Massive foreign custodial purchases of US Treasuries + 20,310, plus +2,115 agencies. In one week that's equal to over 10% of what FCBs bought in the last year.
federalreserve.gov
Japan making an all at once "a big splash" statement to support the floundering Bretton Woods II system? Very strange doings and events. Talk that "someone" jammed through a 17,000 e mini buy in one minute to set off today's stampede. We will see about the following scenario, but anything can happen.
The Hog Run Setup
by Mark Pierce III, Thursday February 24 2005
In today's Green$pammed HedgeFund Economy, one must always be on the lookout for a possible "Hog Run", where the indexes are painted to look bearish (i.e. double tops), a huge 175 point down day is engineered, then the PigMen (aka Proprietary Trading Desks) reverse course and jam the indexes back up.
Prior to any massive upside breakout, there is always some type of a shank move that spooks out the longs.
Just look at the sharp selloff in the energy stocks on Jan.3, right before the blastoff.
But immediately after the selloff, there are clues to look for to see if it was an engineered fakeout or not.
Could it be the same this time in the broad indexes??
Possibly.
Here were the clues I spotted this morning:
Put/Call opened up very high this morning, and stayed over 1.00 most of the day.
Odd-Lot short interest was at or near record highs.
1999 Semiconductor Screamers like LRCX were being HeatMapped up in the early morning to new highs for the move.
Deep cyclicals like CAT were screaming higher even while the Dow was selling off.
The HGX took off on the back of some happy talk out of PHM.
These are all possible footprints of an upcoming Hog Run.
Now all we need is to get a weak GDP number tomorrow to set off a meltup in bonds, and Wall Street will shout out "Goldilocks Economy" and gap the futures up in the pre-market.
That will turn the banks and the REITS back northbound, and cause another round of short squeezing which would accelerate into a wild stampede as 9000 HedgeFunds scramble to get positioned for the upside move.
With so many players leveraged to the hilt, and so many "words" being uttered to steer the markets, and so many games being played by the PigMen to cause the maximum amount of pain and discomfort to the HedgeFund community, its no wonder we have so much volatility.
So tomorrow, watch the BKX and the XBD to see if they can be U-Turned with the bonds to get an "Alan Greenspan is Good" rally going.......... |
