Must read: The incredibly shrinking market liquidity

[sinner]

Hi guys,

I draw your attention to this post on the Zero Hedge blog

http://zerohedge.blogspot.com/2009/04/incredibly-shrinking-market-liquidity.html

The contents are disturbing to say the least and must be read immediately.

I will include the first paragraph

"Anyone who is doing anything sensible right now is either losing money or is out of the market entirely." These are the words of a quant trader, who is seeing something scary in the capital markets. Scary enough to merit a warning that we could be on the verge of another October 87, August 2007, or January 2008.

This is no Reinhardt type prediction.

Goldman Sachs is trying to do a $10bn capital raising to pay off government loans, this will require "better than expected earnings" from a whole bunch of banks to keep the market propped up.

Just look at these screencasts to show how much money is moving out of the financials despite these huge price rallies in the sector!

http://www.screencast.com/t/4rzEwjJY9
http://www.screencast.com/t/B8aPSETKYr

For example, JP Morgan up 16% on the weekly yet USD 330,000,000 of outflows! Pumpetty dumpetty.

Things are starting to get crazy.

 

[metric]

This is no Reinhardt type prediction.

.

no. he was onto it long before. named dates successfully, and made hundreds of thousands from his predictions........whilst others read mainstream media. some still are...! lol

32 days.....

 

[sinner]

Really not interested in your ranting metric.

 

[metric]

Really not interested in your ranting metric.

well if you werent interested in causing a reaction, why did you involve reinhardt in your little conspiracy theory??

dont chuck rocks, if you cant handle them coming back at you.....


.

 

[Uncle Festivus]

no. he was onto it long before. named dates successfully, and made hundreds of thousands from his predictions........whilst others read mainstream media. some still are...! lol

32 days.....

I'm a bit late to this lovers tif, but what's going to happen in 32 days....?

 

[So_Cynical]

Thanks sinner for the interesting read.

I'm still buying on Tuesday...or perhaps not :dunno:

 

[psychic]

Of course the banks would have to start capital raising to re-pay government loans. This is part II of the crash, mass capital raisings, diluting of shares and flat share prices for years to come.

Should make for an interesting few weeks ahead, no wonders the banks rallied so hard weeks ago. Expect a pump n' dump scenario to play out now.

MAJOR RALLYS IN STOCKS OCCUR JUST BEFORE CAPITAL RAISINGS

 

[sinner]

well if you werent interested in causing a reaction, why did you involve reinhardt in your little conspiracy theory??

dont chuck rocks, if you cant handle them coming back at you.....

You must be kidding. I only mentioned Reinhardt, to point out that this sort of prediction is based in some reality rather than on the idea of Dominos eating Christian overlord which manipulate the markets on the days they post on their website.

That you think I was "chucking a rock" at you, speaks volumes. Why don't you just bugger off? This discussion has nothing to do with you, nor have you contributed anything useful to make me wish it did. Still waiting for that 1000+ drop on the Dow. For your boyfriend to have made any money he would have had to exit his shorts in March, indicating he didn't believe his own crash prediction.

So_Cynical, go for it mate. Just keep those stops tight. The market is still hugely overweight in financials, so any rally based on "better than expected" earnings will surely push the broader market up.

Click this link and check out the P&F chart at the bottom, target for the SP500 is 1065.
http://stockcharts.com/charts/gallery.html?$SPX

Lots of people will be doing the same as you. The whole point of the article I posted though is to try and show unexpected events.

 

[metric]

I'm a bit late to this lovers tif, but what's going to happen in 32 days....?

nothing good, i believe.

 

[MRC & Co]

Expect a pump n' dump scenario to play out now.

The old pump and dump hey, I like it!

 

[Uncle Festivus]

MAJOR RALLYS IN STOCKS OCCUR JUST BEFORE CAPITAL RAISINGS

Let's have a stab in the dark & say that Goldmans will report better than expectations????

 

[sinner]

The old pump and dump hey, I like it!

Check it out, the pump is done.

Courtesy Prieur du Plessis and StockCharts.com

 

[metric]

You must be kidding. I only mentioned Reinhardt, to point out that this sort of prediction is based in some reality rather than on the idea of Dominos eating Christian overlord which manipulate the markets on the days they post on their website.

That you think I was "chucking a rock" at you, speaks volumes. Why don't you just bugger off? This discussion has nothing to do with you, nor have you contributed anything useful to make me wish it did. Still waiting for that 1000+ drop on the Dow. For your boyfriend to have made any money he would have had to exit his shorts in March, indicating he didn't believe his own crash prediction.
.

hehehehe. sinner, setle down. you'll upset your prostate..