Archive - Jun 26, 2015

When you wet the QE bed...

"Black Friday. China shares dive 7.4%... How much further will it fall after this massacre?"

"It's a do-or-die moment for all investors... If retail investors become skittish now, panic selling will continue next week."

If you jump off of a make believe cliff, don't be surprised when you hit the reality of the ground! Reggie Middleton

The recent spike in earthquakes in Oklahoma could present a “game changer” for regulators. That is how regulators themselves described the spate of earthquakes that struck the state between June 17 and June 24, according to Reuters. “If there is damage and loss of life, you will see the political climate absolutely change overnight,” cautioned Jason Murphey, a Republican representative in the state legislature, according to Reuters. “When and if that happens, you will have a cloud that hangs over the energy sector for the rest of our lives.”

EURUSD just broke below its 50-day moving average and slid to 3-week lows... running stops to 1.1130.

We present the Ackman Appendix, which appears to have been surgically removed from his "Keys To Successful Investing" presentation with unfortunate consequences...

For the first time since 2009... the biggest driver for stocks is cratering.

UMich consumer sentiment spiked from 90.7 to 96.1 (well above the 94.6 preliminary print) just shy of 2015 highs (which are also the highest since 2004). The spike is driven by a surge in "Current Conditions" as hope for the future rose only modestly as inflation expectations dropped. However, notably fewer people see now as a good time to buy a house. We assume UMich survey respondents are "invested" in stocks since higher gas prices and lower affordability in housing seemed to weigh Gallup's economic confidence down to its lowest since 2014.

Deja vu all over again...

"Hope" of a Greek deal are being resurrected (with no real signs of progress) and that is sending stocks higher and spreads tighter and crushing Bunds and Treasuries. 10Y Bund yields are 7bps higher at 93bps and 30Y Treasury yields are spiking to 2015 highs...

Greece is the proverbial early harbinger of everything that’s wrong with the world, and of everything that could be done about it.

As the Muslim world reflected during the height of Friday's Ramadan prayers, ISIS was busy.

Shanghai Gold Exchange volume climbed to a record today as prices declined incentivizing value driven Chinese buyers as Chinese stocks crashed 7.4%. Chinese stocks have had the biggest two-week loss in more than 18 years and are close to entering a bear market after extending losses from their June 12 peak to 19 percent in less than three weeks.

In the following Reuters photo, Italy demonstrates to Germany how it plans to "tackle" Europe's debt crisis.