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Ebola Fears Take Shine Off Panic-Buying Surge In Stocks
Buyback-manipulated earnings produced the low-volume opening face-ripper everyone wanted and stocks took off, recovering yesterday's late losses and not looking back.Trannies were the big winners, led by a resurgence in Airlines (as Ebola in US is fixed) and, despite drastically lower than average volume, stocks kept lifting after EU close on a bed of AUDJPY and USDJPY... until 1450ET (when NYC Ebola headlines hit). Airlines were hit hard, S&P futures dumped back to VWAP, VIX was whacked back above 17, and the exuberant day transformed into merely a great day for stocks. Weakness in Treasuries and the HY bond ETF (despite notable compression in HY spreads) had the smell of a lot of HY issuance being hedged and unhedged but TSYs ended the day up 6-7bps (off their highs post-NYC-Ebola headlines). The USD rose for the 3rd day in a row taking gold lower. Copper (China) and Oil (Saudi) rose on the day (oil unch on the week).
Wake up call! Options exchanges broke because of overwhelming quote traffic. This is all from ONE ALGO over 38 seconds
— Eric Scott Hunsader (@nanexllc) October 23, 2014
Note the regularly spaced volume spikes that took the eMini down $ES_F pic.twitter.com/zakCP4UzsZ
— Eric Scott Hunsader (@nanexllc) October 23, 2014
Tale of two headlines...
Airlines ripped and dipped...
As traders instantly reached for VIX...
and S&P naged back top VWAP (on heavy volume)
Credit and bond markets seemed very driven by rate-locks and hedge needs after Europe closed. After Ebola TSY yields and stocks/HY dropped
HYG had an ugkly fat finger early on but closed very weak...
Treassuries once again surged in yield during the European session but held those losses thru most of the NY session until Ebola hit...
The USD rose once again - 3rd day in a row, led by EUR weakness
And USD Strength took the shine off gold, silver ended flat but copper rose (China data) and Oil (Saudi supply cut)
Intrday historical volatility is surging...
Charts: Bloomberg
Bonus Chart: 7 Year Itch (well 30 quarters)...?
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An Ebola dip <shakes head>
Is Ebola from the Fed's "toolbox" of monetary policy resources?
I mean, since they've been so successful during this "recovery" and all.....
We have Ebola issues all over the world, and the markit hardly responds. But we get one news report of Ebola in NYC, and the market sells off. Evidently, all that matters is NYC.
In other news, it looks like we've had our bear market for 2014. I'm glad that's over with. Can we expect another Central Banker induced bull market for the next 5 years or so?
Ebola, shit, shinola, AMZN, FED......all the same
Have you notice ' Satan Sign' at the beginning
Of the day and the end of day?
Look like a crash is coming next week.
Specialy if tomorrow close is something
Like 16 666.xx
Im going to disagree with the premise of this article. I believe the price just got to the level that some heavy stock portfolios liked for un-loading and they un-loaded. I think the news comes later. Controlled selling sets in when the sellers like the price; the problem with news is that it's whatever excuse appeals to the news writer afterwards.
I agree. Newswriters just write stories to explain what's already happened. It's just guesses on their part, plausible stories, nothing more.
I'm so sick of reading silly headlines
"Stocks rise AS earnings exceed", "Gold sells off AS growth increases", "Stocks zoom AS confidence rises"...blah blah blah
Lazy "journalism"..."AS" does NOT imply causation!!!!
Agree, except "AS" does imply causation, which is why they are wrong to use it this way. Corrupted language -> Corrupted thinking > Corrupted action -> Corrupted life.
Humans are rationalizers, not rational.
Time to que Dr. Frieden to tell us everything is under control.
CDC_FUBAR.
They can fit any news item into a story about why stocks rose/fell. Yesterday, stocks fell on the terrorist attack in Canada. So one day later, all was fine, CAT bought back tons of shares, and instant ramp job in stocks. Then, ebola rears its ugly photo again and stocks fall.
Really? It's that easy, huh? The little children will eat it all up and digest it just in time for Thursday Night Football.
First there's the Canadian paranoia surge...followed by the news that there is a hundred thousand...er, I mean one Ebola case in Manhattan.
I pronounce the entire country of Nigeria Ebola free anyways!
The bigger the lie the more they believe you!
CAT's bottom line improvement not from better sales
but shrinking employment
first 3 quarters of 2014 labor force shrunk 4000
assuming $50K/employee ... $200 million/yr saving
'Our employees are our greatest asset. Every time we need to improve our numbers we just lay a bunch off' (h/t Dilbert)
"Ebola"?? Oh, come on....get real.
This is the MSM-headline-driven Potemkin "market"...
Nothing says recovery like the Largest online retailer in the US losing more money than expected.
Amazon shares fall 7% on wider than expected loss.
http://www.marketwatch.com/investing/stock/amzn?link=MW_home_latest_news
Not to mention Sears layoffs...
http://finance.yahoo.com/news/sears-close-stores-lay-off-131217233.html?l=1
5,500 "jobs" gone and it's all about EBOLA...???
Sears store close to me may as well be closed now. It's a ghost town in there. The only reason anyone is ever in the store is because it's an anchor store in the mall and has a large parking area. They park Outside Sears and walk through.
Been to Amazon lately? Try searching for something and see the upchuck of 21,579 results.
How long until someone buys them, raises prices 25%, and begins to bleed out the company like Sears?
What's the next bling chain eatery sensation to sweep the nation? Fried zucchin & fruit cocktail? Will they call it "Cukes"?
Ebola, Amazon. all US futres bright green AH no stopping this Ponzi shite today
Lowered earnings expectations beaten, followed by buybacks = PONZI.
Pfizer doing $11 Billion in buybacks; is that going to make drugs cheaper?
What? That money isn't going into research but floating the stock valuation? I'm shocked!
Seven year itch for the past 20 years , right .... ? ....and this time is different, right ? < somebody has to say it >
next week is FOMC week
meet tues/wed
looks like all systems go for end to QE ... interesting to see how market reacts
..AND end of the Comex month (options and futures). I'm looking for gold < 1200 again, and all my retarded mining buddies to drop another 20%.
Does anyone get the feeling that Wall Street F'rs are ramping the stock market despite bad news streaming HOURLY? It seems like to me this ramping, IN SPITE OF reality, is really intended to let all of us know that they indeed CAN do anything they want, WHENEVER they want, REGARDLESS of reality or consequences. I mean this latest ramp truly is a freak of all known fundamental analysis....to the point where one just needs to live with having been beat into submission. Ask yourself this simple question: What "magic force" suddenly stick saves a 10 point ES slide, and stuck it there for 45 minutes after this Ebola scare? How about another: Morning headline on Google Finance was (paraphrase) "Market Up on GM earnings." I looked at GM stock quote, it's down 1%! So I guess the market liked it but the shareholders did not? THIS IS CRAZY SHIT MY FRIENDS.
HYG had a huge surge in volume at the end