New York Stock Exchange
Derivatives like credit default swaps turned a mere bubble in the US housing market into a global financial catastrophe...
My overriding theme and the central drama for the coming year is that unexpected events can take on greater importance as the Federal Reserve ends its near-decade-long Zero Interest Rate Policy. Consensus premises and forecasts will likely fall flat, in a rather spectacular manner. The low-conviction and directionless market that we saw in 2015 could become a no-conviction and very-much-directed market (i.e. one that's directed lower) in 2016. There will be no peace on earth in 2016, and our markets could lose a cushion of protection as valuations contract. (Just as "malinvestment" represented a key theme this year, we expect a compression of price-to-earnings ratios to serve as a big market driver in 2016.) In other words, we don't think 2016 will be fun.
This, ladies and gentlemen, is what "trading" has become.
America's equity markets are broken. Individuals and institutions make transactions in rigged markets favoring short-term players. The root cause of the problem is that stocks trade on numerous venues, including 11 traditional exchanges and dozens of so-called dark pools that allow buyers and sellers to work out of the public eye. This market fragmentation allows high-frequency traders and exchanges to profit at the expense of long-term investors. Mr. Lewis was right.
There’s only one investment we can think of that many people either love or hate reflexively, almost without regard to market performance: gold. And, to a lesser degree, silver. It’s strange that these two metals provoke such powerful psychological reactions - especially among people who dislike them. Nobody has an instinctive hatred of iron, copper, aluminum, or cobalt. The reason, of course, is that the main use of gold has always been as money. And people have strong feelings about money. From an economic viewpoint, however, money is just a medium of exchange and a store of value. Efforts to turn it into a political football invariably are signs of a hidden agenda, or perhaps a psychological aberration. So, let’s take some recent statements, assertions, and opinions that have been promulgated in the media and analyze them.
When the word 'bloodbath' just doesn't quite sum it up, distressed debt investors's bonuses have been obliterated in 2015. Despite seeking safety away from oil and coal companies, one trader exclaimed, the pain is "like cancer, it's spreading throughout the body," as every industry from materials to retail and industrials has collapsed... though, as Bloomberg reports, some investments stood out in their awfulness.
“To the intelligent man or woman, life appears infinitely mysterious, but the stupid have an answer for everything.” ~Edward Abbey
Ben Bernanke's Employer Citadel Alleges That "Leveling The Playing Field" Will Actually Hurt Stock MarketsSubmitted by Tyler Durden on 12/05/2015 15:53 -0400
The market is now officially so broken, that the biggest HFT-player no longer even makes any sense.
As was extensively reported over the weekend, the Pfizer-Allergan tax-inverting, reverse-merger (in which the far smaller Allergan would end up "buying" Pfizer, courtesy of fungible debt which doesn't care where it ends up as long as there are cash flows) would be announced this morning, and sure enough, moments ago the long-awaited press release finally hit.
- Security jitters drive European investors back to safe havens (Reuters)
- Global Anti-ISIS Alliance Begins to Emerge (WSJ)
- Merkel says cancelling soccer match was 'responsible' decision (Reuters)
- Paris attacker may have had accomplice on journey through Balkans (Reuters)
- Drop Assad demands if you want to unite against Islamic State: Russia to West (Reuters)
- Putin sets up commission to combat terrorism financing (Reuters)
For the third day in a row, China dominated the overnight newsflow with the latest industrial output data, which printed at 5.6% missing expectations of a 5.8% increase, and was tied with March for the lowest print since late 2008.
Update: CME DIRECT ISSUES NOW RESOLVED, EXCHANGE SAYS
CME Group's online trading platform CME Direct will be unavailable until further notice due to a technical issue, the exchange said in a member notice this morning sent at 0857ET. While volumes look largely unaffected, Reuters reports that the outage came on the first day that CME migrated many users of its EOS Trader platform over to CME Direct, and also coincided with an upgrade to CME Direct's technology, sources familiar with the matter said.
Some things you CAN see coming, in life and certainly in finance. Quite a few things, actually. Once you understand we’re on a long term downward path, also both in life and in finance, and you’re not exclusively looking at short term gains, it all sort of falls into place. Of course, the entire global economy has been hanging together with strands of duct tape for decades now, but hey, it looks good as long as you don’t take a peek behind the facade, right?
This is the story of a veteran NYSE specialist who noticed manipulation in the NYSE market open Imbalance, loudly complained to the NYSE, was ignored, then decided to profit from said manipulation himself... and got busted. And that's where the story begins...