Oct 29

- Historic Short Squeeze, Biggest In 3 Years, Sends Small-Caps Soaring; Dow Tops 17,000 (ZeroHedge, Oct 28, 2014):

n a strangely familiar case of deja vu all over again, stocks surged (alone in the cross-asset class world of economic reality) on the day before an FOMC statement. The Russell 2000 has had its best 10-day run in 3 years, best day of the year, and managed to scramble back to its 100- & 200-day moving-average. Dow 17,000 was another key technical level that was achieved. S&P 500 was levitated on volume around 40% below average into the green for October. VIX was banged under 15 and tracked stocks. Away from the equity-vol complex, asset-classes were unimpressed – HY credit, bonds, JPY, and the USD all diverged from stocks. USD weakened slightly, and commodities all gained on the day. TSY yields were up 2-3bps and HY closed practically unchanged. “Most shorted” stocks rose almost 3% – the biggest squeeze since Dec 2011 – smashing the Russell 2000 higher.

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Oct 29

Christmas is approaching and those bonuses are getting bigger that way.


- The Buyback Of Things: IBM To Repurchase Another $5 Billion In Stock In Next Two Quarters (ZeroHedge, Oct 28, 2014):

When all else fails, and there is no growth, what you gonna call? Buybackbusters!

A week after IBM reported atrocious earnings, due to a variety of issues but most of all because it simply repurchased the least amount of stock in the past  quarter in years (as it was approaching the limit of its buyback authorization), Big Blue is back to doing the one thing it does well: the buyback of things, in this case revealing its board has just authorized $5 billion in stock buybacks through April 2015 which means that with the $1.4 billion still under authorization, IBM is set to purchase about $3.2 billion in Q4 2014 and Q1 2015, each. And then, in April 2015, IBM will ask for an even bigger stock buyback authorization from its board. Which, clearly, the board – whose IBM stock will promptly rise as a result – will grant.

Just released by IBM: Continue reading »

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Oct 28

- Brazilian Stocks Plunge 6% To 7-Month Lows After Rousseff Win (ZeroHedge, Oct 27, 2014):

Just as we warned last night was indicated by the Japanese market’s Brazil ETFs, so the IBOVESPA has opened down over 6% this morning on very heavy volume following the ‘disappointing for the bulls’ electionvictory of Dilma Rousseff. Despite her associations with Petrobras (which may have suggested it bounced), the favorite Jim Chanos short is being crushed, down 14% at the open. The Real is tumbling too, breaking above 2.54 to its weakest against the USD since Dec 2008.

….

 

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Oct 27


25.10.2014

Description:

In this episode of the Keiser Report, Max Keiser and Stacy Herbert discuss the increasingly bankrupt British government as a sinking ship on George Osborne’s river of denial. They discuss the remedy for the ‘too many poor people’ for democracy problem being global trade deals like TTIP and TPP whereby elected leaders can claim ‘their hands are tied’ by contractual obligations. In the second half, Max interviews Helena Norberg-Hodge of LocalFutures.org about the Economics of Happiness in a time of rising inequality.

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Oct 25

- Does Anyone Else Think the Stock Market Is Living on Reds, Vitamin C and Cocaine?  (Of Two Minds, Oct 23, 2014):

This state of delusion would be amusing if it wasn’t so tragic.

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Oct 23

- Saxobank CIO Warns “Another Shock Drop Is Coming.. And It’s Coming Soon” (ZeroHedge, Oct 22, 2014):

Saxo Bank’s Chief Economist Steen Jakobsen is predicting another ‘shock drop’ in the markets within a few weeks. With debt and low inflation continuing to create a nervous atmosphere behind most markets, Steen argues that we will hit fresh lows in mid-November. Steen takes the view that central bank policy is creating a ‘fantasy land’ for investors and he points out that the recent ‘day dive’ in markets was a closer reflection of reality. Steen outlines his suggestions for trading ahead of another dip in mid November with targets for the S&P 500 around 1810 and the Dax at 8000 – 7800. Be long fixed income as it is “a free put on the equity market.. and the economic cycle is not yet ready to adapt to a rising interest rate.”

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Oct 23

- WTI Crude Slides Below $81 (ZeroHedge, Oct 22, 2014):

It appears some of the ‘fundamental’ legs of the face-ripping ramp in stocks are fading. Broken Markets – nope; Fed Speakers – nope (blackout period); Crude rising – nope (WTI back under $81)

20141022_crude

Why it matters… Continue reading »

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Oct 23

- Someone Didn’t Do The Math On The ECB’s Corporate Bond Purchasing “Trial Balloon” (ZeroHedge, Oct 22, 2014):

In other words, the “mega-leak” from the ECB will hardly scratch the surface in terms of the required liquidity injections, and certainly will be insufficient if at some point in the coming year, the BOJ finds it too has run out of collateral and is forced to wind down its own QE.

So after actually doing the math we wonder: how long before the market realizes Draghi’s latest bazooka was another water pistol, and how long until Reuters is forced to go with the nuclear leak – that the ECB is now considering monetizing ETFs and, gasp, stocks.

Because that, ladies and gentlemen, is the endgame here.

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Oct 21

Blood Red From Big Blue: Why IBM Is Crashing, In Charts (ZeroHedge, Oct 20, 2014):

Remember when three short months ago we revealed what was “the scariest chart in IBM’s history”, namely the one showing IBM’s total debt to equity ratio? With this chart, incidentally, we also explained why IBM’s ridiculous stock repurchasing strategy, which had seen $37.7 billion in stock buybacks since 2012, or more than the total debt issuance of $33.6 billion during the same period could not continue and why, inevitably, IBM would have a massively disappointing quarter? Well, that quarter just hit, when moments ago in an early press release, IBM reported abysmal adjusted EPS of only $3.68, a huge miss to the $4.32 Wall Street expected, mostly a function of one simple thing: the buyback “strategy” finally hit a brick wall.

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Oct 18

- Happy 27th Anniversary Black Monday (ZeroHedge, Oct 17, 2014):

“It could never happen again… right?”

20141017_Black Monday 1987

And if you think this time is different – just take a look at the ‘tricks’ they used 27 years ago to stop the fall – A Fed statement and borken/halted exchanges… Continue reading »

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Oct 18

- And The Market Breaks Again… (ZeroHedge, Oct 17, 2014)

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Oct 18

- Jim Rogers Warns: Albert Edwards Is Right “Sell Everything & Run For Your Lives” (ZeroHedge, Oct 17, 2014):

From Bitcoin to the Swiss gold referendum, and from Chinese trade and North Korean leadership, Jim Rogers covers a lot of ground in this excellent interview with Boom-Bust’s Erin Ade. Rogers reflects on the end of the US bull market. citing a number of factors from breadth to the end of QE, adding that he agrees with Albert Edwards’ perspective that now is the time to “sell everything and run for your lives,” as the “consequences of [The Fed] are now being felt.” Most notably though, Rogers believes the de-dollarization is here to stay as Western sanctions force many nations to find alternatives. Simply put, Rogers concludes, “we are all going to pay a terrible price for all this money-printing and debt.”

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Oct 17

- Prepare For Epic Volatility: E-mini Liquidity Is Nonexistant (ZeroHedge, Oct 16, 2014):

If you thought the last several days were volatile in the market, you ain’t seen nothing yet: judging by the early liquidity, or rather complete lack thereof, in the market moving E-Mini contract, the asset class through which as we disclosed a month ago central banks directly manipulate markets with the CME’s blessing, then we urge all those who have stop losses close to the NBBO to quietly pull those as they will get hit adversely. The reason? As this Nanex chart of ES orderbook levels show, there is zero, zilch, nada liquidity in the ES (purple line, compare to orange yesterday).

ES liquidity Oct 16

Which means that should yesterday’s volumes carry over into today (volumes which were so high, bank dark pools had to rebuff orders as they couldn’t handle the order surge) and move a market in which there is virtually no orderbook buffer, the S&P will certainly jump around like a rabid bull on meth. Continue reading »

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Oct 17

- 9 Ominous Signals Coming From The Financial Markets That We Have Not Seen In Years (Economic Collapse, Oct 14, 2014):

Is the stock market about to crash?  Hopefully not, and there definitely have been quite a few “false alarms” over the past few years.  But without a doubt we have been living through one of the greatest financial bubbles in U.S. history, and the markets are absolutely primed for a full-blown crash.  That doesn’t mean that one will happen now, but we are starting to see some ominous things happen in the financial world that we have not seen happen in a very long time.  So many of the same patterns that we witnessed just prior to the bursting of the dotcom bubble and just prior to the 2008 financial crisis are repeating themselves again.  Hopefully we still have at least a little bit more time before stocks completely crash, because when this market does implode it is going to be a doozy.

The following are 9 ominous signals coming from the financial markets that we have not seen in years… Continue reading »

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Oct 17

- This Time Is Different—–For The First Time In 25-Years The Wall Street Gamblers Are Home Alone (David Stockman’s Contra Corner, Oct 14, 2014):

The last time the stock market reached a fevered peak and began to wobble unexpectedly was August 2007. The proximate catalyst back then was the sudden recognition that the subprime mortgage problem was not contained at all, as Bernanke had proclaimed six months earlier. The evidence was the surprise announcement by the monster of the mortgage midway—–Countrywide Financial—-that it would be taking huge write-downs on its $200 billion balance sheet.

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Oct 16

- Dow Drops 1500 Points In 3 Weeks, Nasdaq Enters ‘Correction’ As VIX Breaks 30 (ZeroHedge, Oct 15, 2014):

From 17,350 intraday highs “proving the recovery is here,” we are 1500 points down just 3 weeks later. The Nasdaq just fell 10.5% from its highs, officially in correction. VIX broke above 30. Perhaps, just perhaps, the gap to fundamentals is finally about to be filled… Continue reading »

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Oct 16

- European Stocks Plunge, Enter Correction (-11% From Record Highs) (ZeroHedge, Oct 15, 2014):

Greece (-6.5% today), Italy (-4.4%), Spain (-3.6%), and Portugal (-3.2%) all saw major stock price collapses today dragging the broad European Stoxx 600 index down 11.4% from its highs just 18 days ago… All European stock indices are now red for 2014

20141015_EUEOD

All European national stock indices are red YTD… Continue reading »

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Oct 16

- A Stunned Wall Street Reacts To Today’s Epic Move (ZeroHedge, Oct 15, 2014):

The first report summarizing today’s stunning market action comes from FBN’s Jeremy Klein, who is out with this blurb:

In the first 15 minutes of trading the S&P 500 E-Minis traded below the S&P 500 cash index despite a fair basis, according to Bloomberg, of -6.72.  This is unheard of and something I have never witnessed in my near fourteen year career on the Street.  I can only conclude that many large institutions threw in the towel on the Open in wake of the dislocations in not only stocks but also treasuries.  Continue reading »

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Oct 16

Greece Is Crashing (ZeroHedge, Oct 15, 2014):

As we explained in detail yesterday, between governments hopes to exit the bailout program early (in order to save their election) – which the market does not like the idea of – and fears over the reality of OMT, Greek markets are tumbling. Greek stocks are down over 9% – the biggest plunge in 6 years and bond yields are surging… it appears the market is demanding Draghi get back to work as the “whatever it takes” gains have been halved (Greek stocks -35% from March 2014 highs). Continue reading »

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Oct 16

US, European Stocks Collapse As Oil Tests $80 Handle, 10Y Hits 2.15% (ZeroHedge, Oct 15, 2014):

Blood in the leveraged momo streets. Nikkei was crushed overenight as USDJPY could not hold 107. European stock indices are tumbling led by weakness in Spain, Portugal, and Italy. The peripheral bond markets are also getting crushed (spreads wider by 15-20bps). This has bled over into US equities with Nasdaq leading the way lower. Treasury yields are collapsing (10Y tests below 2.15%). The USD is modestly lower but oil is continuing to collapse testing the $80 handle for WTI. Continue reading »

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Oct 15

Faith

Why Is the Put-Call Ratio (Fear Gauge) Higher Than In The Lehman Collapse Of 2008? (ZeroHedge, Oct 14, 2014):

Moments ago, the Fed concluded its latest $931MM POMO, with just 6 more POMOs left ever (at least until another QE program is unveiled), and judging by the last week’s performance, the market has finally figured this out. And Goldman, which has been pounding the table on shorting the 10 Year for about a year now, and in the process crucifying even more muppets, has some bad news for TSY shorts: global growth is crashing.

Over the last week, global equities continued to slide, prolonging a trend that started in early September, according to the “first principal component” of a set of global equity indices (see Exhibit 1). And more recently, the S&P 500 and Germany’s DAX have succumbed to the pressure too, after a period of relative resilience. Declines have picked up steam. Over the last month, many of the markets we track experienced monthly declines that rank in the 5th percentile or worse, relative to their own past histories (see Exhibit 2). The S&P 500, DAX, and Canada (amongst others) had 1st percentile-sized declines. Said differently, monthly sell-offs of this size occur about once every five years.

Visually:

Continue reading »

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Oct 14

- This Is What Happens When Someone Is Desperate To Sell $750 Million Of Stocks (ZeroHedge, Oct 13, 2014):

At 1532ET today (Columbus Day – with half the market absent), someone – apparently having waited to see if the almost ‘ubiquitous’ 330pm Ramp would occur – decided it was time to dump three-quarters of a billion dollars notional of US equity market exposure in 1 second. The results of this forced liquidation (or utter disregard for fiduciary duty) were as follows…

A complete collapse of all liquidity in the S&P 500 e-mini futures contract – the world’s most liquid equity exposure vehicle…

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Oct 14

From the article:

“If central banks have learned anything since 2008, it’s that waiting around for the panic to deepen is not a winning strategy.

Put yourself in their shoes. Isn’t this what you would do, given the dearth of alternatives and the very real risks of implosion? Anyone in their position with the tools at hand would not have any other real option other than to buy stocks in whatever quantity is needed to reverse the selling and blow the shorts out of the water.

If $1 trillion doesn’t do the job, make it $3 trillion, or $5 trillion. At this point, it doesn’t really matter, does it?”

Unless their Rothschild overlords tell them to do simply nothing this time.


- Will the Fed Let the Stock Market Crash Before an Election?  (OfTwoMinds, Oct 12, 2014):

Anyone in their position with the tools at hand would not have any other real option other than to buy stocks in whatever quantity is needed to reverse the selling and blow the shorts out of the water.

Since I’m writing this on Sunday evening, if the Dow Jones Industrial Average opens down 1,000 on Monday morning, I’m going to look very foolish. Such is the risk of being contrarian. So what’s contrarian now–expecting a crash or expecting a bounce and rally?
Exactly what the sentiment consensus is right now is open to debate. Analysts expecting a stock market crash see those expecting a rebound as the consensus view. Continue reading »

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Oct 14

And ‘somebody’ surely made a lot of money with some put options like on 9/11.


- Manic-Buying Turns To Panic-Selling As ‘Illiquid’ Stocks Plunge To 5-Month Lows (ZeroHedge, Oct 13, 2014):

Just as we warned, liquidity was incomprehensibly low today (below normal pre-market levels during the peak of the trading day) and the intraday whipsaws were meteoric as a closed cash bond market enabled the slightest twitch in USDJPY to send S&P algos into conniptions. Biotech crashed. Trannies were ripped ridiculously higher at the open – then collapsed into correction (-11% from highs); US Airlines have fallen for 6 straight days, crashing 17% (with today’s 7% plunge – driven by chatter over airborne Ebola – its biggest in over years). Treasury futures implied a notable drop in yields across the curve (10Y -7bps at 2.21%, 30Y 2.97%, and 5Y 1.45%). The USdollar closed -0.33% led by EUR and JPY strength (but AUD surged 1% extending gains after China data).  Gold ($1234), Silver, and copper all gained on the day as WTI fell once again (despite some intraday strength in the middle of the day). Stocks “flash-crashed” on very heavy volume in the last 30 mins with VIX breaking above 24 (highest in 16 months). All major equity indices are now below their 200DMA with the worst 3-day loss since late 2011.

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Oct 14

- And The Nasdaq Breaks (Again) … (ZeroHedge, Oct 13, 2014):

Last night it was the Australian stock exchange’s trade-reporting system that broke… today, amid minimal liquidity, the Nasdaq’s trade-reporting system has glitched…

  • *NASDAQ TRADE REPORTING FACILITY MAY BE HAVING SOME DELAYS

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Oct 14

- BoJ Invisible Hand (Briefly) Rescues Nikkei From Sub-15,000 Plunge (Again) (ZeroHedge, Oct 12, 2014):

UPDATE: That didn’t last long… NKY back under 15k as JPY collapses

Heavy volume selling in Nikkei futures at the open sent the index down over 200 points and broke the oh-so-crucial 15,000 line. It appears – just as in August that 15,000 is the BoJ’s line in the sand as a miracle buyer turned up and lifted the index all the way back to 15,000 (whiule JPY remained lower and US futures saw no bounce). Of course, for those who prefer to ignore the fact that the BoJ is almost the biggest holder of Japanese stocks in the world and bought more stock ETFs than ever before in August, this is a clear signal of BTFD’ers back to save the world. For the rest of the sane rational fact-checking market participants, that ‘know’ the BoJ’s trigger to buy is a weak morning session, we wonder how much of this futures ramp is front-running… that will fade as JPY is not supportive at all.

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Oct 14

…And The Aussie Stock Futures Market Breaks Again, Due To “Glitch” (ZeroHedge, Oct 12, 2014):

Yet another global stock market has been halted due to a ‘glitch’.

20141012_ASX1

Following notable selling before China’s trade surplus printed considerably lower than expected: Continue reading »

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Oct 13

Flashback:

- Dubai and Abu Dhabi stock exchanges post record one-day falls (Telegraph, Nov 30, 2009)

Dubai’s index sank 7.3pc, its biggest one-day fall since October last year. Abu Dhabi’s Securities Exchange endured the largest one-day loss in its history as it ended the session down 8.3pc.

Only this time everything will be much, much worse.

Prepare for collapse.


- Ripple Effects Begin: Dubai Crashes Over 6.5%, Most In 14 Months (ZeroHedge, Oct 12, 2014):

It appears the weakness in US equity markets (the last of the hot money flow darlings to be hit) is now rippling back down the bubble-complex of world equity markets. Dubai, infamous for its huge surge in the last 2 years and 36x over-subscribed IPO of a company with no actual operationswhich marked the top before a 30% collapsewas open for business today and crashed 6.5%. This the Dubai Financial Markets General Index biggest daily drop in 14 months… the ripple effect is beginning.

It appears the hot money trades are slowly being unwound… commodities, EM FX, HY credit, and now US equities… Continue reading »

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Oct 11

666-satan

- Did Today’s “Satan Signal” In S&P Futures Give The ‘All-Clear’ For Selling To Begin? (ZeroHedge, Oct 9, 2014):

Even Bob Pisani knows by now that the European Close seems to create a trend-reversal moment intraday that few machines (and even fewer humans) are willing to fight. Whether this is remnants of short-term cycles found due to POMO or just a drop in liquidity is unclear; but what is clear, it happens, and all too regularly… except today. After a notably weak start to the day, the machines were just getting revved up for the 1130ET reversal to kick in and lift the market back to VWAP when a curious thing happened… “someone” canceled-and-replaced orders for 666 contracts 26 times in the 1130ET to 1200ET period… and selling accelerated lower, no reversal, to close at the lows on heavy volume.

We are sure this is nothing… just pure coincidence that on the 4th most active trading day in history and on following a huge surge day in stocks not trusted by any other asset class, someone would send 26 separate times in a few minutes orders for 666 contracts.

Only a tin-foil-hat-wearing digital dickweed would see anything odd about that: for everyone else this is merely yet another market anomaly that is best left unmentioned. Continue reading »

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Oct 09

And yes, TPTB are testing who is exposing them and is standing up to them.

FYI.



06.10.2014

Description:

V, the Guerrilla Economist, walks us through the labyrinth of the current economic crisis – yes, there is one, and gives us possible dominoes that might fall first, an event or series of events that will ultimately bring down the U.S. Dollar.The Guerrilla Economist, who has a proven near perfect accuracy rate, is the founder and operator of his website, Rogue Money at www.RogueMoney.net. We’ll explore the proxy war going on between Russia (and China) versus the United States, and how this proxy war is laying the groundwork for a potential shooting war, or WW III. Sound ominous? It is, more than most people realize. The Guerrilla Economist will also discuss the Silver and Gold manipulation, and where both metals are expected to be trading in the next 3, 6, 12 and 18 months. Also, Mike Rosecliff will be interviewed with the Guerrilla.

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