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Rumor Regurgitation Time: China To The Rescue... All Over Again

Tyler Durden's picture




 

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.

 

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Tue, 02/14/2012 - 22:49 | 2160334 RobotTrader
RobotTrader's picture

Rosie strikes again.

Tue, 02/14/2012 - 23:02 | 2160374 Xibalba
Xibalba's picture

This is Chinese for SOLD TO YOU

Tue, 02/14/2012 - 23:08 | 2160395 UP Forester
UP Forester's picture

All your industrials are belong to us, roundeye!

Wed, 02/15/2012 - 02:15 | 2160443 Manthong
Manthong's picture

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.

 

Wed, 02/15/2012 - 01:10 | 2160452 TruthInSunshine
TruthInSunshine's picture

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.]

Wed, 02/15/2012 - 01:39 | 2160720 i root for that...
i root for that fat jersey governor's picture

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

Wed, 02/15/2012 - 02:01 | 2160729 TruthInSunshine
TruthInSunshine's picture

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).

Wed, 02/15/2012 - 03:04 | 2160816 GernB
GernB's picture

What part of "rumor" is hard to understand.

Wed, 02/15/2012 - 01:41 | 2160722 spartan speculation
spartan speculation's picture

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 Support

Futures 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. 

Wed, 02/15/2012 - 03:13 | 2160822 GernB
GernB's picture

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.

Tue, 02/14/2012 - 22:52 | 2160340 LongSoupLine
LongSoupLine's picture

 

 

More Sun Tzu...

 

All war is based on deception

Tue, 02/14/2012 - 23:14 | 2160376 ACP
ACP's picture

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.

Tue, 02/14/2012 - 23:22 | 2160437 Cdad
Cdad's picture

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.

Tue, 02/14/2012 - 23:47 | 2160522 John Law Lives
John Law Lives's picture

"It is sooooo obviously just a mainpulated bucket of lark's vomit at this point."

Nice one.  That is a colorful (and accurate) description.

Tue, 02/14/2012 - 23:53 | 2160541 Cdad
Cdad's picture

Bullish...buckets!

Wed, 02/15/2012 - 00:45 | 2160653 Isherwood
Isherwood's picture

Lark's vomit is priced in

Wed, 02/15/2012 - 01:08 | 2160690 Dead Canary
Dead Canary's picture

Crunchy frog as well.

Wed, 02/15/2012 - 02:06 | 2160759 candyman
candyman's picture

where you been Cdad. I like your stuff.

Wed, 02/15/2012 - 02:09 | 2160762 resurger
resurger's picture

WOW!

ASIA IS UP BY 3%

Tue, 02/14/2012 - 23:53 | 2160543 bankruptcylawyer
bankruptcylawyer's picture

sun tzu was a total pedophile.

Wed, 02/15/2012 - 00:06 | 2160579 vast-dom
vast-dom's picture

ASIAN MARKETS PICK UP STEAM ON SHIT FUMES AND RUMORS

LET THE SINKHOLE TANK ALREADY

Tue, 02/14/2012 - 22:54 | 2160345 trade the day
trade the day's picture

imagine what will happen to the markets when they hear that whitney houston died. 

Tue, 02/14/2012 - 23:54 | 2160544 lotsoffun
lotsoffun's picture

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.

 

Tue, 02/14/2012 - 22:55 | 2160346 Wipeout2097
Wipeout2097's picture

ZH parroting British media again...

 

 

Tue, 02/14/2012 - 22:55 | 2160347 Bear
Bear's picture

24/7 Are we now at that the cliff's edge or at the foot of the mountain ... time for a few straddles

Tue, 02/14/2012 - 22:55 | 2160348 Bud Denton
Bud Denton's picture

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.

Tue, 02/14/2012 - 22:55 | 2160349 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Shirakawa loves playing stocks.  Look at Japan go!

Tue, 02/14/2012 - 22:59 | 2160356 bobola
bobola's picture

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'.

Tue, 02/14/2012 - 22:59 | 2160358 fonzannoon
fonzannoon's picture

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.

Tue, 02/14/2012 - 23:07 | 2160392 Global Hunter
Global Hunter's picture

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

Tue, 02/14/2012 - 23:27 | 2160457 Cdad
Cdad's picture

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.

Tue, 02/14/2012 - 23:56 | 2160554 fonzannoon
fonzannoon's picture

You just made my point if you read what I wrote.

Get lost

 

 

Wed, 02/15/2012 - 03:12 | 2160821 matrix2012
matrix2012's picture

"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

Wed, 02/15/2012 - 02:10 | 2160766 candyman
candyman's picture

geesh!

Tue, 02/14/2012 - 23:13 | 2160410 Randall Cabot
Randall Cabot's picture

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!

Tue, 02/14/2012 - 23:15 | 2160418 Schmuck Raker
Schmuck Raker's picture

Maybe the German and EZ GDP numbers are going to be atrocious so they're doubling up on the rumors tonight.

Tue, 02/14/2012 - 23:00 | 2160361 junkyardjack
junkyardjack's picture

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

Tue, 02/14/2012 - 23:00 | 2160367 frostfan
frostfan's picture

The Chinese are way too busy watching Jeremy Lin to deal with these European jokers.

LINSANITY!!!!!!!!!!!!!!!!!!

 

Tue, 02/14/2012 - 23:00 | 2160369 Park city skier
Park city skier's picture

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

Tue, 02/14/2012 - 23:11 | 2160400 UP Forester
UP Forester's picture

Did you e-mail the White House and tell 'em with $40 you can save the market?

Tue, 02/14/2012 - 23:18 | 2160426 Central Bankster
Central Bankster's picture

He's likely correct.  Time stamp on the marketwatch article is 9:23 which coincides perfectly with the spike in the futures contracts.

Tue, 02/14/2012 - 23:01 | 2160371 jomama
jomama's picture

i hate it when i hit that save button twice, too.

Tue, 02/14/2012 - 23:03 | 2160378 Global Hunter
Global Hunter's picture

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.

Wed, 02/15/2012 - 04:31 | 2160845 matrix2012
matrix2012's picture

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

Tue, 02/14/2012 - 23:05 | 2160382 Martial
Martial's picture

I heard it was Botswana. This is official. Botswana is the new China. We are saved. Yay.

Tue, 02/14/2012 - 23:05 | 2160386 Father Lucifer
Father Lucifer's picture

Thanks for the info Tyler.

Tue, 02/14/2012 - 23:07 | 2160389 monopoly
monopoly's picture

This is madness. And some call this "investing". What a waste.

Tue, 02/14/2012 - 23:07 | 2160390 YesWeKahn
YesWeKahn's picture

How does Bernanke think of AAPL being a trillion $ company?

Tue, 02/14/2012 - 23:09 | 2160397 disabledvet
disabledvet's picture

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

Tue, 02/14/2012 - 23:47 | 2160472 ebworthen
ebworthen's picture

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.

Wed, 02/15/2012 - 03:53 | 2160850 matrix2012
matrix2012's picture

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

Wed, 02/15/2012 - 03:53 | 2160852 ebworthen
ebworthen's picture

Must be a PLA thumbs down.

Tue, 02/14/2012 - 23:12 | 2160404 ekm
ekm's picture

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!

Tue, 02/14/2012 - 23:22 | 2160442 Schmuck Raker
Schmuck Raker's picture

Stop crying. It's just what Jesus would do.

I'm proud of 'em.

Tue, 02/14/2012 - 23:33 | 2160477 ekm
ekm's picture

This is one case I was actually very serious. I have seen poverty with my own eyes somewhere.

Wed, 02/15/2012 - 15:23 | 2162964 Schmuck Raker
Schmuck Raker's picture

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.

Tue, 02/14/2012 - 23:13 | 2160407 JW n FL
JW n FL's picture

 

 

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

Tue, 02/14/2012 - 23:25 | 2160450 Chris88
Chris88's picture

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.

Tue, 02/14/2012 - 23:13 | 2160408 Boilermaker
Boilermaker's picture

Has the reached MAXIMUM FUCKING GAYNESS YET?!?

 

Tue, 02/14/2012 - 23:40 | 2160503 imamonkey
imamonkey's picture

Not yet, maybe after next week's, all new GLEE ...

Tue, 02/14/2012 - 23:14 | 2160412 chump666
chump666's picture

hahahahahahaha oh man...China. 

Diversion huh?  China is falling apart.  Indust activity is being crunched to hell. You aint saving anybody.

Tue, 02/14/2012 - 23:24 | 2160446 ekm
ekm's picture

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.

Tue, 02/14/2012 - 23:29 | 2160464 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

The only thing they're trying to do is talk up the Euro so Yuan remains cheap. 

I had he same thought.  They are pretending to call Merkle's bluff.

Tue, 02/14/2012 - 23:36 | 2160484 ekm
ekm's picture

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

 

Tue, 02/14/2012 - 23:38 | 2160493 ekm
ekm's picture

Have you disabled the up and down arrows? How do you do that?

Tue, 02/14/2012 - 23:53 | 2160540 ekm
ekm's picture

Somehow it doesn't work all the time on my computer on your tag. It could be a problem with Chrome.

Wed, 02/15/2012 - 00:00 | 2160569 ekm
ekm's picture

I tried it on Internet Explorer and worked. It's a problem with Chrome. I use only Chrome.

Tue, 02/14/2012 - 23:48 | 2160526 chump666
chump666's picture

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.

Tue, 02/14/2012 - 23:50 | 2160530 chump666
chump666's picture

except the AUD hahaha...poor f*ckers.  HFTs sending it back to 1.08 and sending Australia to the wall.

Tue, 02/14/2012 - 23:55 | 2160551 ekm
ekm's picture

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.

Tue, 02/14/2012 - 23:52 | 2160536 ekm
ekm's picture

That's right, that's all they have left. Or print yuans left right and center and risk a "chinese spring"

Tue, 02/14/2012 - 23:56 | 2160556 chump666
chump666's picture

I'd bet that China writes down 3/4 of it's property market this year, inflation does the rest.

They are done.

Wed, 02/15/2012 - 00:07 | 2160582 ekm
ekm's picture

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.

Wed, 02/15/2012 - 00:51 | 2160664 chump666
chump666's picture

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.

Tue, 02/14/2012 - 23:15 | 2160417 Let them eat iPads
Let them eat iPads's picture

Fuck China.

Tue, 02/14/2012 - 23:22 | 2160441 Arkaenun
Arkaenun's picture

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.

Tue, 02/14/2012 - 23:19 | 2160425 chump666
chump666's picture

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. 

Wed, 02/15/2012 - 02:16 | 2160772 candyman
candyman's picture

refreshing , where did you come form?

Tue, 02/14/2012 - 23:21 | 2160435 ebworthen
ebworthen's picture

Skynet!?!?

Skynet?!?!

Look closely, my etching says "Made in China":

http://28.media.tumblr.com/tumblr_kryd2j7ygA1qa7qbyo1_500.jpg

Tue, 02/14/2012 - 23:22 | 2160438 Arkaenun
Arkaenun's picture

.

Tue, 02/14/2012 - 23:27 | 2160458 navy62802
navy62802's picture

We're all fucked. Algos were not constructed to accept that statement as valid.

Tue, 02/14/2012 - 23:34 | 2160480 imamonkey
imamonkey's picture

Greece & Germany should add Mandarin to the curriculum .. they (China) ain't helping because we're all human, hahaha ... I'm so scared

Tue, 02/14/2012 - 23:37 | 2160486 palmereldritch
palmereldritch's picture

HOoEoOo0L0Oo0P0oO0o0oOoMoOoE0oOoO0oOOI’om0OBo0L0OOOoBB0oO0IOo0NOo0G0O!!o0

Tue, 02/14/2012 - 23:39 | 2160500 Everyman
Everyman's picture

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!!!!!

Tue, 02/14/2012 - 23:55 | 2160552 Central Bankster
Central Bankster's picture

The central planners know better than you, just accept it.

Tue, 02/14/2012 - 23:57 | 2160559 Atomizer
Atomizer's picture

 

 

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.

Wed, 02/15/2012 - 00:15 | 2160600 Everyman
Everyman's picture

Well done Atomizer!  You left out the part where I shoot the desk clerk in the face, LOL.

Tue, 02/14/2012 - 23:41 | 2160501 Atomizer
Atomizer's picture

 

 

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.)

Tue, 02/14/2012 - 23:45 | 2160514 ekm
ekm's picture

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.

Wed, 02/15/2012 - 00:01 | 2160572 palmereldritch
Wed, 02/15/2012 - 00:14 | 2160595 ekm
ekm's picture

Thx a lot. I bookmarked that shit because I got to go to sleep now

Tue, 02/14/2012 - 23:46 | 2160519 John Law Lives
John Law Lives's picture

It is amazing.  These sick economies don't actually have to create good (and sustainable) jobs and report strong macroeconomic data month after month.  All it takes is rumors of bailouts to beget repeatable rips is stock prices.  Truly amazing...

100% Fvcked up beyond all recognition (FUBAR).

Tue, 02/14/2012 - 23:49 | 2160528 ekm
ekm's picture

Sir

Why do people fall for this "sustainable" thing. Nothing is sustainable.

We all get told about "growth". Apart from penises, how can everything be growing all the time?

Tue, 02/14/2012 - 23:56 | 2160557 John Law Lives
John Law Lives's picture

I used the term "sustainable" re. jobs to distinguish from jobs that are created on a temporary basis (e.g. only during the holiday season with no intention of full-time employment thereafter).

Wed, 02/15/2012 - 00:16 | 2160586 palmereldritch
palmereldritch's picture

Careful.  Danger words: "sustainable", "growth"..."smart growth"! LOL

But seriously, the programs documented by Rosa in this link are fucking dangerous

http://www.youtube.com/watch?v=CEHWsdimVO4

Wed, 02/15/2012 - 00:10 | 2160588 ekm
ekm's picture

My bad. I digress.

Tue, 02/14/2012 - 23:50 | 2160529 RobotTrader
RobotTrader's picture

All you guys are severely underestimating the Power of Infinite Fiat.

Tue, 02/14/2012 - 23:55 | 2160550 chump666
chump666's picture

shows us the money 

Wed, 02/15/2012 - 00:03 | 2160577 Atomizer
Atomizer's picture

RobotTrader.. I will not drop the f bomb on you tonight. Kindly explain to all ZH member's where the money comes from. Your quote below

Power of Infinite Fiat

 

Wed, 02/15/2012 - 00:40 | 2160645 Cdad
Cdad's picture

All you guys are severely underestimating the Power of Infinite Fiat.

Huh?  Already "priced in" Robo.

Wed, 02/15/2012 - 01:19 | 2160696 1fortheroad
1fortheroad's picture

Fucking A,  Bravo Robo

Tue, 02/14/2012 - 23:50 | 2160531 ISEEIT
ISEEIT's picture

Let 'em play.

I learned a long time ago to tighten up and let these clowns run. The downside will be back and that is a safe bet. Trying to time the games is just casino B.S..

I'll just wait. Short @ 131.00 works just fine.

Tue, 02/14/2012 - 23:54 | 2160545 surf0766
surf0766's picture

Imagine when the rumors don't hold anymore.

Wed, 02/15/2012 - 00:00 | 2160571 Conman
Conman's picture

Dont worry, Greece will come out before open and screw up the ramp up. only to be saved again before market close tomorrow. rinse repeat.

Wed, 02/15/2012 - 00:07 | 2160583 vote_libertaria...
vote_libertarian_party's picture

Read those news bulletins above again.  No where does China say 'we will by these crappy bonds'.

They say they 'support' the ECB and the EU in their efforts.

That could be 'moral' support.

That could mean 'we will buy the Greek power plants at a discount later this year'.

 

Wed, 02/15/2012 - 00:08 | 2160585 Yen Cross
Yen Cross's picture

 Check this read out from Seeking Alpha. Baltic Dry related. ZH readers should like it, after all this B.S. buying in Asia.

Wed, 02/15/2012 - 00:55 | 2160672 chump666
chump666's picture

Yen you must be happy on the Yen trade?

Wed, 02/15/2012 - 00:15 | 2160599 Father Lucifer
Father Lucifer's picture

Bloomberg headline

Euro Rises to Two-Month High Versus Yen as China Pledges Debt Crisis Help

BULLSHIT

Wed, 02/15/2012 - 00:17 | 2160602 Tsar Pointless
Tsar Pointless's picture

Gosh-darnit! I'm watching "Dance Moms". Why would you try to ruin my Valentine's Day with such Negative Nelly reactions to a positive feel-good news story?

I hope Jimmy Fallon is as good tonight as he was last night.

S&P 2000, bitchez!

Wed, 02/15/2012 - 00:24 | 2160619 Evil Bugeyes
Evil Bugeyes's picture

Mmmm... regurgitated rumors.

Wed, 02/15/2012 - 00:42 | 2160648 CvlDobd
CvlDobd's picture

I consider my main tools, trend following tools. So why do I hate this market so much?

 

I guess I just hate these shit internals, low vol, etc.

 

Fuck this, I have to get out of this industry before the laws of nature catch up with the powers that be.

 

This can't go on forever! Can it? I mean it has to go down a little eventually. Right?

 

Fuck it, everything it bullish. Low volume? bullish! Low short interest? bullish! Flash crash on the VIX two days ago and a halt in oil? bullish Shit earnings season? bullish! Don't even get me started on Apple (which I must really say is bullish)

Wed, 02/15/2012 - 01:23 | 2160709 alien-IQ
alien-IQ's picture

With everything that's going on in the world and the condition of the global economy, the fact that the SPX has had only ONE "red" week in 2012 is amazing...it's even more amazing when you consider that week was down a whopping 2 points.

The only thing I've traded this year has been Forex and a couple of small options trades. Haven't touched a stock or Futures contract. When I saw the DOW gap up 200+ points the first trading day of the year, I just stepped away. All I could think was "Ok, so it's gonna be like that huh?"

This "market" is just ridiculous.

Wed, 02/15/2012 - 00:43 | 2160651 Clowns on Acid
Clowns on Acid's picture

Well Eurpoe is fecked, the US is fecked and won't give anymore money to the IMF....so what the feck...hav3e a visitng diplo from  China...promise them the world...and then leak to MSM that Choina will bail out everybody.

 

Feckin' brilliant....a Communist Gov't bailing out the "democracies" of the West...no problem there...like wee Jimmy Cramerr says every night...Buy, Buy, Buy !

He is a cwunt.

Wed, 02/15/2012 - 01:13 | 2160692 Tense INDIAN
Tense INDIAN's picture

its not the china rumour...AUD\USD touched at perfect channel support and bounced....SnP touched rising wedge support and bounced....dollar hit resistance and may be is in process of formation right shoulder of an INVERSE head and shoulders....wolfe wave targets in USD shows lower targets and WW in UAD\USD shows higher targets ....so BUY SnP for atleast a day or 2

Wed, 02/15/2012 - 01:22 | 2160708 Conman
Conman's picture

Right, because greek news has done nothing for moving the markets lately. Your charts and crap means nothing in the NEW market run on rumors. Get real.

Wed, 02/15/2012 - 01:34 | 2160716 alien-IQ
alien-IQ's picture

Check the time stamp on that "news", then look at a chart and see what happened at precisely that time.

Technicals had absolutely nothing to do with it. In fact, quite the opposite. The USD had broken the 79.50 resistance and EUR/USD broke well below 1.32 support and the /ES below the 1340 support when the 3:30 rumor mill went to work.

Than in the evening, as the EUR/USD and /Es were fading again and the USD hit 79.50 on the nose, the "China" rumor hit and sent everything flying and the USd falling.

The only techincals I can see here is that someone seems to break a "bullish" rumor every time certain supports and resistances are hit.

The timing of these rumors are just too perfect to be coincidence.

Wed, 02/15/2012 - 01:27 | 2160710 q99x2
q99x2's picture

So Greece is going to buy Chinese submarines.

Wed, 02/15/2012 - 01:44 | 2160736 AldoHux_IV
AldoHux_IV's picture

A central bank by any other name is still the same corrupt and moronic ways-- be it PBoC, BOJ, ECB or FED.

China has bigger problems than just real estate and their banks, they would be wise to focus on these issues with successful solutions (as sucessful as central planning can go) but it seems they have imported some of the same bullshit policymaking and trilateral commission like moronic statements that in the end do nothing but rape and pillage sovereigns.

Wed, 02/15/2012 - 01:50 | 2160738 Gubbmint Cheese
Gubbmint Cheese's picture

So the markets are up on rumors of a deus ex maCHINA? Oh the irony...

Wed, 02/15/2012 - 02:27 | 2160783 devo
devo's picture

Wow, futures up another 72 points. Talk about overbought. Time to short using options or the Vix.

Wed, 02/15/2012 - 02:31 | 2160788 spencer
spencer's picture

Damn, I had to google "regurgitation", you guys are good. -)

Wed, 02/15/2012 - 04:32 | 2160878 Sandmann
Sandmann's picture

So how does it work then ? The Western policymaker steps off the plane in peking and orders from the menu by numbers and the Little Chinaman rushes off to bring his Laowai Master a trunkload of gold doubloons.

Wed, 02/15/2012 - 04:46 | 2160892 GernB
GernB's picture

Here is the quote from a Market Watch article:

Speaking at an exhibition on the euro in Beijing with European Commission President Jose Manuel Barroso and European Council President Herman Van Rompuy, the Chinese central bank governor said he fully supports monetary measures taken by the European Central Bank during the crisis.

and

China plans to streamline and expand investment in Europe, he said.

Neither of these two statements indicates a willingness to invest in the sovergn debt of Europe. The first is support for the measures Eurozone leaders have already taken. The latter could be investment in Anheuser-Busch for all we know, since it isn't specific about what kind of investment and where in Europe.

Wed, 02/15/2012 - 05:19 | 2160930 matrix2012
matrix2012's picture

 

 

from Agence France-Presse....

 

AFP Eurozone delays Greek bailout as China pledges support

BRUSSELS, Feb 15, 2012 (AFP) 

The eurozone gave Greece a new ultimatum and delayed a decision on a debt rescue, but China expressed support for the euro pushing up stock markets on Wednesday.

The ministers called off a meeting on the rescue to avert imminent default for Greece complaining that Athens still had not fulfilled two vital conditions, with time running out for a debt restructuring.

China's top central banker meanwhile said in Beijing that the Asian giant would help Europe by continuing to buy eurozone government debt.

The eurozone put their approval of new bailout on hold late Tuesday after Greece was still at pains to come up with an extra 325 million euros ($425 million) in budget cuts.

Eurozone leaders are also demanding written pledges from Greek politicians, who face a likely snap vote in April, that all austerity measures promised to EU and IMF creditors will be implemented no matter the electoral outcome.

"I did not yet receive the required political assurances from the leaders of the Greek coalition parties on the implementation of the programme," Luxembourg Prime Minister and head of the group of eurozone finance ministers Jean-Claude Juncker said in a statement.

With the delay, previously scheduled talks in Brussels on Monday become the new deadline though government sources said that Greece will put down its assurances in a letter by Wednesday.

Global markets rose in Asia and at opening in Europe encouraged by the reassurances from China.

Central bank governor Zhou Xiaochuan repeated remarks by Premier Wen Jiabao that China was ready to get more involved in efforts to resolve the eurozone debt crisis, which is hurting demand for its exports.

"As Premier Wen Jiabao said yesterday at the China-EU summit, China will... continue to invest in European government bonds and will continue... to get more involved in solving the European debt crisis," Zhou said.

Wen had told EU president Herman Van Rompuy and European Commission president Jose Manuel Barroso that China was ready to increase its participation in the effort.

Greece desperately needs the 230-billion-euro rescue package -- 130 billion euros in fresh loans and a 100-billion-euro write down on privately-held bonds -- to avoid defaulting on 14.5 billion euros in debt owed on March 20.

A government source, after a long cabinet meeting on Tuesday, said Prime Minister Lucas Papademos would announce how he plans to come up with the 325 million euros "in the coming days."  

"The steps to take in the coming days and weeks are numerous and crucial" and will demand "an enormous and constant effort by the government," Papademos warned his ministers.

According to Greek media, part of the savings will come from a 10-percent reduction in salaries of government workers, such as military personnel, police, judges and diplomats, along with cuts in ministries budgets, including that of defence.

The eurozone wants to ensure that the bailout deals will drastically reduce Greece's debt burden, from 160 percent of gross domestic product to 120 percent in 2020.

The enormous problems confronting Greece were illustrated by new data showing that the economy, in recession for a fifth year, shrank by 7.0 percent in the fourth quarter of 2011 compared with the same period a year earlier.

The Greek parliament approved 3.2 billion euros in cuts on Sunday despite protests and riots in the streets of Athens, as Greek workers were hit by a 22-percent cut in the minimum wage.

Other hurdles remain before Greece can secure bailout funds as the German and Dutch parliaments separately need to approve it, with Berlin's vote scheduled for February 27.

Europe was also looking for outside help to resolve the debt crisis.

 

BULLISH NEWS every where!!

 

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