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High Beta And Yield Celebrate Lehman 6 Year Anniversary By Plunging
It appears today's weakness in stocks (most notably high-beta momo) and bonds (HY credit weakness) was triggered by two "ma"s - grandma Yellen and grand-poohbah BABA's Ma. Hawkish FOMC concerns took the shine off HY credit (and stocks) but Treasury bonds rallied modestly (5Y -3bps, 10Y -2bps). However, high-beta momo stocks dragged Nasdaq and Russell lower as 'smart money' proclaimed this was making room for the Alibaba IPO (which raises the question - if there is so much pent-up demand money on the sidelines just dying to be lost in the stock market, then why were so many high-beta, high-growth, momo names being sold today, theoretically in order to make room for the BABA IPO?) The USDollar ended marginally higher (GBP weakness, EUR strength) but most commodities gained on the day (Copper down on China) with WTI back to $93. Stocks did have a mini-melt-up on absolutely no news whatsoever into the last hour but gave most back. The Russell 2000 is -0.5% in 2014.
A look at the futures market reaction to the good news (Empire Fed) and bad news (Industrial Production) shows neither had any impact on stocks.
High-beta stocks led the Nasdaq and Russell lower on the day (and Dow 'safety' higher)...right from the US open... The Energy sector was the leader on the day (as oil rose) and Chevron added 12 points to The Dow alone...
Notably The Russell 2000 once again broke its major technical support and bounced (50-, 100-, and 200-DMA)
And "Most Shorted" was weak but squeezed late on...NOTE - the buying panic that occurred around 1400ET...
HY Credit broke early - squeezed with everything else - then reverted wider again...
VIX also decoupled into the close - after being abused for the ramp...
FX markets were relatively calm - modest weakness in GBP (after 38.2% retracement bounce of Scottish poll weakness) and EUR strength
AUDJPY seemed in some control over stocks - but correlations to JPY carry are breaking down in general...
Treasury yields fell on the day (short-end outperformed) after weak industrial production data
Commodities rose despite small gains in the dollar, WTI over $93 and Gold $1235, Copper slipped further after China weakness
Charts: Bloomberg
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There won't be enough cotton, dye, and linen to helicopter drop when the next Lehman moment erupts...
AU/AG47 looking mighty fine at these levels
Wait until FOMC day to buy those PM's.
Always slaughtered that day, its a tradition.
Thiel who's macro fund has lost 7 billion .. talkign down to Icahn - http://hedgeaccording.ly/2014/09/peter-theil-carl-icahn-shouldnt-dictate...
A 50% correction is certainly possible my broker told me since in 2008 the market was up 100% an dit crashed 50%; he said this time the market is up almost 200% with extremely low volumes and very weak to zero fundamentals.
50% is alot of money for me. I don't want to have to eat [cheap] cat food again, or sleep in the trunk of my Pinto or fight with the veterans for the few spaces under the Interstate.
Fuck you and your Little Bitch comment about Veterans. Instead of being such a douche and sucking at life, why don't you do something to honor the Men and Women that selflessly sacrificed for the freedom you enjoy so much and allows you to be such a Pussy. Clearly you're blowing your Broker enough to afford a donation as a tiny gesture of your appreciation.
Cant tell if this is a joke or not. Why do you have a broker? Is BTFD too complex a strategy for you? And why the fuck did you eat cat food? The fuck is wrong with you?
I'm with MPS
For the Grace of God you aren't a veteran in sorry straits.
Shame on you.
Certainly hope Son of Loki ends up under the interstate highway in 2017 once he gets slaughtered with the rest of the sheep.
Any explanation for the big price spike that came out of nowhere at around 14:25 ?