US Equities Give Up China Rate Cut Gains As Crude Plunges To $42 Handle

Tyler Durden's picture

It appears this morning's dismal Durable Goods data was the last straw on the camel's back of the 'bad news is goods news' meme. With GDP estimates plunging and numerous economic indicators flashing red, it seems last week's central-bank-inspired exuberance is wearing off as proof that their policies have failed mounts up. 10Y yields are near the crucial 2.00% barrier (and Bund yields are crashing), Crude tumbled to a $42 handle, and US equities have given up all of the China rate cut gains...



Bond yields and crude tumbling...


And Bunds continue to rip lower in yield...


Charts: Bloomberg

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FreeShitter's picture

Winter is coming........

VinceFostersGhost's picture




The price of energy will necessarily rise.


Hope and Change.


Yes we can.


Awwwwww......screw it.

Apply Force's picture

A rising price of energy assumes there are people with enough $ to pay for that price increase - I say you're wrong.  Crude is priced on the world market and the world is broke.  Well past the ability to further consumption with increased debt.

The good old US of A might be last to feel the pinch as far as driving around in circles, but is already feeling the pinch in demand destruction and a life of generally LESS STUFF.

max2205's picture

wait, there's a business cycle?

taopraxis's picture
taopraxis (not verified) Oct 27, 2015 8:33 AM

Okay, let me hear from all of you old school discipline trend-following traders> Are you buying or selling the opening? Let me guess...

Edit: Just trimmed my own underwater short position a tad to give me some flexibility.

Ness.'s picture

Sell the open - buy it back 4 minutes later.  Buy again at 3:30.  Rinse repeat.  If you can't see that equity markets are blantantly being manipulated - you're in the wrong biz. THAT is the trend.

Osmium's picture

It appears this morning's dismal Durable Goods data was the last straw on the camel's back of the 'bad news is goods news' meme.

I doubt that.  Indexes will be green before lunch.

taopraxis's picture
taopraxis (not verified) Osmium Oct 27, 2015 9:01 AM

I'm expecting another, sharper dip later today. If so, I'll trim my shorts a bit more and then wait out the Fed. If not, I'll grit my teeth and gut it out. People's faith in the central bank is delusional.

MadVladtheconquerer's picture
MadVladtheconquerer (not verified) Oct 27, 2015 10:25 AM

And look at LockheedMartin stock zooming higher!  Maybe Larry Edelson was right!

The War Cycles are ramping up!  The Chinese and the Russians are great for the defense industry.

An arms race is just away.  We truly live in interesting times!!!!

"The Poor Co-pilot"


Apply Force's picture

This post is not seeing the forest for the trees.  Good info (maybe) if you are a trader, but more difficult to see what the trends portend, and what are the ultimate drivers from the info presented.  Small price swings for small-drivers (see post).  Large price swings for large-drivers (see the world economy).

Always odd to me that posts on the life-blood of our economic engine get so little action - - even here at ZH it seems so many are in denial of the crumbling BAU meme and what that means for us ALL on our 3 to 5 year outlook.