Market Conditions

Tyler Durden's picture

Despite "Great" Jobs Data, Fed's Labor Market Conditions Index Unchanged In October





At 4.0, the Fed's goal-seeked 19-factor Labor Market Conditions Index (LMCI) is unchanged in October (but everyone said Friday that jobs were great?). This is marginally below the average level of the last 4 years and provides the perfect ammunition for the Fed to be lower-for-longer... even as initial jobless claims near 40 year lows.

 
Tyler Durden's picture

Physical Gold Shortage Worst In Over A Decade: GOFO Most Negative Since 2001





As noted over the past week there has been a massive shortage of precious metals - most notably silver which as of this moment is indefinitely unavailable at the US Mint - as a result of the tumble in the paper price, and following 8 days of sliding and negative 1 month GOFO rates, today the physical metal shortage surged, as can be seen by not only the first negative 6 month GOFO rate since last summer's much publicized gold shortage when China was gobbling up every piece of shiny yellow rock available for sale, but a 1 month GOFO of -0.1850%: the most negative it has been since 2001!

 
Tyler Durden's picture

Macau – A Canary In China's Coal Mine?





Economic data from China have generally been on the weak side of late, but not catastrophically so. And yet, apart from growing weakness in aggregated data, we also see more and more anecdotal evidence that the economy is deteriorating.

 
Tyler Durden's picture

5 Things To Ponder: "Spooky" Things





As faces are filled with chocolate on All Hallow's Eve, we thought this evening's reading list should maintain the focus of "scary" ponderances now that the Federal Reserve has ended their latest monetary iterations.

 
Tyler Durden's picture

The Buyback Of Things: IBM To Repurchase Another $5 Billion In Stock In Next Two Quarters





When all else fails, and there is no growth, what you gonna call? Buybackbusters!

 
Tyler Durden's picture

The Market's Unsustainable Bounce: Fast, Furious, & Prone-To-Failure





Keep in mind that even terribly hostile market environments do not resolve into uninterrupted declines. Even the 1929 and 1987 crashes began with initial losses of 10-12% that were then punctuated by hard advances that recovered about half of those losses before failing again... The 2007 top began with a plunge as market internals deteriorated materially, increasing day-to-day volatility, and a tendency for large moves to occur in sequence." Investors should interpret recent market strength in its full context: we’ve observed a fast, furious advance to clear an oversold “air-pocket” decline.

 
Tyler Durden's picture

Someone Didn't Do The Math On The ECB's Corporate Bond Purchasing "Trial Balloon"





Because after doing the math, we find that the biggest stock market surge in 2014 was over what boils down to be a central bank injection of... $5 billion per month?

 
Tyler Durden's picture

Frontrunning: October 20





  • Stick to tapering and rates pledge, says Boston Fed chief (FT)
  • Turkey to let Iraqi Kurds reinforce Kobani as U.S. drops arms to defenders (Reuters)
  • Obama makes rare campaign trail appearance, some leave early (Reuters)
  • Japan GPIF to Boost Share Allocation to About 25%, Nikkei Says (BBG)... or three months of POMO
  • Japan Stocks Surge on Report GPIF to Boost Local Shares (BBG)
  • China Growth Seen Slowing Sharply Over Decade (WSJ)
  • Russia, Ukraine Edge Closer to Natural-Gas Deal (WSJ)
  • Leveraged Money Spurs Selloff as Record Treasuries Trade (BBG)
  • After clashes, Hong Kong students, government stand their ground before talks (Reuters)
 
Tyler Durden's picture

What Americans Are Thinking (And Asking) About The Fed





When will the Fed... Raise rates? Stop buying bonds? End quantitative easing? Common questions, those, from Wall Street to Main Street. And – apparently – the online world as well, because they also reflect (literally) what Google autofills when individuals pose inquiries about future monetary policy action in the famously simple Google search box.

 
Tyler Durden's picture

Hussman Warns Beware ZIRP "Hot Potatoes": Examine All Risk Exposures





"Present conditions create an urgency to examine all risk exposures. Once overvalued, overbought, overbullish extremes are joined by deterioration in market internals and trend-uniformity, one finds a narrow set comprising less than 5% of history that contains little but abrupt air-pockets, free-falls, and crashes."

 
Tyler Durden's picture

The Ides Of October





The central bankers have truly been the markets best friends and Draghi and Kuroda-san have been taking over where Ms Yellen has all but left off, but even they can do little in the face of protest and dissent by various members of the global populace and the continuing stupidity and arrogance of our “democratically” elected representatives.

 
Tyler Durden's picture

Dancing Without A Floor - "Sooner Or Later A Crash Is Coming... And It May Be Terrific"





There’s really no point in trying to convert anyone to our viewpoint. Somebody will have to hold stocks over the completion of the present cycle, and encouraging one investor to reduce risk simply means that someone else will have to bear it instead... In any event, be careful in believing that a market advance “proves” concerns about valuations wrong. What further advances actually do is simply extend the scope of the potential losses that are likely to follow.  That lesson has been repeated across history.

 
Tyler Durden's picture

Congress Considers Federal Assistance For Laid-Off Coal Miners





A major coal mining company has announced another round of layoffs as declining demand for coal continues to depress the industry. The closures will put 261 people out of work. The news has a familiar refrain; more than 20,000 coal miners have lost their jobs since 2011. Compare that to the solar industry, which employs around 143,000 people, according the Solar Energy Industries Association. The fortunes of the two energy industries will only diverge further in coming years. Sadly, many political leaders in coal producing states have not planned for a future without coal. Rep. David McKinley (R-WV) and Rep. Peter Welch (D-VT) have introduced a bill in Congress to help out-of-work coal miners providing a year’s worth of benefits, including training and support for relocation.

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