Nov

9

 Today was a first ever for up, up, and up, and up, reasonably defined. With this 1 or 2% magnitudes. Amazing.

Like a stone wall, the stolid Germans are ready to sacrifice for the good of the over lords + or - at the round number of 6000.

Vince Fulco adds:

Negative news couldn't make a dent for long; does that mean teflon conditions till Thanksgiving? Not likely.

Russ Sears writes:

Pardon the talk of politicians, but the count is two days in a row that prime ministers have announced their resignation and the market moved up.

At this rate one wonders how high the Dow would go if every day a member of Congress would announce their retirement.
 


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3 Comments so far

  1. Gary Phillips on November 9, 2011 1:26 pm

    Pomogranted

    Bots stepped-down ES all morning,
    while the curve followed and bled,
    due in part to the twist,
    that was put on by the Fed.

    Dealers picked up $2.5BB
    of the kind of paper that is long,
    and ramped the ES in the PM,
    proving the skeptics wrong.

    Yields now look ready, as if
    they want to twist and shout
    $5.00BB pass on for tomorrow,
    ES could be in for it a rout.

    Yeah, Europe looks shaky
    we know this much is true
    and it’s leaders seem flaky
    not much there as added value

    but;

    barring another Papandreou decree,
    or Mario Draghi caught bouncing
    a nubile young boy on his knee
    liquidity should prevail
    and a higher ES we’ll see

  2. Gary Phillips on November 9, 2011 1:36 pm

    It’s as Easy As F-E-D.

    Back in the good old days, when the Fed’s open market operations were temporary and unannounced, bond traders would even up their positions, and pause trading at 10:30AM everyday, while anxiously awaiting the Fed’s announcement. Was the Fed adding funds to the money supply by way of a repo, or were they draining funds from the money supply by way of a “matched sales” transaction ? Worse yet, were they going to make an outright purchase of Treasuries, by way of a coupon pass and run the bonds up a point? Traders with an insight into the Fed’s thinking may have been able to make an educated guess, but most of us didn’t have a clue, and had to wait until the announcement was made, before we could act.

    Of course, nowadays the Fed the makes no effort to hide their actions nor their intent. Call it what they may; LSAPs, quantitative easing, or twisting, it is in effect, nothing more than a massive add of liquidity, by way of almost daily, outright purchases of securities. The Fed has conducted 4 open market operations over the last 4 days to the tune of about $14BB with maturities ranging from 6-30 years. And as predicted here, the result has been a liquidity induced rally that has seen the SPX recapture it’s daily 200SMA. Not only was this chain-of- events highly foreseeable, but intraday price action made it even more predictable, as it has followed, virtually the same price pattern every day during this ramping period.

    For the Op Twist epoch to date, the time profile shows that the lunch hour, (11:30AM - 3days & 1day@12:30PM) and early afternoon, (1:30PM -2days), are most likely the times of the day, and the PP or S1, are the levels, where the selling will be exhausted, and support a decision (in context) for an optimum entry point. The 3pm hour and overnight gap are the subsequent ramp zone and time, which blends nicely with the almost daily portfolio re- balancing efforts of inverse ETFs.

  3. Craig on November 9, 2011 6:05 pm

    A couple from Italy moved to Brooklyn early this year for what was supposed to be a two-year stay. The guy is a popular news reporter. He was suddenly called back close to two months ago. It turns out the politicians wanted him back there to try to help make them look more favorable and put people at ease. It’s obviously not working. He’s putting in 14-15 hour days and upset about the whole situation that he’s been railroaded into.

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