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Despite Late-Day Buying Panic, Stocks Close Red
Heavy volume and volatile price action early in stocks and high-yield credit markets subsided later in the day as despite several big stocks in the red, the indices jammed higher in the last hour desparate to get positive (on terrible volume) but failed. Treasury yields fell 3-4bps early on and stuck near the lows of the day (ignoring equity's exuberance). High-yield credit rallied back off early spike wides at 380bps (with desks noting heavy demand for protection) but remains worse than stocks. VIX tested above 17 and crashed back below 15.5. The USD ended the day unchanged (AUD weakness notable) but gold and silver slipped lower with oil (back over $93) and copper up on the day. Camera-on-a-stick smashed over 11% higher to $91.50 as the 41% float short continues to get squeezed out.
Credit and stocks diverged early once again as selling was heavy and protection well bid...
And despite equity exuberance, Treasuries rallied then ignored stocks...
Even USDJPY decoupled from the exuberance...
As VIX ran the market once again...
As stocks scrambled lat eon to try and get green (with only Trannies successful)
All that matters for tomorrow is keeping the quarter green... (aint gonna happen for the Russell 2000)
Financials stocks continue to decouple from credit...
Investors continued to find safe harbor in camera-on-a-stick-or-dog...
Ford was monkey-hammred after "a disastrous commentary during analyst presentations"
No exuberant bounce for Treasury yields...
FX markets saw Asia buying USDs, Europe selling USDs and USA buying USDs
Gold and Silver were sold as the US session started and bid through Europe...
Charts: Bloomberg
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Quick everyone back to the other side of the boat...
...if you don't mind I'll just stand over here. --> I promise technology is going to save us, really. be sure to talk into the stick...
Might need to fire some Plunge Protection guys if this keeps happening
Elsewhere: Obama takes heat from surprising source after ISIS - 60 Minutes blame game
http://tinyurl.com/p8t9z8p
Just a question - where can I find the dictionary of important-to-use-when-writing-about-financial-markets verb inflections like "jammed", "smashed", "plunged", "soared", "slipped"', "clawed", "crashed", "plummeted" etc. Apparently you need this dictionary to help you avoid mundane inflections such as gained and lost.
GPRO to outer space.....!!!! Oh wait.. didn't that red bull guy take there and plunged it back to earth? Wonder when the stock does the same?
Yup...Camera on a helmet has now Gone PaRabOlic. The camera is a MUST for avid rioters and demonstrators who want the world to see what its like to be tear gassed and rubber bulleted in the ass.
Late day buying panic and stocks still red = The FED put is in failure mode
GoPro is the epitome of narcissism.
Look at me! look at me! Look how cool I am doing ..... whatever.....
They'll make billions.
Its great for making self produced, directed and made porno videos...
"excuse me, does this come with a lens that makes things look bigger??"
Even the name , "HERO 4" ... so fucking lame...pot smoking idiots who think they're "heros" for running the double black trail at the local mountain
Hmm, Serpent crossed with 2 human thigh bones, i.e. the USD.
https://www.youtube.com/watch?v=sCbnt6q27Ds&feature=youtu.be
"Ford was monkey-hammred after "a disastrous commentary during analyst presentations""
Subprime auto lending beginning to blow up
"they" won't be able to sweep that under the rug
I don't understand why more people aren't buying the yuan.
I mean this is just some bullshit, right here....
Ford sees improving conditions in the Americas by 2020.
In the meantime FIRE IN THE HOLE !!!!!
</sarc>
Gee Wally, is the bear market over?
"Buying panic"? Yes!
In any casino or racetrack there will always be a last warning to "Place your bets, gentlemen!" before the dice are rolled.
Some toerag ,on that channel, just said the bull market has ten to twelve years to
run, because of the fundamentals.
Do they recruit these guys from hospitals for the criminally insane ?
Or Princeton and Yale and Harvard.....all the same I guess.
What he means is the fundamentals are so bad the FED will be printing for at least ten to twelve years.
osmium - correct as in the japanese model. hasn't done badly for them, now has it, all things considered.
and to think - the USA is first in everything, including these ideas.
"Do they recruit these guys from hospitals for the criminally insane ?"
Indeed Minister....there and from every belfry and gutter....
No. You just have to be a card-carrying member of the CRONY Capitalist State; and dumber than a box of S&%$T!
OT: I finally installed Firefox with Ghostery to get rid of the ZH ads. Wow. On this page alone, 10 sites are blocked.
Mine says 13,you're missing a couple.I have adblock for firefox.
Watch out, bears! End of month, end of quarter tomorrow.
So whoever this Tyler is, I read every morning at 7:06 or so and again at 4:06. Always learn something new.
Can someone explain the phrase "protection was well bid" to me? Protection of/from?
In the CDS markets, buying "protection" means paying for insurance against spread-widening/default risk increasing (thus - bearish) - if protection was well bid, the market was aggressively looking to hedge long positions in credit.
In the chart above Tyler shows HY spreads inverted against stocks to enable a clearer understanding of the disconnect between the two markets... a drop in the red line (HY) means 'protection was bid' and spreads were widening; a rise in the red line means traders were more willing to sell protection (unhedge or get bullish) in anticipation of spread compression.
In stock terms, buying protection is like being long a put... (if puts were in demand - i.e. Put implied vol was rising faster than call implied vol - then protection would be well bid in stocks).
Hope that helped a little.
NOTE: knowing plenty of pros read this (and aiming to avoid being flamed), the CDS = put analogy is for simplification only ;-)
Very nice explaination...thanks
The McClellan Summation Index is breaking out of a neutral triangle it has been drawing for Yellen for about a year, breaking out on the downside.
With the ending of QE and all the smart money standing aside, what will Janet do, that is the question. I'm guessing she will do what she must to prevent a significant decline. In which case the smart money will have to come crashing back in before the end of the year.
Barring an intruder breaking into the White House and running rampant for ten minutes, I guess this is what will happen. Oh wait, ...
Quick!! To the Plunge Protection Teammobile, Batman!