Tyler Durden's picture

Russell 2000 Enters 10% "Correction" As S&P, Dow, Transports Break Crucial Technical Support

The small-cap Russell 2000 is down over 10% from its July highs (down 6.2% year-to-date) as VIX is back over 17. Treasury yields continue to collapse (down 8-9bps today alone) with 10Y trading with a 2.40% handle (and 3Y under 1% again). All other major equity indices are also red from the Russell 2000 peak in July and have broken various key technical levels today - S&P below 100DMA, Dow Industrials below 100DMA, Dow Transports At 100DMA, and Nasdaq broken well below its 50DMA. Russell is back at levels first seen a year ago.



Tyler Durden's picture

Texas Governor Rick Perry To Explain How (Despite 2nd Case) Ebola Is "Contained" - Live Feed

Perry confirms some children may have had contact with Dallas Ebola patient

With rumors spreading (and seemingly confirmed) of a 2nd Ebola case in Dallas; Texas Governor Rick Perry is set to explain to the American public that it's all under control (despite the hospital discharging the Ebola victim 2 days ago) and the virus is contained (despite its potential spread to 12-18 more people)... rest assured Americans, Dance Moms will be on soon...



Tyler Durden's picture

China Detains 'Activists', Adopts "Wait-'Em-Out" Tactic As Hong Kong Protest Swells To 300,000

On day four of the OccupyCentral protests in Hong Kong, leaders are expecting the crowds to swell to over 300,000 as National Day celebrations begin. The Chinese government appears to be taking two different approaches to the civil disobedience. First, major crackdowns on the mainland, as FirstPost reports, authorities have detained more than a dozen activists across China and questioned as many as 60 others who expressed support for Hong Kong's pro-democracy protests in recent days. However, the government's approach in Hong Kong appears to be "wait-it-out", a tactic that would rely on Hongkongers not taking part in the protests becoming fed up with the inconvenience caused by the demonstrations. Of course, how long that tactic remains in place (post National Day) is anyone's guess especially as student leaders threaten to escalate protests as their deadline for Leung's resignation looms.



Tyler Durden's picture

Hilsenrath Asks "Does Ben Bernanke Deserve A Nobel Prize?"

No, it's not a joke or sarcasm. The Fed-whispering Jon Hilsenrath has penned the first strawman sponsoring Ben Bernanke for the Nobel Prize...



Tyler Durden's picture

"The Trend Is Your Friend... Until It Ends"

The Russell 2000 just broke crucial primary support from the 2009 lows to become the first of the major indices to do so...



Tyler Durden's picture

Oil, Empire And Playing The Great Game

The game is many boards deep. Nobody has god-like powers, every player makes mistakes and miscalculations. The advantages and arrangements are all contingent and temporary; those with the most flexibility and the deepest spectrum of assets will eventually increase their influence at the expense of those with weaker hands and those who fail to respond promptly and decisively to new configurations on the multiple boards in play.



Tyler Durden's picture

High-Yield Credit Suffers Biggest Quarterly Loss Worldwide Since 2011

Junk bond investors suffered their biggest quarterly loss since 2011, losing 1.7% in Q3 pushing yields up to one-year highs (despite Treasury yield compression). Managers, knowing full well the underlying liquidity to handle any further selling is not there are out en masse explaining that "high-yield should bounce back in the fourth quarter," relying on the fact that 'historical' defaults are still low and the economy is recovering (as if that's not priced in already). The worst hit segment of the junk market is CCCs and below - at 22-month lows - as Bernanke and Yellen forced investors ever further along the risk spectrum for yield. Of course, equity markets (Russell 2000 aside) have ignored much of this decline until recently, but the plunge in leveraged loan issuance suggests all that cheap-buy-back-funding is rapidly disappearing (even for the best credits and biggest names).



Tyler Durden's picture

Bill Gross Gets A "Mile High Welcome"

Bill Gross receives a mile high welcome from Janus CEO Dick Weil and President Bruce Koepfgen



Tyler Durden's picture

Japan Stunned After Biggest Ever, $617 Billion "Fat Finger" Trading Error Slams Stocks

Bloomberg reports that stock orders amounting to a whopping $617 billion (yes Bilion with a B) or more than the size of Sweden’s economy, were canceled in Japan earlier today, for reasons unknown although the early culprit is that this was one of the biggest trading errors of all time. Of course, since this trade was noted, and DKed, one can assume that a major whale was on the losing end of the trade: recall that this is precisely what happened to Goldman time and again, when some errant algo caused the firm to lose millions on several occasions in 2012 and 2013. There is one tiny difference: this time it was not Goldman, and the total amount was not a few paltry million but over half a trillion dollars!



Tyler Durden's picture

ISM Biggest Miss Since January: Orders Tumble, Employment Slides, Backlogs Contract, Construction Spending Negative

So much for the string of near record ISM prints. Oh... and the recovery too.



Tyler Durden's picture

Stocks & Treasury Yields Are Collapsing

Yesterday's late-day weakness in stocks is continuing as US equities open this morning led by a collapse in Dow Transports and further weakness in Russell 2000. Treasury yields are also plunging with 10Y at 2.435% (back below the oh-so-important Tepper "end of the bond bull" levels). High-yield credit markets are extremely volatile this morning. USD weakness is helping commodities rally with gold and silver outperforming.  VIX just hit 17.5



Tyler Durden's picture

CDC Releases Q&A On Ebola In America As Rumors Swirl Of Second US Case

Dallas County Health Officials earlier noted at least one person who had been in contact with the first US ebola patient was also being tested for the deasdly virus. They subsequently backed off that statement (oddly). Governor Rick Perry will be holding a press conference later today to calm the public we are sure, but in the meantime, the CDC has issued a helpful Q&A to ensure Americans continued to fly, spend, and consume at their leisure and don't worry about the plague... “So this is real. There should be a concern, but it’s contained to the specific family members and close friends at this moment.”



Tyler Durden's picture

Ackman, Berkowitz Slammed After Fannie Mae Plunges 60% On Court Ruling

It is not a good morning for Bill Ackman's Pershing Square or Bruce Berkowitz's Fairholme Capital, or the US government for that matter, of course, which happen to be the three largest investors in Fannie Mae. The reason: FNM stock, which at last check, was crashing by nearly 60%.



Tyler Durden's picture

Contained? Dallas Hospital Discharged Sick Ebola Patient 2 Days Before Isolation

While yesterday's CDC press conference was factual, it was clearly very much designed to avoid panic as time and again the US public was reassured that Ebola in America was 'contained', 'hard to contract', and would 'stop here'. However, as Bloomberg reports, the man with Ebola in Dallas was initially sent home from the hospital with antibiotics after seeking treatment for an unknown illness, officials said. We know CDC has stated the need for the US to be prepared but the fact that after the patient sought medical care on Sept. 26 and was sent home with antibiotics, he returned in an ambulance to Texas Health Presbyterian two days later and was admitted, suggests US healthcare workers are not prepared for the possibilities that Ebola is here in America - Another suspected Ebola case is being evaluated at a National Institutes of Health facility, U.S. officials said, the 13th such possible infection in the U.S.



Do NOT follow this link or you will be banned from the site!