Submitted by Tyler Durden on 11/03/2010 15:35 -0500
After last week's minimal outflow of "just" 218 million, Bob Pisani could already taste victory and preemptively claimed that there already were inflows into stock mutual funds. Luckily, today's ICI data puts an end to yet another piece of blatant CNBC propaganda. For the week ended October 27, ICI registered a $2.9 billion outflow from domestic equity mutual funds, making 26 straight weeks, or half a year, of neverending outflows. This brings the total to $84 billion. But fear not: now that the Fed will be buying $110 billion worth of stock via the Primary Dealers, courtesy of over 100 POMO operations over the next 8 months, it is more than clear who will be buying any and all stock in the stock market. In the meantime, the HFTs, the PDs, and Brian Sack will be riddled with so many hot potatoes they need to dump to idiot retailers (and good luck dumping that GM POS to retail investors), Wall Street will soon become the world's biggest potato farm.
2. The official number for QE2 came in at the lower end as expected but the official number of 600 bil. came with some additions bringing it to 850 rather - which triggered a spike which is needed for a closure of this pattern. We are still in week 9 count and the Vix needs to complete a daily 13 count which makes a test of the 17-8 level mandatory within the next days actually we need 3 lower closes starting from the lowest recent close. The Dollar Index needs 2 lower closes and NDX 2-3 higher closes.as the Sox needs to reach 380 level. Bottom line the spike will go into early next week but one needs to be on full alert though as nature already signals with Indonesian volcano already busy and Iceland about to get busy again.