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Stocks & Bond Yields Surge'n'Purge Thanks To "Asian Intervention Week"
In case you were unaware of what happened this week... this should explain it... The 3 Storms of Li, Zhou, and Kuroda stepped in!!
Before we get started - let's get this off our chest:
Asia Intervention Week anyone?
- ChiNext (+11.1%) - best week in 4 months
- Shenzhen Composite (+6.4%) - best week in 2 months
It looks like they finally killed it...
Yes - Yes you did!
- Nikkei 225 (+2.7%) - best week in 2 months
- Copper (+6%) - best week in 4 months
- Offshore Yuan (+0.9%) - best week in 6 months
- USDJPY (+1.3%) - biggest jump (JPY's biggest weakening) in 4 months
- USD Index down 6 days straight - longest streak in 5 months
That bled over into some US markets:
- VIX (-11.6%) - biggest weekly drop in 2 months
- Dow Transports (+3.1%) - biggest week since last week of July
- S&P Tech Sector (+2.75%) - best week in 2 months
- S&P Biotechs (+5.5%) - best week in 2 months
* * *
Equity futures markets provide perhaps the most clarity on the week's swings (since most of the action takes place before and after the US sessions)...
An afternoon ramp dragged everything green for the day... Of course - we warned the bears!!!
And so from Friday, cash equity indices all closed green for the week... Trannies and Small Caps soared over 3 weeks - the easiest to short squeeze!!
Energy was the week's loser while Tech and homebuilders surged...
Once again VIX was plugged into the close to ensure a green close...
Once again though, The VIX Slam has lost its momo mojo...
Put-Call ratios (average over the last 2 weeks) are at their hghest since March 2007
Treasusry yields massively round-tripped on the week... 2Y yields ended very modestly lower with 30Y up just 7bps (well off its 3.037% highjs on 9/9)
The USD Index has fallen for 6 straight days - its longest streak since April... as EUR (and AUD) strength handily beat JPY weakness...
With a 'Death Cross' looming amid a coiling USD Index making lower highs...
Despite the week's USD weakness, commodities (in general) were lower (with WTI worst)... Gold down 3rd week in a row.
Oil and Vol remains notably decoupled post-Andy-Hall's month-end malarkey...
The exception being copper... Which lifted thanks to China intervention early in the week...notice anything odd?
Copper had its best week (up almost 6%) in 4 months... the last time it had a rip-fest week like this marked the early May highs and led to a serious decline...
Charts: Bloomberg
Bonus Chart: Brazil Banged Back To 2005...
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Congrats Denny you batted .1000 this week! Just a suggestion but maybe you could invite yourself over to fellow CNBS contributor Art Cashins place this weekend and marinate some ice cubes together. Maybe your daughter can help arrange it. I'm sure Art would be happy to explain to you how the markets work. He'd probably start by telling you that the intractable global issues that the markets face are not resolved in one day and then suddenly reappear the next as you seem to think judging by your daily flips. A call for a 25% decline Tuesday, long the next, then 'nervously' flat and finally short. Wow, you had a busy week, and to think it was only a four day week. That type of trading is usually reserved for 'amateurs' who have no fucking idea what they are doing, not 'world famous' newsletter writers. On second thought you might want to see if Art has a spare bedroom, you might be there awhile.
Didn't realize Snake Plisken was in such a crappy picture other than Overboard and the one with Stallone and ...
a tribute to 9/11:
https://www.youtube.com/watch?v=08W7W9xJnZo
that^is 100% annoying.
Next week better be fuckin' interesting.
Here's a hit of hopium to keep ya going: According to my handy-dandy super double secret seasonally adjusted shemitah schedule, false-flags are priced in to this weekend.
I wish I could be banged back to 2005.
That said, "Pull it!"
well what do u know....
another out of nowhere ramp to the highs of the day in the last minute of trading....
never seen that before....
FAKE ASS RIGGED FUCKING FRAUDLUENT FRAUD MARKETS.....
DEATH TO WALL STREET AND THE FUCKING MONEYCHANGER PIECES OF SHIT....
Just call it business as usual. Normal market action returned.
Only confirmation needed is the Sunday night ramp to confirm the world didn't end over the weekend.
You are aware of the fact that daytrading is just leveraging other peoples hard work? To me, you are just another hft with fingers. Margin call Kaiser.
Are you referring to the ‘hard work’ of Treasury Stock departments buying back shares?
We’ve been expecting this: with the free drugs gone and nighttime NY temps falling below 60, you ‘Occupy Wall St’ weenies have to come indoors and carry on the cause, but it seems your targets are misidentified:
a) Post-HFT failure rates for daytrading are close to 100%, there is no ‘harder’ financial job
b) No small player one can do HFT-like damage click-trading, Sarao was not small, and what he was busted for was automated
c) Calling traders “HFTs with fingers” is like calling a cow a ‘racehorse carrying milk’
One of these closes, you're gonna blow a gasket, man.
Gutted I had my yarmulke my party whistle but no Schmittah
Well ... that's all folks..........
“Zero” from ""Heroes" by David Bowie
I, I will be Fischer, and you, you will be Yellen
Though nothing will drive them away
If we could be them, just for one day
We can leave Zero, just for one day
And you, you can be mean; and I, I'll think all the time
'Cause they're doves, and that’s a fact; yes they're doves, and that is that
Though nothing will spike rates forever
We could sneak hikes, just for one day
We can be heroes, forever and ever, what d'you say?
I, I wish I could spin, like bankers, like central bankers can spin
Though nothing, nothing could spike rates forever
No, we can’t beat them, forever and ever
But we can leave Zero, just for one day
We can leave Zero, we can be heroes
Oh-oh-oh-ohh, oh-oh-oh-ohh, just for one day
Hey man, well she's a total blam-blam
She said she had to squeeze it but she... then she...
{Janet}: ... oh, don't lean on me man, 'cause I won't turn off the spigot
it's back to margin debt city ...
Hey man, droogie don't crash here...
{Janet} ..it's only "one and done" and here it comes, here it comes ...
{Short-goosing algos} Ohhh, Slam-Bam Thank You Ma'am!
The frogs are in the pot. The fire is low. They'll never know they're cooking.
Caitlyns and Smallies just getting teed up for the next slaughter.
I'm seeing that USD triangle/wedge as bullish consolidation.
Bullish consolidation = rate hike?
Dow at 8k by no later than June 31st 2016
I will take that bet.
After a promising start to the week re: trading volatility, we peter out the last two days, with pathetic opening volume signaling algos to simply bounce between overnight futures highs/lows, with their patented accumulation against the grain during the early dumps, followed by a noon spike.
With the ‘most important day of all time’ scheduled for Thurs, instead of the customary Wednesday, and including a Yellen Q&A, one suspects we’ll be bumping up against the index 20DMAs and slightly lower next week (except the QQQs where algos might attack the 200, just for fun), with only significant int’l news being able to take us to recent lows pre-Yellen. If they pass, or do ¼ point with super-dovish Yellen comments (“we’ll reassess in 6 months”, etc.), then this silly wedgie formation could go on for months. The popcorn is growing stale …
So the bottomline is that China is holding up all markets, globally... By making it impossible to sell, on one side, and by buying whatever there is to buy, on the other side...
Interesting thought...
I think there is a fundament of truth - it is undeniable that China has intervened a number of times, in a number of ways, to keep its markets to sell-off. It is also undeniable that, all things being equal, if it becomes impoossible to sell, a market either stays put (lacking buyers) or grows (if buyers are present).
Looking forward, and accepting the above for a moment, what would stop China to do the same for any foreseenable future?
I guess it is fair saying that China could keep forbidding anything that smells like selling forever, effectively locking the markets where they are - that is, the Chinese ones. Limiting such view to the Chinese markets, one could see them going on forever with very little movement and impossible low volumes.
But in that way, the 7% growth does not materialise, at all. Even if companies investing in China would do good business, and even if Chinese people would want to buy them (knowing they won't be able to sell afterwards) it would still not stack up.
The thing is however that the Chinese gov could play this game for a long time, creating the illusion of "calm" for months at end. The only way to know that the Chinese economy is going belly up would be to look at the export levels - something that can be verified, at least to some extent - while all other numbers are possibly complete fiction...
But even then, it would take a lot of patience and data consolidation to double check what China is actually exporting...
In my view, reliance on China as information is concerned should be nil... There must be another way to assess the true state of global economy... without China numbers...
I guess that could be done by proxy, looking at the state of the EM economies in China proximity... Or waiting for China to make a mistake... Or waiting it stops buying stuff to keep the markets up... or wait it runs out of money...
The basic problem I see in here is that the Chinese markets are "rigged", in the sense they are directed at gov level. As long as other global markets are following China as it was a true market, the truth will never come out.
The result of this story is that today not only the Chinese markets are rigged, but the same applies to all others, including the US... And not because they want to do so, but simply because they are following a fraud - China goes us, the US goes up. It is a lie, most probably, but it does not matter...
What could force China to become a more reliable market, and to provide relaible information?
I don't know it myself... Ideas?
Happy weekend
China is good at faking it, look at all those terra cotta warriors, they must have chased off more than a few invaders
Good job, all you plunge protection teams. Rest up, Sunday will be here before you know it.
But, but...Shemitah?
The Schlempitaughe will affect each in it's own way, each in it's own time.
Things are going to happen, but when? That is the question now, isn't it.
We own your debt bitchez. Watch us dump treasury and bond obligations. Switch to BRICS. How will Israel who receives money for the US going to manage a proxy war?
You created this problem, let's see how you get out of it without United States of America taxpayers money. You are the size of New Jersey. Carpet bombing material.
Stop fucking telling us about this Judism / Catholic mission. You finish off your Judism hatred without United States taxpayer money. During upcoming war, tell the opposition you're political correct.
I believe God will declare your fate. This comes from a Protestant/Catholic religion upbringing. We got along, your religion push is false.
One last comment, fund your own war Zionist cunts. Watch all the air space access close around you.
You will pay for 9/11. It may take longer than 15 years. You will pay for terrorism. So will Saudi Arabia.
FUCKING GARTMAN, THE MAN NEEDS TO SHUT HIS FUCKING MOUTH.
Ominous looking bearish wedge on spx gonna win.