After the bell, the Fed “Pearl Harbored” the market, raising the discount rate to 0.75%.
Yesterday, the IMF announced they will sell gold.
What does the conspiracy theorist in me think?
They are trying to devalue the euro versus the dollar, in order to lessen their (PIGS) debt burden. By strengthening the dollar, equity markets will struggle, funneling investors into Treasuries.
As the Chinese pull out of Treasury investments, U.S. asset managers plow in, filling the void.
A win-win for Government motherfuckers. Indeud.
Never doubt the power of the hybrid. Ever.
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God, i hope our economy does not tank again. We need jobs not debt relief. Our countrys power lies in jobs, not bull cookies. But one mf decided to tank the irs here in texas today. Boy, what has our world become?
Enjoy the double dip.
There are hidden messages in many of my posts, but no one notices.
N00bs
We need the blue pill to see things properly….or is it the red pill ?
I’ve noticed how many times “‘The Fly’ Wins Again” comes up as a post because it’s funny that its current iteration is 17, which is low or high depending on your outlook on life.
Yeah. I see it…. if you can’t then read between my lines – there are also hidden messages.
Wha?
Is it like playing the Beatles “Sgt. Pepper’s Lonely Hearts Club Band” backwards?
Typically, markets rise while rates increase, until they are too high.
No typically about it. This could be the one chart you like, sir. Map rates against the market and throw it up on the site. I won’t spoil it with specifics, but I will say I will buy with both hands when all you idiots are done selling in a CNBC inspired panic. This wrongly induced mania will be a major bottom.
Jesse H Livermore on a fucking raft
Fed pulled this maneuver before options Friday a few times..Benny is in the bumper car at the amusement park ..wheeee…he must have a big put position?…
Futures are taking a huge dump
Fine, I’ll continue buying into stocks as the market declines.
check the url in post for hidden message.
Is this the first use of the hidden message?
Agreud!
Tlt for a trade anyone
i do have some cash on hand, not much but a low cost 2x short might work here for me,and i wont be around tommorrow…..i need a way to sit in my tricked out truck and play the market..cause i can….with all the shoes stated to drop s(i)rs might be fine
nice 1 …i will be watching from over there>>>>>quietly of course
I am short MAR 91 puts in TLT from last week.
indude
Dear Mr. The Fly,
Thanks for saving me a bunch of cash yesterday.
Regards,
El Saxo
With the dollar strong and unemployment still high for the past two months,
there is absolutely NO GOOD REASON for the Fed to hike.
Housing prices are in the tank, commodities like grain are weaker than shit,
we had a terror attack today, and Iran now has a nuke warhead.
Maybe everyone is hoping DC and the Federal Reserve get nuked.
they need to finance the deficit.
They can just print more fuckin money. With BOTH HANDS. There is
no wage inflation or commodities inflation.
there is commodity inflation
About 3/4 of the noted increase in the price index was due to petro products, not demand for discretionary items like cars, homes, groceries and the like. Methinks the Fed is using the current “inflation” to jack up the greenback not fight inflation as there is virtually none in areas where consumers can decide to buy a product or not. Petroleum products for the most part do not fall in that category unless you want to park the car an turn the thermostat down to 50*.
Like I mentioned a couple days ago here. The government is the wild card in trying to read this market. To an extent never seen before.
right you are….plus it increases perception of better health
Of course there is inflation! It’s been happening to the dollar ever since 1913. The definition of inflation is simply “an increase in the money supply.” Price increases are merely a symptom of inflation—think of the housing bubble that just popped or the recent run up in gold prices. Those assets did not gain value rather the dollar lost value. Logically speaking the more you add to a supply the less valuable the existing units become.
What we need in order to truly fix the calamity is to actually suffer and take our medicine. Only then can we have true recovery. Any attempts to “prop” up prices, via more interest rate and money supply manipulation, is pure communism and will only exacerbate the problem. The prices reached artificially high levels because of the central planning and manipulation by the Fed. They need to fall into equilibrium which can not be accomplished by yet further manipulation. “Free market capitalism is indeed the best path to prosperity.”
End the Fed 2010!!
Finally someone with intelligence on how things really work.
Ron Paul & Peter Schiff 2012!
Bingo!!
The PPT hybrid is like one of those Cylon things from Battle Star Galatia. You know, the people in the bath tub of goo that ramble prophesy.
“Never doubt the power of the hybrid. Ever.”
LOL – no one saw this coming, has nothing to do with the PPT reading
TELL THAT TO MY HYBRID READING.
lol
TA trying to justify “alligatah ahms” and not subscribing w. the big boys.
Steppin’ ovah dollahs to pick up pennies.
__________
Black Swan – Thanks Ben B.
This is honestly dumb as hell.
If you didn’t think raising the rate was imminent, your swan deserves to drown.
And what was the reason “rates had to be raised”, Sherlock?
Fed’s quantatative easing methods are scheduled to end. They need some private support. Otherwise, the Dollar and the Euro would be duking it out for last place in the Dunkin Donuts currency race.
and they needed to raise it to make sure asshole banks don’t get out of control
Think about it like this… The Fed thinks the economy is healthy enough for the hike so that is a good thing. Hell if I know if it really is, looks like shite to me
Perfect timing for options traders with time machines …or for the GS robot?
Honestly, who is shocked by this?
Fed purchases of paper (aka quantatative easing) are ending soon right? Did everyone just think they were gonna let the dollar go down the toilet? Legacy is an important consideration for this Bernanke man.
I would say, EVERYONE is shocked. Doing this after hours, on a Thursday, is more than a little odd, following IMF trying to bring down gold.
The IMF doesn’t mean shit.
SPY’s back in the green again.
Just sayin’.
___________
Abso-fucking-lutely. The PPT is a godly tool. Overbought/oversold indicator is fucking wonderful.
The Fly is God.
Wouldn’t it be HILARIOUS if we rallied from here?
All the evidence indicates the toilet is the goal …just not by the direct route. A little bump in the discount rate does not make Bernanke a hawk.
You don’t know shit about the relative strength of the dollar, do you?
Fucking CNBC and their curling programming. Total idiots, devoid of cognitive thinking.
They are subliminally messaging you to “turn it off.”
_______
Yes, as the stomach turns.
roflpwnd by pregnant looking Olympic curlers
Fly good logic. However look at the really suppressed after-hours reaction. The markets should have plunged an easy couple of percentages so far but they aren’t.
This may not tank markets. I’m just throwing theories out.
Come on, Fly man, you said it yourself: THIS IS A LONG ONLY MARKET.
Fuck the Fed’s games. It’s not like rates are high enough to incentivize en masse buying of treasuries
Honestly what does this really do? Will it sucker in some of the freak-show money managers that will freak out and “preemptively” act to avoid the double-dip? Yeah, probably. But as has been stated before on this glorious blog, THIS IS A LONG ONLY MARKET. AKA they can run this fucker down to DOW 8500 and just make crap that much cheaper for the rest of us looking to bank coin with some sense.
“Pedro for President.”
_________
Pedro is one of the dumbest summbiches on here, as evidenced
by his post in relation to the strength of the greenback.
Suck it, old man
The PPT has been holding stocks up recently, and especially today
in view of the terrorist attack and Iran’s nuke warhead.
Yea, the word on the street is that that pilot was trained by the Iranians. He didn’t act alone.
It was senseless & tragic, but a terrorist attack???
People knew someone was buying the 30yr bonds overnight hand over fist money just pored into it
Sure. Not only overnight, but also on Tuesday when they went up in the face of the negative TIC data.
Interestingly, every FED chairman for decades now has gone to work for Bill Gross when they retire. Pimco knows.
They need a second “p” in that name.
_______
lol Jake ^
Those mf’s, haven’t they stolen enough yet.
Greenspan and Billy Hairspray frolicking in speedos sp-effing each other on the beach in Newport. while Andrea pumps iron with the boys on Venice Beach
http://www.tradersnarrative.com/what-do-rates-rising-from-zero-mean-for-equities-3287.html
“I was able to make the following additional observations, concerning “low rates and rising” on data prior to 1970. From the end of 1962 to the end of 1968, the 10 year note yield rose from the low level of 3.86% to 6.03%, while the S&P rose 106.5%. From the end of 1949 to the end of 1958, the 10 year yield rose slowly from 2.32% to 3.86%, while the S&P rose 223%. As for additional data on “low rates and declining”, at the close of 1928, the 10 year note was 3.58 and declined steadily throughout the next decade to a low of 1.97% at the end of 1940. During that same period of declining rates, the S&P lost 54.5%. When rates are extremely low, traditional interest rate trading rules appear to be suspect.”
Thr market is poised to pick you like chicken
GS got the memo this AM.
The evidence is that GS was down all day and never went positive.
The gang at GS was doing some selling.
I notice messages, but I thought it was our secret love language.
Ok that was gay.
My bad
THE HONEY HOLE LIVES!
All this Fed announcement means is that the coke dealer moved down a couple blocks and won’t make emergency overnight deliveries to top clients. Crack’s still cheap and around.
God this site is full of morons sometimes …
All the fuckers shouting that the fed was printing their children are now pissed that the fed is raising the rates and we are headed to a “double-dip”. Seriously, how do you fuckers wake up every morning?
The fed saved the economy from a complete meltdown and now is trying to control hyper inflation and telling the banks the days of easy money (aka fed window -> treasury carry trade) are over. It’s time for the banks to go grow some balls.
hahaha…all true starting with the 3rd paragraph….let’s raise the bar and reinstate FASB for fun
Please enlighten this neophyte as to how hyperinflation can occur with a REAL unemployment number hovering around 17% of the US population. In more than a few areas, it is truly over 20%. Aside from inflation caused by raw currency devaluation, hyperinflation also has to be driven somewhat by consumer demand ………..no?
Very true Panda Bear. I applaud the fed rate hike. Pick your poison. Easy money but a devalued currency or higher interest rates, which may slow economic growth and recovery. It was a well played moved to balance this shit out.
Enough of the funny money, let’s try and stabilize the dollar for the long term unless you people want to pay $10.00 for milk, bread, and eggs.
Yes, definitely. Let’s pay all that gummint debt back with expensive dollars too.
__________
http://www.businessinsider.com/of-course-this-rate-hike-is-meaningful-just-look-at-the-markets-2010-2
“The gist is that since banks aren’t borrowing directly from the Fed right now it doesn’t matter.
That’s fine, but perception is a huge game when it comes to the Fed, especially this Fed, which remains in a straight jacket in terms of what it can really do without hurting the economy and causing a painful dollar spike.”
Could this suprise fed move also have something to do with the rumours of the yuan’s upward revaluation next month, by 5pc higher I think…
interesting angle….I think they need to trap the Chinese in treasuries and bring them to the table to cost average…plus this will crush the Euro which will be more cost effective for bailouts
Another reason was that Fly went bullish on gold the other day after harassing Jake for months.
The Fed reads Fly every day and decided to teach him a lesson so they want to crush gold for a little while.
At least until Fly hates gold again.
LOL. More likely the Fed is getting me back for making fun of their printing machines.
that is classic humor……gold does crap in even years so why not lift rates and slowdown the winship
this is one of the best threads I’ve read in a while, been laughing for the past five minutes. I needed that, still recovering from some h1n1 type shit.
That’s what happens when you run naked down Bourbon Street in 45 degrees all dead drunk just because your team won the SuperBowl.
_____________ 😉
indeud!
“As the Chinese pull out of Treasury investments, U.S. asset managers plow in, filling the void.”
One additional item on their agenda…
Once the average American investor is in govt bonds and dollars, kick the legs out from under the US dollar due to massive US govt debt, and devalue the currency overnight.
Voile — the largest middle class wealth transfer in history. Bigger than the dot com crash and the real estate crash, combined. No more middle class.
Next up: Implementation of a govt green jobs program that organizes the country under socialism/communism and gives people a way to pay off their personal debt to the bankers. Also: the greening of the military. Oh wait, global warming is a hoax — nevermind — now it doesn’t matter because we need the JOBS.
Have a nice day 😉 If you’re stupid and still deny, then have a stupid day ;-P
And the devaluation of the currency is accounted for how?
This ain’t Venezuela yet, dude. People here own guns.
_________
…and airplanes.
LAMAO
Voile — the largest middle class wealth transfer in history. Bigger than the dot com crash and the real estate crash, combined. No more middle class.
The ‘Transfer’ is ongoing and will persist (unfortunately).
organizes the country under socialism/communism
Neither. It’s called ‘Fascism’ and it’s not coming but, the Here & Now!
Benito!!
Nothing like a little FED Fuckery AH to light up this blog…..
RC any time left to enter the March Madness?
there might be a slot open, go to original post and comment with your pick: http://ibankcoin.com/rcblog/2010/02/15/march-madness-2/
maybe it’s time to short FXF (the franc)
There’s that dude who took a pic of himself strangling his girlfriend again!
_______
The gummint says that a plane crashing into an IRS building and destroying it,
killing at least one person and injuring more than a dozen “does not rise to the
level of Islamic terrorism”.
But some fuckin’ dimwitted 22-year-old kid with vaseline in his underpants DOES.
I’m beginning to HATE our lying, corporatist, military-industrial, invading and
murdering Neocon-controlled gummint.
Spoken like a true citizen
Uhmmm, dumbasses — the kid with the vaseline in his pants was trained in Yemen by AQ.
The nut who hates the IRS — who may be just as damaged as the rich kid from Nigeria turned and pimped by the AQ’ers — was a mental case who thought his act up alone.
Do you know the difference between organized crime and a loan nutcase? One indicates that there are “More where that came from.”
Wake up, you’ve only your tin foil hat to lose.
________
i assume you meant lone. unless you were, for mystifying reasons, insinuating that joey stacks may have worked @ wamu circa 2005
LOL. Yes, I have “Fed” on the brain, obviously. 😉
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Futures tank 0.9%. Right back to where we were this morning. oh noes.
If the market won’t go down, then it’s going up?
nice how the ppt caught that wiggle
w/ time i seem to be less and less suprised when random shit lines up w/ my setups…
i just say thanks, lol…
PPT rates TBT 3.66
Headline from CNN Money link on iBC Newsbot:
“States short $1 trillion to fund retiree benefits”
And this is from a financial site writer?
So what the hell is wrong with that statement, Einstein?
It is poorly written. It could give the impression that States have shorted currency.
Yes, it would give the false impression they had functional brains, to boot.
_______
Allz I know is that Uncle Ben used to like to use options expiration day to motorboat the shorts in 2008 and the early part of 2009. Now he’s trying to nuke the longs? I don’t get it.
fid
im going to need a bigger funnel
ha…. funny stuff.
If I didn’t have any skin in the game, I would have applauded this as a mind blowing genius move beyond my comprehension of course. But since I do have some skin left, all I want to say now is – HOLLLLY FUCCCCCCKKKKK!!!!!!!!! YOU JUST CHOPPED MY ALREADY CHOPPED BALLS!
I bought SPY puts today based on the PPT hyrbrid showing overbought. Ka Ching. Thank you PPT. But raising the discount rate doesn’t mean there is a sea change in the market. What we are seeing is a knee jerk reaction in the market. When it blows over, we will get back to what matters. Corporate profits are above expectations, the recovery will continue, and the market goes higher. We will print 1200 on the SPX in the first half of this year. Period. End of story.
obviously anything can happen these days
Leave your mommy’s money under the mattress and go play in the street kid.
Looks like the market is shrugging this off as I expected, piss boy. It would behoove you to pay attention when I have something to say. I do this for a living.
^^^^
Treu, and Dave is also a certified member of the PPT in good standing. I will vouch for his eggsellent market advice available almost every day in said forum.
The pikerish community should welcome his visits to this side of the enterprise.
__________
The FED has done a pretty good job at threading the needle so far with this economy. With all the ridiculous amount of spending this government is doing, with all the MBS/CRE crap the FED has been buying, I cannot imagine that the bond market would have reacted the way that it has. The FED either knows what the market will do ahead of time or are making it themselves (helps when you can print money and say that you are not printing).
With that said, I hate the FED, they have manipulated, lied, stole, and caused me to lose tons of money trying to short this market.
i think you misunderstood….they cannot print money…they can move it around..manipulating is acceptable
I hate the FED, they have manipulated, lied, stole, and caused me to lose tons of money trying to short this market
No one caused you to lose money other than yourself.
You are a dickweed. If you think that the FED’s decisions are not geared towards manipulating the market then you are dumb as shit. And with the goverment misreporting statistics (remember those Q3 GDP numbers, recent employment revisions) isn’t manipulation you again are as dumb as a brick. I took a chance to short the market after a 60% run-up and got slaughtered back in the fall/winter, yes my fault for betting against the goverment.
The FED had it made this past year, stocks went up and enough people were still scared so they bought bonds. I fear the day when the bond market has had enough of this.
Out of 13 initial discount rate tightenings, S&P was up 3 days later 77% of the time.
Why such a big deal is being made out of this I can’t imagine. The futures aren’t even below today’s low. You’d think we were down 1000 points on the Dow based on all this hysteria.
BUY THE DIP!!!!!
Indeed.
Asshat, I believe you are quoting Rennie Yang here. Show fucking courtesy and mention him.
Jason Goepfort, I believe.
__________
Well, tomorrow is going to be fun. Glad I went mostly (70%) cash a couple days ago.
i always did like the sound of howitzers going off in the morning
The Olympics’ Darker Side
http://www.ibankcoin.com/peanut_gallery/index.php/2010/02/19/the-olympics-darker-side/
“Pearl Harbored the market” – classic.
However, the Fed is irrelevant. A 1/4 point up on the discount, who gives a fuck. Your miracle-o-meter was telling you that this market had a problem BEFORE the Fed attack.
Is that the dollar index moving from the lower left of the chart to the upper right? Well I’ll be goddamned, it sure is. HUGH FUCKING HENDRY IS RIGHT AGAIN.
I have a Grandfather clock in my house and I call it “The Hugh Hendry”
I get this.
Your clock — It’s one of those old annoying fugging things that is not even right twice a day because it’s just slow, not completely stopped.
So basically, it’s right once every eight years or so, and then totally by coincidence.
________
Hugh Hendry has not fucking idea. He lucked out in 08 and got that one right, then thought it was the right trade in 09 and continues to think it’s the right trade. He’s stuck in a universe where the only trade to do is the 08.
I’ve seen lots of traders that aren’t able to recover from success or failure. Hugh chooses to be carried out in a stretcher one limb at a time screaming and jerking all the way to ER in pieces.
“The Black Knight” of predictive economic analysis.
Why… it’s just a FLESH wound!
________
lol
I go to work, get on and check gold, and it looks like some asshole just fucking hit it over the head with a tire iron. Then I look for what happened, and there I see the Fed finally actually doing something about inflation. Guess what… this will take the market back down to where it was last week, and then we reinflate again.
This shit is exactly what makes the Fly a Trading God among men. He knew this shit was coming, and also understood that Gold is now the best place to go with your cash.
With this downturn, I am going to close my short positions and go long gold and uranium. USU is my #1 pick, I also like NG and will be adding to that depending on what I hear on the year end results tonight.
Oh noes its thursday morning all over again…fucking time machine I said 1 year not one day!!!
LOL @ “oh noes.”
_________
I actually think the Fed’s actions may soon be taken positively. While it doesn’t raise interest rates on consumers it moves the discount rate away from the level that was suggesting banks were still vulnerable. The move suggests the Fed is more comfortable with the banks and this ought to be looked at as a positive both for the banks and the financial system as a whole.
I may some stocks if there’s a dip and the PPT lends itself to the idea.
Agreed. So far the “dip” looks pretty lame. Big CNBC headline: Citigroup down $0.05.
The market. Michael Jackson. Pepsi commercial. Not!
Much ado bout the banks..not the economy…buy the dip however anemic…
Follow the Bee indeed!
So the fly sells out because her IQ is too high? Then suggests the Fed F’d the market. LOL
Raising rates at this level is a bit like buying because ppt score is low. It is the right time. It is good for the market and the economy. Perhaps we be sideways, but this is not a carrot chopping cover your heads market. The bear hunt is still on.
But core consumer prices, which strip out volatile energy and food items and are more closely watched by the Fed, fell by a monthly 0.1% in January. The last time core consumer prices fell was in December 1982. In December 2009, the core CPI had risen by a monthly 0.1%.
Fed isn’t tightening market rates. This is actually quite positive for stocks and would be surprised if the market closes positive today.
I also bought a Large cap French index fund as i think there is no likelihood of a EU rate raise anytime this year with what’s happening on its southern borders.
Ah yes, I think I know that pick….
Le Fund du Fromage?
___________
My decision to short APOL and LUFK is paying off.
Still short LVS, TOL, BAC, to name a few
keep an eye on HOG for a short, dealer sales are way down.
just saying.
My decision to short APOL and LUFK is paying off.
Still short LVS, TOL, BAC, GE to name a few
Avast ye scurvy dawgs, something’s afoot in the silver markets! Bernanke’s move is a paper ruse… time to press the hot buckler against their craven necks! Raise High the Black Flagge!
___________________
I have learned the black flag was actually hoisted when quarter was being offered… a chance to surrender the booty and escape with one’s entrails intact.
When the red flag, or black flag with red features (skull, crossbones, etc.) was hoisted, it was a statement that no quarter would be offered; that an attack was forthcoming and all would be put to the sword.
Yes, well…. that one, then.
😉
_________
Hey FLY another couple weeks we will be all even on the steel stocks you recommended nice call asshole.
PPT is not accurate wake up losers
It’s a sea of red ink dotted with green buoys this morn. Will it turn into a sea of green ink dotted with red buoys?
FSLR could get down to 10 bucks today with any luck despite it being worth zero.
So true. How bout that nice move in USU. I picked up more yesterday and will pick up the rest of my position on the dip following their horrendous earnings call on Feb 22.
horrendous earnings call?
so far J, good call on going short FSLR and long USU.
Yes. They are not making any money right now. There needs to be one last flush out before this thing takes off in my opinion. Remember, USU is a long term play, not some short term pop. Buy and hold is my strategy.
VHC is working out today
True
What’s up?
Uhhhh, you …. apparently too much so … lose the Viagra and go green, eh?
Dr. Cane….Pleae throw up a post for Midwest this weekend.
Ya’ll have a nice weekend ……prepare for Dow 12,000, hat fuckers & coffin stuffers
Boo Boo’s favorite YouTube clip will be played incessantly tonight. We’re goin’ on a bear hunt…
Careful out there …. you guys could be mistaken for bears …. shouldn’t you be hustling pic-a-nic baskets or hibernating in a cave with, dare I say it …. DD?
The diabolical genius of Uncle Ben cannot be underestimated. He’s always had a penchant for nuking the shorts on options expiration day. Always. Just when it looked like he had mistakenly shot his friends a la Dick Cheney, turns out that via his ah discount rate increase he sprung a textbook bear trap for anyone dumb enough to go short the futes (sic) last night or the cash market this ayem (sic).
fid
I think we are going back to January highs no matter what the fed might say or believe…
http://bit.ly/cGoqG0