VIX Breaks Above 25 - Term Structure Inverts; Credit Signals More To Come
Submitted by Tyler Durden on 01/07/2016 - 14:05
Who could have seen that coming? Bob Pisani is about to get "worried" as VIX broke above 25
We Have Officially Run Out Of Greater Fools
Submitted by Tyler Durden on 01/07/2016 - 14:02
Is there any wonder panic has returned to a "market" in which fundamental investing, long forgotten, suddenly matters once more and as we have been showing over the past 7 years - undeterred by the great Copperfieldian act put on by central banks since 2008 - the fundamentals of both the economy and the market have never been worse?
Amazon, Tesla Tumble Into 10% Correction As FANTAsy Stocks All Red In 2016
Submitted by Tyler Durden on 01/07/2016 - 13:51
Well that escalated quickly...
China, Oil, & Markets: It's All One Story
Submitted by Tyler Durden on 01/07/2016 - 13:40
If there’s one thing to take away from this year’s developments in markets and economies so far, it’s that they are all linked, they’re all part of the same thing. If you can’t see that, you’re not going to understand what’s happening. It’s tempting to see this as a China problem, but first of all there is no China problem that will not of necessity also gravely affect the west , and second of all when you read, just to name an example, that America’s new jobs pay 23% less than the jobs they replaced, it’s just plain silly to believe that the economy is doing well, let alone recovering.
Dow Dumps 1200 Points From Holiday Highs, Nasdaq In Correction As Steeper Yuan Collapse Lies Ahead
Submitted by Tyler Durden on 01/07/2016 - 13:38
Remember 'The Santa Claus Rally' that Bob Pisani said "we should expect" - well The Dow is now down over 1200 points from the highs just before the end of the year and extending those losses as Reuters reports, PBOC advisors are said to call for steeper yuan depreciation, pressuring the government to depreciate by 10-15%.
"The Assassin Is Still Out There": Charlie Hebdo Identifies Terror Culprit
Submitted by Tyler Durden on 01/07/2016 - 13:21
Last January, gunmen killed 12 people at Charlie Hebdo's offices in an apparent act of "revenge" for the publication's satirical depictions of the Prophet Mohammed. For those struggling to understand how society has devolved to a point where such atrocities are possible, even commonplace, Hebdo offers an explanation.
China Matters
Submitted by Tyler Durden on 01/07/2016 - 13:00
Over the past few days we have repeatedly heard the following statement: "China isn’t that important as it is only 7% of the U.S. economy." While that may be a true statement in relation to the economy, it is a far different matter when it comes to the financial markets. With financial markets so closely correlated, what happens in China has a direct and immediate impact on U.S. markets.
OPEC Basket Crude Price Crashes Below $30 - Lowest Since 2004
Submitted by Tyler Durden on 01/07/2016 - 12:45
With WTI trading with a $32 handle, collapsing below December 2008's $32.40 lows briefly overnight, OPEC's broad basket price for crude has also reached a worrisome milestone. Amid Saudi price cuts to Europe, the basket price was set at $29.71 today - the first print below $30 since April 2004.
Silver Surges To Key Technical Level
Submitted by Tyler Durden on 01/07/2016 - 12:38
While Gold has been grabbing the "safe haven" headlines in recent days, this morning it is Silver's turn. Having rallied 2.5%, Silver just broke its 50-day moving average for the first time in 2 months...
Venezuela's Bizarre System Of Exchange Rates
Submitted by Tyler Durden on 01/07/2016 - 12:20
Venezuela is currently going through its worst crisis in history, replete with an endless list of interesting problems. Foremost among these are severe shortages in even the most basic of necessities. Economists have used these shortages as textbook examples to illustrate the pernicious effects of price controls. Few people, however, are aware that many of the country’s problems are caused by a complex monetary arrangement that makes use of four different exchange rates simultaneously. The result is that Venezuela can either be extremely cheap, or unbearably expensive, depending on the rate used.
Saudi Devaluation Odds Highest In 20 Years, Kingdom Now More Likely To Default Than Portugal
Submitted by Tyler Durden on 01/07/2016 - 12:02
Saudi Arabia, which entered 2015 with virtually no debt and an FX reserve war chest that amounted to around three quarters of a trillion dollars, is now viewed as less creditworthy than a country where a coalition of socialists, left-wingers, and communists just overthrew the government.
"A Sad State Of Affairs" - Two-Thirds Of Americans Have No Emergency Savings
Submitted by Tyler Durden on 01/07/2016 - 11:40
"When 63% of all Americans can’t handle a $500 emergency, and 46% of households making over $75,000 can’t handle a $500 emergency, then they are just plain stupid, frivolous, and incapable of distinguishing between wants and needs. Delayed gratification is a trait almost non-existent among Americans today."
China's Emergency Rescue Is Working: Chinese Futures At Session Highs
Submitted by Tyler Durden on 01/07/2016 - 11:06
Chinese stocks have retraced 50% of their overnight losses following the lifting of the circuit-breaker rule. China FTSE-A50 Futures trading on SIMEX are up over 250 points, trading at the highs of the day but for some context, the index is still down 14% from post-Christmas highs.
