This page has been archived and commenting is disabled.
Chaos Engulfs Equity Markets, Investors Suddenly Flee to Bonds
Another "Wash, Rinse, Repeat" in the making, as sudden selloffs in equity markets causes another panic run into bonds of all strips and colors, as the "Risk Off" stampede runs again.
Once again, rumors of driller bankruptcies, litigation against The Squid, massive shank jobs on earnings warnings, and other assorted maladies sends equity bulls to the exit and immediately back into bonds.
The TLT is on the brink of another breakout. Could be another panic run in the making?
Check out the surge in TIPs. Not really much inflation, but anything with "bond" in its name is getting bought with a vengeance. Funny how the chart of the GLD and TIP look nearly identical"
And with foreign countries on the ropes, everyone has decided to flee into corporate bonds, could be on the brink of a breakout:
Just give this equity selloff some time.
Soon, the 10-yr. yield will be crushed under 3.5%, money market rates will be back down to .0001%, and eventually, "Animal Spirits" will re-emerge and there will be another buying panic into banks, retailers, consumer discretionary names, etc.
Note the chaos occuring in equities, as the FemBots made a mistake and started putting the 19-year old GameBoy jockeys in charge of once specific stock instead of the more traditional basket of stocks. Because of their short attention spans, it is impossible for these guys to follow 10 stocks, so they are given just one stock to trade.
Result? Outsized positions in individual names. Maniacal Wildebeest trading on the 5-minute charts. Stocks within the same sector getting the yo-yo treatment.
JPM getting smashed, but CYN skying to new highs.
Guess which bank is based in Los Angeles, has loans on overpriced
real estate, and lends to Hollywood movie stars? Yep. CYN.
Here's a pop:
Here's a drop:
Same thing with the oils.
This one is up:
This one down:
I suppose we slide down to the 150-day, by then the 10-year yield will be 3.0% and anything under 1-year will be virtually 0%. At that time the "Enterprising Speculators" will be seizing the opportunity to grab free money again and buy stocks.
All in a day's work in the casino.
»
- 10637 reads
- Printer-friendly version
- Send to friend
- advertisements -
The markets are capitulating. I wonder if JPM are done with their silver shorts they inherited from Bear Stearns? This would be a little early on my timeline, but these blundering idiots are only methodical, not intuative.
SLW.
Hey Robo, great work as usual. I am doing a fundraiser for ZH approved by Tyler and have new items in the Zazzle store today. Just go to www.zazzle.com/Howard_Beale or click on the links below. Up today--Ben at the printing press. Some new people behind bars. Spread the word. Everything is customizable and going to a good cause!
http://www.zazzle.com/ben_at_the_printing_press_tshirt-235406132570361739 http://www.zazzle.com/ben_bernanke_at_the_printing_press_mug-168793263404831227 http://www.zazzle.com/hank_paulson_behind_bars_mug-168896054702088478 http://www.zazzle.com/lloyd_blankfein_behind_bars_mug-168451652960123716 http://www.zazzle.com/ben_at_the_printing_press_tshirt-235339445432586904 http://www.zazzle.com/ben_at_the_printing_press_mug-168921577105737484Thanks everyone! Continue to send me ideas at the Zazzle store contact and I will do all I can to make them. If you want to submit graphics, send em in! We fully intend to make the women of ZH Calendar for 2011.
Leo's picture in the "SEC Happy hour" thread would make a nice coffey mug or T-Shirt
I can't find the thread and am dead tired. Please direct me to the pic Leo put up.
Thanks,
Howard
http://www.zerohedge.com/article/just-because-washing-down-endless-daily-porn-surfing-some-taxpayer-funded-happy-hour-never-f#comment-325870
what's the women of ZH calendar 2011?
can i apply? i would like to be september.
i will donate money. i could only be in it, if i keep the bag over my face. but other wise things aren't lookin to bad. it is all real, though.
pleasssssssssse†
OK, we need pics for verification. And, why wait until 2011? If we start now, there are still a good 6 months left for 2010. Never waste a good opportunity.
No need for haste. Such critical decisions take time, and require careful scrutiny.
By all means velobabe. Just go to Howard's page and express interest in submitting an application in the comments section. You and Howard will be able to take it from there. Thanks for your participation.
www.zazzle.com/Howard_Beale
Cursive, you are correct. This is why many calenders have 15 or even 18 months to them..
I'll pay to see Chumba's rack.
You got my vote.
fuck tiger
the giro d'italia starts next weekend.
doping, cheating = cycling (maybe golf, steroid use)
fraud, deception, misrepresentation = wall street, USG
human nature=cheating
Better cycling through chemistry as we in the biz know it.
Nice pair! Yours? If so, then we're all in.
OK tiger didn't make the cut.
distress, true distress
i am just venting on ZH.
i have contributed lately, so am just enjoying my journalism on ZH.
i played with some really hot men today.
i par'd the par 3's. i held my own.
FUCK ALL OF YOU†
Velo, you're in! Just send me a pic. Contact me through Zazzle and we'll talk! All women will be photoshopped to perfection, just like Leo and Robo's pics--with the exception of Amanda Drury who needs no photoshopping whatsoever.....yet.
At least for one month, paint 'em gold!!! and silver!
hahahaha! "...if i keep the bag over my face..."
How about Bernanke, Geithner and Summers as the Three Stooges. They used to have a law firm: We, Cheatem and How!
Love the idea. Will work on that this weekend. By the way folks, I can put up just images and you can add your own captions...But I like Mitches idea. It's right up my Photoshopping lovin' alley!
Dewey, Cheatem & Howe
Thank you. It's been many years since I watched and forgotten about the Dewey! Nyuck, Nyuck, Nyuck.
+1
Too funny.
What? No babe?
Robot,
Where are the usual suspects? This is your trademark!
Well, let me take a wild guess here. Looks like somebody might have a new girlfriend?
+100 LOLs
cyn ... Is this the symbol cyanide?
Now That's a rollercoaster!
Don't you just love "Risk OFF" Fridays? Scare them portfolio managers and retail investors going into the weekend. Barron's will provide some more bearish articles tomorrow and off we go again.
MEMC got clobbered today, down 19%, but it's worth keeping on your radar:
A few pops here and there. Power-One powered ahead, and so did Maxwell Technologies and Renesola:
So let's not lose hope, and try to enjoy the weekend. Sometimes red isn't such a bad thing.
LK, I knew I could count on you! Oh. Thanks for the charts!
As an Oakland Raider at heart a good case of red/black/red is usually a net positive, except when the reds belong to Robo's aforementioned group of bi-polar girlfriends that need to be juggled while trading. Great wallpaper if nothing else from the two dimensional world.
Oakland Raider! Back in my ballplaying days at university, I wore "25". Are you old enough to know what that means?
Mos def .. Just as I find myself dusting off my old Raider 32 on occasion...
Does it mean you want to tackle the babe in red? LOL!
Nope, it means the babe in red wants to tackle him! Looks like a shoestring tackle if I ever saw one...
More like a clothes-line tackler...
In Russia babe in red tackles you!
what in the heck is wrong with me that i just don't get any of these comments in this thread.
i think it is subliminal. certainly not taking it personally.
bye, bye.
Problem is you are probably thinking too deeply. If you use the prehistoric portion of your brain, the above comments will clear up nicely!
WHAT
senior moment
i had it collect it, lost it in thought†
FUCK YOU
¿
Screw your stickum! ;)
Ding! The DJIA is an optical illusion; just like that photo!
Wildebeeeeeeeeests!!
Put 50% in GLD
Put 50% in TLT
Great idea. How about living dangerously and buying 30-years strips in the 401(k)?
Sorry but I don't have Goldman-Sacks.
Leveraged inverse floaters? Yeah baby!
Thought you'd like it. No to try and sleep at night...
That should be put 50% IN GLD and TLT
Since no one else has said it, and it must be said:
PHYSICAL GOLD, BITCHES!
Great post RT. But how about the rumors we saw on ZH of the European banks having trouble with their funding and of the Fed activating the EUR/USD swap facility? Didn't those rumors affect the market?
Need pix of chix!
If we get a bonafied break out in gold or silver, I'm buying calls. For now I wait.
Hey RT, thanks for posting that EK chart earlier in the week. The company has no reason to exist, IMO. Bought some puts when it was at 9, got out at 6 and change today. Would have never noticed the ramp job without ZH and you.
When GLD and TIP act identically, that should tell us something.
Huh!? Funny...LAST month wasn't gold a "risk asset"?
It doesn't seem to be so anymore. Amazing what a little fear of CAPITAL LOSS can do to people...
That's what I keep saying. A few days ago it bonered up in what was supposed to be a "flight to safety" day. Maybe I just haven't been watching, but I've never seen that happen before. On "flight to safety" days you want to smash gold just like all the other "risk assets", lest the proles start getting the wrong ideas.
Right on. Remember, too, that about three weeks ago gold started acting independently of the dollar. Whether that trend ~ which is continuing ~ is due to the Euro's weakness or to fear of Greece, etc., remains to be seen. Nothing like fear to make the yield-chasers get religion.
But it IS refreshingly realistic!
Race to the bottom for world currencies..., race to the top between gold and the $US..., until the dollar finally rolls over, and then...
Such a nice feeling to enter the weekend having exited with gains early in the day, equity-free on a two-buck SPY drop and fixed income in the tank.
Got shanked on my first-ever day trade in GS though (DT'ing ain't my game, so I blame myself--and the shankers). Thing broke support at 145 and quickly tanked toward 143, only to be bought back to 145.70 in about 18 seconds towards the close.
GS is $20 off its 52-week low and almost $50 off the high, so that's got to be some kind of good news.
good infor source for BP Gulf Oil Spill (really)
http://www.thedeadpelican.com/
Second that. Chad Rogers has been running a great news aggregation site for several years now.
We will be up 200 pts Monday as Greece gets its bailout and Congress assures the public that GS is not a "crook."
Of course. Goldamn Sucks is simply trying to make a good living trading securities, particklerely, as Primary Dealer for U.S. Federal Debt.
Who else is gonna do it?
That they have loaded up the political landscape near and far with former and future employees to get the inside information or manufacture it so that they win 90% of their trades even indicates that they hate and shun ALL risk.
If it ain't a sure thing they don't bet.
Now how humanitarian can one get?
OffTopic (again)
Will Paulson short BP?
If this BP Gulf oil spill situation is not brought under control by early next week, my prediction is that BP may well go down both financially and quite possibly on a criminal basis. Not to suggest that they have done anything wrong but the populist mood in the country/world (along with rumors that BP initially down played the extent of the spill) means the situation is ripe to bring down a corporate colossus and the politicians will exploit that. BP (Beyond Petroleum) could well become the synonymous fusion of Bhopal, Three Mile Island and Katrina, and become Beyond Pale.
You can bet that well blew out because of some corner that BP tried to cut to save money. I live in Alaska and we are constantly dealing with one mishap or another because BP tries to cut corners on the slope, whether it be violating procedures or failing to maintain equipment.
RT, just wanted to thank you for the LTD chart a while back. Had a nice profit today shorting it that wouldn't have been possible without you. Thanks for the heads up.
Your perspective has been comforting and profitable for me, Robo. Thank you.
What company cleans up oil spills ?
Depends! :) I guess it depends which company paid the most in campaign contributions
Doug Noland put a date on the market top in his weekly missive, April 27. As a technician until we take out that high, the animal spirits or whathaveyou bear the burden of proof. I see the RSI topped beforehand, setting up a possible divergence. The other thing technically is the wide separation between the short and longer moving averages, 50 and 200, due to the low volatility levitating act. The 200 MA Dow is a bit above 10000, with a 650 pt spread. Look for that to close.
First off I believe it's "Devil with a Blue Dress On" and not red. Second it's called "the 5th Fleet" and his name is "Admiral." Right now he's scouting out some real estate in a small town known as Thesalonika. Little bit of history I hear in those parts. Obviously this is a government induced sell off as you can't "lawyer up" if all you're doing is going to jail ("and that includes the stinkin' lawyer, too.") Goldman "didn't get the memo"--the Nazi's might need them but the Federal Government of the United States does not. Gotta say even as a "bull" I do respect and, indeed, there might even be a "method to their madness."
Yeah, flee to bonds...the sovereigns are GREAT credit risks!
I just do not see the ability to easily move between Bonds and Equities or Equities to Bonds. Many talk as if this flip flop back and forth is easy and does not have costs.
The translation has costs and the time of redemption is long or requires buyers. This is never easy from my standpoint in term of maintaining real worth. If I am going to take profits and move into bonds this is part of a strategy which would include the costs of conversion.
Now if you are using somebody elses money, and do not care about your clients, well then forget what I just said.
Mark Beck
Some of the divergence seems strange as pointed out by the charts? V had good earnings and numerous upgrades, is not really dependent on banks and economic reports out recently have been above par. I think next week even if we see fear pullbacks, it will roar past 95 but stay short of 100. 97.50 sounds about right. We are due for a correction for sure but there wiill be a few shiners. And I would not be surprised if come Monday, the Greece morons declare it is totally solved and everything is just fine in EU land(even though nothing could be further from reality). That thing has been on again off again like a light switch because nobody knows what to do or how to say "NO". A true comedy of gross incompetence no different than our own.
Try Clean Harbors for clean up(CLH) although they have already surged. And they aren't really a major clean up company. But if the gov wants them to be they will (I would not be surprised if several companies are singled out to recieve funding to purchase equipment to get the job under control next week, another selective taxpayer funded deal)! Actually the shore and off shore will end up being cleaned up by a consortium of small companies most of which aren't public. But some could get the special deal on da gubbament cheese!!!!!!!!!!! I would not be surprised if SHAW turns up as a major player although they are not a small company and are certainly public. They raped the Katrina dollars (still are) and are very politically aligned with the dems. You know, scratch my back and I'll scatch yours for around a trillion. We control the purse strings you know, now lets get on with it and make us look like good saviours!!!!!!!!!!! Does anybody know exactly how much money got squandered in Katrina? I cannot find an accountable figure?