Afternoon Delight 10/06/11 - Will It Go Into Orbit?

And the markets are moving up because? Well, we all know the reason (or reasons). Rigged, rumor, HFT. POMO, you name it, all combined make a nasty brew to induce short squeeze mania. The bears should be petrified right now. It appears their respect for team ramp is in place. They have all witnessed the last two QE ramps. (Don't forget that the EU just upped their QE quota last night by $75b.) Just keep on reading the news and following the Fed/rumor train. It will all end terribly and every dollar they throw on the fire only makes the end game that much worse.

The good news is that Le Figaro Discloses France Has Prepared An Emergency "Just In Case" Nationalization Plan For "2 Or 3" Banks | ZeroHedge. "There are three phrases the market never wants to hear. Ever. They are "contingency", "just in case", and "only." Alas, it just got all three of them in an article just released by French Le Figaro which, per Bloomberg, has disclosed that "France has been working for a number of days on a plan that would allow the state to take a stake in the country’s financial institutions if needed." Of course Sarkozy Advisor Says French Bank Recapitalization "May Be Necessary" | ZeroHedge which is quite comforting as well. The DOW has rallied over 700 points in the last three days with this as a backdrop? Seriously?

Add to that THIS! BBC Does It Again: "In The Absence Of A Credible Plan We Will Have A Global Financial Meltdown In Two To Three Weeks" - IMF Advisor | ZeroHedge

Morning Post 10/06/11, SPX

Steve Jobs, what a wild and crazy ride we had with him. One sensational innovator that has changed the lives of millions for the better. Bless him and his family.

What do you do when your back is against the wall, there is no hope and all remedies have been exhausted? QE FOR EVERYONE! "As many expected, the Bank of England has followed in Bernanke's footsteps and proceeded with extra QE, 75 billion extra, or about 25 billion more than consensus - this is the first expansion in the British QE since November 5, 2009 when it did the latest  £25 billion expansion. Unfortunately, this is just the beginning: much more global QE is coming down the line as the "monetary authority" realizes it only has itself and its printers to rely on in a world rapidly reentering recession." Bank Of England Expands QE By £75 Billion To A Total Of £275 Billion, Keeps Rate Unchanged | ZeroHedge 

Kicking the can is almost as popular as an iDevice these days. QE announcements seem to be outpacing new Apple product announcements. Sadly they are the inverse. One changes lives exponentially and makes things easy and joyful. The other increases debt and delays addressing important issues that will lead to no one being able to afford an iDevice in the future. Speaking of POMO. no POMO today, here's the schedule. 

Afternoon Delight 10/05/11 - The Hangover

I guess everyone is still a little hung over from the 400 point ramp party the DOW threw late yesterday. There was some follow thru today, but not much to crow about. If that move had been real and had any sustenance the markets would have been up almost as much today. I guess rumor driven ramps are good for just that, nothing other than artificially lifting price to a level that allows the powers that be a bit more breathing room and more importantly time.

On to the news -

From the "Lord I hope they pull this off" category - Anonymous threaten to take down NYSE.com. "The message went out through a video on YouTube calling for a "DDoS attack" attack on the New York Stock Exchange's site at 3:30 p.m. ET on October 10. That's Columbus Day, a holiday for many U.S. workers, but the stock markets will be open for their usual trading house." Mark your calendars!

With all the China/US rhetoric flying around is it any surprise this happens over Hawaii? Missile defense system hits 2 targets over Hawaii - Yahoo! News.  "The test took place at the Pacific Missile Range Facility in Kauai (kuh-WEYE'). The agency says that during the test, the system engaged and simultaneously intercepted two short-range ballistic missiles. "

Morning Post 10/05/11, SPX

IMF Vows To Spend Some More Taxpayer Money | ZeroHedge. "The crowd that is wondering who will foot the bill remains dubious. Economic conditions continue to deteriorate globally. There is less willingness and less ability of the "rich" nations to fund the "poor" ones. There is even less willingness to fund the banks. It is great that Europe finally sees the problem, but they have waited too long. There is no group of countries left that is strong enough to support the banks and weak nations without getting dragged down themselves."

That sums the situation up nicely and let's you know why Germany has been balking at throwing good money after bad (did someone actually learn a history lesson?). They are waiting on another succa (Bernanke) to come along to heap piles of fiat on the issue. Think of it as a massive fire and then you throw a bunch of green (ink soaked) leaves on it. The fire goes down but the coals remain and eventually the leaves catch only adding more fuel to what was there. The ash represents devaluation of everything associated with the fire and that pile is growing massively.

Afternoon Delight 10/04/11 - Rumor Driven!

I'm not going there. I'll let Soup do all the moaning and groaning below in the comments section. Ridiculous? Nope, waaaaaaay beyond ridiculous. Hey, we're used to it. Desperate times require desperate measures. When QE and the Bernank can't buy the markets up you resort to dirty tricks and any source of stimulus possible.

As I have been telling you literally for years now, this market is all they have between them and basically anarchy. They will do whatever it takes to salvage it. Like a mother lion protecting her young, expect a fight to the death. Sadly death is what we're gonna get either way. Looks like the time has come to start scalping the patented 2008 3:00 mega ramps to the close.

If you think there is any reason to get long after reading the below - be my guest - This post is gonna get really busy - so stick with me - Don't forget to duck and cover when you see the flash.

Morning Post 10/04/11, SPX, AUD, EUR, JPY, Gold, Oil, USD

"Overnight saw credit markets crushed overseas in Australia and Asia,
Europe continue to sink into the abyss and now pre-market equities in
the US are showing serious weakness with no sign of a bounce." FINal(er) Countdown | ZeroHedge

I'm not sure how long I have been telling you i is all about EU liquidity, but it has been a while. Nothing works without lubrication. Friction is bad. European Liquidity Update: Horrible And Getting Worse | ZeroHedge

I do not know about you, but I think there will be a tradeable event at 10:00 when Helicopter Ben speaks. I HIGHLY suggest you watch this - Bernanke Testifies To The Joint Economic Committee; And The Balance Of D.C. Theater For The Week | ZeroHedge

Afternoon Delight - The "Duck and Cover" Edition

Quite the day in the markets. That early head fake threw a few off the scent, but it was pretty easy to pick back up after the minis ran into double resistance and reversed course. Bottom line is we're so close to collapse I'm inclined to think the majority have moved to the denial stage. This is a move I even experience, you know it is coming, you have called it, it is painfully obvious, but as it nears and when the signs are the greatest you withdraw. Call it a protection mode or whatever psychological term you like. It might be time to learn how to duck and cover.

Morning Post 10/03/11, SPX

Well, it is the season for miraculous comebacks? The NFL and NCAA had some big time rallies this weekend. Can the markets pull one off here? We all know the markets are rigged and have the officials in their pocket, so it may not be a fair game. The new POMO schedule is out. and I suggest you take a look at it here - Tentative Outright Treasury Operation Schedule - Federal Reserve Bank of New York.

News was hot and heavy over the weekend. STB loves it when the "experts" come in several months behind where we are with prognostications and confirm our long standing views. "My secular view remains bearish. In or within a year from now I expect global equities to be 25% to 30% lower. My S&P500 target for the low in 2012 remains 800/900, and I think an 'undershoot' into the 700s is entirely possible." Bob Janjuah: "In One Year I Expect Global Equities To Be 25%/30% Lower; The S&P Will Reach Low 1000s In October" | ZeroHedge