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What Wall Street Thinks About Today's Selloff
Aside from Russian threats, weaker-than-expected Durable Goods, and #Bendgate, here are nine other reasons for today's sell-off...
Via FBN Securities' Michael Naso,
Thoughts from the Options Desk and the Technical Desk about this Mornings Action
Month End: It’s the last day for underperforming or performing hedge funds to get names off the books so they don’t show up in quarterly report which equates to selling pressure.
Position Closing: Chatter that there was and maybe still is a massive asset allocator selling equities and buying bonds to rebalance books as the equity move made them a bit too long equities which again equates to selling pressure.
Holiday: There is very little liquidity because of the Jewish holiday making any selling pressure magnified however as of noon the S&P 500 is running +20% vs its 30 day average volume.
High Yield: Many High Yield traders have been trying to sell HY and IG bonds today with quarter end upon us, much like they did at the end of the June Qtr. Given the lack of liquidity and participants today, HY sellers have no bids to hit, so they have turned to selling equities and underlying names to hedge their positions or de-risk. Tuesday the slope of the BofA Us High Yield Master II OAS 200 dma turned higher for the first time since May 2012. The changing of trend has forewarned of equity markets largest reversals since inception of this HY index.
SKEW: SPX Skew is at some of its highest levels in years, showing traders are running for out of the money puts, usually spike skew is closer to a bottom then a top.
Volatility: VIX is up 18%, its biggest 1 day % move since July 31st.
TRIN: Highest intraday TRIN reading since Feb 3rd '14, which is an indication of material selling pressure (the Feb 3 spike marked the years low).
Sentiment: Bears in the AAII survey jump to a 7 week high, majority of the new Bears moved from the Neutral camp rather then from the Bullish camp.
S&P 500 Levels of Support: 1954.50 ( 100 dma), 1946-44, 1936
Chart Below Showing High Yield putting pressure on Small caps which in turn is applying pressure to the S&P 500
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Hey even I want to make jokes (?) about the market going down on Rosh Hashana, but Janet & company will be back tomorrow and fix it up.
"going down on Rosh Hashana" Quoting Archer "Phrasing"
Makes me half fat, kicking these wall street bastards ass today AND obummercockHOLDER leaving too!
BTFK Buy the fuckin knife.
Ya, that's the ticket!
I'm gonna buy another thousand shares of shit I tell ya.
And sell it for a millions bucks!
Ya, that's what I'm gonna do.
Empty stores, stagnant wages, floods of low wage workers streaming across our borders, unmowed lawns, subprime making a comeback ....
So what's not to like? All sounds Bullish to me.
And an army that doesn't speak the language. Hessians they are. How'd that work out?
Time to reflect and ask God to forgive all future sins for the next 12 months.
Almost as good a racket as the Catholics and their weekly confessionals.
Comical.
Guy goes into the fields for a few hours and misses everything, darn...
you know you live in a fasicst state when:
FBI Director James Comey on Thursday said he is concerned about moves by Apple Inc. and Google Inc. to market phones that can’t be searched by law enforcement, saying agency officials have engaged in discussions with both companies.
“What concerns me about this is companies marketing something expressly to allow people to place themselves beyond the law,” Mr. Comey said in a briefing with reporters.
The Federal Bureau of Investigation director said he wants to understand the technology better, adding that “it may be time” for a national conversation about whether “we doing things that no longer make sense, that are no longer consistent with our commitment that we are a country of law where no one is beyond the law.”
He said FBI officials have been in touch with the companies “to understand what they’re thinking and why they think it makes sense.”
So when you try to talk to someone without the knowing of the state it is "beyond the law,” Mr. Comey said"
Heil Hitler
Free Jon Corzine!
Damn I want that T-shirt.
or you live in a terrorist state and terrorists are consumers too
Anyone else getting transexual ads from Calvin Klein or is it just me?
Just you. Are you on your work computer at the SEC?
How dare you insult someone like that on this board. Hinting he works at the SEC.
I get the hot NYC girl's mugshot all the time I'm here at ZH.
Makes me want to fly east and rob somebody in hopes of hooking up. But then she probably has one of those screeching NY accents that would make me want to hang myself in my cell. Guess I'll just stay home and work on my solar panels.
Algorithms don't think. People from Wall St. are algorithms with some bodily functions (not all mind you). They can count but they certainly can't "think".
Dear CNBS,
Today is not a drinking day. We are betting whether you rope that green tie to the studio rafters and jump from your teleprompter chair.
Don't forget to bring out your pom-poms and give us a beaver shot.
/ lol
Look to the 2011 RESET for how low this may go...
Mass Fraud should be a crime against humanity.
Please support this petition at whitehouse.gov.
https://petitions.whitehouse.gov/petition/mass-financial-fraud-should-be...
Share it, repost it, pass it on.
If this thing begins to slide tomorrow afternoon..........panic may set in. Hope so.
The one stock savior NIKE has launched a new pink footwear line for the NFL and closet metrosexual characters.
Dow down 270 points, gold up a whole dollar. Yep, one whole dollar. Poor bears, when they're finally right, they still get to lose money, or not make out any.
This thing has legs...to the moon...dow 30,000 in sight...this is a speed bump. Fundmentals are strong...job growth is out there..new iphone 6/7/8 , new MS windows 9/9/1/9.2 all about to hit... i'd invest everything your grandparents have left in this market...
Carney says BOE rate increase is getting closer. Pretty sure that should be on the list.
Buy The Fucking Dip!
The Fed will come steamrolling in next time the markets open and save the day!
Sell off? What sell off? Just looks like a down day to me, still astronomically overpriced...
DJI weekly momentum has been heading down for a year and a half despite the oscislliating high variance short term upticks with irrelevant new highs; but, the actual weekely momentum value has not yet turned negative.
The market will continue to oscillate sideways with a downward trend for quite a while with oscislliating high variance short term downticks with few limited finite number of irrelevant new highs.
When the weekly momentum value turns negative we will witness and appreciate with awe the power of a true elliot 3 wave down bunker buster strike.
Trade wars are have proven in the past to be so beneficial for economies and finacial markets.
Ha! Pinko Commie Fascist Bastards can think? Ha, ha, ha, ha....
Lol ... all of those rationalizations would matter if there was a real market and price was not just programmed into computers by a handful of psychopaths.
FAT FINGERS
CNN Hit piece on Zerohedge.
This has to be the best comment I've ever seen on the mainstream media comment section of CNN financial.
Well I learned from Z.H that apparently the Federal Reserve is a privately
owned banking cartel which creates money out of thin air that is then simply loaned to the U.S Government at an interest - and that' s how money is created. Debt free money has not been issued by the U.S Government since Lincoln held office and therefore by construction the national debt can't be repaid as we constantly need to pay back what we owe at an interest with money not created yet ! We owe the money to our self (the banks! and who owns them? - privately owned !) - now think about that for a moment and realise the absurdity of it . Why did congress give away the awesome power to create money ? and why is it created at an interest and not debt free? Congress could issue its own money , but they don't. It only takes a bit of research to find out that I mentioned above is indeed how it works and its not a nutcase conspiracy tin fold hat wearing liar who claimed it. - Now why didn't I find out this by reading it on Money CNN? CNNs 'agenda' is to not promote this to the masses.
"ZH deeply conspiratorial theories " ? It seems not every conspiracy theory is a theory. Do your own research you conspiracy nutter ! ;-)
Russia has serious biznis plan= threat:
The world needs a coalition of sound forces advocating stability – a global anti-war coalition with a positive plan for rearranging the international financial and economic architecture on the principles of mutual benefit, fairness, and respect for national sovereignty.
http://eng.globalaffairs.ru/number/The-Threat-of-War-and-the-Russian-Res...
Nothing's changed. Same ol same ol. Roc's in MVt c. roc's in nominal-gDp (proxy for Irving Fisher's "equation of exchange"). 8 percentage points in the roc in real-output is simply a seasonal drop. But the drop in the proxy for inflation is not typical.
Tyler, let it go. you don't have to prove anytjing to CNN. They're talking about your site for a reason. Enjoy it. Let's all enjoy it.
Only in recent years has a decline like today’s been a news item. Right now keeping a dishonest market moving higher is all that is preventing a major economic depression from getting underway.
Common Sense Economics http://quillian.net/blog/
by analogy fed policy is the same as bush/obamas (foreign policy) coalition of the willing. the economie coaltion, (those the fed gives money to in order to buy stocks) gets smaller over time, if you only realize that either way, their coalition is a front for unilateralism. eventually the fed will have to give people (the 99%) money, (or the Congress will figure it out). libertarians or Ayn Rand capitalists are the metaphoric terrorists, do you agree with them? hell now, but do they manage to accomplish change, yes, they do. so we much learn to believe in those things which bring about needed change,e ven if they seem at odds to what we want, should we all wave the ISIS flag in front of the WH, i leave it to you.
Fuck Wall Street. Who cares what phony excuse they assign to the action. Let's hope this is the beginning of the end.
Dow 5,000.
i couldn't ever explain it to you. It's just that you could read this site through several business cycles throughout your life, and the only time it would matter a hill of beans no one would be here.
CNBC: It's a major buying opportunity! BTFD, you know? Since 2013 everytime the market was at these levels it soars remarkably afterwards...
No comment on this since they're unable to sense a bottom if it hits them in the face - this is not it.
NOPE...all of the above...shoveled shit...
JUST an adjustment...a trial balloon....a "LAST CALL FOR SHORTIE ALCOHOL"....
then a little more squeeeeeeeezin....reeeeeeeeally set the hook....
THEN BAM....
this popcorn fart? 2-3%? ............nothin....
we NOW need the fucker to go back to low volume sleep....and when no one's looking....elitist Bilderbooger fucktwat banker hedgy-dodgy cunts are positioning..shedding off some tax avoidevasion shitestawks pre holiday rushhhhhhhhhhhhh
then........
FALSE FLAG..........WAR...MOAR WAR...WIDER WAR....SOME FUCKIN PRANK...
THEN.......................perhaps...
There's a guy giving away dunce caps at the exit of this conversation. Please, stop by and get one and maybe some for your friends, too.