Cupertino, We Have A Problem: China's JD.Com Just Cut Prices On Apple Products By 17% cut prices of Apple products on the internet marketplace by as much as 17%, according to information on the JD website. Customers can also purchase Apple products in 12 monthly installments with no interest charges and no downpayment." Among the discounts, iPad Air tablet with 16GB memory is priced at CNY 2,399 (USD 365), compared with CNY 2,888 on the Apple online store in China. The iPhone 6s Plus handset with 64GB memory is priced at CNY 6,288, compared with the official price of CNY 6,888.

The Resurrection Of The Dying Art Of Economic Analysis (Or When The Fed Fails)

Detailed analysis of economic data is a dying art. The past seven year bull-market has largely justified the logic of such an approach, but the frenzied panic of the last month raises the question of whether investors will know how to adapt if the framework changes again. Recent market ructions offer the first evidence that central banks may be near the limit of their ability, or their willingness, to keep pumping up asset prices.

Market Reaction To "Not Dovish Enough Statement" - Disappointment

Fed Funds futures now imply the next rate hike will not occur until at least H2 2016 and this level of fear about the economy appears to have spooked stocks and crude and put a bid under bonds and bullion... VIX is chaos as the machines try desperately to get stocks higher...

Fed Mouthpiece Parses Back-Pedaling Fed Statement

"The Federal Reserve signaled renewed worry about financial market turbulence and slow overseas economic growth, but didn’t rule out raising short-term interest rates in March."

FOMC Preview: "A Rate Cut Is Very Much In The Mix"

This is the first meeting we can remember where serious and important market participants differed so strongly on the issue of what they ought to do. It’s not just hold or raise, cut is very much in the mix.

Ugly 5 Year Auction Results In Biggest Tail In Months

While many were surprised when yesterday's 2 Year auction saw absolutely blistering demand, including a near record Indirect take down and a yield stopping deeply through the When Issued, none of that was on display in today's 5 Year auction which concluded moments ago when the Treasury sold $35 billion of Cusip N89 at a yield of 1.496%. The problem: this was 0.9 bps wide of the When Issued and one of the biggest auction tails in recent months.

US Economy: On A Knife's Edge

We may not yet have final confirmation that a recession is imminent, but so far nothing suggests that the danger has receded.

23,144 Ways America Created Terrorists In 2015

“The Effort to purify the world is self-defeating; the United States becomes a Sisyphus with bombs, able to set off explosions, but unable to cope with its own burden." The more aggressive their attempts to eradicate evil, the stronger evil becomes on both sides. Each of the 23,144 bombs dropped on Muslim countries in 2015 potentially created another terrorist.

Stocks Storm Green, Oil Surges After Russia Says Will Discuss "Possible Production Cuts With OPEC"

For those wondering what matters in this market, here is the answer: moments ago US stocks stormed into the green, following oil which after some confusion after today's massive DOE inventory build, has surged back over $32, one just one piece of news: moments ago both Reuters and Bloomberg cited the CEO of Russia's Transneft, who said that Russia and OPEC will discuss possible output cuts: BREAKING: Russia's Transneft says Russia and OPEC will discuss possible output cuts -TASS; RUSSIA TO DISCUSS OIL OUTPUT LEVELS W/ OPEC: TOKAREV

The Illusion Of Safety: Index Funds Are Not Low-Risk

The financial service industry's Prime Directive is to exploit humanity's core drives of Greed and Fear. Financial service companies promise high returns (fulfilling our greed) that are low-risk, i.e. "safe" (placating our fear of losing our nest-egg). But the safety of many supposedly low-risk investments is illusory.

Goldman Trading Desk's 4 Reasons For A Tactical Bounce Ahead Of Renewed Shorting Between 1925-1950

"S&P e-minis have now rallied 5% off the YTD low print (1804.25). As we see it, the argument for a continued short-term, tactical bounce in S&P is: 1) month-end pension rebalancing (GS expects $14bn of equities to buy as of 22Jan );2) majority of corporates exiting their buyback blackout window next week;3)perceived reduction of CTA driven equity supply an 4) oversold conditions (Kostin’s Sentiment Indicator was at 3 last Friday). I still think the market is going to look to re-initiate shorts between 1925-1950."

Oil Oscillates As Inventories Surge Most In 9 Months And Demand Plunges

Following last night's huge 11.4mm barrel inventory build forecast from API (the largest since 1996), DOE reports an 8.4mm build (against analysts estimates of +4mm). It seems the blowback from the huge gasoline and inventory builds is flowing back upstream to crude but there is some good news as Cushing saw a 771k draw after 11 weeks of builds (and production dropped very modestly). On the demand side, it's just as ugly with Gasoline demand -2.5% YoY and Distillate demand down a stunning 14.8% YoY. Having tested the API ledge in prices twice this morning, WTI is hovering between $30.50 and $31.

New Home Sales Spike To 8 Year Highs, Prices Tumble To 7-Month Lows

Following existing home sales post-regs change spike, new home sales (after 9 months of missed expectations) soared 10.8% in December to a seasonally-adjusted annualized rate of 544k (smashing expectations of just 500k). This is 1k short of the February 545k highs going back to Feb 2008. Median home prices dropped however (a good thing for affordability but not so much for The Fed's wealth illusion machine) to the lowest since May.

In Historic First, Massachusetts Attorney General Warns Gilead To Lower Cost Of Hep C Drug Or Face Lawsuit

In a Jan. 22 letter to Gilead chief executive John C. Martin, made public Wednesday, the attorney general wrote that the high price of the company’s Sovaldi drug, which cost $84,000 for a full course of treatment, and its Harvoni drug regimen, which cost $94,500, “may constitute an unfair trade practice in violation of Massachusetts law.” The newspaper adds that Healey’s letter said her office was looking into bringing an unfair commercial conduct complaint against the company. It is rare, if not unprecedented, for a state attorney general to confront a drug maker on the cost of a therapy.

Gold Stocks Are At A Key Juncture

Gold stocks are testing back up to the level of their recent breakdown to all-time lows; will it be a false breakdown, or the start of a new leg down ?