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S&P Futures Gap Up 0.5% -- That Is All
Asia opens loud and proud and announces itself with a subtle 'buy-every-single-contract-in-the-stack-coz-I-am-desperate' algo grabbing 7000 contracts in S&P 500 e-mini futures (ES). Nothing else moved, just ES. Now a few things are reacting but the total lack of news and sheer ignorance of unloading that much into an illiquid thin market at this time of day suggests this market is more broken than we suspected. Also, since the move is identical to what a certain Bruno Iksil would have done back in March with IG9, when he would sell through all the bids, only this time in reverse with equities, we wonder if the "water walking" Frenchman may not have already found his next port of call.
Note the total lack of follow-through in any othe risk-asset...
as a 6-7000 car trade grabs everything in the stack and lifts us 6 points higher on a 'stop-run'...
Charts: Bloomberg
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biggest bubble in the history of equities predicated on nothing other than hot air rhetoric from central economic planners.
ahem... let me take a turn baby_B!
...earnings?
relatively flat to declining. Nothing to brag about nor anything to justify current asset prices.
should mean lotsa work fror their accountants
enjoy the convention!
or is that a ?
like anybody needs any more babyBlackHelicopters at this point?
Just an intern at the Fed trying to impress his boss.
Son, keep it up and one day you'll be buying big S&Ps...
Higher prices baby ! Yeah.
Years of uncopulated QE promises makes a virgin in heat.
It's not price manipulation if it's upwards. It's not fraud if it's condoned by regulators. It's not wrong unless you get caught.
take out inflation and especially a large number of bank's mark to mythology accounting from those earnings and you have a train wreck don't ya think.
btw...wait until someone takes a close look at the Mark IT circular marks for all the derivatives 'unobsevable parameter' marks used for implied correlations and vol.....
Libor will look saintly I suspect....
I see Obama opened up a Scottrade account and is putting everything on the Presidential EBT Unlimited Food Stamp card!
You took the words out of my mouth, and I'm happy for it.
Bubble, bubble; part deux (or is it tres?)
They systematically tried to drive volume out of the market and succeeded. Now that they own the game they wonder "What can I do with this?" I think a lot of the wierd algo actions are really probes to test how their wholey-owned system reacts. Sooner or later they'll find the optimum way to extract the wealth out of everyone else still in the game. Those pension funds do look tasty, right?
CALPERS...mmmmmm.....
i thought the NY Fed is out drinking this time of day...perhaps the cleaning lady sat on the keyboard...shit it only has buy keys.....
<--< DSK knows her
<--< chaseMorgueCHINA
[choose one and vote: coincidence? or cause? L0L!!!]
Yea baby, Simon says jump motherfucker.
I did see the reaction on the dow mini, up 25 points in a split second.
Just happen to be looking on my tick chart.
Prechter & Neely will be along any minute now to explain this...
i wonder if tyler has banned robo again?
here is the graphic representation, from slewienomics:
Elvira V. VWAP
Tittie Talent - more impressive than any algo!
Well - zombie banks never sleep.
Yep anyone who had stops at 1,407 got screwed, more signs of broken market structure.
1. Who is still using stops?
2. Who is still "in" this market?
3. Who's in the market for a slightly used bridge in Brooklyn?
Who is using stops? Do you think that the market jumped on a long and considered evaluation of the fundamentals of the economy?
I am a Bear and I thought that SP was overvalued at 420 ... I am short when ES goes above 1400 and VXX about 11. I willl continue to be wrong until I am suddenly right. P.S. I would love to own the Brooklyn Bridge, is it up for sale?
Why yes it is! My broker is the Honorable John Corzine, so if he asks for the funds to be deposited with him for holding while the transaction closes, you can rest assured that your money is safe. The account is segregated!!
Ghengis,
You questions are easily answered:
1. Who is still using stops? - Computers
2. Who is still "in" this market? - Lots of Computers
3. Who's in the market for a slightly used bridge in Brooklyn? - The guys who own all these computers.
Now, does it all make sense now? Now that you understand what is going on, you can be as fucking confused as everybody else.
You're right, with low volume, illiquid markets, the stop hunters have a disproportionately larger role in price setting...
.. the basic algo is sine wave, VWAP reverting with variance -volume triggers for turning points
so you want to be cash with ridiculous low limit buys and high sells and surf that wave baby!!!
e.g. ABG in UK, KMR have the hallmarks of stop hunting algos driving daily price action
1407.25 just what you want ... buy at the top of the six month market in the middle of the night
With this moronic market, I suggest 1450.
Broken doesn't even begin to describe this.
DavidC
Market's become a spectator event. Watch from afar with beverage in hand marveling at the HFT antics.
...And I'm inclined to say that when this breaks properly, and it will, these bastards are going to deserve everything that's coming to them.
DavidC
Sure it will. Now I;m looking at VXX at 5 to go all in.
Aug 18 calls are torn to shreds. Go for September or October incase this insanity takes a while longer.
When it breaks those bastards will have the other side of the line. Having beat it down to next to nothing - they will make a fortune as mom and pops retirement goes up in smoke. They will cry they are poor now but it will be a lie all along.
Unfortunately I think you're right mammoth mo.
DavidC
Mom and Pop need to get off their ass, turn off the TV and protect their birth-right before it gets legally stolen. Too bad they hired the thief to guard their hen house. Too bad... So sad... you snooze, you looze.
Their birth right was never a central banking system...ever.
And they all will say .... "nobody could have seen this coming "
I can't believe how 'valuable' those ES contracts are .... you'd think they were gold
Open interest in VXX futures are near record highs, the inverse of stock index futures. If there is a wild assed whale (Moby Dick) or whales I suspect that is where he is lurking.
http://seekingalpha.com/article/802871-please-sir-may-i-have-some-volatility
He who buys first, loses most.
He who buys on leverage, is TBTF, and has mark to myth accounting loses nothing.
His name is ben. One more buy like this and they should open VIX tomorrow in the 12's
seek.destroy.exe
I am so sick of this CIT.
Might get some exits outta it. Fing HL.
Did someone start printing again? The last five or so days of a steady low volatility upward march looks an awful lot like previous print-fests' marches.
Are those reverse repos conducted by the Fed really only a few hundred million?
It doesn't take much to levitate a market as illiquid as this is.
yes we have no bananas
Typical Goobermint. Now I have no clue where my next daiquiri will come from.
uurrrppp
http://www.youtube.com/watch?v=jT6JkceQ9FU
Does this mean GRPN will go open Tuesday at $10.00? Rotf
It's down 20% PM.
Not for any other reason it's a shitty and stupid idea. How many ways can the coupon book scam be reinvented?
0.5% gap up? That's enough excitement to leave behind "one on the cotton".
Shit just gap it to 1525 and get it over with.
Yee-Hah! Do it, Ben! I double dog dare ya!
Patience, good doctor, patience.
Give it another month, and you'll see the 1500-mark successfully attained.
no it is to low target is 1587
Any longs left to use this opportunity to exit? I see S at 5.30, but I also see dead people.
Well, warehouse seems to be full and this might be an "unloading trial".
Yep, have a crap IRA left to unload. It may be time for the call.
OT. but i was just checking out Nasdaq After Hours to find out what Groupon finally ended on (-19.74pct) then i saw Envivio ended down a cool 43.66pct, Yikes.
BTFD, bitchez!
It sounds sexy.
How long can this go on? A lot longer than I am solvent or sane! With:
If the S&P fell to 1000 in the next 2 months it would all seem to make a lot more sense!
I need 400 to just break even. Shorting this pig for 3 yrs really wasn't a good idea.
TG for FX.
sorry, me and my fat finger!
Copper (HG) futures have been doing exactly this for the last few weeks, then stopped the last few days...maybe this game has been transferred to ES?
Overlay a chart of tsy's w/ usd/cny.
At least the USDA is going to buy more meat with more printed money. I'm sure that'll help keep food inflation down.
http://www.dailymail.co.uk/news/article-2187684/Department-Agriculture-B...
Oh, did the USDA discover jerky?
By the time that hits the proles, it will be rotten, suitable for a Netanyahu dinner.
Somebody over at Goodwill turned on a donated Wadell and Reed computer.
I've a question:
Looking at the chart of the ES I see a double peak that looks like a silhouette of Batman's head.
What's it mean???
Maybe he's getting ready to call out the Joker.. God knows that's who is in control of the markets now.
Yeah, I understand.
I'm no technician but when I see that silhouette histroy tells me something is about to drop!
I'm still interested in a technician's insight on this.
Is that an inverse head and shoulder, a double top, or just my imagination?
hey smart people..this is was the headline that the algos jumped on
*BOJ RELEASES MINUTES FROM JULY 11-12 MEETING IN TOKYO
*BOJ MEMBERS SAY THEY HAVE BEEN PURSUING POWERFUL EASING
Unfortunately, the "powerful easing" was simultaenously INCREASING its asset-purchase facility to 45 trilloin yen from 40 trilloin yes...while DECREASING its loan facility to 25 trillion yen from 30 trillion yen. So in other words...they didn't do anything. But they did talk about maybe doing something in the future.
Board members said the bank has been “pursuing powerful monetary easing” and would “continue to conduct monetary policy in an appropriate manner.”
Long story short...this move is a FADE
http://govttrader.blogspot.com/
Except you missed when, a few weeks ago, the BOJ said new policy action was pending this report. Given how laughably off they were in their estimates (<0 nominal gdp), it's looking more like go time. And there are several other compressed situations that could end up being the butterfly, from a spike in US rates, to repatriation-caused CNY appreciation (some serious stress in their banking system), to __________ insert any of the numerous ways the rate derivatives market looks like it wants to break.
The BOJ monetizes the Japanese debt...thats just what they do. If anybody thought they wouldn't print some more Yen so they could "lend" it to the Japanese govt to spend...well thats just silly. I guess what i'm implying is...this is not "news," and IMO, the safe trade is to buy US Treasuries. I'm pretty sure i said that somewhere...
http://govttrader.blogspot.com/
Gotcha, wasn't clear what you were suggesting to fade. Because I do think this could be an important moment for usd/jpy, cny, asian funding markets, and the entire collateral-starved derivatives complex. Things getting very chaotic underneath the surface
Max Keiser gives date for financial ArmageddonNo later than April of next year when the US government has billions and billions of shortfall in tax receipts as Americans can not pay or do not owe taxes.
Superb! Now I know when the S&P will set an all-time high of 1600!
Thanks, Max!
Why would max ever wrtie something and title it "trust no one over 30". Interesting title.
Nostalgia.
bounce coming off bros, this a dangerous market fro they bros, bro!
Ready... set... short!
It's too bad Ben doesn't just give us his year end target for the S&P and mark everybodies statement accordingly.
Somebody is desperate.
This is getting so old. And we are not even close to the implosion. But we are moving in the correct direction.
vbone trying to put pieces together lately, but they market is a 1 million piece jigsaw puzzle, it hurt they brain bro!
I'm going to get a huge jar of bubbles and put the Bernanke's picture on it.
Prediction time. Q99x2 predicts that members of the Rothschilds and Rockefellers will be put on trial and found guilty of financial terrorism.
So let it be written . So let it be done.
Although the 2nd Baron de Rothschild was a Zionist who helped fuck up Palestine... he did have a monkey dinner party...
http://www.youtube.com/watch?v=05LZ_HBTaHM
That is all.
People never commit moey for no reason. Apparently the german gdp numbers have been leaked hours before release. Yes, when big money buy with inside informatiom, they make money, everybody else goes to jail. This is so called democracy and freedom.
Long TVIX.
For Sparta.
Greedy fuckin gooks.
Banks not even bother to hide manipulation anymore ...
MATRIX
Waiting for 1929 and Godot.
clearly,
somebody somewhere had an advance peak at the retail sales numbers .....