part 2

zerohedge is really excellent in finding those correlations - as expected per yesterday we briefly turned around to test yesterdays gap - tomorrow we should drop again.

excerpt

A Butterfly Flaps Its Wings And The Market Goes Up...

Submitted by Tyler Durden on 08/25/2010 13:47 -0500

No, this is not some new age chaos theory mantra - it is a direct observation of what has recently been, and continues to be the primary source of funding for the market: the ES is now following the 2s10s30s butterfly tick for tick, as stocks no longer have faith that Central banks will do everything in their power to preserve the Ponzi regime. So any move in the butterfly's wings result in an immediate HFT mediated ramp in stocks, which in turn pushes all other risky pairs into the stratosphere. And yes, today will be one of those days where Mr. Brian Sack of the FRBNY's open market manipulation committee, who unfortunately will not be able to make the Jackson Hole meeting this year due to "market conditions" on Wednesday through Friday, will do all in his power to get stocks, bonds, gold and oil all up, now that the economy is confirmed to be in a depression. Incidentally, all those who hope the Fed will announce QE w this Friday, will be disappointed. (reference: Jim Hatzius comments from last night).