What a massive jam job the fed has coordinated in the equity markets. Equities will be in a bubble at 1000. I say that without sarcasm. Fins will get bid up before this "stress test". The stress tests that ignored the off-balance sheet toxins. Wouldn't surprise me if the drama around the tests results arent staged as well to give the impressions the examiners are being tough. They've did nothing but float up test baloons for weeks now. Postponing the results of the stress tests to dangle the carrot in front of the shorts face. You don't think Goldman isn't aware of every technical aspect of the indexes, do you? Remember, to them this has always been a crisis of confidence and not one of liquidity...They will go to any lengths to restore confidence without addressing the core problem.
I would love to see Goldman publish just how many orders they do on the buy side versus the sell side. I'm guessing they will be excluded from the "fair market" rules. GS is now responsible for more than half the volume on the NYSE. They are single-handily trading more shares than all the others combined. Also, their overnight risk is at record levels. Considering the GS and the US are basically the same thing, I suspect Supplemental Liquidity Program is actually to supplement the banks. Goldman is running over all the quant funds and the shorts, which creates further buying. Question is, how long can they keep this up? I've already said I suspected we'd squeeze straight to 912, and this is why. It makes me sick to see our government attempt to misrepresent the state of both the banking industry and the economy in an attempt to further an agenda to transfer wealth from the taxpayer to the banks. This transfer can come directly from taxation, or from losses a potential investor might incur due to this sham. The bond market and precious metals aren't fortelling green shoots.
The NYSE report that Zero Hedge discussed shows Goldman Sachs trading over 1 billion shares in the principal program trading category. What the table doesn’t show, but a deeper look at the numbers reveals is that the vast majority of this total is trades by our quantitative trading desk. This desk is participating in a relatively new NYSE program called Supplemental Liquidity Providers. The NYSE started the program to attract liquidity to the exchange. As an SLP, this the desk makes markets in NYSE stocks. They often do high-frequency trading (which is simply auto-quote market making) where they send out hundreds of “baskets” of stocks at one time. Program trading, as defined by the NYSE report is any strategy that sends out a “basket” of 15+stocks at one time. I am happy to discuss this with you if that description doesn’t make sense.
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