Market reversal as shorts were “bulled” this week
What a week, but the market lost steam today, after the shorts got killed earlier. Market recap rather short today, represented by two charts. Note how the SPX (below) reverses in a classical way. After run up/down, in the market, we get the classical candle telling us the reversal is in. SPX has run up to resistance, 200 day average, a shooting star formation, and of course, Biggs getting bullish again.Time to put those shorts on again. Charts below;
England behind the secret central bank intervention
The famous attempt to bail out the World this week, was orchestrated by England. Many still believe this was a great attempt to save the Economy and decided to buy everything. This will prove wrong, and people will once again get forced into buying assets they don’t want, just because everybody rushed in to buy. The extra volatility created by the central banks, is just confusing people, and will eventually cause big problems.
For months, central bankers have tracked with growing concern how the deleveraging among European banks, hurt by the tumbling value of euro-zone debt, was hurting global funding as banks sold off assets and brought cash back home.
Indeed, some central banks had urged the Federal Reserve for some months to put in place cheaper dollar funding, but the Fed had resisted, said a source with direct knowledge of this week’s deal.
Last week, conditions grew particularly acute after a German bond auction failed to attract enough buyers. The Federal Reserve and the European Central Bank started serious discussions around the middle of last week, banking officials in Europe and the United States told Reuters.
Buy 1290, sell 1180, buy 1280, sell 1165, buy 1270 . Biggs is back!
We thought this performance was impossible, but Biggs is back. After dreaming of the ultrashort at the bottom of the market last week, Bigs is now turning bullish again. The man has been buying 1290, selling 1180, buying 1280, ultra shorting 1165 and now again bullish at 1265. After the huge rally we saw this week, where many smart shorts have been totally killed, Biggs is now providing us insight, from the confused investor. It might just be the perfect Friday short opportunity, at least short term, until Biggs goes bearish again. Can somebody explain to the old man, the market is run by HFT Algos, and has nothing to do with the Economy.By Bloomberg;
Barton Biggs, who trimmed bullish bets in September before U.S. stocks posted the biggest monthly gain since 1991, said that while he doesn’t want to be fully invested in equities, “it’s hard to get really bearish.”
10 year Euro anniversary. Enjoy while it lasts.
Simply great video for the Friday European drink. We voted against the Euro back in the days, but that was purely selfish reasons, a lot of arbitrage vanished with the Euro introduction. Just ask the Greek people what they think of the Euro….
Enjoy the video, while the Euro lasts. Continue reading
Market reverses after Rumor Index soars
Rumor index hitting highs, as latest is Spain to be downgraded over the weekend. As we wrote earlier this week, it is a war between central planners and rating agencies (manipulation vs reality). Let us see how this plays out. We wrote of indices showing fatigue this morning. Europe is trading rather week into the close, as the Euro collapses. Dax and Stoxx are already trading very close to those high levels on the day central planners decided to (try to ) bail out the world. We’d love to see 200 points lower on the Dax, just to see how it breaths, despite the fact that Fitch just denies downgrading Spain.
Some closing charts below;
The Super Committee and the Attack on Labor
Hudson on Obama, Jobs, Wall Street and more….
Chart Update-knee jerk post figures reaction
Another knee jerk reaction after the figures today. Dax is down 50 points from the high print. Mind you, this is HDT Algo market only, where indices move on no volume. We are getting up to resistance levels here, and the shorty term charts are showing signs of fatigue. Short term charts below;
Zynga IPO-Pincus Had a Farm…
Zynga about to hit the market. We might buy a pink Zynga cow occasionally, but that’s different to buying shares…Vanity Fair had a great piece earlier this year;
This year, Mark Pincus, the founder and C.E.O. of Zynga—the company that created the silly Facebook games FarmVille, CityVille, and Zynga Poker, the most popular online poker game in the world—had plans to spend the whole month of March at his ranch outside of Aspen. Pincus, who is himself, along with his company, devoted to the concept of “play” in theory, practice, and also as an extraordinarily lucrative business model, was determined to have fun. “Aspen is just dialed in as a sports town,” he says. “You have skiing, hiking, road-biking, mountain-biking, golf, tennis … ” A slight five feet six, with large liquid brown eyes, Pincus looks down for a moment and purses his lips. “I have to say, though, I hate tennis here. The ball goes faster because of the altitude. It’s harder to win points.” (Full article here).
And some more from Bloomberg;
Revenge of the Algos
While the markets trade in a zzzz wait and see mode, we present you reading on the new Algos. They are not only fast, they are now getting increasingly smarter…From All About Alpha;
Algorithms can crunch the numbers, and good hardware connections can increase speed, but one needs a human to tell or to make sense of a good story. Right?
Maybe not: Bloomberg, in a recent white paper, looks beyond the quantitative frequency of trades and the companies that provide relevant services to “compete in the low-latency space.” This “race to zero,” Bloomberg suggests, is becoming rather stale, and the question is: where does the next advantage lie?
Algorithms are going qualitative. The robots aren’t just faster than us; they are in certain respects smarter, as two human “Jeopardy!” contestants recently discovered. Thus, the next frontier for competitive differentiation could be found in the qualitative use of information, or what Bloomberg calls “the ability to parse and act on unstructured data in an automated manner,” – a development suited in particular to event-driven equity trading.
Chart Update (short term)
Quick chart update, as markets continue the squeeze move. Note how the trend is intact, but stay cautious here as we approach levels of resistance. Below 1 month, 10 min charts. We can conclude, much ado about nothing. Market is pretty much flat compared to 30 days ago, while the intra month swings have been huge. With many caught unexpectedly wrong by the central planners, the move up is greatly exxagerated.
The Irrational Exuberance goes on.
Latest comments