Dollar Support Breach Alert
Submitted by Tyler Durden on 07/31/2009 - 10:56
The rampaging deflation in Europe and Japan has to be giddy about this development. Bernanke is sitting in a windowless, telephoneless office, and is not answering any press queries about his repeated statements to keep the dollar strong.
The 700x P/E Bull Market
Submitted by Tyler Durden on 07/31/2009 - 10:19Much was made of Rosenberg "turning the corner" on the recession. Alas, like in the Roubini case, somewhat misunderstood. From Rosie' morning piece: "It is amazing that anyone would go long an equity market with a reported P/E multiple of 700x but that is indeed what we have on our hands."
Have Fun Trading This
Submitted by Tyler Durden on 07/31/2009 - 09:59
VWAP reversion in T minus 5...4...3...
Exploring The Secrets Of The Federal Reserve
Submitted by Tyler Durden on 07/31/2009 - 09:47And speaking of the Fed's balance sheet (and not the public side but the $9 trillion in off-balance sheet voodoo), here is some good reading, especially with certain politicians hell bent to prevent HR1207 from occurring despite the 280 or so congressmen in support of the proposal (a very self-destructive apathy that Zero Hedge will speak more on in a few days).
Galbraith On China's Drastically Overstated Trade Surplus
Submitted by Tyler Durden on 07/31/2009 - 09:31It is no secret that China's economic numbers are so cooked and unreliable, that they make the constantly changing and optimistically biased economic data out of the U.S. (especially lately) have the credibility equivalent of a Harvard Ph.D. thesis. University of Texas professor James Galbraith discusses one aspect of China's "booming" economy, specifically the question of China's Trade Surplus, which as he notes has been drastically inflated since 2002 due to Chinese companies over-reporting profits on exports in order to disguise various investments by foreigners into China, so as to beat capital control restrictions.
Federal Reserve Balance Sheet Update: Week Of July 29
Submitted by Tyler Durden on 07/31/2009 - 08:45
The Fed's monetization of securities accelerates on declining Foreign purchases and an imperative to keep mortgage rates at artificially low levels
Frontrunning: July 31
Submitted by Tyler Durden on 07/31/2009 - 07:53- Advance GDP: -1.0%, and here is why - Federal Spending up 11%, Q1 number revised significantly lower to -6.4% (BEA, and Bloomberg)
- Europe: widespread deflation and spiking unemployment (Bloomberg)
- Japan: widespread deflation and spiking unemployment (Bloomberg)
- Pearlstein: Wall Street is at it again (WaPo)
- Cash for clunkers done? AutoNation will be pissed by the lack of this subsidy (WSJ)
Daily Highlights: 7.31.09
Submitted by Tyler Durden on 07/31/2009 - 07:19- Initial jobless claims in US increase; total rolls unexpectedly decline.
- US Treasuries fell, heading for a 4th monthly loss on speculation GDP improving.
- Japan's unemployment rate rises to a 6-yr high in June; Consumer prices fell at a record pace.
- Asian stocks rise on profit reports; MSCI Index set for fifth monthly gain.
- AK Steel announces price increase of $40/tonne for its carbon steel products.
Cash for Clunkers Part II- It’s All Clunked-Up
Submitted by Travis on 07/30/2009 - 21:21The seemingly wildly popular program that gives an instant rebate for your old hunk of crap car, just may get crapped-out itself… Much sooner than planned.
Daily Credit Summary: July 30 - Whither The Facts
Submitted by Tyler Durden on 07/30/2009 - 19:09Spreads were tighter in the US as all the indices improved (though leaking wider most of the day from a gap tight open, albeit with HY closing below 800bps). Indices typically underperformed single-names with skews mostly narrower (and this is becoming critical as IG is in mid single-digits and HY skew is very tight - perhaps signaling some room for HY-IG decompression or just single-name protection buying hedged via the index) as IG underperformed but narrowed the skew, HVOL underperformed but narrowed the skew, ExHVOL intrinsics beat and narrowed the skew, XO underperformed but compressed the skew, and HY's skew widened as it underperformed.
SIGMA X Rarely If Ever Discloses VWAP "Child" Orders To The Market
Submitted by Tyler Durden on 07/30/2009 - 17:46"Enhanced VWAP algorithm places child orders in SIGMA X without displaying them to the market. If the child order executes within SIGMA X then it is never displayed to the market ahead of the trade. If the order does not execute within SIGMA X, the algorithm routes it to the public market where it is displayed." - Goldman Sachs
From A Former Goldman Managing Director: How You Finance Goldman Sachs’ Profits
Submitted by Tyler Durden on 07/30/2009 - 17:10"This is perhaps the most important thing I learned over my years working on Wall Street, including as a managing director at Goldman Sachs: Numbers lie."
Whoa, A Glitch In The HFT
Submitted by Tyler Durden on 07/30/2009 - 15:59
From the creator of Citadel's HFT desk for options: "You have multiple HFT trading firms and sometimes their agendas are complementary and sometimes they’re not. There could be a time where these HFT programs unintentionally collaborate and you have a two- or three-minute period where the markets are going crazy. Then other traders respond to it and it simply gets out of control."
SEC Begins Probe Of Flash Trading
Submitted by Tyler Durden on 07/30/2009 - 14:30The SEC (the C stands for Competence right?) is miles ahead of the curve on this one. Miles.
