Archive - Apr 13, 2014
Weekly Sentiment Report: Horrific? Hardly!
Submitted by thetechnicaltake on 04/13/2014 21:25 -0500I am sure those who were buying the "Kool-aid" at the market highs feel that way, but the numbers tell a different story.
Did CIA Director Brennan Visit Kiev Recently?
Submitted by Tyler Durden on 04/13/2014 20:39 -0500
Just a few weeks ago, someone (allegedly Russia) leaked a recorded phone conversation of Victoria Nuland commenting "fuck the EU" and how she (the US) wanted the political stage set in Ukraine. A lot has happened since then but as multiple pro-Russian sources have now 'confirmed', the new puppetmaster appears to be in town (or was). As Interfax reported, citing sources inside the Ukrainian parliament, none other that CIA Director John Brennan landed in Ukraine on Saturday under an assumed name and held a "series of secret meetings" with the country's "power bloc" Interfax reported. Commenting on the report, deputy chairman for the State Duma's Defense Committee Frants Klintsevich said that he would view such a visit as a challenge to Russia.
QE TiTaNiC 2014...
Submitted by williambanzai7 on 04/13/2014 20:33 -0500Unsinkable, until the moment she sinks...
Ukraine Mobilizes Military, Gives Separatists Ultimatum; Russia Slams Escalation As "Criminal", Yanukovich Warns Of Civil War
Submitted by Tyler Durden on 04/13/2014 20:29 -0500If Russia's intention was to give Ukraine enough "escalation" rope with which to hang itself once again, it may have succeeded when a little over an hour ago acting president Oleksander Turchinov said in a televized address that Ukraine has mobilized its armed forces to launch a "full-scale anti-terrorist operation" against pro-Russian separatists. Furthermore, knowing the only real escalation Kiev can engage in is in the war of words department, Ukraine set an 0600 GMT Monday deadline for pro-Russian separatists to give up their weapons and leave buildings they have occupied in the east of the country, a presidential decree said. It is unclear if this would be the catalyst to launch the military operation, but should Kiev indeed bring in the army it is certainly clear that Russia will respond in kind.
Beta Earthquake
Submitted by Tyler Durden on 04/13/2014 20:02 -0500
What is an underlying explanation that can account for Momentum failing and Value working, but Quality NOT working? When one of my colleagues here at Salient saw these charts he said, “looks to me like the market is trading on a narrative of risk appetites and fear rather than toward some notion of seeking fundamentals or selling overbought growth stocks; otherwise Quality would be working, too.” To which I replied, “Amen, brother!” The notion that this market sell-off is limited to biotech or Internet or some other high-flying sub-sector because the market “realized” that these stocks were too expensive or out of concern with earnings this quarter (both explanations that I’ve seen of late in the WSJ and FT), just doesn’t hold water. These high-beta stocks are being hit hardest because they are at the epicenter of a broad market or beta earthquake. This is what it means to be high-beta…you live by the broad market sword and you die by the broad market sword.
Gold Jumps To 3-Week Highs, EUR Fades As Tensions Rise In Ukraine
Submitted by Tyler Durden on 04/13/2014 19:51 -0500
Early weakness in US equity futures was rescued when Asia opened and JPY was mysteriously bid but it's fading back now as the UN session escalates into he-YouTube'd-she-YouTube'd. The bigger moves on the night so far are gold (which jumped back over $1325 and 3-week highs) and EUR which fell around 40 pips to 1.3850. We suspect as Ukraine's red-line deadline draws near the bid for safe-havens may accelerate somewhat.
UN Security Council Begins Discussion Of Situation In Ukraine
Submitted by Tyler Durden on 04/13/2014 19:14 -0500
Churkin: "In just a few hours things may take an irreversible turn for the worse"
Today's emergency session in the UN summoned by none other than Russia, whose representative Churkin has just started to speak, has begun.
*WEST, KIEV 'HENCHMEN' GOVT RESPONSIBLE FOR INSTABILITY: CHURKIN
*RUSSIA 'SPREADING FICTION, WE MUST STOP THIS TONIGHT,': POWER
The live webcast below.
CME Sued For Giving "High-Frequency Traders Peek At Market" Since 2007
Submitted by Tyler Durden on 04/13/2014 17:29 -0500
Now that both the FBI and the DOJ have woken up from a half-decade slumber realizing there was riggedness, RIGGEDNESS going on in these here stock markets courtesy of Michael Lewis' book, it wasn't long before those most impacted by the frontrunning startegies of HFTs spoke up - anyone who has lost money in the stock market since Reg NMS was conceived. Sure enough, in a lawsuit that was just filed by lead plaintiff William Charles Braman, seeking class-action status, and filed on behalf of all users of real-time futures market data and futures contracts listed on the CBOT and CME from 2007 to now, the CME is allegd to have sold order information to high-frequency traders ahead of other market participants.
Obama On The Red Line And On The Rat Line
Submitted by Tyler Durden on 04/13/2014 17:22 -0500
Read Seymour Hersh’s devastating account of Obama’s Red Lines and Rat Lines and weep for the Republic. It is no more.
Guest Post: If It's Such A Privelege, Why Do They Have To Stick A Gun In Your Face?
Submitted by Tyler Durden on 04/13/2014 16:27 -0500
Two. Billion. Hours. That’s how much time people in the Land of the Free waste each year preparing and filing their tax forms to the IRS– roughly 13 hours for each of the ~150 million individual returns filed.
Taxes are morally reprehensible. Taxes rob an entire population of its financial resources in favor of a tiny political elite that has a long-term track record of incompetence and deceit.
Unfortunately, though, this humiliating exercise is forcibly perpetrated at gunpoint.
"The Next America" - Two Dramas In Slow Motion
Submitted by Tyler Durden on 04/13/2014 14:45 -0500That America has - or perhaps more accurately that the administration is desperate to create - a wealth divide, gender divide, and certainly ethnic divide, is hardly a secret. Yet all of those may pale in comparison to the transformation that the US is undergoing currently, according to the most recent Pew research study, one which finds that the world's one time superpower, is in the midst of two slow-motion dramas right now. "Our population is becoming majority non-white at the same time a record share is going gray. Each of these shifts would by itself be the defining demographic story of its era. The fact that both are unfolding simultaneously has generated big generation gaps that will put stress on our politics, families, pocketbooks, entitlement programs and social cohesion.
Diary Of A Phony Hedgeye Manager
Submitted by CalibratedConfidence on 04/13/2014 13:35 -0500Shape of the Investment Climate
Submitted by Marc To Market on 04/13/2014 13:11 -0500Dispassionate discussion of the macro-political economic climate.
31-Year-Old Hedge Fund Trader Made More Than The CEOs Of The Six Biggest Banks Combined
Submitted by Tyler Durden on 04/13/2014 12:12 -0500Over the weekend, there has been some consternation over the report that the CEOs of the 6 largest US banks: JPM, BAC, GS, MS, C and WFC, collectively made $96.1 million in 2013, more than $86.3 million the year before and the most since the financial crisis. However, we are confident those same people would have an aneurism if they were to learn that James "Jimmy" Levin, a 31-year-old hedge fund trader - head of global credit and an executive managing director at Och-Ziff - last year made a whopping $119 million, or more than all of the CEOs of the six largest firms combined.
Barclays Asks Is It Finally Time To Short Japanese Bonds?
Submitted by Tyler Durden on 04/13/2014 10:55 -0500
For a decade or two, it's been dubbed the widowmaker (though truth be told, the losses are more bleed than massive capital loss like those holding US growth stocks currently), but as Barclays notes the Japanese bond market 'conundrum' (that nothing like a recovery is priced into the JGB curve, which is failing to price even a partial, eventual success of the Abe government's reflationary agenda) may finally be ready to be played..."We are always on the lookout for asset prices that seem inconsistent with the more plausible economic and financial scenarios. Sometimes these discrepancies point toward necessary alterations of our fundamental world view. In other cases, they point toward investment opportunity. At the moment, one of the most glaring discrepancies between macro and markets is the long end of the Japanese curve."









