Fed reduces monthly Stock prop by $20 Billion, Market drops

[OriginalShroom]

I've been saying for months not to trust the Stock Market, that it was being artificially propped by the Fed who was dumping $85 Billion a month into it.

The Obama knee-padders have been claiming that that money had nothing to do with it, that it was Obama's policies keeping the Stock Market up.

Last week the Fed announced a reduction by $20 Billion and the market has last in excess of 600 points.

What is going to happen when that $65 billion is further reduced?

 

[iamwhatiseem]

Pretty much...they couldn't get our money via sales - so they just took it instead.
Hope and Change

 

[JimBowie1958]

Between the QE pump and the HFT's trading for institutions, there aren't that many people as a percentage participating any more. HFT apps do about 70% of all trades.

Algorithmic trading - Wikipedia, the free encyclopedia

A third of all European Union and United States stock trades in 2006 were driven by automatic programs, or algorithms, according to Boston-based financial services industry research and consulting firm Aite Group.[9] As of 2009, studies suggested HFT firms accounted for 60-73% of all US equity trading volume, with that number falling to approximately 50% in 2012.

And most HFT trading is not done by HFT trading companies as almost all institutions are getting into it and most are clones of the same basic algorythms.

What happens when all the HFT algos say 'Sell?'

 

[SteadyMercury]

Market was definitely due for a correction after the ridiculous gains of 2013. What sucks is there aren't many places to hide, intl equities are also taking it in the ass. Hopefully the carnage won't be too bad and we can finish the year at least flat and maybe with a slight gain. Who knows.

I've been saying for months not to trust the Stock Market

I'm not sure anyone should "trust" the stock market, it goes up and it goes down I would think most investors understand that.

Are you thinking DIJA will drop down past 13,600 where it was when QE3 started?

 

[HenryBHough]

9,500.

THEN think about buying.

And stop right there. Just think about it.

 

[OriginalShroom]

Steady Mercury, I should have said not to trust the Stock Market as a sign of a healthy U.S. economy.

It had been being propped up for far too long.

Molon Labe

 

[jon_berzerk]

I've been saying for months not to trust the Stock Market, that it was being artificially propped by the Fed who was dumping $85 Billion a month into it.

The Obama knee-padders have been claiming that that money had nothing to do with it, that it was Obama's policies keeping the Stock Market up.

Last week the Fed announced a reduction by $20 Billion and the market has last in excess of 600 points.

What is going to happen when that $65 billion is further reduced?

thank your lucky stars

that congress is divided

had it been all leftist

we would all be complaining about

the new mandate to purchase government bonds

or pay a fine

 

[LoneLaugher]

WoooooooooHooooooo! Bad news!!! Yeeeeeeeaaaaaaaahhhhh!

 

[Politico]

Market was definitely due for a correction after the ridiculous gains of 2013. What sucks is there aren't many places to hide, intl equities are also taking it in the ass. Hopefully the carnage won't be too bad and we can finish the year at least flat and maybe with a slight gain. Who knows.

I've been saying for months not to trust the Stock Market

I'm not sure anyone should "trust" the stock market, it goes up and it goes down I would think most investors understand that.

Are you thinking DIJA will drop down past 13,600 where it was when QE3 started?

I have been saying it for years right here. There was no other way it could go.

 

[Geaux4it]

The market will collapse just like our economy.. All on Obama's watch.

The 10yr should be rising and its not. That begs to question.... What does the 10yr know that we don't? Some are going to find out quickly why DHS has been stocking up on ammo like no other

I predict Janet will have to fire the QE press up to full speed

-Geaux

 

[Politico]

The conspiracy section is thataway.

 

[Delta4Embassy]

I've been saying for months not to trust the Stock Market, that it was being artificially propped by the Fed who was dumping $85 Billion a month into it.

The Obama knee-padders have been claiming that that money had nothing to do with it, that it was Obama's policies keeping the Stock Market up.

Last week the Fed announced a reduction by $20 Billion and the market has last in excess of 600 points.

What is going to happen when that $65 billion is further reduced?

Hate to sound like the people of Krypton (in the original) saying the star's anomolous behaviour isn't anything to worry about, but I think this is just the 10% correction often seen in the market. I do believe that eventually we're going to see our imaginary money and everything it's based upon (like global markets) evaporate altogether, but there's no indication that that's happening right now.

 

[Geaux4it]

The conspiracy section is thataway.

I think I'll stay here thank you

-Geaux

 

[Politico]

Well then we should set the loon theories straight. The economy is not going to collapse.

 

[Geaux4it]

Well then we should set the loon theories straight. The economy is not going to collapse.

So you agree with me then that Janet needs to fire the QE press back up to full speed? If not, while factoring in the reduction of QE that has kept the economy afloat, what will be the catalyst to bring us out of demise?

-Geaux

 

[Politico]

No I just clarified your conspiracy theory.

 

[Geaux4it]

ManofTruth

-Geaux

[youtube]-Th6ZDMMW-o[/youtube]

 

[jknowgood]

Obama doesn't care if the economy collapses, all his knob polishers will still be polishing his knob. Remember obama cannot do no wrong and if you think he can, well than your just a racist!

 

[Geaux4it]

Obama doesn't care if the economy collapses, all his knob polishers will still be polishing his knob. Remember obama cannot do no wrong and if you think he can, well than your just a racist!

For sure.. I wonder when America will quit apologizing to the Black community. I think (2) elections covers it. But keeping silent in the face of being called a racist, is unacceptable.

-Geaux

 

[editec]

I've been saying for months not to trust the Stock Market, that it was being artificially propped by the Fed who was dumping $85 Billion a month into it.

The Obama knee-padders have been claiming that that money had nothing to do with it, that it was Obama's policies keeping the Stock Market up.

Last week the Fed announced a reduction by $20 Billion and the market has last in excess of 600 points.

What is going to happen when that $65 billion is further reduced?

See Pre-Market Trading Data as of Feb 3
Monday’s Close:

Dow-326.05

15,372.80 -2.08%

Nasdaq-106.919

3,996.96 -2.61%

S&P-40.7

1,741.89 -2.28%

A 2% correction?