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Hawk, Hawk, Dove - Stocks Go Birdwatching

Tyler Durden's picture




 

The market's latest fascination: birds.

Here is BofA's Hans Mikkelsen explaining why those who wish two trades stocks should be able to react within milliseconds of spotting blue tits and other flying objects.

High Grade new issue supply has totaled $108bn so far in September, and in terms of unguaranteed issuance this is the most since the outbreak of the Financial Crisis in 2008, the busiest month of September, and the fifth busiest month overall on record in unguaranteed issuance. With $230bn priced so far, this has also been the busiest third quarter on record. However, we expect a significant slowdown in supply going forward as we approach the 3Q corporate earnings reporting season and issuers enter blackouts. For the month of October we expect just $50-60bn of HG supply, and for the fourth quarter we are not looking for more than $150bn. While we recognize that there is significant uncertainty associated with these estimates - and certainly the third quarter surprised to the upside – with continued inflows that suggests investors will need to focus their attention back on the secondary market. While the decrease in supply can be incrementally supportive of spreads, this adds just marginally to the larger picture that conditions of excess demand already favor spread tightening toward year-end.

So add birds of the Federalus Reservus order and family, to the only other thing that matters for stocks these days: just how much money Brian Sack will devote to such humanitarian purposes as giving insiders such as Jeff Bezos, Larry Ellison and Steve Jobs the undreamed of price levels from which to continue selling their stocks.

 

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Wed, 09/29/2010 - 23:56 | 614562 Jim in MN
Jim in MN's picture

 

How about a Dipper?

http://en.wikipedia.org/wiki/Dipper

They can walk and feed while under water.

Thu, 09/30/2010 - 00:01 | 614573 Oracle of Kypseli
Oracle of Kypseli's picture

Let's not forget that a "Black Swan" is also a bird.

Cheers mates.

Thu, 09/30/2010 - 00:22 | 614610 Spalding_Smailes
Spalding_Smailes's picture

Black Swan'

Japan output drop adds pressure on BOJ to ease

* Aug industrial output dips 0.3 pct vs forecast 1.1 pct rise

* Manufacturers see Sept output off 0.1 pct, Oct down 2.9 pct

* Export slowdown, strong yen bode ill as stimulus fades

* Grim manufacturing outlook adds pressure for policy easing

TOKYO, Sept 30 (Reuters) - Japan's industrial output unexpectedly fell in August as a slowdown in export growth begins to weigh down Japan's fragile economic recovery, boosting chances of easing by the Bank of Japan at next week's policy meeting.

The output slide, which extended to its third month with August's 0.3 percent drop, is expected to worsen later this year, manufacturers surveyed by the industry ministry.

It adds to bad news from a separate survey showing Japanese manufacturing activity in September shrank for the first time in 15 months, while a key central bank survey of corporate sentiment on Wednesday showed big manufacturers expected the outlook to worsen for the first time 2008.

"It's very negative," said Seiji Adachi, senior economist at Deutsche Securities in Tokyo, of the industrial output data.

Thu, 09/30/2010 - 05:25 | 614952 Iam Rich
Iam Rich's picture

Heh...Hugh Hendry made a $2b bet this was going on.  Win.

Thu, 09/30/2010 - 00:00 | 614569 gwar5
gwar5's picture

It will all come tumbling down. It can't stay up. It's the end of times. 

Thu, 09/30/2010 - 01:33 | 614718 Rusty Shorts
Rusty Shorts's picture

 - it's the end of this time, and a new time will begin immediately.

Thu, 09/30/2010 - 00:02 | 614574 ShankyS
ShankyS's picture

1 amd 5m are the only reliable trading time frames left. Sadly those will be gone as well soon enough.

Thu, 09/30/2010 - 00:02 | 614576 scratch_and_sniff
scratch_and_sniff's picture

If the fed are inflating US assets to dump them on the world, just imagine what the dump is going to be like. Maybe the flash crash was practice for the "big day". Only this time it dont come back up in a hurry and we witness the largest global simultaneous suicide count at the hands of cult fed...freakyfuckingdeeky.

Thu, 09/30/2010 - 00:09 | 614578 lsbumblebee
lsbumblebee's picture

"Left me blue (tit), turning grey over you."

http://www.youtube.com/watch?v=kIlgdXSDy3c&feature=related

Thu, 09/30/2010 - 00:19 | 614603 Testicular Cancer
Testicular Cancer's picture

Bearus maximus

Thu, 09/30/2010 - 07:23 | 615028 Mercury
Mercury's picture

Ursus Maximus

Thu, 09/30/2010 - 00:23 | 614614 frankTHE COIN
frankTHE COIN's picture

The normal crashes did not have as doomsday of a feel as the era we are in now.

Thu, 09/30/2010 - 00:24 | 614617 Caviar Emptor
Caviar Emptor's picture

These days 40 Dow points down feels like a "massive selloff" and the rest of the world goes cautious. Anything short of green looks like a fail. 

Thu, 09/30/2010 - 03:14 | 614847 WaterWings
WaterWings's picture

Just so you all (?) know, clearly (?), I think you are amazing and I sincerely, on the highest order, appreciate your work.

Thu, 09/30/2010 - 05:36 | 614957 Djirk
Djirk's picture

It's cool, replace a debt bubble with more debt, that should work to slowly kill purchasing power. You will have more money and get less!

People will not notice if you throw in a little supply shock. Then we can blame someone in far aways lands with different religious beliefs.

Or start a slow unwind? Maybe in some cases a quick purge?

The forecast calls for pain!

Thu, 09/30/2010 - 09:49 | 615281 hedgeless_horseman
hedgeless_horseman's picture

Then we can blame someone...

Are you a congressional staffer?

Thu, 09/30/2010 - 07:35 | 615040 Xedus129
Xedus129's picture

Welcome.. to another edition of THUNDERDOME.

 

Thu, 09/30/2010 - 09:03 | 615194 Dismal Scientist
Dismal Scientist's picture

Impeach Obama. He has sacrificed the American dream.

Sat, 10/09/2010 - 09:41 | 637577 senthil456
senthil456's picture

There are certainly a lot of details like that to take into consideration.I read and understand the entire article and I really enjoyed it to be honest.
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