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Treasury Bond Volatility Hits Highest Since Flash Crash, First European Bankruptcy
The MOVE index measuring bond volatility has hit 112, a 2010 peak second only to the turbulent days following the flash crash and the first European bankruptcy. And speaking of European bankruptcy, CDS on Italy is back on the upward sliding track, last seen at over 200 bps, over 10 bps move on the day. And since there is no volatility left in a levitating market, the only market that vol hunters are now pursuing is the sovereign bond and FX markets. If and when intraday gyrations in the 10 year approach the equivalent of a stock VIX of 20+, then Bernanke will have finally achieved his goal of complete subjugation of the Banana States of America.
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Why do I feel like the only one shorting banks up here? Take a look at the outperformance lately... Long SKF at 1660.
I feel your pain. I always have at least one bank short on. But right now, the criminal syndicate known as Wall Street knows that if the banks do not move up, the S&P cannot move up, so they are moving the banks up, mostly by shorting the inverse funds, in an attempt to levitate the entire market...while they, incidentally, puke their over priced long financial shares into the gaping maws of the long financial ETFs.
Understood?
I didn't have the attachments to short, so I bought puts. I think I made a mistake. The destination is not in doubt. The arrival time is anyone's guess.
Well I certainly hope the 'bond vigilantes' prove to be Bernanke Achilles heel. Something needs to stop this madness.
TLT gonna run, cos deflation still in the system
Also TLT could benefit a profit taking in last bonds movements.
SPX
Will someone please help Ben find his pills?
http://99ercharts.blogspot.com/2010/12/spx_09.html
More evidence in my view that a drop in equities is fairly imminent .
May be nothing but S&P futures closed a solid red on the 15 minute chart at the US open . I've been keeping an eye on the 15 minutes following the open for months now and almost invariably we've had a green close . I'm wondering if this is any way significant . Probably not , but let's see ...
Seems like a Prozac day for the markets...well let a Chinese rate hike come across the wire to shake things up a bit.
Yep, that judge is approaching his bench, ready to bang down the gavel on our ludicrous Fed Reserve Chairman.
Given the market's quite impressive ability to shake off anything negative I'm not sure even a Chinese rate hike will be able to sink it . And of course we have University of Michigan figures tomorrow ; they should be sufficient to keep things afloat ( although why people pay attention to confidence surveys I'll never know ) .
I dont think people pay attention to confidence surveys, other than CNBC's 8 regular viewers, the computers love em though.
Sorry , correction : by "people" I meant HFT robots and a handful of wealthy-itchy-trigger-finger investors .
Cdad, yeah I get that. But maybe not Wall Street, Bernanke Street. Job description today: Offer $5bn SKF here then $100m in stocks every 10c higher. Mmm tough job that one.. Yawn. But wait, is this just being paranoid or do we think he really do this type of stuff? If I asked a serious question for a moment: Does Ben a) Manipulate markets on a daily basis b) Manipulate markets from time to time c) Only manipulate markets in accordance with has been set out in advance eg. QE announced bond buying. Vote now!
By manipulate I mean in actually trading to move the price. (Not interviews, lies, comments, sound bites, or other media manipulation..)
http://en.wikipedia.org/wiki/Molotov_cocktail
World Scale Economic ripples....did the Irish Labour Party, who were only joking-around regards opposing the Irish Bailout...throw a Molotov cocktail?
"If and when intraday gyrations in the 10 year approach the equivalent of a stock VIX of 20+, then Bernanke will have finally achieved his goal of complete subjugation of the Banana States of America."
Could someone explain this statement?
Up 'n' down, up 'n' down. Roller Coasters make me dizzy.
I like rolling my old silver quarter, dimes, and halves.
Stable....