Investor Sentiment

Phoenix Capital Research's picture

This is a Recipe For a Crash





The systemic risks underlying the Financial Crisis are in no way resolved. 

 
Tyler Durden's picture

FBN Warns Not All Pullbacks Are Created Equal





In a secular rally, pullbacks will inevitably arise. Market participants, though, should not view all drops in the same light. In addition to the differences in the depth of the collapse, the magnitude of the changes of critical investor sentiment statistics may differ greatly. Assessing the current retracement is a difficult prospect as we may have yet to reach its terminus.  Based on the initial sentiment statistics, the current decline has more similarity to the most significant historic collapses.

 
Tyler Durden's picture

There Is No Mystery To Today's Selloff





Regarding the two violent selloffs this week: there is no mystery. Recall that Deutsche Bank warned late in the summer this would happen for one simple reason: there are just three more weeks of POMO left after which the Fed's balance sheet flatlines, and with it, the S&P500. The only question is whether those who "sell ahead of everyone else", manage to take the S&P far below "unchanged", as prior QE ends have done, proving once again that it is all about the flow not the stock, and as a result the Fed will once again have to resort to even more QE.

 
Tyler Durden's picture

This Is How Investors Feel After The Best Day In Three Years





Investors - at least the carbon-based variety not the vacuum tube-driven algos, assuming there are any left - are in a state of complete shock!

 
Tyler Durden's picture

Futures Flat As Japan Tumbles, WTI Slides $90 For First Time In 17 Months





While we already documented the crash in Japanese stocks earlier, the biggest market development overnight is the plunge in crude, with both Brent and WTI plunging, the latter sliding under $90 for the first time in 17 months, extending yesterday's selloff after Saudi Aramco cut Arab Light OSP in Asia to 2008 levels. Brent drops to lowest since June 2012. This also confirms that the global slowdown whose can is kicked every so often in a new bout of money printing, is arriving fast. That, and the imminent crackdown on today's Hong Kong protest will likely be the biggest stories of the day, even as the spread of Ebola to the US is sure to keep everhone on edge.

 
testosteronepit's picture

Not Even a Dead-Cat Bounce: Russia Sanctions, Whiff of Reality Sink ‘Economic Expectations’ in Germany





And German consumers were supposed to save the Eurozone – along with the global economy.

 
GoldCore's picture

Gold and Silver Bullion Coin Sales Robust as Precious Metals Sell Off





Despite or maybe because of the recent bout of price weakness, gold and silver American eagle coin sales from the U.S. Mint have picked up significantly from last month. Smart money continues to accumulate bullion when prices are pushed lower.

 
Tyler Durden's picture

Your Wall Street Slumlord Arrives in Europe: Goldman Launches "Buy-To-Rent" In Spain





Now that the financial oligarchs have had their way with the U.S. property market, to the point that average citizens can’t even afford to own a home (Zillow recently showed that 1 in 3 homes are unaffordable), it appears they have turned their sights overseas. What better market for bailed-out bankers to feast on than Spain, with its 50%+ youth unemployment rate and a continued depressed real estate market.

 
Tyler Durden's picture

A Rare Glimpse Inside The NY Fed's Favorite 'Quote-Stuffing' Hedge Fund: Citadel





As regular readers are well aware, when it comes to "more than arms length" equity market intervention in New Normal markets, the New York Fed's preferred "intermediary" of choice to, how should one say, boost investor sentiment aka "protect from a plunge", is none other than Chicago HFT powerhouse, Citadel. Recently we discovered that the true culprit behind the May 2010 Flash Crash was not Waddell & Reed, but quote stuffing. The most recent revelation for Citadel is that quote stuffing is not just some byproduct of some "innocuous" HFT strategy, as none other than the Nasdaq has now stated on the record, that the most leveraged hedge fund (at 9x regulatory to net assets), and the third largest after Bridgewater and Millennium, used quote stuffing as a "trading strategy." The following 2 clips give a sense of what goes on from day to day inside the firm that trades more volume than the NYSE every day...

 
Phoenix Capital Research's picture

The Fed Will Have Few Tools Available When the Next Collapse Hits





Many of the macro drivers in 2007 are in place today (housing bubbling away from median incomes, richly priced equity valuations, excessive leverage in the financial system, etc.).

 
Tyler Durden's picture

Presenting The Quote Stuffing Trading Strategy Of The NY Fed's Favorite Hedge Fund: Citadel





As regular readers are well aware, when it comes to "more than arms length" equity market intervention in New Normal markets, the New York Fed's preferred "intermediary" of choice to, how should one say, boost investor sentiment aka "protect from a plunge", is none other than Chicago HFT powerhouse, Citadel. Yet one question had remained unanswered: just how does Citadel manipulated stocks? We now know the answer, and perhaps more importantly, it also links in to the true culprit behind the May 2010 Flash Crash, no not Waddell & Reed, but quote stuffing. Most importantly, the revelation that for Citadel quote stuffing is not just some byproduct of some "innocuous" HFT strategy, is that none other than the Nasdaq has now stated on the record, that the most leveraged hedge fund (at 9x regulatory to net assets), and the third largest after Bridgewater and Millennium, used quote stuffing as a "trading strategy."

 
Phoenix Capital Research's picture

The Financial System is Primed For a Crisis Worse Than 2008





The market is extremely tired and the systemic risks underlying the Financial Crisis are in no way resolved. With investor complacency (as measured by the VIX) at record lows, the Fed withdrawing several of its more significant market props, and low participation coming from the larger institutions, this market is ripe for a serious correction.

 
Tyler Durden's picture

5 Reasons Why The Market Won't Crash Or Will





One of the biggest mistakes that investors make is falling prey to cognitive biases that obfuscate rising investment risks. Here are 5 counter-points to the main memes in the market currently...

 
Tyler Durden's picture

Credit Suisse "Fear Barometer" Hits All Time High





With the market firmly under the control of the Fed, VIX plunging and the S&P at all time highs is the a different indicator to look at for "fear"? For one possible answer we refer to the latest note by FBN's JC O'Hara who looks at a different "fear" index, namely the Credit Suisse Fear Barometer. He finds that, at 37%, it has never been higher.

 
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