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Zee Price Stabeeleetee: From Bear Market To +20% In Under A Month

Tyler Durden's picture


Remember the bear market? The 20% drop from the July highs to August and most recently October 4th lows has seen a major retrace in the last 3 weeks as we managed to gain 20.7% from the 10/4 lows to the highs of today. Risk was definitely on today though it felt much more like capitulation - especially in credit - than new longs being laid out. Everything was bid so an end of day comment is somewhat redundant but we would note that HYG underperformed HY and equities (hedges being laid out again?), quality IG new issues were active (but not HY), and commodities tore higher. TSY yields smashed higher (especially post a weak auction) with everyone's favorite carry trade (2s10s30s) jumping once again. The EUR dominated FX markets with FX carry driving ES to a huge day but interestingly (for once), despite the huge up day in stocks, HY and IG credit outperformed - narrowing that gap. IG was the best performer (beta adjusted) overall - dramatically outperforming with a 14bps compression (over 5bps rich to fair-value).

Its perhaps worth remembering what occurred the last time we were told that all is well and civilization can go back to donut-stuffing and iPad-buying. March 2008, when Bear Stearns was rescued, set up very similarly and peaked just above that 200DMA before beginning the reality-soaked free-fall that we all remember so well. Its perhaps of note that this period fits with our earlier chart of EPS rolling over.


Into the close, as one would perhaps expect, we saw some covering and retracement in every risk asset and a modest buying pressure in TSYs - even though silver and gold remained near their highs. HYG closed near its low of the day - having sold off right from its gap higher open. There was only modest net buying in HY corporate bonds and no new issuance while IG saw significant issuance which likely impacted the significant net selling we saw in investment grade bonds. Given the relative cheapness of IG and HY credit to stocks, the index moves make sense but the major net-selling in investment grade bonds (especially financials) while tempered by switches thanks to new issues, was very interesting and makes us wonder if buy-siders managed to bring out their dead and sell into strength for month-end on this exuberant day.

Morgan Stanley, which managed an incredible equity rally today was very timely with a sneaky $2.5bn upsized 10Y deal today at T+335 (which came modestly cheap to current CDS) and probably helped it top the most net sold list in secondary bonds are managers switched.


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Thu, 10/27/2011 - 16:24 | 1818573 achmachat
achmachat's picture

I wonder if he reads ZH... right now he is probably practicing in front of a mirror:

zeee price stabeeleeteeeee

zee price stabeeleetee

zee price stabiliteeee



Thu, 10/27/2011 - 16:34 | 1818584 GeneMarchbanks
GeneMarchbanks's picture

'ZNot my folt, blame zee Bernankeeeeee'

He followed up by saying:

'At least I have chicken'

Thu, 10/27/2011 - 16:25 | 1818575 GeneMarchbanks
GeneMarchbanks's picture

Thats's right! Hugh Hendry!

Watch, Discuss, Thank me later...

Thu, 10/27/2011 - 21:28 | 1819439 Schmuck Raker
Schmuck Raker's picture

Thank you.

Thu, 10/27/2011 - 16:25 | 1818581 danger close here
danger close here's picture

All in the meantime this bipolar site spouted doom, costing people thousands. How's that working out for you. Must be those record retail shorts, lolz.

Thu, 10/27/2011 - 16:30 | 1818592 achmachat
achmachat's picture

you might be little short-sighted.

tell me how your longs work out in a month or two.

Thu, 10/27/2011 - 16:30 | 1818593 SeverinSlade
SeverinSlade's picture

ZH just reports truth...And we all know that truth doesn't rule these totally inefficient markets.

ZH did also recently note that short interest in the EUR had jumped, suggesting that the melt up rally could continue...They also did warn of the short covering rally back about a month ago when short interest in the NYSE was near 2009 levels...

If someone traded purely on the truth then they got their asses handed to them.  ZH never told anyone to open a short position on Oct. 4th.  In fact, they suggested to consider covering any shorts that anyone may have had...

Thu, 10/27/2011 - 16:32 | 1818595 GeneMarchbanks
GeneMarchbanks's picture

Good point. WHy?! Ohhh WHy?! I ask my self... didn't your mother swallow?

Thu, 10/27/2011 - 17:02 | 1818706 mynhair
mynhair's picture

(Crud, screen spew.  What a waste of good beer.)

Thu, 10/27/2011 - 16:31 | 1818596 Irish66
Irish66's picture

let us know when you wake up

Thu, 10/27/2011 - 16:32 | 1818601 rocker
rocker's picture

Sounds like you have access to Goldman Sach's special software to know so much.

Cash did not go down at all.  PMs rose nicely.

Why would you care if you don't agree with the wisdom of Zero Hedge?

Thu, 10/27/2011 - 16:33 | 1818604 TradingJoe
TradingJoe's picture

Bubba, I am certain most if not ALL folks reading this blog, are in control of their finances! Are you?!?! No ofense but i just hate it when some think, others are stupid, I for one did not "miss" the fiat avalance coming, I just did it from the PM side :))! And now of course I will look to short SOME MORE into this maniac low volume melt up, been there done that, capisci?!?!

Thu, 10/27/2011 - 16:35 | 1818608 DormRoom
DormRoom's picture

trade with the herd/market, but you should see if you're following the herd off a cliff.  Atleast know how far from the edge you are.


Thu, 10/27/2011 - 16:35 | 1818619 prains
prains's picture

danger close here


buddy there's a dorkasaurus closing in on you, no not behind you, in the mirror

Thu, 10/27/2011 - 16:36 | 1818623 barnabeg
barnabeg's picture

What a tool. Market rallies an a bailout plan and you think everything is fixed. Never seen this before.

Thu, 10/27/2011 - 17:25 | 1818640 cowdiddly
cowdiddly's picture

Yes you guys are braver than I am. It looks insane to me. Im taking my toys and going home. GLTA We have levitated to within about 1800 points of the alltime high with a quarter of the people not working, CDS's found to not be an insurance policy at all and as such defeat their purpose and have no need of buying them if they do not have a payout.  Quarterly profits not spectacular and 46mill needing snap.Every western bank is for all practical purposes, insolvent. And, we still do not know where all the bailout money will come from. UNFUCKINGBELEIVABLE. The only thing different from a year and a half ago when the first Greek bailout occured is the banks have agreed to lose 50% on paper that is 100% worthless. ROCK ON.This market needs a healthly sniff of reality.

     I would load up short but we are tired of getting kicked in the nuts by Uncle SAMBO. Everyone is gun shy. Without the shorts to buy in on the drop this thing could drop 1000 points in 10 minutes. 

The sad part is 75% of stock gains for the day come at the opening bell before any meaningful trades take place. CORRUPT TO THE CORE.

Thu, 10/27/2011 - 17:36 | 1818790 deebee
deebee's picture

add to that the dwindling number of big funds that are able to profit or even keep clients from cashing out.
Goldman's 'alpha one' closing any day now...

Thu, 10/27/2011 - 17:45 | 1818806 cowdiddly
cowdiddly's picture

Its like they are saying. Oh you want to trade that news? It will cost you 5% to play today and we will let you in for the last 1% if you are willing to pay up. KISS OFF

Thu, 10/27/2011 - 17:46 | 1818797 John Law Lives
John Law Lives's picture

Yes, it seems insane. The bottom line is the Fed does not have the tools to create the millions of good jobs needed to make the US economy whole again. All they know how to do is devalue the currency via fiat currency creation and try to pump the markets in the hopes of creating some wealth. They do not appear to give a damn about the middle class and lower class of people who are choking on the real inflation that the Fed wants to pretend does not exist.

The Great Chairsatan = Psychopath

Thu, 10/27/2011 - 16:52 | 1818673 SheepDog-One
SheepDog-One's picture

I only invest in commodities now. 

Thu, 10/27/2011 - 16:37 | 1818625 bernorange
bernorange's picture

So everything is fixed now?

Thu, 10/27/2011 - 16:47 | 1818660 DoChenRollingBearing
DoChenRollingBearing's picture

Actually, yes!

At your site anyway, thanks for the help in getting me set up there.

The Bezring likes what he sees at and encourages people to take a look!

Thu, 10/27/2011 - 17:40 | 1818795 CClarity
CClarity's picture

These aren't markets, these are interventions.  If can't/won't be nimble, best to get out of the way until a semblance of rational market returns.  Unmedicated and at least LESS manipulated.

Thu, 10/27/2011 - 17:53 | 1818825 bernorange
bernorange's picture

Oh I agree.  My question was facetious.  I probably should have added "/deadpan" or something to make it clear.

Thu, 10/27/2011 - 16:40 | 1818636 slewie the pi-rat
slewie the pi-rat's picture

how many malls do you own, danger_c_h?

Thu, 10/27/2011 - 17:04 | 1818708 mynhair
mynhair's picture

I have a piece of one, wanna buy me out?  Purty pleeze?

Ya don't get my Goobermint building, tho.

Thu, 10/27/2011 - 16:41 | 1818639 J 457
J 457's picture

"Costing people thousands."  Oh please, some people here hold a heavy hand. We're talking millions between all the combined readers, so give them some credit.  Some days are up, some are down.  Stick with the fundamentals.  Has anything really changed in the last 24 hours, other than more taxpayer risk/debt via bail-outs?  Right or wrong, I shake my head at these type days in disbelief.  In the US, do we still have 6mm homes in distress, unemployment at 16%, 1.4 trillion annual deficit, 600 billion annual trade gap, and 15 trillion in debt.  And those are the "short-term" problems, not the long-term issues like SS, Medi-Care, pension funding, and interest on debt.  Fix those problems and I will be bullish.  Until then, you are only kidding yourself. 

Thu, 10/27/2011 - 16:49 | 1818665 SeverinSlade
SeverinSlade's picture

ZH should seriously create a Project Mayhem comprised of its readers.  OWS would look like a bunch of whining babies compared to us.

And unlike OWS protestors, readers on this site actually have a substantial amount of capital, as you have pointed out.

I'm ready and willing to become a Space Monkey.

Although we do more damage by withdrawing physical PM supply from the market with our FRN profits than we would with marching. 

Thu, 10/27/2011 - 17:00 | 1818697 SkySavage
SkySavage's picture

I second that.

Thu, 10/27/2011 - 21:25 | 1819430 jdelano
jdelano's picture

wonder if it would work if we all got together to bid up or crash a stock....?  Oh wait--forgot, we'd need to get the SEC on the dole first.  Anybody got a good stash of porn vids?

Thu, 10/27/2011 - 17:11 | 1818719 Hansel
Hansel's picture

"Has anything really changed in the last 24 hours, other than more taxpayer risk/debt via bail-outs?"

There haven't even been more bailouts.  Seriously, what makes today's announcement any different from the announcement on July 21st?  There has only been a promise of a plan for a bailout of some kind in the future with details yet to be announced.

Thu, 10/27/2011 - 17:10 | 1818725 rajc
rajc's picture

aren't they printing more money? so isn't the inflation a higher risk now?  and from which we know that hgiher equity prices are likely?

Thu, 10/27/2011 - 17:07 | 1818714 rajc
rajc's picture

i agree ZH is pessimissim is now 50-50.  they are right 50% of the time and wrong other 50%.  its like the weather channel.

when they are correct we are like thank god for weather channel and when they are wrong we fucking hate them.  


ZH is nothing but full of nay sayers now and folks with most pessimistic views of all... its so pessimist that ZH reader comments can;t even be used as a contrarian indictor. 

Thu, 10/27/2011 - 19:00 | 1819015 lemonobrien
lemonobrien's picture

we like gold, guns, and realism.

Thu, 10/27/2011 - 19:00 | 1819018 lemonobrien
lemonobrien's picture

forgot, hot bitches too.

Thu, 10/27/2011 - 21:34 | 1819452 UP Forester
UP Forester's picture

.... and unicorns that shit skittles....

Makes the day/night more entertaining....

Thu, 10/27/2011 - 21:31 | 1819442 jdelano
jdelano's picture

I take umbrage to this.  ZH tells the TRUTH.  The people here are not pessimists, they are merely strong enough to 'handle the truth' (i.e., this system is broken and is going to disburse a lot of pain as it unravels).  It takes a relentless kind of optimisim to be able to face that truth and believe it can be overcome instead of running to immerse themselves in the palliative cocoon offered by the likes of CNBC, BLOOMBERG.  It isn't pessimism, it's disgust with everybody else's desire to be spoon fed lies and  told bedtime stories while the house burns down instead of grabbing a fucking water bucket.  Least, that's how I feel about it.

Thu, 10/27/2011 - 17:21 | 1818750 Village Smithy
Village Smithy's picture

What we get here is the truth. How we use it is up to us.  

Thu, 10/27/2011 - 17:45 | 1818782 derek_vineyard
derek_vineyard's picture

hey dumb fuck danger (pronounced   dang ER <<<lol)

us true Zhers are doing great:   gold, silver, oil, agricutural commodities---preparing for fiat crisis OR inflation crisis---its been a great few years and those Zhers trading equities have only had a portion of their portfolios damaged at all.

But if they are following the core beliefs, they are doing EXTREMELY well overall.

I personally only fear not having much physical, but that is a personal choice due to the risks of theft and logisitcis(food is perishable).  If I could stockpile commodities safely i would be 100% physical.  Cost of wharehousing and gaurding is a bridge I haven't crossed.   I'm betting the world holds together enough for me to cash in on my paper holding of these assets....that is MY TRUE RISK.   In a total collapse I'd probably have these assets siezed....and I don't feel like hiding in the mountains, so I'll risk a total reset buffered with my extensive arms cache.  I might be the siezer of those assets at that point.




Thu, 10/27/2011 - 17:59 | 1818844 Smiddywesson
Smiddywesson's picture

All in the meantime this bipolar site spouted doom, costing people thousands. How's that working out for you. Must be those record retail shorts, lolz.

I was in cash and refused to play but good for you.  However, you seem awfully cocky about your results.  It could have gone the other way.  You didn't go long in this market without taking on risk, so now that you won, pretending there was no risk now hardly establishes you as the second coming of Bernard Baruch.  We'll see how that works out in the long run.  Your good fortune (gambling) doesn't cost me a single dime.  Sitting in cash costs me nothing.  Your getting wiped out costs me nothing. 

Green for having the balls to establish yourself as an idiot who knows nothing about trading.

Thu, 10/27/2011 - 16:32 | 1818597 tmosley
tmosley's picture

Feels like hyperinflation is starting.  Suddenly a lot of things that don't normally rise in price are a lot higher.  Some of our custom chemicals DOUBLED in price, and some of our vital but ubiquitous salts are on "long term back order" due to "raw material issues".

Thu, 10/27/2011 - 16:36 | 1818624 GeneMarchbanks
GeneMarchbanks's picture

It comes in waves. They start small, then calm, a tidal, then Tsunami. This might be the tidal....

Thu, 10/27/2011 - 16:38 | 1818631 bernorange
bernorange's picture

Smells like fiat spirit.  /Nirvana

Thu, 10/27/2011 - 16:50 | 1818670 DoChenRollingBearing
DoChenRollingBearing's picture

@ tmosley

While not hyper yet, I feel the same.

Japan just raised bearing prices 5% (yes, partly due to the Yen).  We are bracing for Korea to do the same.  Good thing the Peruvian Sol is going UP vs. the US$.  LOL...

Thu, 10/27/2011 - 16:50 | 1818671 SheepDog-One
SheepDog-One's picture

Tell me about it. The reducer I order is up over 100% per gallon since the start of the year.

Thu, 10/27/2011 - 20:45 | 1819329 JohnG
JohnG's picture

But electrons are free...just ask The Bernank.

Thu, 10/27/2011 - 16:32 | 1818599 Roland99
Roland99's picture

zee right shoulder, she being formed?

Thu, 10/27/2011 - 16:35 | 1818603 Kreditanstalt
Kreditanstalt's picture

Wrong.  "Investing" is dead.   No one, other than one or two participants at the margins at the opening bell and off-hours, cares about the news, bad or not-so-bad...

There's no other possibility of a ROI other than the's the only casino open, and the alternative is to do nothing and watch your remaining wealth frittered away, spent or inflated, there are those big losses of '09 to recover.

We all have to be in the market - somewhere...we are all forced to become short-term speculators now.  Last one I held for EIGHT DAYS and sold.


Thu, 10/27/2011 - 16:46 | 1818605 hambone
hambone's picture

Oil up 4% = massive negative feeding through to economy and Brent hasn't gone below $110 barrel (at least in '09 oil prices collapsed providing a "boost")

Interest rates way up = Refi "boom" over, housing prices under further pressure as mortgage rates go up following T action, new construction?..fuggetaboit!!! (at least in '09 interest rates had further to fall and greater "stimulative" room for maneuvering, tax credits for 1st timers, blah blah).

Dollar collapsing = in '09 dollar collapsed (DXY) from 90 to 75...just where we now sit.  A similar move to further prop equities / corporations would see dollar at 65...oyyyyyyyyyyyyyyyyyyyyyyyyy

Perfect, more headwinds for the real economy...just what it needed.  At least in '09 people still had some savings, some credit, some home equity, some UE bene's...this time around, the cupboard is bare...but equities are based on dollar depreciation and little to do w/ economic activity in US.  I guess we'll find out soon enough if the weak dollar really will repatriate or create jobs, exports.

Thu, 10/27/2011 - 16:33 | 1818607 Belarus
Belarus's picture


Zee Price Stabeeleetee

Every time a politician or central banker talks about the desire for price stability what they really mean is it's not okay for prices to go down materially; they are only allowed to go up materially. Nothing else matters. 


Thu, 10/27/2011 - 16:34 | 1818609 Mr_Wonderful
Mr_Wonderful's picture

There is still a whole lot of catching up to do in the bear market of 2000-2030(?). An extra 20% in the S&P 500 will make it even in total market capitalization with the top in 2000. Adjusted for inflation, I don´t know, maybe 70-100% up from here.

Thu, 10/27/2011 - 16:34 | 1818611 A Man without Q...
A Man without Qualities's picture

Birinyi says stocks near overbought levels - wow...

Thu, 10/27/2011 - 17:45 | 1818807 John Law Lives
John Law Lives's picture

I wouldn't use the 1291 mark on the S&P to short the hell out of this rally. Overbought conditions can last longer than our brokerage accounts do. This market is getting the hell pumped out of it. Never underestimate the greed of the whoremasters when it comes to their year-end bonuses.

This market is 100% FUBAR.

Thu, 10/27/2011 - 16:35 | 1818617 Motley Fool
Motley Fool's picture

Do not mock what you don't understand, Tyler.

Zee price stability, is related to the purchasing power of the currency in real terms. The ECB has done a remarkably good job thus far, given the environment.

Thu, 10/27/2011 - 17:16 | 1818738 Ghordius
Ghordius's picture

The ECB has done a remarkably good job thus far, given the environment.

Second that. Thanks, Mr. Trichet.

Thu, 10/27/2011 - 16:36 | 1818620 surf0766
surf0766's picture

Was the dollar ass beating the effect which casued the market to move up?

Thu, 10/27/2011 - 16:41 | 1818638 SheepDog-One
SheepDog-One's picture

Certainly part of it. And Ben must do something about that low dollar now too.

This is all standard wash, rinse, repeat crap.

Thu, 10/27/2011 - 16:46 | 1818657 surf0766
surf0766's picture

So I should expect gas over $4 in about a week.. Nice...   The frequency of peaks and valleys are getting closer and closer.

Thu, 10/27/2011 - 16:39 | 1818621 Yen Cross
Yen Cross's picture

  Instant gratification, and a large dose of Hopium!   I can't believe these bankstas are trying to get their clients long after a record move. Using the 200 dma as their PONZI PROXY!   Christ, look @ the move it took to get there!  Those soul LESS ass hats should be tied to a bed with LIVE BAMBOO, growing underneath it!

Thu, 10/27/2011 - 16:38 | 1818629 Caviar Emptor
Caviar Emptor's picture

I dunno about you, I'm just glad the banks are saved by the politicians in time for Christmas. 

Imagine a world without them.....

Thu, 10/27/2011 - 16:38 | 1818630 Comay Mierda
Comay Mierda's picture

Not a bear market, not a bull market

It's a wolf market

Thu, 10/27/2011 - 16:45 | 1818652 mfoste1
mfoste1's picture

ok, how bout just: its NOT a market at all.....

Thu, 10/27/2011 - 16:47 | 1818643 Waterfallsparkles
Waterfallsparkles's picture

Anyone think Bernanke is back in the Market?  His beloved Russel 2000 is doing great.

Plus, we are up 14% this Month alone.

AND, if you look at all of the Bernanke stocks like the high beta they are rolling.  Like lulu, cmg, crm, pcln (wow up over $20. today), sina, bidu, goog, all of the energy stocks like fdx, aa, x, aks, pot.

Thu, 10/27/2011 - 16:42 | 1818644 midgetrannyporn
midgetrannyporn's picture

If greedscam was the maestro I guess that makes the bernank "Patches Ohoulihan":


Thu, 10/27/2011 - 16:43 | 1818646 LouisDega
LouisDega's picture

Zee umph BUDU, She go zoom to zee moon

Thu, 10/27/2011 - 16:44 | 1818650 SheepDog-One
SheepDog-One's picture

Never heard of that one....what do they make, rubber clown noses? They should be doing good these days then.

Thu, 10/27/2011 - 16:47 | 1818661 LouisDega
LouisDega's picture

Correction.. BIDU

Thu, 10/27/2011 - 16:49 | 1818666 SheepDog-One
SheepDog-One's picture

AH, got it.

Thu, 10/27/2011 - 16:59 | 1818692 HelluvaEngineer
HelluvaEngineer's picture

Yeah.  $0.02 beat.  Awesome.

Thu, 10/27/2011 - 16:43 | 1818648 SheepDog-One
SheepDog-One's picture

In other weird non-clownmarket related news, a large military base near me Ft Carson has been running loudspeaker 'Emergency alert tests' all day....never seen that in the 3 decades Ive been living here.

Thu, 10/27/2011 - 17:59 | 1818846 tickhound
tickhound's picture

Fort Belvoir last week as well.  None of us at work had heard it before.  Over the loudspeaker... people outside the post could hear it.  

Probably just a short in the electrical system, I'm sure.

Thu, 10/27/2011 - 20:52 | 1819347 JohnG
JohnG's picture

My brother lives near Ft. Mac called Monday asking if I knew what all the noise was.....


Thu, 10/27/2011 - 16:46 | 1818655 Instant Wealth
Instant Wealth's picture

Some dojis would be welcome here ...

Thu, 10/27/2011 - 16:52 | 1818674 Yen Cross
Yen Cross's picture

  Heck I'd settle for 3 ( h-4 ) , lower closes.  What would really be nice, is a inside daily candle to tee off on!

Thu, 10/27/2011 - 16:46 | 1818658 riptide
riptide's picture

It was difficult to find any real offers in IG bonds today, so I'd be curious which names saw "significant net selling."   

Thu, 10/27/2011 - 17:20 | 1818748 ZeroPower
ZeroPower's picture

Lots of EU corp - i track CIS and Russia mostly, can't say i looked at the US space.

Thu, 10/27/2011 - 16:47 | 1818659 Mark123
Mark123's picture

The stock markets are broken...longs and shorts are getting nowhere and every once in a while getting raped real bad.


Still we carry on, confident we can beat the house.

Thu, 10/27/2011 - 16:48 | 1818664 SheepDog-One
SheepDog-One's picture

A 1 day massive push above the long DMA line...lets see if they can hold that. Im not impressed myself.

Thu, 10/27/2011 - 16:55 | 1818684 hambone
hambone's picture

SD1 - your objectivity lacks object and ivity.  The 20% rebound in 3 weeks is fuccccking stuning.  Technicals are being played by the TPTB...not the other way round.

Thu, 10/27/2011 - 16:57 | 1818687 SheepDog-One
SheepDog-One's picture

I dont know about stunning, nothing surprises me anymore....more like 'revolting'. 


Thu, 10/27/2011 - 17:52 | 1818823 John Law Lives
John Law Lives's picture

How many good new jobs were created in the last 3 weeks during the "rally"?

The root of the issue in the US housing market and the larger economy is the lack of creation of enough good jobs. Let the Dow Jones run up to 14,000 this year. That does not cure the economy, and you can bet that food and energy prices will rise right along with the inflated stock market.

Thu, 10/27/2011 - 16:54 | 1818676 Caviar Emptor
Caviar Emptor's picture

We'll rise slowly into late November then chop after that

Thu, 10/27/2011 - 16:54 | 1818677 topcallingtroll
topcallingtroll's picture

Who da man?

I have been cheerleading brazil and EWZ FOR a month now. I think it still has room to run. It is always good to get in when the heard and their advisors were saying Chile, no Asia, no Chile!

Brazil couldnt get any respect, even as a contrarian play.

Thu, 10/27/2011 - 16:57 | 1818686 Kristian
Kristian's picture

Are there any Americans speaking French.., I don't think so, but would be fun to hear them too.

Thu, 10/27/2011 - 17:05 | 1818711 Flakmeister
Flakmeister's picture

No, it isn't....

Thu, 10/27/2011 - 17:11 | 1818726 Instant Wealth
Instant Wealth's picture

Here is some great cuisine for our french friends:

Thu, 10/27/2011 - 17:13 | 1818731 hackettlad
hackettlad's picture

What's the precedent for a ramp of 20% plus?  Historically, what has happened after that?

Thu, 10/27/2011 - 17:19 | 1818746 pauhana
pauhana's picture

Look out below .  .  .  .  . 

Thu, 10/27/2011 - 17:23 | 1818756 mynhair
mynhair's picture

Precedent?  QE2

Thu, 10/27/2011 - 17:52 | 1818743 deebee
deebee's picture

Bear market? What's bearish (like, hello)? The market just 'corrected' a little bit. Shame on anyone not believing in their politicians to get the job done. And that is: a plan for solving the insolvency problem with leverage and haircuts.
In other terms: sixteen straight days of gains, not even a closing break below the 9-day SMA. Now that's a bull market!

And despite QE + operation twist, long-term yields rocketing (ie. Treasuries plummeting despite infinite $ being thrown at them) but I guess this is bullish too.

Maybe the DJIA will go on to break 13K and head for record highs beyond 14K, hopefully before xmas so we can all enjoy our holiday season...

Thu, 10/27/2011 - 17:27 | 1818761 mynhair
mynhair's picture

Someday, 'risk on' will flow into my penny stocks, and I'll be rich!


For a silver Liberty, you may kiss my ring now.


You know, that ring in the back....

Thu, 10/27/2011 - 17:31 | 1818775 ptoemmes
ptoemmes's picture

$4.00 gas - just in time for the holidaze.  And I so wanted to buy an iFarkle instead of petrol.



Thu, 10/27/2011 - 17:36 | 1818787 papaswamp
papaswamp's picture

Bingo...and with real income and savings continuing to fall (savings fell an entire %!)...the pinch in the wallet will be heavy. Wonder if we will bgin to see an increase in credit card defaults again. Already a slight uptick in delinquencies.

Fri, 10/28/2011 - 04:12 | 1820035 Instant Wealth
Instant Wealth's picture

Felix America

gas over here $8.48 gal

real income 2000 - 2009 -4.5 %

Thu, 10/27/2011 - 17:33 | 1818781 Raskolnikoff
Raskolnikoff's picture

Surely this ramp up has to do with politics, the President gets on the line and yells at Ben, 'My poll #'s are too low! Step on the gas now!' And Ben dutifully complies. We all know politicians aren't that bright, as everytime Ben accelerates it just takes more air out of the real world which should bring even more lower poll numbers for the President.

Thu, 10/27/2011 - 17:33 | 1818784 SwingForce
SwingForce's picture


An Oldie but Goodie by now.........

Thu, 10/27/2011 - 17:58 | 1818843 Thought criminal
Thought criminal's picture

That Bear Streans pattern resemblance is really scary...

Thu, 10/27/2011 - 21:42 | 1819471 Schmuck Raker
Schmuck Raker's picture

Yeah, it's a Flying Spaghetti Monster forming. :)

Thu, 10/27/2011 - 18:05 | 1818866 BeerGoggles
BeerGoggles's picture

The bear market that ZH called 1 day before the rise. ZH fast becoming the same as Gartman.

Thu, 10/27/2011 - 18:47 | 1818965 machineh
machineh's picture

'TSY yields smashed higher (especially post a weak auction)'

How's that Operation Twist working out for you, Benny Bubbles? 

Long Treasury yields are higher now than when you announced it.

Seems like you're not in charge here -- you're just Ms. Market's bitch!

Thu, 10/27/2011 - 18:55 | 1818995 prophet
prophet's picture


Thu, 10/27/2011 - 21:43 | 1819041 prophet
prophet's picture

If China, the super committee, and europe stay quite and the G-20 does not go negative another twenty percent is easily possible.  (Taking most every country index from negative to positive for the calendar year.) 

Whats with all the Icosahedral groupings lately?

Is an Occubot under remote control protected under the First Amendment? 


Thu, 10/27/2011 - 21:39 | 1819461 msmith
msmith's picture

Sentiment may be reaching to extreme bullish, which is important for a potential trend change.  A look at the ES, DX, and GC shows that the "risk on" move is very near a key turning point as the wave counts are near completion.   The USD index may have already found some support from which to work higher from.  If so, it could encourage equities to return to the larger trend lower.

Fri, 10/28/2011 - 02:03 | 1819971 Bulleri
Bulleri's picture

I'm throwing in the towel. Status quo you win. Dow 20K by mid next year, AAPL with $1 trillion market cap. Zerohedge is still and always will be my favorite source for the truth, but that doesn't mean shit anymore.

Fri, 10/28/2011 - 04:51 | 1820069 Grand Supercycle
Grand Supercycle's picture

DAX monthly chart at blog shows recent bullish candle revealing aggressive short covering rally enclosed within big picture bearish pattern.

Bullish USD weekly/monthly and bearish SP500/DOW monthly
charts will eventually ensure a violent reversal of equity uptrend.

Fri, 10/28/2011 - 07:05 | 1820156 Cult of Criminality
Cult of Criminality's picture

investors once again decide whether the 1)status quo has ben restored by more promises or 2) is a larger and more scary reality being created

I will take door number two

Fri, 10/28/2011 - 07:30 | 1820184 MFL8240
MFL8240's picture

Anyone who believes this stock market is properly priced given the accounting fraud used to manufacture bank profits, the growth of equities via the printing press, and the lack of growth in the US, Europe and Asia is out of their ever loving mind.  This is the biggest laugh in American history, second only to the Obama administration.

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