Market Meltdown, QE3 and Suspicious Figs...

[TheNegotiator 13]

So we've had a bit of a move across the board over the last week or so. I was actually fairly surprised that the range was as big as it was yesterday in the ES etc. given that non-farms were due today. There were discussions going around that technically the similarities in the US indices just at the end of 2007 and up to 27th July(ish) this year were pretty clear. Some things were off here and there(I believe in 2007 we were below the 200 day ma). The markets may currently be teetering on the edge of meltdown once more. The market has been artificially pumped up with quantitative easing and other measures in the hopes that the real economy would recover. It hasn't. Numbers are still appalling, housing markets are not good at all, debt laden countries have their backs to the wall at the hands of the markets, the rich are hoarding cash and yet there is talk of a QE3 programme. Well, I think perhaps what the world needs is some economic leaders who don't have their heads in the clouds(or perhaps up their own rear ends). Stimulus by giving rich people more money(effectively) when they won't lend is going to help guess who? Rich people. This whole talk of QE3 is absolute rubbish imo and it has to stop. Otherwise what may come is an economic crisis which makes the last look like a sideshow. On a final note, call me a cynic but those nfp and jobs numbers were suspiciously good. Who would have bet against them being good I wonder given the backdrop of the week so far? If indeed these suspicions have any fact to them and I am well aware that it is speculation, but we know how this world works, what in actual fact are they expecting to gain from it? Do they believe that one good jobs report is actually going to convince 'intelligent' people that everything is really okay? Or is there someone who need to unload a position I wonder??

[Tams 20]

15 months to election...

 

there is only one thing left to do -- pump up the market !

[SIUYA 11]

On a final note, call me a cynic but those nfp and jobs numbers were suspiciously good. Who would have bet against them being good I wonder given the backdrop of the week so far? If indeed these suspicions have any fact to them and I am well aware that it is speculation, but we know how this world works, what in actual fact are they expecting to gain from it? Do they believe that one good jobs report is actually going to convince 'intelligent' people that everything is really okay? Or is there someone who need to unload a position I wonder??

 

yep you are a cynic

those numbers are part of a huge network of monkeys collecting data that is checked and rechecked for accuracy by an elephant and then released to the markets.....if the market does not react the way they want those numbers will get adjusted and revised and re-released with the next set of numbers - this is later done by the donkeys and the goats.

Then the fund managers - the sheep - who rely on them and have knee jerk reactions to them after doing all their fundamental research and analysis use them to justify or talk up a position, and ultimately end up saying - sorry no one can outperform the market and so I have done a good job in just keeping up with it and outperforming by -0.2%

 

Later those revised numbers are collated by the economists (they are a whole other breed of animals, and even Noah only let one on the ark as no two could agree) and they then flip a coin as to if they think the previous numbers, or the revised numbers were bearish or bullish and what the market then made of them....much like historians.

In the meantime the sheepdogs (the hedge funds and traders) - some of who know what they are doing and are real kelpies, others are poodles and dont know the difference between a sheep and a gucci handbag, run around frantically trying to clip bits and pieces off an ever moving mob of sheep (the market) in the hope of being sucessful and getting fed at the end of the day.

Now thats cynical.

[Tradewinds 12]

15 months to election...

 

there is only one thing left to do -- pump up the market !

 

Then why did the market go down so hard on the president's Birthday? If there are forces that can pump up the market for the elections, then couldn't those same forces drag down the market for some reason?

[TheNegotiator 13]

I watched an interview with the head of the bls about how the jobs data is compiled. Guess what, for a large part they use an algorithm to 'estimate' figures. Wow. I don't like the jobs report. I think it sucks and just gives huge traders chance to adjust their positions!

[Tams 20]