Jun 29

H/t reader squodgy:

“This one has been quietly bubbling in the background since we were told a year ago that world demand was falling off a cliff……now the results are coming in……

This could trigger the US collapse in sync with Greece triggering other EU defaults and the euro collapse.

Can only be good news seeing as the alternative is financial oppression and austerity to support the banksters. Hey…a return to the Wild West!”


market-detonation

The Market Detonation You’re Ignoring: “The Chinese Market Is In An All-On Crash” (SHFTplan, June 27, 2015):

With the eyes of the world on Greece and a possible collapse of the of the Eurozone as a likely end result, many are ignoring a potentially much more massive elephant in the room. It’s been the hottest market in the world, so flush with cash that they have actually built entire ghost-cities lacking populations and mega shopping centers without tenants – a clear sign of bubble waiting to be pricked. But the inevitable seems to now be taking hold as once unstoppable Chinese stock markets are now reversing the unprecedented gains seen over the last several years.

Forget Greece. We’ve seen that story before. This could be the first domino:

The Chinese market is in an all-on crash. Continue reading »

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Jun 29

European banks are suffering the exact ‘contagion’ that we were told numerous times would be contained ... led by limit down moves in Italy.


“Uncontained” – Greek Stocks Crash 17% As European Banks Plunge Most In 3 Years (ZeroHedge, June 29, 2015):

Despite the Greek stock market being closed there is an option for hedging the exposure that all the smart money has been building to Greece in the past few days – GREK – the US-trade Greek ETF. In the pre-open, GREK is trading down 17% but the problems lie ahead as more and more realize how illiquid it is and redemptions are forced to be made from ‘cash’ – since there is no way to offload the underlying Greek stocks, unless OTC trades can be arranged with other entities – which could thus expose the entire false-liquidity-facade of the ETF industry. Continue reading »

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Jun 29

Greek Contagion Spreads As Several Italian Bank Stocks Failed To Open (ZeroHedge, June 29, 2015):

While things have normalized since the open thanks entirely to the SNB’s aggressive EUR-buying, CHF-selling intervention (good to see that central banks have read the BIS’ report and have learned from their prior intervention mistakes), earlier this morning we got a snapshot of what happens if and when the SNB, and then the ECB itself, finally lose control when as a result of the Greek crisis the contagion promptly spread a few hundred kilometers west to Italy where as the WSJ reported, “several Italian banks failed to start trading on Monday as fears over a Greek debt default induced many investors to shed peripheral stocks, including Italian, with banks suffering the most.

As the paper reported sales orders on Italian stocks, in particular financial stocks, piled up before the market opening. At the start, the sales orders were so numerous that the system couldn’t manage to process them, something that often happens when specific news causes a sell-off on a stock. Continue reading »

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Jun 29

Carnage Continues: EU Equity Futures Crash 7%, Bund Yields Plunge 20bps, Italy/Spain Bonds Dumped (ZeroHedge, June 29, 2015):

It appears Greece matters after all – US futures are tumbling, Japanese stocks are tanking (as JPY is bid on mass carry unwinds), Chinese stocks are limit down and collapsing.. and now European equity futures are open and in free-fall. Bunds are well bid, down 20bps to 72bps.

  • *EURO STOXX 50 FUTURES FALL 7% AT MARKET OPEN

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Jun 29

Chinese Stocks Crash Most In 19 Years, Re-Open Limit Down (Despite PBOC Hail Mary) (ZeroHedge, June 28, 2015):

Carnage…

  • *CHINA STOCK PANIC SELLING TO CONTINUE, CENTRAL CHINA ZHANG SAYS

This leave China’s CSI-300 broad stock index futures up just 7% year-to-date…

  • *CHINA CSI 500 STOCK-INDEX FUTURES FALL BY MAXIMUM 10% LIMIT
  • *CHINA CSI 500 STOCK-INDEX FUTURES FALL BY LIMIT FOR 2ND DAY

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  • *HKEX DROPS AS MUCH AS 7.3%, MOST SINCE SEPT. 2011
  • *SHANGHAI COMPOSITE INDEX EXTENDS DROP TO 7.5%
  • *SHANGHAI COMPOSITE HEADS FOR BIGGEST 3-DAY DROP SINCE 1996 Continue reading »

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Jun 28

Greece

Greek Capital Controls Begin: Greek Banks, Stock Market Will Not Open On Monday (ZeroHedge, June 28, 2015): 

Update 2: Greece’s Skai reports that if/when banks reopen (supposedly on Tuesday), a 60€ withdrawal limit will be imposed.

Update: In a televised address to the nation, Greek PM Alexis Tsipras assured Greeks that their deposits are safe despite an upcoming bank holiday and despite the fact that Greek stocks will not open for trading on Monday. Tsipras also said Athens has re-applied for a bailout extension and urged Greeks to “remain calm” in the face of what is sure to be a turbulent week.

  • GREEK PRIME MINISTER SAYS GREEK PEOPLE SHOULD REMAIN CALM
  • GREEK PM: BANK OF GREECE PROPOSED BANK TRANSACTION RESTRICTIONS
  • GREEK PRIME SAID GREECE RE-APPLIED FOR BAILOUT EXTENSION
  • GREEK PRIME MINISTER SAYS DEPOSITS ARE COMPLETELY SAFE

Earlier: Continue reading »

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Jun 28

“Spread Bet” Early Market Opening Indications: Stocks Tumble, Europe Crashes (ZeroHedge, June 28, 2015)

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Jun 26

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“Blood On The Streets”: Chinese ‘Nasdaq’ Crashes Most On Record, Morgan Stanley Warns “Don’t Buy This Dip” (ZeroHedge, June 25, 2015):

Is it time to step in and buy the dip in Chinese mainland shares after last week’s harrowing 13% decline on the SHCOMP? Absolutely not, Morgan Stanley says.

*CHINEXT PLUNGES 8.3%, BIGGEST ONE-DAY LOSS EVER (down over 27% from highs)

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Jun 24

Recovery!


france-jobseekers

–  French Unemployment Hits Record High: 80th Consecutive Month Of Rising Joblessness (ZeroHedge, June 24, 2015):

While French president Hollande is busy “grilling” (in the words of The Local) president Obama over the latest US “spying on its allies” snafu, the French economy continues to deteriorate and according to the latest French labor ministry data, in May the number of French jobseekers rose by another 0.5%, or 16,200, to 3.552 million, 10k more than expected, and a new all time high.

The number was 5%, or 168,500 greater, compared to a year ago as the so-called European recovery has yet to have a positive impact on what is supposed to be Europe’s second strongest economy.

Most troubling: this is the 80th consecutive month of increasing Y/Y unemployment, yet stocks are delighted of course.

Continue reading »

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Jun 20

H/t reader squodgy:

“Everything these days seems to be “Smoke & Mirrors”, but the reality is that the PTB must somehow detract our attention from the fact their FIAT monetary system which has turned into a debt based monster, incapable of honesty or economic clarity, and must somehow either default or collapse soon.

Kicking the can down the road to delay the inevitable, using QE for as long as it takes, whilst the Alternative Media & Vladimir Putin diffuse the false arguments for war.

However, he is growing weary & frustrated at the continuous poking , and the Banks are becoming edgy.

Should there not be a War by the time the financial bubble of debt explodes, the illegality and futility of the banksters’s acts will be exposed even to Joe BigMac,
That is unacceptable, so, they have estimated the cut off date to coincide with the third blood moon of the Shemitah, or approximately the 23rd September 2015.

Anyone wanting to risk their savings on the same 7 year cycle that included the 9/11 event and the 2008 financial collapse, is a brave man, considering the next step will be confiscation, or, officially “Bail-in”.”


Traders

‘It’s time to hold physical cash,’ says one of Britain’s most senior fund managers (Telegraph, June 20, 2015):

It may be time to money under the mattress. High profile fund managers explain how to prepare for a ‘systemic event’

 The manager of one of Britain’s biggest bond funds has urged investors to keep cash under the mattress.

Ian Spreadbury, who invests more than £4bn of investors’ money across a handful of bond funds for Fidelity, including the flagship Moneybuilder Income fund, is concerned that a “systemic event” could rock markets, possibly similar in magnitude to the financial crisis of 2008, which began in Britain with a run on Northern Rock. Continue reading »

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Jun 19

As US Soars, Chinese Stocks Crash 13% – Worst Week Since Lehman (ZeroHedge, June 19, 2015):

As the carnage began last night in China we noted the extreme levels of volatility the major indices had experienced in recent weeks. By the close, things were ugly with the broad Shanghai Composite down a stunning 13.3% on the week – the most since Lehman in 2008 (with Shenzhen slightly better at down 12.8% and CHINEXT down a record-breaking 14.99%).

Over 1000 Chinese Stocks were limit-down last night!

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Jun 19

China Is Turmoiling (ZeroHedge, June 18, 2015):

For the 2nd time in a month, China’s Shanghai Composite entered a correction, plunging 10% from local highs as headlines of delayed IPOs and large-scale steel ‘dumping’ at a loss combined with global monetary policy fireworks and European event risks. The rest of the more highly sensitive and manic Chinese equity markets are also plunging with CHINEXT and CSI-300 down over 7% in the last month (and 17% from the highs in the case of the former).

Chinese stocks have gone nowhere in a month…

china-stock-market

Before you read on – STOP and look at the volatility we are talking about here… multiple 10 to 15% swings in major stock indices in the last month. Compare that to the US market’s idiocy where we have seen no vol whatsoever in the last six months. Continue reading »

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Jun 14

Two of the Most Economically Sensitive Commodities Suggest a Crash is Coming (ZeroHedge, June 13, 2015):

In short, the era the phony recovery narrative has come unhinged.  We have no entered a cycle of actual price discovery in which financial assets fall to more accurate values. This will eventually result in a stock market crash, very likely within the next 12 months.

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Jun 09

Meet China’s New ‘Investor’ Class: “It’s A Lot Easier To Make Money From Stocks Than Farmwork” (ZeroHedge, June 9, 2015):

After a very modest drop last week, outstanding margin trading balances in China have resurged to record highs this week as ‘correction’ dip buyers rampage back into the markets, hopeful of China’s inclusion in (and devastation of) the MSCI indices. With China’s market cap now nearing $10 trillion (40% of USA’s, up from just 14% last year), we thought a profile of just who is buying Chinese stocks – from plastic umbrella makers up 3000% this year to ponzi schemes like Hanergy. As one middle-aged rural Chinese chap exclaimed jubilantly, “it’s easier to make money from stocks than farmwork.”

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Jun 08

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Dow Red In 2015 As S&P Takes Out Key Support: Trannies Tank, Crude Clipped, Dollar Dumped (ZeroHedge, June 8, 2015)

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Jun 01

“By Almost Every Measure Stocks Are Overvalued” Warns Goldman After Slamming Corporate Buybacks (ZeroHedge, June 1, 2015):

Over the weekend, we first reported that none other than Nobel prize winner Robert Shiller said that in his opinion, unlike 1929, this time everything – stocks, bonds and housing – was overvalued. Curiously, none other than Goldman’s chief equity strategist, David Kostin echoed this sentiment when in his latest weekly note to clients he said that “by almost any measure, US equity valuations look expensive. The typical stock in the S&P 500 trades at 18.1x forward earnings, ranking at the 98th percentile of historical valuation since 1976. For the overall index, the aggregate forward P/E multiple equals 17.2x, a rise of 63% since September 2011, compared with the median expansion of 48% during 9 previous P/E expansion cycles. Financial metrics such as EV/EBITDA, EV/Sales, and P/B also suggest that US stocks have stretched valuations. With tightening on the horizon, the P/E expansion phase of the current bull market is behind us.

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Jun 01

You are here


Stock-Market-Overvalued

Is The Stock Market Overvalued? (Economic Collapse, May 31, 2015):

Are stocks overvalued?  By just about any measure that you could possibly name, stocks are at historically high prices right now.  From a technical standpoint, the stock market is more overvalued today than it was just prior to the last financial crisis.  The only two moments in U.S. history that even compare to our current state of affairs are the run up to the stock market crash of 1929 and the peak of the hysteria just before the dotcom bubble burst.  It is so obvious that stocks are in a bubble that even Janet Yellen has talked about it, but of course she will never admit that the Federal Reserve has played a key role in creating this bubble.  They say that hindsight is 20/20, but what is happening right in front of our eyes in 2015 is so obvious that everyone should be able to see it.  Just like with all other financial bubbles throughout our history, someday people will look back and talk about how stupid we all were. Continue reading »

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May 29

china-shenzhen-nasdaq

A Tale Of Two Bubbles: China vs Nasdaq (ZeroHedge, May 29, 2015)

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May 28

The Pentagon says it accidentally sent live anthrax spores to laboratories

Anthrax: Pentagon accidentally sent bioweapon to as many as nine states (Guardian, May 28, 2015):

Department of Defense meant to send dead or inactivated spores, but government does not believe there is a risk to the public, spokesman says

The Pentagon has conceded it accidentally shipped samples of a live bioweapon across nine states and to a US air base in South Korea.

In an extraordinary admission on Wednesday, the Pentagon revealed what it called an “inadvertent transfer of samples containing live Bacillus anthracis”, or anthrax, took place at an unspecified time from a US Defense Department laboratory in Dugway, Utah. Continue reading »

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May 26

Chinese Stocks Are Now Up Over 100% Year-To-Date (ZeroHedge, May 25, 2015):

Another day, another dip to be bought aggressively in China. The only catalyst for moar – aside from “well it was up yesterday” – is the news that the Shanghai-HK Stock Exchange aggregate quota will be abolished, leaving room for more speculative excess to flood into 500%-gainers.  CSI-300 is now up almost 6% since Friday’s close and Shenzhen and CHINEXT are soaring back from underperformance yesterday. To round things out on a superlative note, the Shenzhen Composite – which contains all the ponzi-based self-collateralized idiot-makers, is now up over 100% year-to-date. Simply put, you can’t keep a bad market down…

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