AuthorTopic: WTF: oil jumps 6.7% in 2 hours on no news  (Read 648 times)

Offline Palloy

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WTF: oil jumps 6.7% in 2 hours on no news
« on: February 25, 2016, 07:09:30 PM »


Why would the price of the oil future contract, which is 26 days from closing, suddenly jump 6.7% in 2 hours?

http://www.zerohedge.com/news/2016-02-25/somebody-propped-markets-again-yesterday
notes there was a data release of the amount of oil in storage at Cushing, but that that couldn't have been the reason.
However they didn't tie in the "technical difficulties" with the Fed's 7-year UST auction, which was delayed 24 hours only 10 minutes before the auction started.

"Technical difficulties" also delayed the previous day's MBS POMO, which is a way that the Fed uses to feed liquidity in the Mortgage-backed securities market.  This also had a similar (but smaller) impact on oil, and also on the stock market, and even more so on the "most shorted" stocks.  http://www.zerohedge.com/news/2016-02-25/here-reason-sudden-buying-spree

So what does it all mean?  ZH admits it is impossible to tell, but it does seem that fake "technical difficulties" at the Fed were used to stamp on the increased shorting going on, in coordination with some big buyers who weren't trying to get the best value for their money.

If you think the stock market is going down, but can't afford to go short in case the FED/JPM stamp on you, then what would you do? - leave the stock market and oil futures market alone.  Piss off, we don't want your kind here.

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Offline MKing

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Re: WTF: oil jumps 6.7% in 2 hours on no news
« Reply #1 on: February 25, 2016, 07:38:24 PM »
So what does it all mean?  ZH admits it is impossible to tell, but it does seem that fake "technical difficulties" at the Fed were used to stamp on the increased shorting going on, in coordination with some big buyers who weren't trying to get the best value for their money.

Well, at least they admitted up front that their guess is as good as anyone else's. Or that it might even be nothing at all.

BUT MY MADE UP STORY SOUNDS COOL SO LETS PIMP THE SHIT OUTTA IT!!!!!

Sometimes one creates a dynamic impression by saying something, and sometimes one creates as significant an impression by remaining silent.
-Dalai Lama

 

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