The Tanks Are Coming

Tyler Durden's picture

Submitted by Tyler Durden on 03/14/2014 13:50 -0400

With Interfax reporting that Belarus has begun full-scale military drills in a “readiness check”, images from Russia and Ukraine suggest the worst-case scenario – that Russia is making preparations to invade Ukraine, not just Crimea but perhaps as far west as Kharkiv, or even beyond – is more possible. Talks have broken down:
  • *LAVROV SAYS RUSSIA, U.S. REMAIN AT ODDS ON UKRAINE: INTERFAX
  • *LAVROV SAYS RUSSIA TO RESPECT `WILL’ OF CRIMEAN PEOPLE

Russia now has a massive force of tanks, troops, artillery, aircraft, and naval forces in position to potentially invade mainland Ukraine from Crimea in the south, but also from positions east and north of Ukraine.

DAX retraces to 50 fib and moves higher

12-18-2013 6-57-45 AM

 

  • MOAR: BOJ Said to See Significant Room for More Bond Purchases (BBG)
  • Meltdown Averted, Bernanke Struggled to Stoke Growth (Hilsenrath)
  • New Mortgages to Get Pricier Next Year (WSJ)
  • Republicans to Seek Concessions From Obama on Debt Limit (BBG)
  • Hunting for U.S. arms technology, China enlists a legion of amateurs (Reuters)
  • Jury Begins Deliberating in Case of SAC Portfolio Manager (WSJ)
  • BP to Write Off $1 Billion on Failed Well (WSJ)
  • Rajan Unexpectedly Keeps India Rates Unchanged to Support Growth (BBG)
  • Thai protesters say they will rally to hound PM from office (Reuters)
  • SEC Brings Fewer Enforcement Actions, Slows Early-Stage Probes (WSJ)

Massive short squeeze!!

Following last night’s freak central-planning accident (previously in history known as “selling”) in the S&P futures, we said that “we expect Overnight Ramp Capital to arrive promptly or else confidence in central-planning may take a hit ahead of the Wednesday Taperish FOMC, and Thursday’s double POMO.” A few hours later, even we were surprised by how high the low volume tape managed to drag ES, which staged a dramatic 20 point comeback, on the back of a sharp reversal in FX driven higher by both a stronger Euro (helped by better than expected German and Eurozone PMIs offsetting China PMI weakness, and lack of optimism in the core Japanese Tankan) and a weaker Yen, the two key signals for E-mini directionality. Sure enough, at last check the futures we trading just why of the “independence day” 1776, after briefly breaking the 50-DMA and then being supported by 1760 in the futures. The rest is perfectly predictable central-planning history.

12-16-2013 8-03-39 AM