The Schizophrenic Market Update - Buy The Rumor, Sell The News, Then BTFD

Tyler Durden's picture


It's been 20 minutes and in that time we have been entirely depressed as every risk-on asset dumped to the day's lows or lower and now we are entirely euphoric - there is still hope - as Gold/Silver make new highs, stocks recover all their losses, Treasury yields continue to fall, and EURUSD does, well, we are not sure really... Meanwhile, European Sovereigns are all cracking wider...


Gold and Silver chaos...


S&P 500 futures rip-dip-'n'-rip...


EURUSD Algo-mania...


meanwhile EGBs...


Charts: Bloomberg

Your rating: None

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Fri, 08/31/2012 - 10:32 | 2752563 malikai
malikai's picture

We've tracked today's actions throuhgout the day.

Fri, 08/31/2012 - 10:40 | 2752610 blindchicken
blindchicken's picture

malikai, it wont help to promote a website with black text on black background.

Fri, 08/31/2012 - 10:42 | 2752618 malikai
malikai's picture

There's no black text on a black background. The text is white. Are you really seeing black/black?

What browser are you using?

Fri, 08/31/2012 - 11:02 | 2752701 Nobody For President
Nobody For President's picture

The chart text is black (or dark grey) on black, text essentially unreadable (Chrome).

Fri, 08/31/2012 - 11:05 | 2752724 flacon
flacon's picture

Ben finally figured out that the more money he prints the less there is - and the metals can not be stopped - not now, not ever. 


And who ever said that the options people were smarter than the rest have been proven correct. :)

Fri, 08/31/2012 - 11:34 | 2752832 NotApplicable
NotApplicable's picture

One foot on the brake, and one on the gas!

Man there's too much bullshit, I can't pass!


Fri, 08/31/2012 - 10:43 | 2752631 Crisismode
Crisismode's picture

You haven't tracked anything.

You've got a couple RTF charts up, with zero analysis.

Looks pretty unimpressive, actually.



Fri, 08/31/2012 - 10:46 | 2752640 malikai
malikai's picture

Shame, really, because if you actually look at the charts, you will see something quite different than you describe.

Anyway, human analysis is not our forte. We do machine analysis.

Fri, 08/31/2012 - 11:00 | 2752692 max2205
max2205's picture

The more headfakes, the better.


Love and kisses,



Fri, 08/31/2012 - 10:50 | 2752660 boribori
boribori's picture

It looks black on black on my chrome. Impossible to read antyhing. 

Fri, 08/31/2012 - 10:57 | 2752685 malikai
malikai's picture

We've checked chrome/windows, chrome/osx, ie/windows, mozilla/windows, and mozilla/osx all showing up fine. I'll take all you guy's words for it and we apologize, we will try to find out what the cause is.

Fri, 08/31/2012 - 10:32 | 2752565 Snakeeyes
Snakeeyes's picture

Rose, fell, rose. Once the market realized that Bernanke wiil do QE3 to help Obama get re-elected.

Fri, 08/31/2012 - 10:35 | 2752587 surf0766
surf0766's picture

He's not doing anything before the election

Fri, 08/31/2012 - 10:39 | 2752607 DeadFred
DeadFred's picture

Nah, the primary purpose in life for an algo is to hunt for stops. Every fool who thought the market would dump had a stop in case Ben decided on handing out the free candy. Once those stops are eaten up the market will start it's decline. Be patient Grasshopper we will soon have Prez Mitt who will solve all out problems /s.

Fri, 08/31/2012 - 10:43 | 2752634 CrashisOptimistic
CrashisOptimistic's picture

Stops are an emotional vehicle.

There are no humans trading.  It's all algorithms.  So there are no stops.  And thus, no hunting.

What is going on is the phrasing of the news reports on the wires is varying.  The headline reading algos are going in different directions as each appears.

Fri, 08/31/2012 - 10:53 | 2752674 Deo vindice
Deo vindice's picture

Anyone who gets depressed or euphoric over the price changes in gold and silver in a matter of minutes really doesn't understand why they should buy PM's in the first place.

Look at what they have done over 10 years, not 10 hours and especially not 10 minutes.

Fri, 08/31/2012 - 10:34 | 2752569 dannyboy
dannyboy's picture

this was the craziest shit ive seen in ages.. watching it do that.. EURUSD was just as bad tyler.. crazy algo's going wild

Fri, 08/31/2012 - 10:34 | 2752570 not fat not stupid
not fat not stupid's picture

Cant mess with EOM marks.

Fri, 08/31/2012 - 10:34 | 2752571 YesWeKahn
YesWeKahn's picture

expect the unexpected

Fri, 08/31/2012 - 10:53 | 2752666 Poule Mouillee
Poule Mouillee's picture

... and expect it when you least expect it.

Fri, 08/31/2012 - 10:34 | 2752573 SheepRevolution
SheepRevolution's picture

This reminds me of my uncle's EKG-graph he took 24 hours after smoking crack.

Fri, 08/31/2012 - 13:05 | 2753172 resurger
resurger's picture


Fri, 08/31/2012 - 10:35 | 2752575 FubarNation
FubarNation's picture

Efficient markets.  Nothing is wrong.  Carry on.

Fri, 08/31/2012 - 10:49 | 2752653 CrashisOptimistic
CrashisOptimistic's picture

This is the clearest evidence I have seen that there are indeed headline reading algorithms running trading.  The phrasing of the speech on the news wires is varying.  Some say "he hints at easing" some say "he will not take any further action because of uncertainty about unconventional policy".

As each arrives on the wire services, the algos do different things.  

Fri, 08/31/2012 - 10:35 | 2752576 101 years and c...
101 years and counting's picture

price staabbiiiiiiliteeeee.

Fri, 08/31/2012 - 10:35 | 2752578 Dollar Bill Hiccup
Dollar Bill Hiccup's picture

Don't like the market? Wait 5 minutes ...

Ben is jawbowning. Or propagandizing. And it's working.

Fri, 08/31/2012 - 10:35 | 2752579 Xibalba
Xibalba's picture

Ok, I'll say it.  FUCK YOU BERNANKE!  And Especially YOU Potter. 

Fri, 08/31/2012 - 11:20 | 2752784 BeetleBailey
BeetleBailey's picture









Fri, 08/31/2012 - 10:35 | 2752580 chancee
chancee's picture

Bernanke knows the trade-bots have his back. Touting another QE is completely unecessary.  Why doesn't everyone understand this?

Fri, 08/31/2012 - 10:35 | 2752583 Cursive
Cursive's picture

There a so few left to sell.  All the hedgies, institutional buyers and MM's are the bagholders.  They will do anything to keep this turd of a market afloat.

Fri, 08/31/2012 - 10:35 | 2752585 drivenZ
drivenZ's picture

so hows that treasury short working out for CS?


As i said....

"he's actually been pretty predictable. everyone already knows there won't be QE, which is why this trade won't work. Buy the rumor sell the news. Treasuries will probably rally a few bps. "


Fri, 08/31/2012 - 11:01 | 2752707 Muppet of the U...
Muppet of the Universe's picture

welcome to the broken market.  Where inflation sends commodities up, equities with with threats of qe, and bonds up with OpTwist.  Yea...  I can't wait for the algo flash crash.  This is gonna be so much fun... o wait.  no it isn't.

Fri, 08/31/2012 - 10:36 | 2752588 fonzannoon
fonzannoon's picture

I keep staring at my silver....It's not moving at all...WTF?

Look at treasuries go. wow. Nothing makes any sense.

Fri, 08/31/2012 - 10:45 | 2752638 CrashisOptimistic
CrashisOptimistic's picture

Treasuries are where terrified money goes.  There is a lot of it, both in the US and in Europe.  And there will be more.

Consider what the upcoming negative nominal interest rates will mean.  Banks will pay you to store money in your mortgaged house.

Fri, 08/31/2012 - 10:49 | 2752652 fonzannoon
fonzannoon's picture

should be interesting to see rates go negative in concert with the usd selling off. one of them has to give

Fri, 08/31/2012 - 10:53 | 2752672 CrashisOptimistic
CrashisOptimistic's picture

Well, fonzandood, this is one of those moments where one loses the plot.

Money is meaningless.  Money is an artificial creation.  Adam and Eve had no money.  Money wasn't invented for thousands of years.

So the USD selling off means nothing.  Nor do interest rates, particularly, but they are somewhat compelled by deflation derived from oil scarcity.

Economic . . . and ALL . . . activity must decline.  That defines everything, including rampant confusion.

Fri, 08/31/2012 - 10:59 | 2752690 fonzannoon
fonzannoon's picture

Maybe...but I am going to head out to buy a sandwich for lunch now. The guy making it wants about $7. Until he wants a silver dime or or me to wash his car you can stick your name calling up your ass. When he does want that, I have plenty. So I guess you can stick your name calling up your ass either way....

Fri, 08/31/2012 - 11:48 | 2752899 ParkAveFlasher
ParkAveFlasher's picture

CIO, your comment, "money is an artificial creation", is itself an artificial creation.

All natural things exchange energy via intermediaries.  "Money" is the word we use to describe the specific, agreed-upon, accepted medium of two human parties involved in a exchange.  It is an inanimate broker of the exchange. Meditate on that! 

Fri, 08/31/2012 - 10:36 | 2752590 mikecagg
mikecagg's picture

This is a sick world we live in. 

Fri, 08/31/2012 - 10:37 | 2752594 Madcow
Madcow's picture

I am so confused :( -  Does this mean i should close out my Morgan Stanley account and move to Schwab? ?

Fri, 08/31/2012 - 11:58 | 2752927 treasurefish
treasurefish's picture

No.  The reason you are confused is obvious.  You are too lazy, too illiterate, and/or too liberal.  If you had read the article instead of just the title, then you would close all your accounts and buy gold.  

Fri, 08/31/2012 - 10:37 | 2752595 ebworthen
ebworthen's picture

Binary data machines and software trying to parse the logic of a PhD human economist.


Fri, 08/31/2012 - 10:51 | 2752662 Ricky Bobby
Ricky Bobby's picture

Garbage In => Garbage Out

Fri, 08/31/2012 - 10:38 | 2752597 MsCreant
MsCreant's picture

A soap opera through charts.

Like fiat currency through the printing press, so are the days of our lives.

Fri, 08/31/2012 - 10:38 | 2752602 tocointhephrase
tocointhephrase's picture

"Keep talking ool keep talking"

Fri, 08/31/2012 - 10:38 | 2752604 Conman
Conman's picture

Bob Piss-on-me saying humans like him are buying becuase they are smart because they can read.

Fri, 08/31/2012 - 10:39 | 2752608 HardAssets
HardAssets's picture

Day trading ?

More like  minute trading

Fri, 08/31/2012 - 10:44 | 2752635 Dr. Engali
Dr. Engali's picture

Minute trading? More like millisecond trading.

Fri, 08/31/2012 - 10:58 | 2752687 HardAssets
HardAssets's picture

Yeah, a minute feels like a month

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