Wacky Wednesday Weeks

Over at a financial forum...

From the weekend: "IMHO, Fridays sell off into the close might indicate that: the post BOJ rotation I previously alluded to is in full swing...Some are connecting the dots so the 1859 to 1940 SP500 rally, could be the dead cat bounce we alluded to as the overall trend reasserts itself.  I said ES could test 1930 and to wake me up when it got there, where it was rejected in a big way.  I have a funny feeling this Super Bowl, Monday and week could all be ugly."

From Monday: "Must hold at ES 1850, 1825 was touched, hovering at 1835, failure to hold… June 2014 low of 1811 is next support down, failure there, Jan 2014 low of 1775 awaits and Aug 2013 1630 is the next stop below that.  TBD." 

Stockbern: "Dammit Mr Naybob, I hate when you're right.   " snarly face smiling emoji""

Thouest invoke me... It's not about being right, just in the right position at the right time. Timing IS EVERYTHING, especially while waiting for the target to walk into the crosshairs. Ask Blondie or the Man with No Name.

Today Thursday: SP500 futures 1869 to 1840 to 1807, currently taking a breather while trying to crawl back to 1830. 

Goldman Sachs had to abandon FIVE or their SIX top trade calls from 2016. Hedges, short covering, how many wrong way bets are out there? I might have mentioned wacky Wend before, weeks prior to option expiration are wacky, especially mid week when positions unwind.  This can be especially painful when multiple long duration bond auctions are concomitant like this week: Tues 3 yr; Wend 10 yr; Thurs 30 yr.  

Those bond auctions can tie up (in repo and reverse repo) what is at the moment, limited dealer and commercial bank balance sheet resources, cash vault, short duration UST's, HQLA (high quality liquid assets), causing fits of liquidity, bouts of liquidation and the indigestion of margin calls/squeezes in the markets.  

More mad natterings here (cash hoarding due to ZIRP/NIRP) and here (why the hoarding and asset rotation effects market liquidity). And yes, they are in trouble, and the central banks have emptied their Colt 1851 Navy. IMHO they will lobby to get out of some impending regulatory requirements, and get reserve requirements lowered, amongst other measures.  TBD.  Chillin Sonny Crockett with Wayfarer's Emoticon. Out.