Daily Highlights: 8.10.09
Submitted by Tyler Durden on 08/10/2009 - 07:32- One million flee as typhoon hits China's eastern coast.
- Asian stock markets rose Monday after a better-than-expected US jobs report.
- Australia's central bank signaled it will start raising interest rates.
- Economy isn't strong enough to support a long-running stock, bond recovery: cons. view.
- China accuses Rio Tinto of deceit; says Co's actions led to $102B in overcharges.
- China home prices rise in July for 2nd month; up 1 percent amid stimulus spending.
The Future Of Flashed Options
Submitted by Tyler Durden on 08/09/2009 - 16:35With the ban of Flash orders in equity markets now practically a done deal, politicians, and hopefully regulators, will start focusing their attention on Flash derivative products which facilitate not only a two tiered market but potential market abuse by the priliged few who have access to advance looks in assorted securities classes.
Sunday Readings
Submitted by Tyler Durden on 08/09/2009 - 09:56- Paulson's calls to Goldman tested ethics during crisis (NYT)
- Satyajit Das: Mixed Metaphors (Evro Intelligence Part 1, Part 2 h/t Paul)
- Rio Tinto spying cost China steelmakers $102 billion (Bloomberg)
- IMF puts total cost of crisis at $11.9 trillion (Telegraph)
- Economic bottom calls: willful ignorance (Market Ticker)
- For private equity, a very public disaster (NYT)
Studio Zero
Submitted by Marla Singer on 08/09/2009 - 07:12Many of you have asked us about the purpose of "Radio Zero." All of us have avoided answering. What is true, is that there are some surprises in store for our readers down the line. Unfortunately, revealing them at this point would do definitional violence to the word "surprise." We can, however, reveal to you that a fully-functioning sound studio and streaming audio server is a key component of our plans.
To wit: Studio Zero.
Open Market Operations And Statistics
Submitted by Tyler Durden on 08/08/2009 - 17:00
Zero Hedge presents its statistical findings regarding US Treasury Auctions and Permanent Open Market Operations
Saturday Readings
Submitted by Tyler Durden on 08/08/2009 - 11:51- Here we go: Geithner formally asks Congress to lift $12.1 trillion statutory debt limit, saying it could be breached as early as October, Amex Centurion happy to comply (Reuters)
- Totally unrelated - psychopaths have faulty brain connections, scientists say (Reuters)
- Must read: Deleveraging the U.S. Economy (Comstock Partners, h/t Vince)
- Health debate turns hostile at town hall meeting (NYT)
- Healthcare critics make childish claims, Obama says (Reuters)
- The history of the stock market (Mint)
Radio Zero: Upward Flashback
Submitted by Marla Singer on 08/07/2009 - 22:46We figured we would warm you up a bit for Radio Zero this weekend. So, first, "Upward," an encore presentation of Radio Zero from a few weeks ago. 11:45 ET. Sharp (by which, I mean "fashionably late.") Then, later tonight (or early this morning), Radio Zero goes live again! Start with us now...
http://cdo.zerohedge.com:8000/listen.pls
...and we'll see you for more later.
Later has arrived! Chat the DJ up.
From The Horse's Mouth: GSET's Sofianos On Program Trading And Intraday Liquidity
Submitted by Tyler Durden on 08/07/2009 - 21:20Goldman Sachs Electronic Trading's own George Sofianos (ironically caught here providing advice on shortfall costs for limit orders) providing his objective view on PT and volatility from the days when he was merely a member of the largely unaffiliated New York Stock Exchange.
Market Neutral Quant Puke
Submitted by Tyler Durden on 08/07/2009 - 20:46
4 sigma event transpiring over the past few days. One can hope the recent Flash developments have nothing to do with this drop.
Weekly Credit Summary: August 7
Submitted by Tyler Durden on 08/07/2009 - 17:36Spreads were mostly tighter this week with ExHVOL the only index that widened (thanks to HVOL's significant outperformance) as HY outperformed IG (While corporates were mostly tighter, Major Sovereign CDS were notably weaker on the week). Indices typically underperformed single-names (but intrinsics had been leading indices tighter all week) with skews mostly narrower as IG underperformed but narrowed the skew, HVOL underperformed but narrowed the skew, ExHVOL's skew widened as it underperformed, XO underperformed but compressed the skew, and HY's skew widened as it underperformed.
SEC's Director Of Enforcement Jokes About HFT, Front Running, Algos, Calculus, A Black Box and Other... Stuff
Submitted by Tyler Durden on 08/07/2009 - 17:12"All that being said, I'm pretty proud of my own 100-day accomplishments. So how have things changed? Before I joined the Division in March, the Dow was struggling around 6500 points. Now the Dow is over 9200. So am I really responsible for a 41% increase in the Dow? I am, and I'd explain it, but it's very complicated. It involves algorithms, and calculus, and a black box and other … stuff. Now, when I ran this speech by my wife, she looked (kind of like some of you out there) a little incredulous. She said, "you're not claiming credit for the stock market, are you? While you're at it, are you also taking credit for the mild hurricane season or the sharp decrease in lethal shark attacks world-wide." Well I am, and I'd explain it, but it's very complicated. It involves algorithms, and calculus, and a black box and other … stuff." - Robert Khuzami, Director Of Enforcement, SEC.
Is Quantitative Easing About To End?
Submitted by Tyler Durden on 08/07/2009 - 16:22After having purchased over $243 billion in treasuries to date via a the QE bond buyback program announced in March, in some cases buying the bonds form primary dealers just days after an auction's completion, the Fed is now expected to wind down its $300 billion Treasury-buying program. As Bloomberg reported recently, "The FOMC “is unlikely to extend the life of these
programs, unless, of course, either the economy or the financial
markets take a significant turn for the worse,” Meyer, vice
chairman of St. Louis-based Macroeconomic Advisers LLC, wrote in
a report released yesterday. “We therefore expect the FOMC to
announce at its upcoming meeting that it will allow the Treasury
purchase program to expire in mid-September."
Consumer Credit Falls At Double Expected Rate, $70 Billion Decline YoY
Submitted by Tyler Durden on 08/07/2009 - 14:44Consumer credit (revolving and non-revolving) dropped at a 4.9% annualized rate in June, double the expected pace, indicating consumers continue retrenching and saving, especially after May was expected to be an inflection month, declining by "just" -2.6%.Total outstanding consumer credit in June was $2,485billion, $70 billion less than the $2,556 billion in June of 2008.
Colonial BankGroup Faces Federal Investigation, FDIC To Be Appointed Receiver Shortly
Submitted by Tyler Durden on 08/07/2009 - 13:47A cursory glance at Colonial's most recent balance sheet indicates $26.4 billion in assets, and $20.2 billion in total deposits. There goes the FDIC's Deposit Insurance Fund. But at least the 247,000 people who are no longer employed are buying up any and all related stocks.
38.2% Retracement On Declining Volume
Submitted by Tyler Durden on 08/07/2009 - 13:14
Some afternoon technicals
