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Treasury Butterfly Collapses To Multi Year Low As All Market Correlations Now Broken
The last stat arb desk has just turned off the lights. Stocks are on their own, as all correlations between bonds and stocks are no longer meaningful, even as the carry trade holds on to some semblance of meaning, but even that is collapsing fast. In this most manipulated market we have ever seen, in which only the Fed is the catalyst for any buying action any more, only those with an investment horizon of 5-10 milliseconds are advised to trade. Everyone else, stay away, or else enjoy waking up to an Apple that is down between 5% and 50% as it (and who knows what else) goes bidless.
Intraday correlations:
The collpase in the 2s10s30s butterfly, as all those calling for a 2s10s steepener and 10s30s flattener have just gone chapter.
h/t Credit Trader
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Edit, bitchez
or else enjoy waking up to an Apple that is down between 5% and 50% down as the stock goes bidless.
That's the most beautiful thing I've heard all day. (It's only a matter of time)
One can only wish.
We only have to get the right mix of silences.
Bank profits are going to get crushed this and future quarters: interest spread down, low volumes, no IPO's, little M&A, mortgage put-backs, credit losses, etc., etc. No taking out of reserves this and future quarters.
Massive Fail M'Fers's.
actually on balance banks are going to have reinflated home prices, low-locked and sold mortgage debt and further, long T-5-10-20-30 positions with meaningful capital gains. don't like it? no problem. banks might not have a ton of end user demand but there are spreads and fees to be had. welcome to the new world of "less than free" checking.
Things happening fast now. Keep an eye out. China moved to #3 at IMF pecking order, jumps Europeans. What will that mean for SDR's?
Things happening fast now, outside the purely financial world Iran said to be preparing attack against the US for STUXNET reactor cyber attack.
What's gonna be the name of their virus? JiHack?
Softs are blasting higher; cotton shirts to cost $500 this winter.
Coffee, too
Some WICKED price moves in "food" courtesy of Karl Denninger
http://market-ticker.org/cgi-ticker/akcs-www?post=167724
Served with salami.
Tyler, pancake onna get FLATTER. Yum
I've got Aunt Jemima w/me 24/7 ;)
FYI, I'll be updating this paper to include the ten-year, GLD, and VIX. We'll see if there are times when SPY/10yr aren't broke.
Intraday Correlation Patterns between the S&P 500 and Sector Indices
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1677915
We are in full self destruct mode. God help us.
Chaos. Sweet! Correlations were a tool of the masters of the universe, used to skin Joe Sixpack out of his his money. Alpha, beta, correlations...throw away all the tools of the Wall St. criminals and let stocks fly on their own, in whatever path they choose, untethered from everything. Let stocks become the new gold.
Then let's see the computers deal with chaos! Bitchez!
Correlations? We don't need no stinking correlations.
Monetary order (fiat) is most beneficial to the thieves.
This country needs more of that spirit.
Flag as Amen.
Kinda reminds me of what happens to a centrifuge when it gets unbalanced -- watch out for the shrapnel!
2/10 steepener in this climate .. ROFLMAO
At least chicken sholud be cheaper starting next week.
Regarding cheaper Chicken:
See the movie FOOD Inc. and you won't want chicken anymore than stocks!
Not to cross swords (because I too can post bullish individual stock charts) but this is real toppy action market-wise.
If that's all the POMO-rally can offer, we really are well and truly fucked.
UFOs reported hovering over Federal Reserve and Goldman Sachs, systems inexplicably shutting down, people told to go home and not to speak to reporters.
These UFOs, were they Gold, or silver-colored?
Next stop...Feudalism.
nm
with all the manipulation going on , its not hard to understand the behaviour of stocks......but can some one explain why the EUROis going higher even though the IRISH and other CDS are blasting higher with fresh concerns
I'm guessing it's cause the Dollar is going lower.
There's going to be a time if we survive this coming collapse, to bring criminal charges for this manipulation and charade. This show to entice innocent buyers back in for a financial raping is beyond robbery.
Gold is the ONLY "investment".
would you at least give a hat tip to silver?
of course.
GG nice to see you posting.
Those who took your advice protected themselves, the rest are crashing and burning as I type this.
I'm in the former group, my warm thanks.
Gordon!
Glad I heeded your advice.
So good to see yaz on the high ground with your powder dry.
Thanks Miles. I know I've been AWOL for a while...hope to come back soon :-)
Good to see ya.
Denninger is spotting hyperinflationary trends in the price of food. How long before the penny drops with Denninger, you reckon?
Denninger is a hypocritical moron, to put it mildly. I really don't give a shit what he says anymore.
excuse me for my density... what do the green, red, and white lines each represent?
Ben Bernanke's stress levels.
His Bio-Rythyms are totally the pits today!
Silver is no slouch today.
Behold the great thievery of our time; the great re-allocation of resources from the naive savers to the squanderers; from the have-nots to the haves; This is a process that cannot be undone.... The ghost of Keynes and the Dark Lord Benny shall haunt us until the beginning of the next cycle of life. Until then, The Dark Lord and the Phantom shall have us believe that we can turn back time by dialing back the clock; that we do not reap what we sow; that we can go straight to heaven without kicking the bucket..... The darkness awaits....
By the way, isn't this in fact the imposition of price controls:
"That remarkable headline is actually true. The Fed is now buying Treasury Inflation Protected Securities (TIPS) as part of their mortgage reinvestment program that began last month. What they're doing is reinvesting the principal payments of their mortgage holdings, a move to "prevent money from being drained from the financial system." So far the Fed has bought $550 million worth of TIPS maturing from 2019 to 2029.
How about the coming correlation between the 2s10s30s chart and the ES? Just give the ES time to catch up.
To Ben, Timmah, & Company-
Time to Crash and Burn!
Too late to run, nowhere to hide, now it's not even any fun... back at ya.
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