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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Jim in MN's picture


How about a Dipper?


They can walk and feed while under water.

Oracle of Kypseli's picture

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

Cheers mates.

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.

Iam Rich's picture

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

gwar5's picture

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

Rusty Shorts's picture

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

ShankyS's picture

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

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.

frankTHE COIN's picture

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

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. 

WaterWings's picture

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

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!

hedgeless_horseman's picture

Then we can blame someone...

Are you a congressional staffer?

Xedus129's picture

Welcome.. to another edition of THUNDERDOME.


Dismal Scientist's picture

Impeach Obama. He has sacrificed the American dream.

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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