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And Now Come The Margin Calls: NYSE Margin Debt At 16 Month High
A stock sell off is usually a healthy, cathartic thing: one sells, pockets the proceeds, books a loss, and comes back to fight another day. The big problem, however, is when speculators and traders are already massively overleveraged, and not only don't have a positive Net Worth (defined as Free Credit Cash Account and Credit Balances in Margin Accounts less Margin Debt) but their Margin Debt is so high it commences a toxic loop of selling merely to fund margin calls which usually start popping up in the last hour of trading (and when trading desks put their phones straight to VM), leading to more forced selling, more margin calls, and so on. And therein lies the rub: according to the most recent NYSE margin debt data, the market complacency recently hit such high levels, that speculators virtually went all in, but solely in their margin accounts without holding any cash buffer to pay for potential margin calls. As can be seen on the table below, Margin Debt as of 9/30 hit $315 billion: a jump of $30 billion from the prior month, and the highest since March 2011, just before the market tanked. And confirming that there is simply no cash on hand to pay for margin calls when they start pouring in after today's massive sell off, is the total Net Worth, which in September was the lowest since April. Because with record complacency, and the Fed guaranteeing no further shocks are possible, who needs to hold cash? Today, we will find out: just as soon as the margin calls start coming around around 3PM Eastern...
Source: NYSE
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Rochdale bitchez
Do not underestimate the power of a QE4 rumor going into December FOMC.
This selloff is totally spineless. The "most important election" in the history of earth just took place. I have been inundated with people screaming that Obama is going to wreck the place. Today is their chance to vote with their wallets and GTFO. Instead I agree with Slaughterer. They are going to line up like puppies when Bernanke gets up there to talk and they will follow his directions and buy stawks. Lame.
Yup. The something for nothing economy is intact
Release Quantitative Easing Infinity Squared!
2pm EST... Kevin should be logging in about now.
Time for an "urgent buyer who cares not at what price he buys, just that he suddenly must push through large trades" to show up. Interesting guy, that.
There's never only one Roachdale.
Come live The Dream! QE....weeeeeeeeeeeee!!!
Shop till you flop!
I think we should drive over the Fiscal Cliff at ramming speed, and let the Bernank pick up the slack to make peoples debt payments on time.
This is a shot across the bow to Obummer and congress. It's a catch 22 though.
Today is looking like BlacK Wednesday. Gold to indices ratio: priceless. Shit splattering fan.
You have to love that algo battle of the bulge 1400 SP. At 13,850 we have FLash CraSh.
Meanwhile, at 133 Liberty:
Lori Logan: "Kev, I need you to make sure you drag the Dow back above 13,000 at the close".
Kevin Henry: "But the President cruised by my station this morning and said, and I quote: "Fuck-em, let the pds stew in their own shit today". Then he kicked over my waste basket and stommped off!"
Lori Logan: "That's okay Kev, he'll get over it tomorrow. Above 13,000 at close....don't forget".
I've been listening to Mozart's "Lacrimosa" all morning.
I AM depressed.
Try some Mahler instead. That'll cheer you right up.
Carl Orff Carmina Burana does it for me when I need a little lift.
I prefer Norwegian black metal. Mayhem.
Just to relax me.
How I felt this morning..
http://www.youtube.com/watch?v=NZkmkcezTvo
Good stuff right there.
try guy maddin's "the saddest music in the world" with isabella rossellini & a screenplay by ishiguro.
cannot cry for your loss, as i think obama is the lesser of two weevils. cannot cry for the market: just wait until you see algos gone wild on the indices. i've been living through their enhanced price discovery mechanism through gold shares.
Does Kevin use a margin account?
No, he uses a printer
Pretty sweet gig he has going on there.
the bernank will not allow them to lose.
The election is over.
I imagine some losing is about to happen.
Get The Bernank on the phone stat!
Does this mean I can expect a return call from my old Margin Stanley rep?
Pay to play the paper game wankers! Personally, I love the sound of silver money, nothing like it...
Absolutely. "Ante up BITCHEZ." what kind a game you think this is? "I blew a trillion and didn't even break a sweat"? Open the books phuckers...what kind of shit paper you buyin'?
Did VIX just freeze up?? Dec 12 17 strike is showing .50/3.40 all bid/asks grayed out.....WTF
Vix can't break out of the teens. There's no real concern yet about a significant correction, much less a bear market.
vix is back up now ...was grayed out for at least 15 minutes....
so sooon??
margin calls??
spx down -5% from its high of 1475 to 1400 = -5%.
YOU MEAN TO TELL ME that those stupid CRANK-A-HOLICS are armed to the teeth wtih margin?? and now margin calls are coming in??? wow !!!!! they can't handle a -5% loss = THEY DESERVE TO JUMP OUT OF HIGH RISE BUILDINGS...ROFLMAO !!!!
just wait for spx sub 1000...THIS YEAR !!!! it will be raining dead cat bounces and porky porkuloses that leveraged their homes, wife and soul to the max.
correction:
well flopple (AAPL) down -20% and flopbook (FB) down -20% from RECENT dead cat bounce from $25 to $20...
on the FB POP @ $25 i said i would wait for $26 to short....$26 never came...that's ok,
i'm heavily short aapl @ 700, IBM @ $205, spx @ 1450, eur @ 1.315.....= that's how you make $$$$.. = listen to the shoe shine boys on cnbc and bloomberg, BUT don't take their advice !!!
LOL !!!!!!
i "Listen" to the shoe shine boys and gilrs about 10 minutes/day max...all that i can TOLERATE...ROFLMAO !!!!!
Hey, that Illuminated building trick you guys at Goldman Sachs pulled after the hurricane
was pretty impressive. I must admit.
"raining dead cat bounces"
LOL do you mean we won't need an app for that?
Half a Black Wednesday
JPM calling Rochdale...we only take margin calls answered in gold.
I'm so angry I may actually get in there and buy some shit right now. Only because the power of me not making money is the only thing that can overwhelm the power of Kevin? What should I buy? What is the cream of the crap?
Hey Fonz..how's it going? Doesn't sound good. I do know one thing ...it's never a good time to buy when you are emotional. Especially when you are talking about buying crap.
Hey Doc. I am just playing. I am not touching this market. I am just pissed and impatient today. I just want to get on with this, whatever it's going to be.
I hear you...I am too. The Obama groupies make me want to puke today.
A margin call on a money center bank sounds risky. What's your collateral?
1388 was the bottom for today. Will not see it again before close. Tyler, why are you trying to scare the rookies out of the Kevin Henry rampomatic market close?
And cue Maria off the days lows Bartorimo. The fat lady will sing
I noted a V-shaped recovery in the Dow today
And getting weather hammered and snowed on in NYC is going to be fucking with everyones minds, big time.
" ...solely in their margin accounts "
If a person doesn't like getting sodomized, then they shouldn't run around with their ass hanging out. Greedy motherfuckers, eat it!
Don't worry. Big Ben has a special account that will buy everything post 3 P.M.
I hear the newly elected Republican Governor of North Dakota has a plan to issue "the Teddy Roosevelt Dollar." they call 'em "Bison Bucks" and are backed by...
Ben jumped in at 11:30 AM.
Look at Kevin go. I'm in awe. Kevin's ipad must be broke because he threw apple in the garbage today
Oops there goes another $20B market cap.
Margin calls are for the little people.
Cue Jet's linebacker Bart Scott: "Can't Wait!"
Manipulate the markets, MSM lies, Keynesian Ponzi, manipulate the vote count .... is there a "sesame seed" of moral difference .... once you go down the road to perdition ? Cliff Notes answer: No !
Abortion : Capital punishment for innocent people without due process .... and no recourse .... fait accompli .... no emergency "stays of execution" .... no pardons .... no endless court appeals .... no "last meal" of mother's milk ! Habeas corpus on demand ! Let them be born "on appeal" .... if they are found guilty by a higher court .... use them for drone target practice .... they are US citizens without rights ! We treat murderers much nicer ? They get fried chicken and ribs for their last meal ! Every mutilated African kid is brought to America by do gooder journalists .... just seems like a bizarre double standard ?
Must be Goldman's short position. The public left already.
So, the Bernanke put has become the margin call sell? BTFD has become, "Crap, my creditors on the line" CMCOTL.
She went down, down, down in a burning ring of paper. And it burns burns burns. My portfolio. My portfolio
STOPS, BITCHEZ! USE EM! THAT WAY YOU DONT GET MARGIN CALL'D! Or how about you just don't shove with any two cards.
Have you actually used stops lately? With all the hft algos sniffing about, you can get creamed with a low stop before you can even reach the mouse...you have to set the fuckers really low, not like the carbon-based trader days, in my experience.
Anybody wanna add to this? Maybe it's just me and the leveraged shit I play with that does 20-30 million shares a day that experience this.
Calling The Plunge Protection Team... oh, you're still stuck out on Staten Island with no power...roger that, calling Ben Shalom right now....Helicopter Ben, where are you?
do robots borrow on margin too? who would lend to a robot?...... help me mr wizzard.......
It's already 15:35 and the market has ramped well off the lows. Where the HELL are the margin calls?????
Market closing off lows, the prediction of late-day margins calls didn't pan.
Yeah, they closed off lows, but the PPT push to get SPX above 1400 failed at the very end as it sagged in the last 3 minutes or so below the magic do-not-cross line. Interesting to watch. Same with the RUT, and the Dow really, really crashed 13K, and after market index futures are looking downer even more.
I suspect a lot of flop sweat out there.
Good!
The Start screen, which uses the 'live tiles' style first seen on E420 GPS DVB-T Tablet, lets apps, people and files to be 'pinned' to it.