New York Stock Exchange
Imagine that you are speeding down one of those long and lonesome stretches of highway that seems to fall off the edge of the horizon. As the painted white lines become a blur, you notice a sign that says "Warning." You look ahead for what seems to be miles of endless highway, but see nothing. You assume the sign must be old therefore you disregard it, slipping back into complacency. A few miles down the road you see another sign that reads "Warning: Danger Ahead." Yet, you see nothing in distance. Again, a few miles later you see another sign that reads "No, Really, There IS Danger Ahead." Still, it is clear for miles ahead as the road disappears over the next hill. You ponder whether you should slow down a bit just in case. However, you know that if you do it will make you late for your appointment. The road remains completely clear ahead, and there are no imminent sings of danger. So, you press ahead. As you crest the next hill there is a large pothole directly in your path. Given your current speed there is simply nothing that can be done to change the following course of events. With your car now totalled, you tell yourself that there was simply "no way to have seen that coming."
- Malaysia Says Stolen Passport User Had No Links to Terror Groups (BBG)
- Malaysia military tracked missing plane to west coast (Reuters)
- Freescale loss in Malaysia tragedy leads to travel policy questions (Reuters)
- Top German body calls for QE blitz to avert deflation trap in Europe (Telegraph)
- Firms Suffer 23% Drop in Asia Fees Amid Search for Cash (BBG)
- Putin Dismisses U.S. Proposal on Ukraine (WSJ)
- Lenovo says China strike an IBM matter, but it won't cut wages (Reuters)
- Congress to Investigate GM Recall (WSJ)
- New hedge funds face life or death battle for funding (FT)
- Muni Bond Costs Hit Investors in Wallet (WSJ)
- BOJ keeps stimulus in place, cuts view on exports in warning sign (Reuters)
- ECB Homes In on Risky Assets as Inspectors Fan Out Across Europe (BBG)
- Snowden: "The Constitution was violated" (Reuters)
...haven't traveled to NASCO facility but this operation is legit and the technology is outrageously valuable
Gold Equities are on their way to a parabolic rise
Gold declined from $1,900 in September 2011 to $1,188 on December, 19, 2013. Silver declined from $48.50 to $18.50 over approximately the same time frame. Precious metal equities declined by approximately 70% over this period. This move down played out exactly as was scripted. However, let us review the causes of this decline. We start out with the most important words ever written by a regulator: BaFin, the German equivalent of the SEC, said that precious metals prices were manipulated worse than LIBOR. What are we to read into this, particularly the word “worse”? Obviously, worse than LIBOR could not mean that more money was fraudulently earned since the LIBOR markets are many orders of magnitude larger than the precious metals markets. Then it must mean that the egregiousness of the pricing dysfunction was materially larger in precious metals.
- Ukraine leader denounces coup bid, West weighs sanctions (Reuters)
- Time to buy Imodium calls: Kuroda Easing Doomed as Yen Seen Missing 120 Level (BBG)
- Teens Disappear From U.S. Workforce (BBG)
- Fed Sets Rules for Foreign Banks (WSJ)
- Quant Funds Feel Investor Bite After Underperforming (BBG)
- China Probes Qualcomm, InterDigital Over Monopoly Concerns (WSJ)
- Capital One says it can show up at cardholders' homes, workplaces (LATimes)
- SEC Gains Power to Take Profit Made From Insider Trading (BBG)
The 'cash on the sidelines' myth has more lives than a cat. No matter how often the logical fallacy underlying it is pointed out, Wall Street continues to propagate it. Nevertheless, money and credit are of course extremely important factors in the analysis of asset markets. The below provides what are hopefully a few useful pointers as to which data one should keep an eye on in this context.
Dennis Gartman, already humiliated beyond any hope of reputation salvage in the media, appears to be refocusing his keen talents and acute sense of extrapolating instantaneous market momentum 1 millisecond into the future, to a renewed direct exposure in the capital markets. And while hoping that market junkies have forgotten the epic disaster that was his last foray into ETF-land with ONN and OFF, Gartman today announced that he is now launching his signature shtick as a brand new ETF: gold... in non-dollar terms.
2014 has been an unusual year so far. The worst start for stocks in decades stunned many but has been saved by the best rally in a few years' asset-gatherers proclaim it was the dip to be bought but volume never came back to buy that dip (despite its exuberant surge). So where is all the volume in 2014? Nanex has the answer... investors have been geting 'high' by weeding-out OTC stocks...
"Stay defensive," warns BofAML's Macneil Curry. While risk assets ended last week on a very strong note, with the S&P500 putting in its best 2 day performance since October; the weight of evidence says that new S&P500 lows are coming and that risk assets should suffer in the weeks ahead. From the S&P500’s impulsive decline from 1850, to negative February seasonals, to deteriorating equity market breadth (the percent of NYSE stocks trading above their 200d avg is at its lowest since Oct'12); it should pay to remain defensive. In the week ahead we look for a top into the 1800/1823 area before the downtrend resumes for 1711/1686; and stay bullish bonds.
With 31% of the float short, Green Mountain, despite announcing weaker than expected numbers, are spiking over 45% on news that Coca-Cola is taking a 10% stake. Albeit at a discount to the price at which GMCR closed today ($80.88 close vs $74.98 purchase price); the massive squeeze is Volkswagen-reminiscent. As the following press release explains, The Keurig Cold System is in development and thus SodaStream is getting creamed in the after-hours market (down over 10%). It seems, once again, that Whitney Tilson has managed to get himself in a short squeeze.
Because Americans obviously can not be trusted with making the right, or any, decisions, without parental supervision, the CVS Caremark pharmacy chain has decided to do it for them. "CVS Caremark announced today that it will stop selling cigarettes and other tobacco products at its more than 7,600 CVS/pharmacy stores across the U.S. by October 1, 2014, making CVS/pharmacy the first national pharmacy chain to take this step in support of the health and well-being of its patients and customers. "Ending the sale of cigarettes and tobacco products at CVS/pharmacy is the right thing for us to do for our customers and our company to help people on their path to better health," said Larry J. Merlo, President and CEO, CVS Caremark. "Put simply, the sale of tobacco products is inconsistent with our purpose." Well, unless all other major retail chains decide to pull the Bloomberg stunt and follow suit, that only means more money for CVS' competitors. And now we begin the countdown of how long before CVS also pulls all the other "evil", cheap high-calorie, zero nutrient junk foods that dominate its shelves and whose consumption is responsible for the bulk of cardiovascular diseases and premature deaths in the US.
The farce that is the so-called stock "market" gets more and more mindblowing every day. Following yesterday's record high volume in VIX futures and options, this morning saw one stock - the $4bn market cap WhiteWave Foods represent a stunning 27% of all quotes in this morning's pre-open. As Nanex notes in this great analysis, HFT algos generated 2.04 million quotes which created... drum roll please... 3 trades.
Despite every talking head having written off the miners, they were the best performer across US equity sub-indices. In the US equity markets Biotech and REITs also performed well. On the other hand, Nasdaq Insurance and NYSE Arca Oil ETF were the worst...along with the NYSE Composite Index (which represents 61% of all global market capitalization).
This past week we read some very diverse articles, which, hopefully, will stimulate your grey matter over the weekend as you indulge in melted artifical cheese, processed fillers, and copious amounts of artificial colorings and flavors during the Super Bowl showdown (assuming you did not order any of the party packs). With everybody hoping that someone else is going to pull them out of the quicksand - who is left to do the pulling?