AN UNSTOPPABLE BEAR KILLING MACHINE
22 April 2010 by Cullen Roche
6 Comments
A few weeks ago we joked that the SEC had banned all downticks. That might not sound so funny now as there have been almost zero downticks over the last two months. Stocks have rallied on 75% of all days and ever 0.5% dip has been aggressively bought into. This market is an unstoppable bear killing machine. Equities have reversed their full 1.5% losses from this morning as the “buy the dip” trade continues to dominate every minute of every day. The truly amazing rally just doesn’t quit:
This rally is based on fraud. Period. End of Story. How the market can reverse off 1.5% losses on zero news in a matter of a couple hours starting right at 1:30 is beyond any sane person’s analysis. We have the Banking Mafia in control on Wall Street right now.
Definitely a fraud Dan.
I think Bambi is behind it.
Think about it: By ramping the market, he gets to have it both ways: He trashes GS for the folks at home, but ramps the market, so he can levy more taxes to turn over to the po’ folks.
Pretty brilliant when you think about it, no?
Must be easy to engineer an one way market when:
… former SEC Chairman Cox ‘forbids’ short selling at various times sporadically, changed the rules constantly in favor of a one sided trade (same goes for the behavior of FSA and other foreign counterparts). A lot good that did.
… at numerous points in time during this ridiculous rally that trying to short (from numerous examples per other blogs) the S&P 500 ETF (SPY) becomes ‘hard to borrow’ … meaning, no shorting available of the S&P 500 cash market. Thus, creating imbalanced buying pressure.
… a handful of the TBTF guys gun the market close and paint the tape to their advantage.
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And for those of you who do not follow the details of the market’s trading mechanism…. The below happens more often than you can imagine at ‘critical market junctures’. How convenient, ‘lost connectivity right before market open’.
From: NYSE System Status Notify [mailto:NYSESystemStatusNotify@nyx.com]
Sent: Friday, March 26, 2010 9:25 AM
To:
Subject: NYSE System Status: Services Impacted – Connectivity issue from NYSE to DTCC
09:23 AM 03/26/2010
NYSE Services Impacted
Connectivity issue from NYSE to DTCC
Due to a network connectivity issue, the NYSE and NYSE Amex cash equities markets are unable to deliver compared trade information to DTCC at this time. All trading systems and order and report processing are functioning normally. Compared trades from today’s trading session will be stored and will be delivered to DTCC once connectivity is restored.
Updates will follow as available.
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This one is even better! Floor broker handheld devices ‘failing’ just before the open … yeah, right.
From: NYSE System Status Notify [mailto:NYSESystemStatusNotify@nyx.com]
Sent: Tuesday, April 06, 2010 9:19 AM
To:
Subject: NYSE System Status: Services Impacted – Issue with access to some Floor Broker hand-held devices
09:17 AM 04/06/2010
NYSE Services Impacted
Issue with access to some Floor Broker hand-held devices
Some Floor Brokers at the NYSE and NYSE Amex cash equities markets are unable to log in to hand-held devices at this time. Contact your Floor Broker to verify connectivity.
Order delivery to NYSE matching engines via the Common Customer Gateway is functioning normally.
You received this email because you are subscribed to an NYSE System Status Service. To unsubscribe or modify your subscription preferences log into your account. To register additional users to this service, please select Register.
To ensure that you will receive all NYSE System Status emails, please add NYSESystemStatusNotify@nyx.com to your address book or safe sender list. Privacy Policy.
It is what it is –just got to suck it up, and deal with it. For those of a bearish tilt amongst us, it’s a question of execution…of hanging around until the disparity between valuation and reality (at least as we perceive it) starts to unwind.
It’s just like sports, you win games by playing offense and taking advantage of when things are in your favour…
You get to win championships by playing defense, by hanging around/making small profits when you’re “short-term” wrong.
Very well said.
Market fueled by Fed liquidity – Low volume , no selling because traders are not in fully. Nor Mom and Pop . The carrot yet dangles for them to jump in , too late again . As long as our profligate Fed keeps pumping absolutely free money into the investment banks , they will continue to buy stocks and sell the rallies ie in commodities , and for that matter every other sector . Skimming profits slowly to keep the suckers in . One would get a good lesson in market manipulation by reading Jesse Livermores (Edwin Lefèvre) -Reminiscences of a Stock Operator.
Things are the same today only on a grander scale , with same few big players .
History repeats . Buyer beware