"We Frontloaded A Tremendous Market Rally" Former Fed President Admits, Warns "No Ammo Left"
Submitted by Tyler Durden on 01/05/2016 - 13:26
It's not China, stupid... It's The Fed. "What The Fed did, and I was part of it, was front-loaded an enormous rally market rally in order to create a wealth effect... and an uncomfortable digestive period is likely now." Simply put Fisher concludes, there can't be much more accomodation, "The Fed is a giant weapon that has no ammunition left."
WTI Plunges To $35 Handle As Loonie Hits 12 Year Low
Submitted by Tyler Durden on 01/05/2016 - 13:23
WTI Crude prices just broke back to a $35 handle for the first time since mid-December as the combination of un-growth, Saudi price cuts, a rancorous OPEC, and production increases weigh on the world's most important commodity. At the same time, oil producers are getting hit with the Canadian Dollar plunging above 1.4000 to its lowest since 2003...
What's Next For Stocks After The New Year's Day 1 Hangover?
Submitted by Tyler Durden on 01/05/2016 - 13:15
After getting hammered on the first trading day of 2016, what can we expect from the stock market?
Are We Headed For Another Bust?
Submitted by Tyler Durden on 01/05/2016 - 12:36
Fed policymakers seem to be of the view that the almost zero federal funds rate and their massive monetary pumping has cured the economy, which now seems to be approaching a path of stable economic growth and price stability, so it is held. Yet, manipulations by the Fed could not bring the economy onto a path of stability and prosperity but, on the contrary, set in motion the menace of the boom-bust cycle. This raises the likelihood that the elimination of bubbles as a result of a tighter stance while good in the long-term for wealth generators is likely to trigger a severe economic slump in the near to medium term.
Some Folks Are Buying More Gun Stocks
Submitted by Tyler Durden on 01/05/2016 - 12:18Day 2 of Obama's gun sales push is going well...
Apple Plunges After Nikkei Reports iPhone Production Cuts Up To 30%
Submitted by Tyler Durden on 01/05/2016 - 12:11
Yesterday's miraculous dip-buying in Apple stock has been erased as yet another wourse raises concerns about iPhone production:
*APPLE MAY CUT IPHONE 6S, 6S PLUS PRODUCTION BY ~30%: NIKKEI
The stock is down 2.5% on the news. Time to unleash moar buybacks!!
Iran Unveils Second Underground "Missile City" In Further Humiliation For Obama
Submitted by Tyler Durden on 01/05/2016 - 11:41
"We lack enough space in our stockpiles to house our missiles. Hundreds of long tunnels are full of missiles ready to fly to protect your integrity, independence and freedom. Those who threaten Iran with their military option on the table would better take a look at Iran’s ‘options under the table,’ namely the missile arsenals. Iran’s known military power is only the tip of the iceberg."
President Obama Explains Why Making It Harder For "We, The People" To Get Guns Will Make Everyone Safer
Submitted by Tyler Durden on 01/05/2016 - 11:38
Amid threats from various Republican Congressmen, soaring pre-emptive gun sales, and a majority of Americans (56%) believe that if more Americans carried concealed weapons the country would be safer; President Obama is set today to formally announce his executive action new gun-control measures.
What Comes After The Commodities Bust?
Submitted by Tyler Durden on 01/05/2016 - 10:57
The one thing executives should have learned in 2015 is that Wall Street can for long periods of time remain disconnected from fundamentals and can swing to extremes. Another lesson from 2015 is that OPEC can no longer be relied upon to set prices. Thus, the debt fueled financing boom in the shale space will most likely never return. This is especially true now that there are clear signs that the U.S. economy is weakening while the Fed chose to raise the federal interest rates in December. As we move through 2016, expect a rash of bankruptcies tied to this transition to lower leverage, and towards the latter half of 2016 there will likely be a steep fall off of production.
Another Bank Throws In The Towel: "After 6 Years Of Outperformance" Citi Cuts US Stocks To Underweight
Submitted by Tyler Durden on 01/05/2016 - 10:35
Yesterday JPM, which despite calling for a 2,200 year end price target, paradoxically warned that the regime of "buying dips" is over, and that "we take the view that equities are unlikely to perform well on a 12-24 month horizon" adding that "the regime of buying the dips might be over and selling any rallies might be the new one." So don't buy dips yet somehow the S&P will rise 150 points? Fair enough. Today, it is Citigroup's turn to try to somehow predict both a 12% "gain for global equities in 2016" even as it tells clients to start selling US stocks because "fading EPS momentum and rising Fed funds mean that, after 6 consecutive years of outperformance, we cut the US to Underweight."
Oil Tumbles After Saudis Slash Prices To Europe
Submitted by Tyler Durden on 01/05/2016 - 10:22
"The Saudis are preparing for Iran’s return," said Mohamed Sadegh Memarian, who recently retired as the head of petroleum market analysis at Iran’s oil ministry, as they sharply cut the prices they charge for crude oil in Europe (to the biggest discount since Feb 2009). The move that will likely undercut Iran happens as sectarian tensions escalate between the rival Middle Eastern nations.
Republican Threatens DoJ Budget Over Obama's 'Tyrannical' Gun Control Action
Submitted by Tyler Durden on 01/05/2016 - 10:06
"The next twelve months will be an especially dangerous time for Americans who treasure our Second Amendment right to keep and bear arms," warns Rep. John Culberson (R-Texas), chairman of the Appropriations subcommittee that oversees the Justice Department (DoJ). As The Hill reports, his warning, in a letter to Attorney General Loretta Lynch, follows a threat to block President Obama's executive order on guns by defunding the DoJ.
A "Perfect Storm Is Coming" Deutsche Warns As Baltic Dry Falls To New Record Low
Submitted by Tyler Durden on 01/05/2016 - 09:45
Following disappointing China PMI data and a collapse in US ISM Manufacturing imports data, the fact that The Baltic Dry Index has collapsed to fresh record lows will hardly be a surprise to many. However,as Deutsche Bank warns, a "perfect storm" is brewing in the dry bulk industry, as year-end improvements in rates failed to materialize, which indicates a looming surge in bankruptcies.
As Mideast Tensions Soared, Traders Bet On Another Plunge In Oil Prices: Here's Why
Submitted by Tyler Durden on 01/05/2016 - 09:26
That wasn't supposed to happen. In the not so distant past, a dramatic escalation in tensions between OPEC nations (in this case Iran and Saudi Arabia) would have led to a spike in crude oil prices. However, as futures opened Sunday night, the brief rally in oil prices was met with selling pressure and instead of buying calls, traders loaded up on $30 puts. The oil market's different this time - here's why...
