Stocks Reverse Entire Overnight Dump On One Headline

Tyler Durden's picture

Update 2: Cantor says has votes to pass bill

Update: Sure enough: Boehner tells reported "I am smiling"

As expected earlier, the news of America's economic tumble are completely ignored now and the S&P is well above the levels before the GDP announcement. In fact, following a headline earlier that the GOP is preparing to amend its bill the computers went out in full rampage mode as the quote stuffing chart below demonstrates so vividly, the headline scanners did their job and robot after robot rushed to outrun each other for every available offer. We give this rally a few minutes before some republican says that the Boehner plan will in fact pass in current form, and the robotic buying spree turn into a dumpathon.

This is what passes for a market these days.

And the driver: Johnny 5



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oogs66's picture

we have had a lot of dumb rallies during this crisis, but this could take the cake, and cnbc is so happy that problem is solved

nice economy, 1 headlines, stocks bounce 1% from lows, and everything is fixed?  that's the problem with this economy/market, only looking for the easy way and accepting it

DoChenRollingBearing's picture

Ignore the rally.


I guess I am going to have to say the below all day.  My duty as I see it.

To: Tea Party members of the House:

Do.Not.Give.In.  Remember why we elected you.  Stop the spending, stop the cozy deals.  Stop the robbery of hte American people.  The ONLY way to right the ship (and it WILL be very painful) is to STOP the spending.  You know it, and we know it.


To: Valued Zero Hedge readers and commentators:

Buy.Gold.Now.  Tell you members of Congress: NO!  To a BAD deal.


oldmanagain's picture

Translation, kill the economy, I am short.

gjp's picture

It's the rallyers, corporate welfare queens, hangers on, and sycophants that are killing the economy.

Those trying to kill the beast, by shorting, or better still by opting out and buying gold are the ones who are trying to save the situation for the long-term.

squidward's picture

Right, better to take a hit to the economy now and kill off the parasites that have infested it, then wait untill they kill it and clean all the flesh from the bone

Bob's picture

As somebody at the liberal end of the spectrum, I'm rooting for the Tea Party.  The two-party system can only lead us to our deaths from here.  The Tea Party is, in reality, a third party.  Hopefully they'll inspire more parties, but at this point it depends upon them making everybody feel maximum pain.  I'm even willing to deal with the outcome of a "default" toward the end of the two party system.

I expect that it will fully energize additional third parties.  With what we've got otherwise, what's to lose?

grey7beard's picture

>> As somebody at the liberal end of the spectrum, I'm rooting for the Tea Party.

That's a tough choice.  The Tea Party are right wing extremist on steroids.  More MIC, more corporate welfare, more free rides for the wealthy, attack the poor and elderly, all to save the system?  I can't go with that.  I say if Koch and Co are going to drown us anyway, the best thing to do is grab them firmly around the neck and let it happen. 

DOT's picture

Indeed.  As someone outside the paradigm of left vs. right, I have noticed a very tense alliance between the Progressives and Unions here in WI.

It conforms to the model of chaotic break down that produces ever more bifurcated paths across a small time.  Not necessarily a Big Bang.  Maybe enough to realign the interests of local populations.

These local populations will determine and decide upon a course of action that is based on their self interest.   New Economies,  new Currencies (around here we could call it a "Bushel"), and new channells of commerce will undoubtably proliferate.

Got CORN ?


jus_lite_reading's picture

Ask me if I care which way the market goes.... go ahead! I don't give a flying rats ass if it goes down to 4000 or up to 400000 because its all BS and either way GOLD will go higher. GOLD WILL GO UP BOTH WAYS... 

global's picture

Gold will go up both ways?  You are aware that Gold dropped 25% in 2008 aren't you?  And yes I realise that -25% is less than the S&P dropped, but your statement is not about a GOLD/S&P spread, your idiotic statement is about gold price alone, and clearly it is myopic 

Correlations will go to 1 again.

j0nx's picture

I have told my Congressman no numerous times only to have him do the opposite and then get handily reelected every time by the rest of the people. Americans just have not figured things out yet and probably never will.

escargot's picture

If you're bothering to talk to your congressman and expecting a result, then you haven't figured out much, either.

youngandhealthy's picture

Spending on what? Tax cuts? Tax shields? almost 50% of the latest stimulus packages from Obama were tax holiday and tax reduction. Bush did the same thing. So now...tell me what spending?

On defence? On pensions? on Helth? on roads? on Electricity grids? on water supply? on what?


Jezzz Americans wants everything for free....that aint working.

jmc8888's picture

Wrong.  Again fucking idiots.

The answer is Glass-Steagall

You see the fucking idiots are the ones that want to pay off the FRAUDULENT DEBT.


Oh, I'm an idiot, I want to pay off the fraudulent debt because I suck bankster fat cock. 

Whose position is this? The extremists.

Who are the extremists?

Anyone, and I do mean ANYONE, that wants to, get this....PRINT or CUT or TAX to pay off wall street's FRAUDULENT DEBT.

Which means

Tea party are extremists, working on behalf of wall street

Democrats are extremists, working on behalf of wall street

Republicans are extremists, working on behalf of wall street


Wake up fucktards.  If you're for paying off the fraud, you are against the American people, and pro bankster


Glass-Steagall, the only way out.  The only way to cancel the debt and put the onus of the crime committed against the american people, BACK ON THE BANKSTERS.

Stop the spending? Wrong

Tax more? Wrong

Print more? Wrong

Cancel the fraudulent debt? DING DING DING...Winner Winner Chicken Dinner.

Glass-Steagall or you position is against the American People. 


So who is against the American people in fact and practice and through their desire for their plans to be implemented?

Tea Party? Against the american people

Democrats? Against the american people

Republicans? Against the american people


Glass-Steagall or die!

MrBoompi's picture

You are exactly right. Both parties (braindead tea partiers included) want to try to pay the debt off! What a sham!

All they're going to do is ADD to the debt. And how long can they keep interest rates at zero or less?

The US isn't the only one in this predicament. We are borrowing money to pay interest payments, and when there's not enough to pay those, thanks to trillions of bailouts and outright gifts, "spending" must get cut. And BTW, Wall St and the financial Elite will tell you where spending will be cut.

If we don't regulate derivatives, repeal the Commodity Futures Modernization Act, and reinstate Glass Steagal none of what's being discussed in this current debate matters anyway.

TruthInSunshine's picture

Boehner was upright & inspired on prospects, while fellow members have slapped raging Boehner down into flacid submission.

slaughterer's picture

Just bought weekly SPY puts in the pop above 1302.  Will cash out in an hour or two.  My best trading day of the year. 

augie's picture

Fuck Johnny Five, Fuck him in his stupid robot eye.

TradingJoe's picture

Its fun watching! How everything implodes and algos still "trade" :))))

Fed Supporter's picture

Since the Flash crash last year of 1000 points the SEC told them they are not to turn them off regardless of how bad the news gets.

Frankly I am amazed how the Dow just magically stays above 12k.

Boilermaker's picture

I think SPX 1,300 is the really bogey.

Caviar Emptor's picture

The Pig-O-Meter, Bitchez!

Market reversal only signals the anticipation that politicians and banksters are going to give themselves a chance to gorge at the QE trough! They gonna get rich quick  (while America sinks in the mud)

MrBoompi's picture

It would be nice to see the moves Congressmen make, since insider trading is perfectly legal there.

Skeebo's picture

I was wondering what the hell goosed this market.

Temporalist's picture

There is no spoon!

Mongo's picture

Hyperthreaded Teleprompter Market Language...

HelluvaEngineer's picture

Limit order on TVIX at 21 for a day trade.  Pray for me.

Edit: and filled

Dr. Engali's picture

I don't know what scares me more...when this house of cards does finally collapse or the fact that we are witnessing the birth of skynet.

Goatboy's picture

Collapse definitely. Skynet is the future, although not as Hollywood envisioned in order to arouse piles of primate brains.

CrankItTo11's picture

I heard someone tell me the other day "I heard the fundamentals of the market are really sound. They said if we just can raise this debt ceiling the economy will bounce back in no time."


John McCloy's picture

  Who needs fundamentals?  Increasing our debt and assuring a AAA rating cut > Horrific GDP numbers I suppose. 

Cognitive Dissonance's picture


Skynet is sentient.



Quintus's picture

If so, it also appears to have a quite well developed sense of humour.

CrashisOptimistic's picture

Skynet uber alles.

BTW, Japan's earthquake restricting robot parts was not til Q1 was almost ended.  It didn't have time to affect Q1.

Using Japan's tsunami for an excuse doesn't hold water, as it were.

Cognitive Dissonance's picture

I love that he covered the family jewels. You know.....just in case. :)

Caviar Emptor's picture

The enjoyment of the end of this  "crisis" will be brief: QE3 will only accelerate decimation of the middle class, as they haven't learned from the first two miserable failures. 

There will be even more unemployment as the cost structure in the economy keeps rising, but domestic economic activity declines. And housing. And real wages and incomes. And retirement assets. And business margins and cost of working. 

mynhair's picture

Just another 5% bounce off the 200 dma.  Nothing to see here.

Wolf in the Wilds's picture

Who need brains anymore?  This is no longer a market.  I don't even know what it is.  AAA cut, heading into recession and the market rallies on a headline on a bill that will get vetoed anyway in the Senate and by Obama.  Is there any living person trading out there?

Traianus Augustus's picture

In this joke of a market, anything is possible.  Deck chairs on the Titanic!!! 

Barry McBear's picture

Why would the market dump if the current form bill passes?

Mr Lennon Hendrix's picture

It was Obama's speech.  He is a brilliant man.  Just raise the debt ceiling, and unemployment, consumer sentiment, durable goods, and terrorism will all improve.  Unicorns will fly out of volcanoes, and Joe Biden will stay awake long enough to watch Michelle spend an evening in the United States.  Raise the debt ceiling and the housing market will turn around, we will end all wars that Obama has started, and there will be no more poor people.  This is what it takes to maintain your freedom America, even the little bit you have.  Raise the damned debt ceiling.  Raise it, or else.....

Leo Kolivakis's picture

Buy the dips bitchez!!!

Mr Lennon Hendrix's picture

Weak dollar, weak indices, even oil is weak.  I'll buy a dip in silver if it happens next weak.  Otherwise I will sit on my stash and watch global finance burn away the hopes and dreams of telepromter lovin' people everywhere.

GeneMarchbanks's picture

Great example of Marijuana Thinking. Naw, thanks. My silver stash is getting shinier everyday since 14/oz.

Thanks for your deranged garbage 'analysis' though...