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A quick note as I settle back into my routine after being on the road a few days (sorry bout all that volatility while I was traveling).

Getting out of NYC and watching market from afar (and in a different time zone), a few things that were noteworthy:

-US markets closed better than they opened;

-Euro turmoil is definitely impacting trading;
-The slow grind making up the day saw better final prices than futures would imply.

-Trading was much weaker when European bourses were open;

-There remains an underlying liquidity bid containing the downside so far.

Note that this is not the wishful thinking of  a permabull, as we are now down to 40-50% equity exposure. As noted, I’d like to see lower prices to put some equity exposure back on.

Be back soon . . .

Category: Markets

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9 Responses to “Look Out Below, Mid-Week Edition”

  1. T_S says:

    Hey BR, thanks for your observations.

    Do you buy volatility before you travel?


  2. PeterR says:

    Welcome back. Now the market can settle down.

    Ditto to your four points above, especially the liquidity at bottoms.

    SPY’s long Hammer Candle on strong volume could be a bottom at support?

    Yesterday’s low of SPY 134.92 better hold here, or it could truly get ugly IMO. MA(100) is at 134.26 and rising quickly. The last touch-and-go just above MA(100) was in December 2011.

  3. Mike in Nola says:

    The averages have been tending to rise after Europe closes for awhile. In my conspiracy theorist mind, I’ve attributed it to the bots manipulating the market up. Only, I don’t think you have to be a tin foil hatter to believe that.

  4. b_thunder says:

    “…an underlying liquidity bid containing the downside ” – just who that might be? And how long can he/she/they keep “stealthily” bidding up the markets?

  5. dead hobo says:

    Any guess if oil will hit $94 today? Where in the $80 range will we see the Friday close? Will oil overshoot into the $70s next week, or will that that two weeks to accomplish?

    I wonder how long it will take the oil cattle to buy back into the idiot con that rising oil benefits a growing economy? You know they will fall for it again. These people are really stupid. Unfortunately, their dumbassery costs us all money due to the rising cost of living caused by their obsessive purchases of oil via long only index funds. Maybe one or two more good ass humpings will educate them properly when they notice oil yet again tanking from that cycle and they lose bundles of cash, yet again.

    I bet the piggies are really squealing by now. And it’s going to get worse for them. Hoo-hah!

  6. Concerned Neighbour says:

    “There remains an underlying liquidity bid containing the downside”

    Is that your innocuous way of saying this market is massively manipulated day in and day out?

    9 times out of 10 this market – if we can still call it that – “pares losses” in the afternoon. Are we really to believe investors have the attention span of a gold fish and forget Europe and all other problems exists at 11AM, or is something more nefarious at play?

    I am disgusted by what our “free markets” have become.

  7. Concerned Neighbour says:

    b_thunder, I see you beat me to it. And I certainly wouldn’t call it stealthy: this buying pattern has been in full effect since the 2009 lows. That suggests to me that it’s the work of HFT, but whose algos, and whose money behind it?

  8. Orange14 says:

    @dead hobo – I’ve seen a number of projections for a significant drop in oil prices and $3/gallon gasoline within six months (of course Romney won’t like this one bit having already accused the Prez of not doing enough to control prices). We’ll see how this turns out. I was more struck that gold prices dropped again today to below $1600; I’ve long thought the high price was a bubble and maybe it’s now on a downward trajectory.

    We certainly are living in interesting times right now.

  9. carleric says:

    The market floats on a sea of liquidity by our old friend Bennie the Bozo…he wants everyone to love him while he continues to hope that up markes increase consumer demand and thus rescue the economy. Then he can take his bows…..what a clown.