This page has been archived and commenting is disabled.

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


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
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

Fri, 08/31/2012 - 10:39 | 2752609 SheepDog-One
SheepDog-One's picture

Bernank, central banksters, and congress Wash DC all summed up right here Hedonism Bot Compilation - Futurama - YouTube

Fri, 08/31/2012 - 10:41 | 2752612 Dr. Engali
Dr. Engali's picture

Welcome to the matrix.

Fri, 08/31/2012 - 13:09 | 2753181 resurger
resurger's picture

Happy Trading

Algoed to Death

01000101 01110110 01100101 01101110 00100000 01110100 01101000 01100101 00100000 01101101 01100001 01100011 01101000 01101001 01101110 01100101 01110011 00100000 01101100 01101111 01110110 01100101 00100000? 01110100 01101000 01101001 01110011 00100000 01101101 01110101 01110011 01101001 01100011 00101110

Fri, 08/31/2012 - 14:27 | 2753427 Liquid Courage
Liquid Courage's picture

How 'bout this one:


1010011010   ?

Convert that strangely symmetrical binary number to decimal.

Fri, 08/31/2012 - 10:41 | 2752613 fonzannoon
fonzannoon's picture

funny everything is right back where it was 2 days ago...except treasuries.

Fri, 08/31/2012 - 10:47 | 2752644 kito
kito's picture



i hope people realize now that bernanke is not the printing prince of paperville...............he is much more calculating that many on this site perceive him to be..........................he is not going to print the dollar into will never happen.....why would he destroy his precious dollar and the fed???? the country is going down one way or another............better than congress bears the brunt through a deflationary collapse than a hyperinflationary long as the dollar stays alive!!!!!..........................

Fri, 08/31/2012 - 10:52 | 2752663 i-dog
i-dog's picture

Get real ... Ben is an actor; he's not the scriptwriter. The dollar won't be permitted to live much longer....

Fri, 08/31/2012 - 10:55 | 2752679 kito
kito's picture

youre flat not saying that the dollar will be the preeminent currency in the world 10 years from wont.....but its not going anywhere..............

Fri, 08/31/2012 - 11:11 | 2752735 i-dog
i-dog's picture


"10 years from now"

LOL ... Cheeses feckin' crust, you sheep are dumb!

We'll know by Christmas whether I'm right (though I expect it will only be weeks rather than months).

Fri, 08/31/2012 - 11:39 | 2752849 kito
kito's picture

bring it on i-dog...put your money where your mouth is...the dollar remains intact.....what would you like to wager? this is too easy............

Fri, 08/31/2012 - 11:49 | 2752901 i-dog
i-dog's picture


"what would you like to wager?"


Fri, 08/31/2012 - 13:35 | 2753275 kito
kito's picture

Fair enough....credibility it is.....with a side of fries.....

Fri, 08/31/2012 - 13:15 | 2753206 resurger
resurger's picture

Sweet Dreams Kito

Fri, 08/31/2012 - 10:55 | 2752678 fonzannoon
fonzannoon's picture

Kito how do you reconcile the dollar being sold off hard on the news of no QE? Aberration? Maybe...Gold rallying too..

Either somehow as we all come to the conclusion that you have been pretty accurate about....QE is not coming but the markets see it differently...or as the world sees that QE does not work, and the politicians are not going to do shit....maybe the dollar starts to seriously take a hit.

Treasuries getting bid in the face of a USD selloff still says that this is an abberation and that your thesis is correct IMO. But it's interesting.

Fri, 08/31/2012 - 10:58 | 2752689 kito
kito's picture

i am no expert in the day to day machinations of the markets.......only those dark, nefarious characters who pull the levers know what is transpiring on a daily basis.............

Fri, 08/31/2012 - 11:00 | 2752699 fonzannoon
fonzannoon's picture

I never argue with nefarious. It's just too cool of a word.

Fri, 08/31/2012 - 11:02 | 2752706 Dr. Engali
Dr. Engali's picture

He will print..evetually It is just a matter of when..... he may not do it before the election and I may be out a turkey sandwich but he will eventually print. He doesn't want the unavoidable collapse to be on his shoulders so he is going to force congress's hand. His stated policy is the power of the wealth effect. If he doesn't print then he blows his whole theory out of the water.  Gold and the market is agreeing with me right now.

Fri, 08/31/2012 - 11:04 | 2752717 fonzannoon
fonzannoon's picture

How many mulligans does Ben get?

Fri, 08/31/2012 - 10:41 | 2752615 Thought criminal
Thought criminal's picture

Gotta love em berserk algos...

Fri, 08/31/2012 - 11:37 | 2752842 NotApplicable
NotApplicable's picture

These look to be the "Cha-Ching" algos. I wonder which bots won this round?

Fri, 08/31/2012 - 10:41 | 2752617 ParkAveFlasher
ParkAveFlasher's picture


Fri, 08/31/2012 - 11:41 | 2752862 HardAssets
HardAssets's picture

Tits . . Mmmmmmmmmmmm (said in Homer Simpson voice)

Fri, 08/31/2012 - 10:42 | 2752619 ebworthen
ebworthen's picture

Dual mandate:  "Use these screws and this hammer to build a chicken coop."


Fri, 08/31/2012 - 10:41 | 2752620 DavidC
DavidC's picture

Hmm, so this is what's meant by a broken market...


Fri, 08/31/2012 - 11:43 | 2752879 HardAssets
HardAssets's picture

"Hmm, so this is what's meant by a broken market..."

Who cares - - I'm making money right now. Ask me again after the close

Fri, 08/31/2012 - 10:42 | 2752624 adr
adr's picture

Oil and nat gas both shot up 1.5%, surely to be demand related.

The market must be deemed a terrorist organization, more dangerous than AlQaeda. It must be shut down.

The financial terrorists have caused more financial damage in four years than the past 200 years of war combined.

Fri, 08/31/2012 - 10:43 | 2752625 ClaymoreStoor
ClaymoreStoor's picture

Is this a dream?  This market can't possibly be real.

Fri, 08/31/2012 - 11:38 | 2752845 NotApplicable
NotApplicable's picture

It's real, but a market it ain't.

Fri, 08/31/2012 - 10:43 | 2752626 adamas
Fri, 08/31/2012 - 10:46 | 2752637 SheepDog-One
SheepDog-One's picture

Dumbest shit ever please dont watch that ^^^^

Fri, 08/31/2012 - 10:49 | 2752654 DonBadajoz
DonBadajoz's picture

Although racist.... but Funny!

Fri, 08/31/2012 - 10:43 | 2752632 Hedgetard55
Hedgetard55's picture

It's a honey badger market, it don't give a shit about the news, it is going up.

Fri, 08/31/2012 - 10:46 | 2752636 Caviar Emptor
Caviar Emptor's picture

Ben is worried about Biflation:
-Eurozone and Spain at records for unemployment A N D inflation is over 2% and rising (!)
-In US energy and food prices rising (when they normally should be in steep decline seasonally) while core PCE just hit 0 (!) indicating no pricing power for goods and services produced.


Fri, 08/31/2012 - 10:46 | 2752642 brian0918
brian0918's picture

NYT reports the exact opposite of ZH: "Breaking News: Bernanke Makes Forceful Case for More Fed Action to Spur Growth"

Fri, 08/31/2012 - 10:50 | 2752659 DavidC
DavidC's picture

Yes, just like he's been doing for the last n months.


Fri, 08/31/2012 - 10:55 | 2752677 surf0766
surf0766's picture

Who reads the NYT ?

Fri, 08/31/2012 - 11:10 | 2752742 ParkAveFlasher
ParkAveFlasher's picture

Flying monkeys!

Fri, 08/31/2012 - 11:40 | 2752852 NotApplicable
NotApplicable's picture


Fri, 08/31/2012 - 10:46 | 2752643 chancee
chancee's picture

people really thought they'd let the market fall going into a holiday weekend?  Nuts!  They need the sheep happy and out spending money they don't have...

Fri, 08/31/2012 - 10:48 | 2752646 Anasteus
Anasteus's picture

Hmm, gold-n-silver seem to be extremely resistant, the short covering has immediately taken place. JP Morgan has apparently failed to launch its suppresion algos; maybe they're out of money.

Fri, 08/31/2012 - 10:52 | 2752665 ParkAveFlasher
ParkAveFlasher's picture

Maybe they're out of money, but they are definitely out of silver.

Fri, 08/31/2012 - 10:49 | 2752650 RobinHood73
RobinHood73's picture

Its likely FED backed (via favored primary dealers) algos on bid

Gotta keep the game alive. The only alternative is implosion

Fri, 08/31/2012 - 10:49 | 2752651 Stackers
Stackers's picture

They panic'n out there I can feel it, they panic'n.

Fri, 08/31/2012 - 10:54 | 2752673 chancee
chancee's picture

Everyone please go look at the USATODAY headline on Bernanke... that ends in 'stocks rally'.  Comedy.

Fri, 08/31/2012 - 10:58 | 2752688 reload
reload's picture

No bounce for Facefook though, perhaps its not an `algo stock`.

Fri, 08/31/2012 - 10:56 | 2752681 pragmatic hobo
pragmatic hobo's picture

it's friday before holiday, it's end of the month, the market will not be allowed to close in red.

Fri, 08/31/2012 - 11:05 | 2752721 valley chick
valley chick's picture

giving you yet another +1....simple and to the point and spot on.

Fri, 08/31/2012 - 13:17 | 2753210 resurger
resurger's picture

ill fucking LMAO if the market sells just 5 minutes before the close with an elephant algo

Fri, 08/31/2012 - 10:58 | 2752686 orangegeek
orangegeek's picture

Europeans countries on the verge of going tits up.  Market's response?  The Euro rises.  US Dollar falls.


Pass the popcorn and 3D glasses - this is getting entertaining.

Fri, 08/31/2012 - 11:26 | 2752805 Vince Clortho
Vince Clortho's picture

The "market" has no contact with reality.  It is simply a reflection of the Fed's Wish List.


for supplementary information, see "It's a Good Day" episode from the Twilight Zone.

Fri, 08/31/2012 - 11:02 | 2752710 WoodMizer
WoodMizer's picture

Dirty Bennie:

I know what you're thinking, did he QE 5 or 6?  Well, there was QE1 and 2, ZIRP, Twist 1 and 2, but did I miss a TARP, or POMO?

You want to trade these markets; then ask yourself one question.

Do you feel lucky?...  Well do ya, PUNK?

Fri, 08/31/2012 - 11:09 | 2752741 CvlDobd
CvlDobd's picture

No, but I think my chair is telling me it feels lucky.

Fri, 08/31/2012 - 11:05 | 2752722 EcoJoker
EcoJoker's picture

Why would anyone be in this market for any reason?   It's so damned manipulated.  

Fri, 08/31/2012 - 11:16 | 2752774 Cthonic
Cthonic's picture

Pachinko- braindead

Slots- ditto

Bingo- a bit monotonous and too many smokers

Craps- all the good tables are out of town

Poker- UIGEA'd

Small Biz- may be deviant, though no masochist

Corp Drone- no thx, already read Dilbert



Fri, 08/31/2012 - 11:42 | 2752864 NotApplicable
NotApplicable's picture

There's only so many whackaholic positions at the SEC to fill as well.

Fri, 08/31/2012 - 16:39 | 2753783 Cthonic
Cthonic's picture

'Staff' positions must be filled nevertheless.  They're especially interested in analysts familiar with the bar.

Fri, 08/31/2012 - 11:09 | 2752740 g speed
g speed's picture

for an insight into Bens remarks and how the markets react this week end wait till next Wed.

Fri, 08/31/2012 - 11:10 | 2752746 SheepDog-One
SheepDog-One's picture

This is Bernank with 'beatings-on' since no one bought Facebook scam.

Fri, 08/31/2012 - 11:14 | 2752764 Nobody For President
Nobody For President's picture

That's IT - I'm suing Ben for whiplash.

Fri, 08/31/2012 - 11:18 | 2752777 dingoj
dingoj's picture

Spanish 10y not partaking in euphoria: +4%!

Fri, 08/31/2012 - 11:42 | 2752866 Thought criminal
Thought criminal's picture

Anyway wondering how long with the hopium last. Last year it had half life around 6 hours after Shalom spoke.

Fri, 08/31/2012 - 12:16 | 2752990 franzpick
franzpick's picture

We are in just the 4th year of what looks to be a 10-plus year credit contraction, and 2 things are sure to happen: Benron or his successor will HAVE TO do more QE, and they will HAVE TO NOT talk about it beforehand.  QE here, and a european sovereign bond bailout, are sure things, hiding in plain sight, and the PMs, as in today's action, are my best indicator of how soon perceptions of these upcoming bailouts will come into investor focus.  Just some ideas.

Fri, 08/31/2012 - 14:41 | 2753467 rosiescenario
rosiescenario's picture

Rather than BTFD....maybe we are through the looking glass and it is more like STFP (short the fucking peak).


Whatever the case, those short silver today are probably now sitting in intensive care.....

Fri, 08/31/2012 - 14:54 | 2753501 blunderdog
blunderdog's picture

Think what happens when you spin a top. 

At the beginning, the top stands nice and straight while all the energy is bleeding off.  As it continues to slow down, it becomes increasingly unstable, until finally it tips low enough for the side to hit the tabletop or floor.  Once that happens, it's a VERY rapid loss of velocity until the thing stops spinning and clatters down completely.

There's a useful analogy in there for anyone who wants to know how to "trade" this shit.

Do NOT follow this link or you will be banned from the site!