Archive

August 27th, 2015

Tyler Durden's picture

Bears Are "Covering" Everywhere, Especially Here





In a well-worn tradition, where it takes one cover to offset a cover, here is Bloomberg Businessweek's latest, which shows that bears were were "covering" everywhere in the market yesterday (and continue to do so today), and certainly on the front page of the latest issue of Bloomberg's publication.

 

Tyler Durden's picture

Pending Home Sales Miss, NAR Says Stock Plunge Is Good For Housing Affordability





The biggest surprise in today's NAR release came from the following Larry Yun statement: "Uncertainty in the equity markets — even if the Fed raises short-term rates in September — could stabilize long-term mortgage rates and preserve affordability for buyers." So with China, Larry Summer and the IMF now calling for a rate hike, the NAR - of all entities - is suddenly quite happy to see the recent market rout continue, which would keep rates lower and promote "affordability." Guess nobody tell Larry that China has now started dumping bonds.

 

Tyler Durden's picture

China Exclaims "We Were Wronged" - Demands Fed Delay Rate Hike, Reiterates Blame For Market Rout





"China's exchange rate reform had nothing to do with the global stock market volatility, it was mainly due to the upcoming U.S. Federal Reserve monetary policy move," Yao said. "We were wronged."

 

Tyler Durden's picture

If You Doubted The Central Bankers' Brave New World, You Were Right





Ben Bernanke and his cohort central bankers built a Brave New World (SOMA, SOMA, SOMA!) where central bank money printing would boost stock prices and the wealth created would trickle down to workers and cause a booming economy. If you doubted that, you are now seeing proof that maybe this world was a little bit of Lewis Carroll’s Alice in Wonderland along with the Aldous Huxley.

 

Tyler Durden's picture

Crash? What Crash? Dow Goes Green On Week





So does this mean a September rate hike is back on the table?

 

Tyler Durden's picture

Russia Refuses To Participate In Ukraine Debt Restructuring





War-torn Ukraine has reportedly reached a restructuring deal with a group of creditors headed by Franklin Templeton, according to the country’s finance minister Natalie Jaresko. The terms of the agreement call for a 20% writedown and a reprofiling that includes a maturity extension of four years and an across-the-board 7.75% coupon. Vladimir Putin isn't interested.

 

Tyler Durden's picture

Morning Has Broken: A Deep Dive Into The Trading Patterns Of The American Retail Invetor





Americans associate the morning with “Time to trade equities”. They hear news – in the case of the last few days, bad news from overseas – first thing in the morning. By the time the market opens, they have made their decisions and entered their orders. About half as many will check in around the close to see how things turned out, but for many the next piece of market news won’t hit their mental “Screen” until 20 hours or so later. 

 

williambanzai7's picture

THiS TiMeY DiFFeReNT...





Encore post...

 

Tyler Durden's picture

September Rate Hike Back On Table: Q2 GDP Soars In Revision From 2.3% To 3.7% Driven By Record Inventory Build





Well, if the Fed is truly data-dependent, September is now squarely back on the table following the first revision of (double seasonally-adjusted) Q2 GDP data which soared from 2.3% to a whopping 3.7%, blowing out the Wall Street consensus estimate of 3.2%, and printing above the highest Wall Street forecast (the 3.6% from JPM). The reason for the surge was simple: from an inventory build of $124 in the first GDP estimate, the BEA now sees a total of $136.2 billion in inventory build in Q2. This is an all time record, and a number which suggests the upcoming inventory liquidation will be truly epic, not to mention recessionary.

 

Tyler Durden's picture

Initial Jobless Claims Ends Losing Streak, Unchanged Since January





After four weeks of rising - the longest streak since Feb 2009 - initial claims dropped very modestly to 271k this week. This means initial jobless claims has gone nowhere since January 23rd.

 

GoldCore's picture

Why Gold Was The Best Buy in 2008-9 Crash and Will Be This Time Too





It is not hard to see history repeating itself all over again. Just look at the Chinese central bank this week cutting interest rates, just like the Fed had to do in 2008-9.

 

Tyler Durden's picture

The Stock Market After The Mini Crash





Crash waves are notoriously volatile – several of the biggest one day rallies in history have occurred before and during crash waves. This makes short term forecasting even more of a coin flip than it normally is. However, we believe it is important not to lose sight of the forest for the trees; stock markets around the world have been in bubbles driven by extremely loose monetary policy, which ipso facto allows us to identify them as an example of artificial price distortion. Such bubbles always collapse sooner or later – unless the monetary authority decides to simply destroy the currency it issues, as has happened in Zimbabwe and is currently happening in countries like Venezuela and to a slightly lesser extent Argentina. We don’t expect the central banks of the developed nations to follow suit, at least not yet.

 

Tyler Durden's picture

Tiffany Stock Tumbles After Revenue And Profit Drops, EPS Slide 16%; Forecast Cut; Strong Dollar Blamed





Even the rich are starting to feel the pinch, at least according to the favorite jeweler of the upwardly mobile middle-to-upper class (especially in China and Japan), Tiffany & Co., which earlier today reported Q2 EPS of $0.86, below the $0.91 expected, with GAAP EPS of $0.81 some 16% below the $0.96 record last year. Like other retailers, TIF was quick to blame the surging dollar (which isn't going anywhere if the Fed indeed proceeds with a rate hike),  blaming it for lowering the value of the Tiffany’s sales overseas, where the company gets most of its revenue. Currency fluctuations also have kept tourists from making purchases at U.S. stores, dealing a second blow to revenue.

 

Tyler Durden's picture

Frontrunning: August 27





  • Virginia TV journalists killed by suspect with 'powder keg' of anger (Reuters)
  • Policeman shot to death and three women stabbed, one fatally, in Louisiana (Reuters)
  • China Intervened Today to Shore Up Stocks Ahead of Military Parade (Reuters)
  • Margin Calls Bite Investors, Banks (WSJ)
  • "Computer glitch" is preventing dozens of mutual funds, ETFs from promptly pricing their securities (WSJ)
  • Oil prices rise more than 4 percent as equities rally (Reuters)
  • Oil Industry Needs Half a Trillion Dollars to Endure Price Slump (BBG)
 

Tyler Durden's picture

Aggressive Chinese Intervention Prevents Another Rout, Sends Stocks Soaring 5% In Last Trading Hour; US Futures Jump





After a 5 day tumbling streak, which saw Chinese stock plunge well over 20% and 17% in just the first three days of this week, overnight the Shanghai Composite was hanging by a thread (and threat) until the last hour of trading. In fact, this is what the SHCOMP looked like until the very end: Up 2.6%, up 1.2%, up 2.8%, up 0.6%, up 2%... down 0.2%. And then the cavalry came in: "Heavyweight stocks like banks and insurance companies helped pull up the index, and it’s possibly China Securities Finance entering the market again to shore up stocks," Central China Sec. strategist Zhang Gang told Bloomberg by phone. Net result: the Composite, having been red just shortly before the close, soared higher by 156 points or 5.4%, showing the US stock market just how it's down.

 
Do NOT follow this link or you will be banned from the site!