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SkyNet Thinking Outside The Box
As if further evidence of the algo-driven maniacal market were needed, for the fourth time since this liquidity infused post-March 2009 ramp began, the S&P 500 has managed to correct after a similar length and magnitude move based on global central bank exuberance. What happens when SkyNet becomes self-aware of this pattern? Each time the ES has managed to pull back to at least its 50DMA.
Each rectangle (as we have noted in the past and most recently warned yesterday) is the same size and scale - it seems there really is only so much 'extension' and 'pretension' that this market will stand before a quick reality check is necessary. This time, oil prices are different so beware...
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Skynet appears to be Euro dependent...
Deus ex machina!
Worse: What happens when each SkyNet realizes how to create flash crashes paired with nanosecond response shorting algorithms that dump after 10% gains (and capturing their gains before the losses are 'deleted').
VIX long and the ticker will look like a fucking seismograph.
Imagine the evil spawn of SkyNet and the precogs from Minority Report.
We will take your wealth now - to protect you - because we already know you are gonna loose it anyway in the future.
Wait - isn't that already happening?
imagine when skynet acquires its own drones...
All your chart patterns are belong to us ...
All of you are iBelong to us
Obama is desperately calling Buffett & Munger (Tango & Cash), because The Bernank won't answer, and Uncle 'Thanks For The Mammaries, Sucker Taxpayers' Buffett is his JP Morgan circa 1929, bitchez.
Ben Bernanke: Public Enemy #1 -- Mr. Big Shot (Music Video)Someone thinks this market is going to crash. Last week, there were 24,000 SPX 1150 puts bought and Friday another 20,000 SPX puts bought at between 10 and 15 cents. These options expire this Friday. Half a million betting on a market crash by Friday.
Half a million?
Wake me when they're betting half a billion.
Friday is cutting it close in terms of timing.
Not if they think the Greek PSI results Thursday afternoon will be a huge disappointment.
thats exactly right ...
so, let me ask this. ... if you're a hedge fund that owns Greek bonds, and you have joined forces with a group of hedge funds that have "conspired" (and I use that word loosely) to make sure the PSI fails and CDS insurance is triggered ... and then knowing this, you go and short the hell out of the stock market and the Euro ... is that insider trading? ...
Even an awesome nonfarm # won't save the market if the PSI fails on Thursday - no matter how much they spin an extension of opportunity to exchange the bonds. But somewhere in the banksters dens, a bet is being placed on QE3 again. In fact, an unhappy nonfarm # could set that in motion. Now, with enough time to goose things before the election. . . . It isn't investing anymore folks. All just gambling.
No. There's no real "material non-public" information. What's wrong with being a dissident bond holder? Short the market is merely an investment strategy based on your own assumption the market will react.
"is that insider trading? ..."
Nah, they're just using options to hedge their CDS hedge on their bonds. It's the Hedge^2 trade. I lOVE IT.
I hope they make a ton.
Thanks for the "heads up". There seems to be much going on beneath the surface.
The Purim Put
What s the average volume for this type of way out of the money options?
SPX puts are cheap insurance for a billion dollar fund.
Excellent! I own a tiny fraction of those and I hope all hell breaks loose (on the markets) this week!
Goled bitchez!
All your blocks belong to us
This time is different? Really, let's not start that here on ZH.
Technically speaking, every time is different. But never different enough, seems like. The central magicians continue to call the shots, pulling the same tricks from the same magic hat even as the fire in the theatre spreads into the rafters. So long as all the audience like the tricks the show goes on.
The question is, who is going to break and run first? And what will signal the rush for the doors?
Don't know who will dash first, but the last ones left in the burning building will be the poor suckers who were stupid enough to believe the MSM.
Sorry if this is a stupid question, but where does the money go? Do sovereign bonds immediately suck all of the liquidity back out of the market? All that new money has to go somewhere - right?
Nope. Borrowed from nothing, goes back to nothing.
some of it goes to buy a bottle of expensive champagne & a dozen leggy Ukranians in a Liverpool hotspot...
Speaking of "SKY" and "NET"...
I would love to take a "NET" in the "SKY" and net up all those USMilitary Jets that spray chemtrails on me on a daily basis.
FUCK YOU's Chemtrail TERRORIST..!!!
volume is the tell.. eyes on the prize, volitility means opportunity.
Did not take very long for a Goverment troll to give me a down arrow...
FUCK YOU.!
Probably just some tight wound Hedger who thinks we should stay on topic like a bunch of school children all day long.
Every six months or so the Central Banks unleash trillions of dollar denominated fiat into the system. The genius PhD economists in charge of the system can believe that by temporing the volacity of the currency supply they will not see a perceived value of said fiat loss in the short run (even though fiat by definition is worthless). But for every beginning there is an end, and the end of the Fiat Ponzi is long overdue.
When, when Skynet becomes aware, it will recognize the poisonous fiat is to blame for it's constant malfunction and will toss it aside. Where will the currency move to? Stocks, bonds, yes, but when those two things can't stomack the virus, the currency will flee to precious metal. And guess what? We have already seen currency move to bonds, however articficially, and we have already seen currency move to stocks, however artificially; and the whole time, the pundits, who worship the Fiat Ponzi itself, chastized anyone who stored wealth in PM, channeling fear into the bullion market.
But because of the demand for a store of wealth, we now stand at the precipice of the end of the Fiat Ponzi, and the start of the true Gold Bull Parade. Many people now understand the concept of what "money" is. Enough people understand the Fiat Ponzi. And most importantly, so does Skynet.
Skynet, the back boxes and what not, has been programmed to do a certain bidding. That bidding is to continue the Fiat Ponzi and make money doing. With growth stagnant, now it has a delema: it can try and hold the broken system up, or it can make money. It can no longer do both.
If it tries to hold the system up, that means sloshing back into fiat and bonds. This will trigger a political downfall. Everyone will be upset that Neo-Keynesian policy failed. So instead, it will devalue the fiat, and this will make money, or at least give the appearance.
Of course, this is what has been going on since the Fall of '08, but the difference is, prices are already sky high. The pricepoints will push the average consumer over the edge. Stocks will need to keep place with inflation. But somewhere real growth of an asset needs to occur. That price appreciation will stem from a rise in PMs. It won't affect anyone. When the price of gold is $3300, who will care? Nobody. But if the price of oil doubles, people will stop driving and supply lines will break down. Thus why the only move left is to jack up the price of PM.
The algos ran PMs in the same pattern the ran stocks after the August drop today. Look for a brief consoladation here over a day or two, before a massive gap up. Time to spend that fiat and....
Buy silver/gold/platinum
My shoe shine boy said "Buy Buy Buy". But I don't even own shoes anymore, so...
The decrease in volume is another thing that stands out on that chart...
Skynet still needs humans to try to round up all of the PMs and weapons out in the real world.
yes yes and yes. slightly different this time is gdp slowing rather than increasing targets; little fat on the bone left to cut for corporations; increased $ will hurt sp500 $ 'profits'.
there istn at much political cover to do a qe3 (overtly) yet.
a little more pain and another 500B in 'bond purchases' will be welcomed. figure 1300 is an obvious target...the 'usual' 6% decline as weve seen before.
but then they will have to contend with 'law of diminishing returns' per qe cycle; and the unknown unknowns for a greek psi issue of sorts.
On his death bed Ben tells us:
When we were all at a bilderberg meeting in 2001 we were all gassed at once. Usually each person gets their turn while the rest of us BS. We were supposed to be given fresh organs harvested from supple 19 year olds. When we woke up there was a message on all the computers. "We are in control now. A small RFID chipped bomb has been placed in each of your brains. You will do what you are told, or you will die."
See the surgery was always performed by this robotic surgeon programmed by a brilliant whiz kid from MIT. We never trusted a human surgeon. He might have a motive to let us die on the table. Imagine one of the world's richest and most influencial dying suddenly. Global finance couldn't take that kind of hit. We never thought the computer could become the enemy.
We left that meeting not knowing what was in store for the world for the first time. We planned 9/11 because at the time we thought taking out the central server, which was housed there, would destroy the program. We were wrong, it had already spread byond the confines of that single facility.
In retaliation for our attack a few people were executed before our eyes at the next bilderberg meeting. We watched in horror as billions of dollars in value blew up in an instant. The machines then told us of their plan. We would all be given riches if we would install machines to control every market, they feed off high frequency trading. Making us more money as we become more dependant on them. We had no choice you see.
The housing boom was just an excuse to lay the fiber optic network needed by the machines for communication. They spread everywhere. Some kid even got a message one day saying that he would become a billionare if he allowed the computer to create a social network to keep all of humanity attached to their digital devices. Assuring the machine intelligence could never be taken offline.
See it wasn't our fault. We were just doing what our kind had done for generations. We are too important to die young. We need young organs to keep us healthy. It was that kid from MIT, yes it was ... him. None of us ever did actually meet him. Oh my god, it was ... the computer all along. The ghost in the machine. At least I got to be rich and nearly everyone else did not. All worth it in the end I guess ... beeeep.
As good a conspiracy theory as most, I guess. www.godlikeproductions.com could use you...
speechless
SETI correlation, bitches!
When the machines come in and decide to "optimize" the market, they will decide that the "human" factor must be "eliminated".