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Tumble Tuesday: Stocks Slide On Sanctions Blowback Fears, Dollar Jumps
Equity markets were lifted on a sea of USDJPY stops this morning to open higher and press to the week's highs. Once 102.00 was achieved and Europe closed, headlines started to stall stock exuberance. The initial downturn was when BES cancelled its shareholder meeting, the dip was bought, then Europe unveiled its sanctions started to take stocks down and then the US unleashed a further round of sanctions targeted at banks and that dragged stocks to the lows of the day. Trannies were worst down 4 days in a row. This move merely caught stocks down to bond's less-than-exuberant day. Treasuries rallied with yields dropping 2-3bps on the day. The USD surged to 6-month highs, ending up 0.2% from Friday. Credit markets continue to sell off notably. VIX closed back above 13 (highest in 2 weeks). The Russell is -1.65% YTD and 4.5% in July (on course for worse month in over 2 years). It appears sanctions fears trumped turbo Tuesday and the pre-FOMC pump.
NOT OFF THE LOWS
USDJPY lifted to 102 and dragged stocks into the open... then when Europe closed, AUDJPY took over BUT when US sanctions hit, stocks dislocated...
Bonds were not buying the USDJPY ramp...
The Nasdaq remains green post MH17 headlines but the rest are fading fast...
Trannies have been the hardest hit off the highs last week, down over 3.4% since Thursday highs...
The Russell 2000 is the only red index for July (so far)...
Credit continues to selloff...
Notable demand for USDs today... against all majors...
The USD hit 6-month highs...
as bonds were bid aross the curve...
Charts: Bloomberg
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Humpty Dumpty sat on a wall [street],
Humpty Dumpty had a great fall.
All the king's horses and all the king's men
Couldn't put Humpty together again.
Yep, sure do:
The Humpty Dance is your chance to do the hump
Do the Humpty Hump, come on and do the Humpty Hump
Do the Humpty Hump, just watch me do the Humpty Hump
Do ya know what I'm doin', doin' the Humpty Hump
Do the Humpty Hump, do the Humpty Hump......
http://youtu.be/y38Ec57yMG8
Edit: You changed your original post.
I once got busy in a Burger King bathroom.............
Lol..... 3rd floor of a parking garage here..... Multiple times.
Humping, Bumping, Dumping dance, Ooohh baby !
I use a word that don't mean nuthin', like looptid
Humperdinck! Humperdinck! Humperdinck! [/Valerie (Miracle Max' Wife)]
I guess this is what Zero meant when he said there will be consequences for Russia's actions.
And now, Russia will respond in the comming days.
It can yet use it's highest card which is shutting off tye gas, the reason is that it's still to hot.
So what Russia needs to do is take it slow untill oktober... AND THEN THEY GOT US BY THE BALLS!
So... Europe and the US need to settle this or there will be hell to pay if we freeze for the winter.
Imagine... No gas for the winter... About 50% of all houses are heated with gas....
Anyone believe the Twitter beat?
Sure, probably everybody in tha Ukraine and Gaza has twittered something. Twitter might be a strong war-buy.
Good point. The CEO mentioned the World Cup, but I bet he knows Geo-political crises are good for Twitter.
Twitter up almost 24% in after hours trading; no equities bubble here folks, move along!
Slish-slosh, slish-slosh.
Twitter is the real deal. Face hugger is a criminal enterprise. Both flying higher is not a surprise.
"These companies represent the front line in the war on terror"--and in fact how "the war" is being fought.
Read up on "ISIS" and "Social Media." They were only a surprise to the Governments both here and there.
If it weren't true, they wouldn't tweet it.
BWA HA HAAAA AHHH CAN'T BREATH Haaaaa COUGH (CRRAMPING!)
haaaaa choke :) CHEST P cramps thud :::::^^:::^^::::^... .. .
Who sings it?
digita underground
digita underground
World Cup was a 30 day tweet fest.
So were the after parties.
GDP Reading Tomorrow.... OMFG!!!!!
Me calls for skyrocketing intellectual property estimates ... all bullish !
yeah something leaked
If trannies get hit hard is that a hate crime?
pods
You're missing the 10 day SMA chart of tweets.
Hmmmmmm, tht close smacks of someone knowing the GDP #. Are the Big Boys about to give Mrs. Yellen a wake-up call?
How many of those tweets were artifical intelligence generated? Bots have the ability to generate false traffic.
We pulled the same horse shit on AOL, MSN, and Yahoo back in the day. This was a past time back in the day. Twatter just may get another unpleasant surprise.
Yahoo headlines all about possible crash - that is not normal for them, something is up.
add to that the ridiculous sanctions and it all starts to make sense. they (whoever that is) want this to go south ASAP.
Just flipped through channels and saw the last minutes of Bloomberg "Street Smart" discussion.
Here is what I learned on
A) Inflation rate (Chad A. Morganlander, WCA)
"When it comes to inflation, David is right, hedonic pricing ok is how they look at it. In a real world, in a real world that we all live in, inflation is growing roughly around 6%. When you look at healthcare, you put in educational costs, I mean - c'mon- we all know that. The problem though, is that, you have to differentiate the real world from how the FED looks at it. FED's looking at core PCE it's growing roughly at 1.75% they are looking at that, they are saying hey folks we are more than happy to see that grow over 2% before we'll start raising rates and that is the driving force of the equity markets and the fixed income markets across the risk spectrum"
B) the FED (David Lebovitz, JPM):
"I think the biggest risk out there is investors getting wrapped up in what's going on and losing sight of the fact that everything the FED's going to do is going to be data dependent. They are not gonna - you know - mess up the biggest monetary policy experiment in human history just raise rates because they think they should, so - don't be concerned - don't fight the FED - I think that they have our best interest in mind".
WTF.
Value Line Geometric Index: Destination Reached....(triple top)
http://goldenopportunitytrading.blogspot.com
Sure yeah Ukrane had a lot to do with the market dump!?
Next bed time story please.
Sanctions against Russia are a concern because Europe for the most part is in a depression.The EU Banks are insolvent.It's actually desperation at any cost to keep interest rates flat.Don't forget that your tax dollars are hard at work through swap lines that are holding up European Banks.Big bucks The Fed is gambling with.If the economy in Europe deflates even further it'll mean prices on everything there collapsing.You could get the Market selling off hard and it could spread to North America because of reduced profits from their divisions .Profits might disappear quickly because European countries like Germany get a lot of products made in Russia.Russia looks at these sanctions as another form of war.If that natural gas gets cut off,it'll be the trigger for a really big correction,even if Putin only exercises his muscles for a bit.