dc CB 21:22 GMT December 26, 2018
Plunge Protection Team About To Strike Again
Another reason --- not just the PPT
via ZeroHedge
++++++++++++++++++++++
We concluded our Friday post as follows:
For now, however, buckle up for what may be the single largest quarter-end pension rebalancing in history.
A few days later, with pensions seemingly deciding to take Christmas Eve off, Wednesday's torrid price action - and that over the next two days with quarter and year-end imminent - is the result of this "single largest quarter-end pension rebalancing in history", which is manifesting itself in the biggest percentage gain in the Dow since late March.
A Massive, $64 Billion Buy Order
Livingston nh 20:34 GMT December 26, 2018
Thursday Trading Outlook 27 December
NYSE adv v. decl shares are 14 to 1 -- over 800 new lows w/ less than 460 declining issues shows the power of this afternoon's run-up lifting even the very weak morning stox
Livingston nh 18:58 GMT December 26, 2018
Equities Higher. 10-Yr Bond Yields Mixed. FX: USD Mixed And EUR Up. WTI Up
Yields are going higher - the 5 was under the 2 - the 10 yr 2.74 was only one Fed hike away from inversion and the 2 was 8 pips away from the Fed Funds level // meanwhile the real rate was negative out to the 10
The Fed was responsible for turmoil because it ignored the market and hiked - OR the President was responsible because he wanted to fire the guy who raised the rates that upset the market which would result in lower rates next year - OR (fill in other usual suspects)_____________
dc CB 18:45 GMT December 26, 2018
Equities Higher. 10-Yr Bond Yields Mixed. FX: USD Mixed And EUR Up. WTI Up
Two days after a very ugly 2Y Treasury auction on Monday (which preceded a flash crash in 2Y yield just ahead of the bond market closure on Christmas Eve), which prompted us to note that "the bond market is sending a worrying signal", moments ago the Treasury sold $41 billion in 5Y notes in what could only be called an abysmal auction as the bond market has just sent an even more worrying signal.
The auction, which priced at a high yield of 2.652%, or 23 bps below the November auction's 2.88%, tailed the When Issued by a massive, if not record 2.3bps, the widest tail going back for over 3 years.
ZeroHedge
Livingston nh 16:34 GMT December 26, 2018
BREAKING NEWS:
the little guys got out and the market will go up w/o them -- maybe the vaunted hedge funds can make some money
haifa ac 16:31 GMT December 26, 2018
BREAKING NEWS:
" Mutual fund outflows rose to $56B"
1. where do these 56 b go now?
2. what do they do if the market starts rallying--chase it back?
3. This outflow is from winning positions or losing ones?
GVI 16:24 GMT December 26, 2018
BREAKING NEWS:
(US) Mutual fund outflows rose to $56B in week ended Dec 19th, biggest week of outflows since Oct 2008 - ICI - Source TradeTheNews.com
dc CB 15:58 GMT December 26, 2018
Wednesday Trading Strategy For December 26, 2018
The democrats will beat on Trump for expanding the debt, with one hand, while on the other hand, with the "media" cheering them on, they will follow the lead of a 29yo. (who never really ever had a job)
++++++++++++++++++++++++++++++++++++++++++++
Democrats are lining up to support Alexandria Ocasio-Cortez’s “Green New Deal.”
The proposal could be the largest expansion of government since the Great Society or New Deal.
Ocasio-Cortez’s plan could cost tens of trillions of dollars.
Daily Caller
Mtl JP 15:42 GMT December 26, 2018
BREAKING NEWS:
weak regional...
is a shocking understatement
-
in the meantime the Presidential scream to BTFD appears to be falling of deaf ears as stocks are basically just wallowing
GVI 15:23 GMT December 26, 2018
BREAKING NEWS:
White House Econ Adviser Hassett: Fed Chair Powell's job is not in jeopardy; Powell is 100% safe - Fox Business interview
- Source TradeTheNews.com
GVI Trader john 15:02 GMT December 26, 2018
BREAKING NEWS:
Another weak regional U.S. sentiment Survey.
GVI Trader john 14:59 GMT December 26, 2018
BREAKING NEWS:
U.S. Richmond Fed Index December 2018
NEWS ALERT
-8 vs. +16 exp. vs. +14 prev.
TTN: Live News
Livingston nh 14:40 GMT December 26, 2018
Wednesday Trading Strategy For December 26, 2018
CB - right // Pelosi may let PREZ self destruct because the Senate (depending on shutdown rez) is in the way
OTOH - Dems may find Pres Trump willing to deal w/Pelosi because the Repubs are his TRUE enemy // his BULLY PULPIT is still in the international arena, appointments (FED 2, Sup CT 1 maybe 2) and CinC
dc CB 14:28 GMT December 26, 2018
Wednesday Trading Strategy For December 26, 2018
You forgot - the Democrats become a majority in the House --- and they will unleash a torrent of attacks on the Trump admin.
Headlines will be in ample supply to feed the Algos.
Livingston nh 14:16 GMT December 26, 2018
Wednesday Trading Strategy For December 26, 2018
The turn of the calendar may be more important than usual -- MXN has not been adversely affected yet by energy (see NOK and CAD) and border issues (see US gov't shutdown) but it is due for a turn in the DUCKING STOOL // MEP elections should put pressure on EUR as the wings try to break the center -- a lot of lame ducks (e.g., Merkel, Juncker, Draghi) and wounded ducks (e.g., Macron) quacking -- and there is always Turkey (USD/TRY back above 6) and/or Russia to stir things up (see US w/d from M/E)
Next week comes the new sheriff in Brazil - BRL maay not take kindly to initial response at the Venezuela BORDER
And in January we see if Powell and Fed "talkers" throw the barking dogs some treat (balance sheet?) or beat them with a stick
and, oh yeah, BREXIT
Mtl JP 13:40 GMT December 26, 2018
Wednesday Trading Strategy For December 26, 2018
some market pundits are screaming about
the 200-week (4 yr) MA as
most of the time Support, historically speaking
ps / there is no guarantee offered that it will be so again
so treat your risk accordingly
Mtl JP 12:21 GMT December 26, 2018
Bank of Japan
ACC / the "experts" - under the "leadership" of Haruhiko Kuroda - at the BoJ massively bought japanese stocks in order to increase total demand, to stop price deflation (by allegedly increasing inflation) and to sucker japanese savers into buying stock (or as they peddled it: to take on more risk)
One should think that haruhiko would have an appreciation for and understanding of the japanese plebs' character and mindset. But it has turned out that the only pigeons participating in the government's scheme is the gov't pension fund, blackrock and BoJ.
Now I could list a dozen reasons why the gov't scheme has failed. But that would be giving haruhiko advice at no charge.
Now the peddler of "three arrows" and numbnuts abe is screaming yet again for a hike in salarymens' wages allegedly to help them buy more - ahead of his tax hike.
The beautiful part about this gov't hallucination is its cause: fiat "money", unbridled printing paraded about as Quantitative and Qualitative Monetary Easing by haruhiko. The more beautiful thing is that the average japanese joe is not buying into his b/s.
At least haruhiko and buddies now post w/s crap-out in nikkei dump have a better - ie lower priced - BTFD.
And never mind eroding market discipline.
Sydney ACC 07:02 GMT December 26, 2018
Bank of Japan
Reply
No comments so far of how losses being sustained by Bank of Japan on the decline in the Nikkei.
BoJ has been buying JPY 6 trillion in ETF since 2016. That makes BoJ effectively a top 10 shareholder in 40% of Japanese listed companies.
Until the beginning of October things were looking good. Since then, however, the index has declined from 24,200 to 19,500.
Mtl JP 02:33 GMT December 26, 2018
Winners and Losers
Donald J. Trump
Verified account
@realDonaldTrump
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The only problem our economy has is the Fed. They don’t have a feel for the Market, they don’t understand necessary Trade Wars or Strong Dollars or even Democrat Shutdowns over Borders. The Fed is like a powerful golfer who can’t score because he has no touch - he can’t putt!
7:55 AM - 24 Dec 2018
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