Stock Market Warning: HFT running out of juice!

[icm63]

If you own stocks SELL ( my opinion).

The FED has just pump billions into a Sept rally to try and avoid massive redemption notices (due pre Sept30). But funds have been running out of the mutual fund for that last 20 weeks ($70 Billion, last count zerohedge.com)

This Sept Rally (10%) is the biggest since 1939, FOR WHAT REASON...??

If you dont believe me look at AAPL and AMZN, these stocks are the favorites for HFT programs. Their movement is very weird, there as been plenty of bad news, yet not a kink in the trend.

By about the second week of Oct 2010 reality will set in hard.

my forecast: http://chart.ly/v64ii6i

Any sell off in stocks could force margin calls on GLD.

[goadam1]

Re: Stock Market Warning: HFT running out of juice!

Another buy signal from icm63! I have an idea why aapl and amzn and netflix are up: they are growing companies with a future ahead of them. Plus everyone with a little playing around money loves those companies and then go out and buy them. And then they go up on trend.

While all of us where waiting for the end of the world and bounces to end, aapl was a STEAL.

As far as liquidity. Is anyone ready or does anyone need to turn off the money pumps yet?

[icm63]

Re: Stock Market Warning: HFT running out of juice!

Good luck...I need some to take the premium of my puts.

[GRG55]

Re: Stock Market Warning: HFT running out of juice!

Stop sweatin' it...Stock prices have reached what looks like a permanently high plateau. :-)

[icm63]

Re: Stock Market Warning: HFT running out of juice!

.."permanently high plateau"..

Your kidding..here's why...
The massive traders out there NEW that the FED wanted to pump up stocks before Sept 30th to try and avoid the rush of redemptions in Oct. So they let it happen as they didnt mind for higher prices to sell without using their capital, now that month end is upon us these funds will raise CASH for these redemptions. And once Oct starts the massive traders will be back in the game to assess where stocks will be in 3 months. The fed juice wont be enough to stop the truth of Mr Market if the truth is bearish.

[jpatter666]

Re: Stock Market Warning: HFT running out of juice!

.."permanently high plateau"..

Your kidding..here's why...
The massive traders out there NEW that the FED wanted to pump up stocks before Sept 30th to try and avoid the rush of redemptions in Oct. So they let it happen as they didnt mind for higher prices to sell without using their capital, now that month end is upon us these funds will raise CASH for these redemptions. And once Oct starts the massive traders will be back in the game to assess where stocks will be in 3 months. The fed juice wont be enough to stop the truth of Mr Market if the truth is bearish.

It was a joke -- that was a comment in '29 just before the crash.

[Starving Steve]

Re: Stock Market Warning: HFT running out of juice!

Not to utter the famous words, "This is a New Era," but really, with interest rates at zero and a nut running the Fed, where does money flee? ---to the over-crowded gold canoe, now miles offshore in the ice-cold waters of Lake Superior? --- to zero-interest bonds? ---to junk corporate-bonds and junk municipal-bonds?

I believe Bernanke and his tookis-lackers at their own word on the FOMC in Washington: "We have not run-out of options, and the Committee will do whatever is necessary to prevent deflation and a repeat of the mistakes made in The Great Depression." And not only does Bernanke have tookis-lackers at the FOMC, he has his clones posted in other central banks, also in the universities, at Goldman Sachs, in the big and favoured banks, and in the media.

This is going to be a fight to the finish, so dividend-paying stoxx are not all that bad of place to hide. A gold coin collection and a personal home might work to provide shelter from the storm, too. My mother is in guaranteed-obligation California municipal bonds which pay 5% tax-free return, and she is not dumb. Rental property is another shelter from this storm.

[ThePythonicCow]

Re: Stock Market Warning: HFT running out of juice!

Stop sweatin' it...Stock prices have reached what looks like a permanently high plateau. :-)

Yup.

[icm63]

Re: Stock Market Warning: HFT running out of juice!

.."It was a joke -- that was a comment in '29 just before the crash. "...

OOOps Sorry

.. PLEASE START ALL JOKES WITH KNOCK, KNOCK (ha !)

[chr5648]

Re: Stock Market Warning: HFT running out of juice!

This Sept Rally (10%) is the biggest since 1939, FOR WHAT REASON...??

There was a massive amount if shorts at the end of august, sentiment was extremely down, massive short entries, september came and the big boys have been hunting stops on those shorts. To think that .gov is pumping up the market directly without presenting evidence hinges on pseudo science. Granted liquidity from .gov may inadvertently enter the equity markets and increase prices.

[ThePythonicCow]

Re: Stock Market Warning: HFT running out of juice!

Granted liquidity from .gov may inadvertently enter the equity markets and increase prices.

What makes you think it is inadvertent?

[chr5648]

Re: Stock Market Warning: HFT running out of juice!

Well for one thing total volume has been massively decreasing on the exchanges, practically non existent other than the open and close.

One the other hand treasuries have seen an inflow in volume and price, and commodities in price.

As bad as .gov is, there has never been any clear EVIDENCE of .gov buying equities for the purpose of increasing equity prices. Maybe they have but, I have not seen any evidence.

[BuckarooBanzai]

Re: Stock Market Warning: HFT running out of juice!

Denninger made some interesting observations on stocks today, especially AAPL. "Parabolic blowoff." He doesn't like what he sees and makes a good case.

http://market-ticker.org/akcs-www?post=167324

[dummass]

Re: Stock Market Warning: HFT running out of juice!

Well for one thing total volume has been massively decreasing on the exchanges, practically non existent other than the open and close.

One the other hand treasuries have seen an inflow in volume and price, and commodities in price.

As bad as .gov is, there has never been any clear EVIDENCE of .gov buying equities for the purpose of increasing equity prices. Maybe they have but, I have not seen any evidence.

Depends on the government. Japan's government freely admits to buying stocks. IMO it's commonplace. Besides, the Federal reserve bank is not the government; as they have never be audited, we are free to speculate.

[touhy]

Re: Stock Market Warning: HFT running out of juice!

I have only myself to blame....I shorted the qqqq's fairly large several weeks (and a 10% appreciation) ago. ICM69 seemed so sure of a Sept 15 sell-off.... I think it shows that one can have the macro-economics right, be on the side of anti-corruption "rightiousness".....but still be on the wrong side of a trade.
Should I cut my losses? I'd rather be rich than rightious if you know what I mean.