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VIX Options Halted As CBOE Breaks

As the late-day VIX slamdown began, and stocks levitated off the lows, CBOE's Futures Exchange "broke." At 1542ET, VIX futures/options stopped trading (though the VIX index continued to push lower).



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Secret Service Head Resigns, Claims It Was "Noble Thing To Do"

Noting that is "in the best interest" of the US, Secret Service Director Julia Pierson has resigned following 'fence-jumper'-gate. While "disappointed" she could implement reforms (of her own policies?) she felt it was the "noble thing to do." In the full statement below, they are careful to point out just how great the Secret Service is "there is no other protection service in the world" like them, they modestly note. Nope, none indeed. Ironically, as she resigns, the White House intruder just plead "not guilty."



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Something's Broken

With just $10 billion of freshly-printed money left (plus reinvested maturing debt) the Fed is rapidly running out of put-providing, VIX-selling, low-volume-levitating ammunition to keep the wealth-creation dream alive. Nowhere is that more evident in the collapse in equity market breadth. NYSE New Lows have surged to 14-month highs and the spread to New Highs is weakest since August 2013. Of course, back then, equity bulls could rely on a guaranteed 'flow' from the Fed to BTFD, this time that backstop does not exist.



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A "No Social Media List" For Extremists And Potential Terrorists?

You have heard of the "No Fly List", right?  Well, now the Tories are pledging that if they win the next election in the UK they will establish a list of “extremists” that will have to have their social media posts “approved in advance by the police” before they post them.  There are also plans to ban “extremists” from broadcasting and speaking at public events.  The stated goal of these proposals is to crack down on terrorism, but in the process the civil liberties of the British people are going to be flushed down the toilet. To help explain, below is a list of 72 types of Americans that are considered to be “extremists” and “potential terrorists” in official U.S. government documents.



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Goldman Global Leading Indicator Drastically Revised, Collapses Into "Confirmed Slowdown"

Just 2 short weeks ago, Goldman nervously admitted that possibly perhaps maybe their Global Leading Indicator was indicating a "slowdown" was coming, but remained hopeful that the rest of the month would see data pick up and prove them wrong. Now that the final data has been released for the various components of the index, the 'exuberant' recovery of the last few months has been massively revised lower. As Goldman itself notes, the September Final GLI came in at 2.6% YoY, providing a clear signal of "Slowdown", with the data now in hand further suggesting that the GLI first may have entered the ‘Slowdown’ phase back in July.



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$6 Billion Activist Fund Relational Liquidating: Here Are Its Top Holdings

So not surprisingly, today brings the latest hedge fund unwind, with the WSJ reporting that $6 billion veteran acitivst hedge fund Relational Investors LLC, plans to wind down its operations and dissolve its current funds by the end of next year, according to people familiar with the matter. The reason? The same reason why Jamie Dimon is about to quit the financial industry any second: the firm's co-founder and public face, Ralph Whitworth, has throat cancer and while he said he was taking a leave of absence in July, he appears to have changed his mind and made it permanent.



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Ray Dalio: "There Is Always A Downturn"

Thanks to The Federal Reserve's extreme monetary policy, "the prospective return of asset classes is very narrow," warns Bridgewater's Ray Dalio, with expected returns for equities of "only about 4 percent." This is a problem, he explains in this brief clip, as monetary policy relies on that transmission mechanism of apparent wealth creation to keep the dream alive. In Europe and Japan there is no "spread", Dalio notes, and in the US it is miniscule - which means monetary policy is practically ineffective. While he believes in the short-term, the US economy can maintain stability (not commenting on the market per se), his "biggest concern is when the next downturn comes in 1-2 years," the central bank must be on the 'tighter' side of market expectations to be capable of providing its life-giving elixir once again. Simply put, Dalio sums up "there is always a downturn" - something that no Wall Street economist is expecting.



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Who Is Buying The Islamic State's Illegal Oil?

“The crude is transported by tankers to Jordan via Anbar province, to Iran via Kurdistan, to Turkey via Mosul, to Syria's local market and to the Kurdistan region of Iraq, where most of it gets refined locally... Turkey has turned a blind eye to this and may continue to do so until they come under pressure from the West to close down oil black markets in the country's south.”



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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.



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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...



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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.



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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...



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"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...



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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.



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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).



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