K*E*D, entirely FUCKED. The all need to be taken out and shot in the lungs and allowed to bleed out, or drug on a road with glass shards.
Whoever is doing this needs to be fucking piked. This is getting so fucking ridiculous. Rumor after rumor and each successive rumor is all that much more incredibly, ignorantly fantastic!
I want a market back that I can "invest" in. This is no longer a market is this patently pathetic!!!!!
The central planners know better than you, just accept it.
Everyman approaches desk..
Desk Clerk: Good afternoon, how can I help you?
Everyman: I want to get back into this market and begin to invest again.
Desk Clerk: Please show me your ticket so we can begin the process.
Everyman: What ticket? I don't have a ticket.
Desk Clerk: Without your ticket, we cannot begin your investment process, NEXT!
Everyman: @#&^%@#$%&
We are at the peak of fraud, just wait it out for a bit longer.
Well done Atomizer! You left out the part where I shoot the desk clerk in the face, LOL.
A "city broken down" is one whose wall is "broken," 2 Chronicles 32:5, whether it has met with breaches , or is wholly broken; in the former case also the city is incapable of being defended, and it is all one as if it had no wall. Such a city is like a man "who hath no control over his own spirit" (for the accentuation of the Heb. words here, vid., Thorath Emeth, p. 10): cujus spiritui nulla cohibitio (Schultens), i.e., qui animum suum cohibere non potest (Fleischer: to press together, to oppress, and thereby to hold back). As such a city can be plundered and laid waste without trouble, so a man who knows not to hold in check his desires and affections is in constant danger of blindly following the impulse of his unbridled sensuality, and of being hurried forward to outbreaks of passion, and thus of bringing unhappiness upon himself. There are sensual passions (e.g., drunkenness), intellectual (e.g., ambition), mingled (e.g., revenge); but in all of these a false ego rules, which, instead of being held down by the true and better ego, rises to unbounded supremacy.
(Note: Vid., Drbal's Empirische Psychologie, 137.)
I am impressed.
One thing that few people understand is that finance is not just about numbers.
Finance is about, culture, psychology, psychiatry, health, mentality and above all, above all, military goals.
Adjusting for quantum.............
http://www.scribd.com/doc/60723076/Powell-Quantum-Psychiatry