Latest Central Bank Sticksave Halts Futures Slide, Sends E-Mini Soaring After ECB Said “Looking To Buy Bonds”

Jon Alternative Media, Blogosphere, Economy, Market Commentary

Another day, another central bank sticksave.
Moments after Europe’s open, when once again the equity futures complex was threatening to break the upward trendline, after USDJPY took out stops and sliding below 106.3, pushing bonds both in Europe and the US to intraday highs, and the ES to session lows just above 1890, and then… here comes the ECB rumor cavalry, this time in the face of Reuters which blasted the tape with:
ECB LOOKING TO BUY CORPORATE BONDS ON SECONDARY MARKET: REUTERS And because in this centrally-planned market no amount of GPIF or ECB doing what everyone knows they are doing headlines can not surprise the algos, ES has soared over 20 points from the overnight lows and is now solidly above the 200 DMA which was the clear intention of this latest sticksave.
Ironically, this happens even as the “pundits” interpret yesterday’s stronger than expected Chinese data as indicative of more China stimulus, not less! As Bloomberg summarized, “stronger-than-estimated economic data failed to convince analysts that China’s authorities will refrain from introducing more targeted measures.”
So first it was China reported better than expected goalseeked GDP “data” (if still the worst since 2009) which was evidence ofmore stimulus, not less, and then Reuters leaked today’s central bank “all green to buy stocks” headline.
To summarize: the S&P 500 is now almost 100 points higher from last Tuesday as the global central bank plunge protection team of first Williams and Bullard hinting at QE4, then ECB’s Coeure “ECB buying to start in a few days”, then China’s latest $30 billion “targeted stimulus”, then the Japanese GPIF hinting at a 25% stock rebalancing in the pension fund, and finally again the ECB, this time “buying of corporate bonds on secondary markets”, rolls on and manages to send stocks into overdrive. Even asabsolutely nothing has been fixed, as Europe is still tumbling into a triple-drip recession, as Emerging Markets are being slammed by a global growth slowdown and the US corporate earnings picture is as bleak as it gets.

This post was published at Zero Hedge on 10/21/2014.