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Goldman Summarizes The Rout: "Derisking Is The Name Of The Game"
From Goldman's Sales & Trading Team,
The equity rout continued. Growth tech names felt the heat once again as Nasdaq led the way down, but the weakness was truly wide spread as all sectors ended in the red – both in domestic and overseas developed markets. Earnings season continued, but derisking is the name of the game in these markets. Financial feel the most pain (-1.1%) on a headline earnings miss, while Oil&Gas and Utilities finished at the top of the pack with only minor weakness. Closing levels SPX -1.0% to 1815.69 (-2.9% for the week); DJIA -0.9% to 16026.75 (-2.4% week); Nasdaq -1.3% to 3999.73 (-4.3% week).
The VIX marches higher +1.23 to 17.12.
Negative sentiment in equities gave way to a quieter day in FX. The majority of G10 near flat on the day, with light flows. USDJPY drops to a low of 101.38 but recovers to trade above 101.50 for most of the day with little trading post ‘BOJ GOVERNOR KURODA: JAPAN ONLY HALFWAY THROUGH MEETING BOJ'S PRICE TARGET’. EURUSD also unchanged despite dovish central bank commentary, with no reaction from headlines ‘ECB'S COEURE SAYS THE STRONGER THE EURO THE GREATER THE NEED FOR MONETARY ACCOMMODATION’. Elsewhere in EM, BRL is the outlier down -0.60% as any gains reversed intraday as the currency played catchup to its peers.
10y treasuries traded in a 2bp range during NY hours on a fairly quiet day. Flows in cash were a combination of real money selling in the long end and fast money selling in the belly, while in swaps we saw some risk-off hedges in the form of back end receiving.
Gold chopped around within a $10 range in the London session and then within a $4 range once NY got it. The only interesting element to the precious complex today was a steep 1.53% rally in palladium which occurred after headlines flashed stating “NATO SEES PUTIN SEEKING FULL UKRAINE OCCUPATION, BILD SAYS”, Brent rallied along with palladium on the headline but ended up down on the day following a very weak close. Nickel maintained its recent momentum trading up another 2.31%, nickel has advanced almost $1000 in the last 3 trading sessions.
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This is the point in the game "chicken" where the guy who chickens out first next discovers his steering has gone out.
Playing chicken with a train is truly exciting but never smart.
Miffed;-)
Rout, Schmout..
Wake me when we are back down to SnP 1500.
Spot on Manthong.
The Dow is back where it was...on the 17th of March. Hardly a rout.
DavidC
A rout is VJET going from 50 to 15. Now, if the QQQ was to go from 91 to 30, that would be a rout.
De-risking!?!
Rout?!?
How about being able to run fast enough to stay in front of the stampede?
BTW, VJET lost another 18.6% just today.
Must be a bleak future for 3D printing in German or something.
Enough with this GS stuff. Miley Cyrus hurt her back. She's out on twerkers comp.
Ouch. Now that hurt, fonz. The scary mental image of that though is her twerking an audience when she's seventy.
(How's that for paybacks?) ;)
Exactly. +100 for a good analogy.
And after the crash you fall off a cliff directly into a MyRA account which supposedly 'saves' you.
Never, ever play chicken while driving a GM vehicle.
"You ALWAYS play chicken while driving a GM vehicle."
There...fixed it fer y'all ;O)
"derisking" aka the FED isn't bailing us out at the current moment
Exactly.
No shortage of FED bafflement speak - but the fact is that Wall Street is -$20 Billion per month of FED gravy.
"Derisking." A stupid economists / analysts way of saying selling hard.
Perhaps with MyRa the government will be able to impose some crowd control.
That will be simply directing them away from the exit and into the closet.
The way it looks to me Americans have already been closetted and they think that looking through the keyhole is watching TV.
"this way to the egress"
I am picturing the market equivalent of water cannons and rubber bullets.
Yikes.
bullets. Fixed it.
equity rout. lulz
Here's the FX >COT numbers for anyone interested.
Forex futures market speculative positioning data from the CFTC Commitments of Traders report as of the close on Tuesday, April 8, 2014:
EUR net long 23K vs long 33K prior
JPY net short 87K vs short 88K prior
GBP net long 46K vs long 34K prior
AUD net long 3K vs short 4K prior
CAD net short 34K vs short 37K prior
CHF net long 11K vs long 14K prior
NZD net long 20K vs long 18K prior
Nothing to see here folks, move along.
Derisk this, mutha.
But the technicals are not even to the point of correction yet, so far this is just a BTFD. I hope you will all go out this weekend and sacrifice a virgin to Yellen and keep it that way. Kind of like The Hunger Games only moreso.
Disposible income has been disposed. Now just basics are being purchased,unless you are the super rich. Everyone else is on a budget. So...what do people on budgets buy? Silver and bullets, of course.
Banksters spout the craziest shit, mainly about their accounting abilities.
One has to wonder how much of this collapse is due to the high frequency rigging expose featured on "60 Minutes?"
A lot of investors probably decided not to play any more ...to stop being the suckers for the HF riggers who have been stealing their money.
Could it be that instead of setting their clocks ahead one hour, some folks set their calendar ahead one month and think this is May? Time to go away?
It's been any fucking risk whatsoever to give moar profits for 10 years. Balls to the wall, Full speed ahead, and now all of a sudden derisk? Good F'ing luck with that dumbass, the damage has been done. Bankers will just have to learn to fly methinks.