This page has been archived and commenting is disabled.
S&P (Barely) Ends Losing Streak Despite Crumbling Credit, Pumping'n'Dumping Dollar
Despite the awesome unchiness of today's broad market, some big names were ugly...
Everything is not awesome everywhere...
* * *
US equities traded in an extremely narrow range all day, weak into Europe's close, drifting higher in the afternoon...
The following chart of the S&P (cash) shows the odd nature of the last few days - opening dump, stabilize into EU close, drift higher in the afternoon, ramp into close...
And here is how you close the S&P green...
AAPL tumbled on a CS report confirming our earlier channel check and supply chain details...
Another hedge fund hotel - SunEdison - collapsed another 20-plus percent today...
Finally VRX dropped again - after a bief bounce intraday... despite every effort to calm investor anxiety...
Credit markets have now fallen for (wider spreads) for 5 days in a row - longest streak in 3 months...
With Credit leading stocks lower...
But Treasuries & Stocks have now finally recoupled...
But Treasury yields ended the day lower (with the front-end outperforming - 3Y -4bps, 10Y -2bps, 30Y -1bp) - once again Treasuries followed a similar pattern around the EU close... (someone is dumping Treasuries from Europe, and then stop once Europe closes)
The USD spiked early on amid a collapse in EURUSD back to a 1.06 handle - but recovered after Europe closed to end the day unchanged on the week...
Notably it appears someone in Europe is dumping EURs into the early US session...
Commodities were a mixed bag today with PMs hurt early on and crude bouncing higher despite IEA warnings (only to end unch)...
Bloomberg's Commodity Index hit a fresh 16-year low...
Charts: Bloomberg
Bonus Chart: Seriously - as we stated at the start - everything is not awesome...
Small Business Sales Expectations pic.twitter.com/zOPtpir0w4
— Not Jim Cramer (@Not_Jim_Cramer) November 10, 2015
»
- 118 reads
- Printer-friendly version
- Send to friend
- advertisements -
Why buy stuff when you can buy stocks!
I already have too much stuff, now it's time to see if I can have too much stawks!
mmmm, chart porn, gave me a shiver up and down my leg...
Seriously, Tyler's chart magic is breathtaking.
Even a blockhead like me can understand the points being made!
DaddyO
To quote Larry David on SNL as Bernie Sanders: "BAHHHH"
This will cheer everyone up:
Video of the Day: Jihadi was Mid-Sentence when he was Vaporized by Incoming Mortar ShellFed has twisted this market until it's always a good time to buy stocks.
Maybe William Dudley and Yellen can act like NAR and get on national TV to pump stocks. Say it's always a good time to buy stocks especially with the endless QE.
I wanted a barfing clown!
....and VIX went silently into the night.
A classic ZeroHedge VIX clubbing!
"AAPL tumbled on a CS report confirming our earlier channel check and supply chain details..."
did timmy's iphone brick itself on an upgrade? why didn't he just email cramer again that everything's fine?
Why did the SPY go up $0.40 in the last minute of trading?
wow it only took 7 attempts today to get the fake ass Dow off the lows and to the promised land....
markets exceptional'.....
Don't ask no moar questions, cuz the answer is always moar QE.
Behold .... Mary Jo White declares war on the manipulative short sellers.
http://www.bloomberg.com/news/articles/2015-11-10/sec-s-white-says-short-selling-getting-her-intense-attention-
So they will find a patsy white male trader given orders by Goldman Sachs gang to take the fall or die?
If it wasn't for my confidence in the watchful eye of the SEC, I would think this stock market is manipulated.
Marty Armstrong sez manipulation is absurd........
http://www.armstrongeconomics.com/archives/38979
I knew there was something shillish about that boy.
My trade setup was literally signaling for a short, I looked at the time, saw there was 15 minutes to close, thought to myself "fuck no," and just took my ball and went home. Looks like the best trade was not trading at all.
Regarding other Apple nonsense and its stock price drop today: Tim Cook says the PC is dead:
Cook has his hopes pinned on the company’s new 12.9-inch iPad Pro, which goes on sale tomorrow and starts at $799
I'll tell you why I'd buy a PC Tim. I'm not going to play World of Warcraft on a fucking 12.9 inch screen. That's why.
I'm also not going to work 10 hours a day on a fucking tablet.
I'm not going to do anything that requires the computing power of more than my fucking phone on a fucking tablet. Some of us actually do shit.
I'll take Dell for $800 Alex!
wow they took $100 out of gold like it was a red headed step child
They can just float it until after christmas, next earnings. That's all they need. The war is coming.
I spent a few minutes trying to come up with something witty to say, but I gave up. That's what happens when you realize you are re-living groundhog day, over and over again. How many times have I typed that sentence??
more like reptile day... they win, again!
Watch it squid.
QUOTE:The following chart of the S&P (cash) shows the odd nature of the last few days - opening dump, stabilize into EU close, drift higher in the afternoon, ramp into close...
That has been the pattern for more than the "last few days"; try the last few years.
According to VTB Capital:
Low-flation liquidity trap
It is nearly seven years since the Fed cut official short-term interest rates to zero. Professor Paul Krugman observes that, in length, the era of lowflation plus liquidity trap now rivals the 1970s era of stagflation. Now we are used to central banks in the major economies persisting with unconventional monetary policies that have been positive for financial asset prices but with less clear effects on the real economy. Fiscal policy has less scope to stimulate economic growth in those countries where high budget deficits and high debt/GDP ratios constrain policy-makers even though borrowing costs are at historical lows. Twelve countries in Europe now have negative two year yields.
Proponents of the debt-supercycle thesis argue that the increase in debt levels that has taken place since the 2007 crisis requires further debt deleveraging before economic growth can return to its pre-cycle path. Secular stagnationists point to insufficient investment demand to absorb all the financial savings done by households and corporates. Adverse demographics worsen the outlook. A chronic shortfall in global aggregate demand and a supply glut equals disinflation. Negative real equilibrium real interest rates are the end of result and monetary policy becomes ineffective. Professor Krugman argues that if nobody believes that inflation rises then it won’t. The only way to be sure at all of raising inflation is to accompany a changed monetary regime with a burst of fiscal stimulus. However, policymakers are reluctant to go down this path.
Clearly the problem at hand is not a lack of liquidity, though the paradox is that in a world of ample central bank liquidity, market liquidity has shrunk. This might to some extent be the impact of regulatory policy as well as a shrinkage in the supply of ‘safe assets’ for use as high quality collateral in repo markets. This ends up pushing up the price of liquidity. Other commentators argue that central banks have lost their way by being fixated on inflation targeting in a world where inflation in goods and labour prices does not exist. In this view, monetary policy has been transformed from an agent of price stability into an engine of financial instability. Over the last 15 years, the real fed funds rate i.e. adjusted for inflation, has been in negative territory for 60% of the time, according to Stephen Roach. This generates persistent bubbles in financial asset prices not just in US markets but globally too. Most central banks take the view that the decline in CPI inflation rates is temporary and mostly due to ‘transitory’ factors such as the slump in energy prices. In their view, this will unwind and CPI inflation will return to the 2% official target. The BoE’s Inflation Report on Thursday, for example, is expected to take this view. However, there are new global forces pressing down on inflation, not least of which are the deflationary pressures emanating from China’s excess capacity. The IMF predicts that the price deflator for all advanced economies is to increase just 1.5% per year until 2020, which is little different from the crisis-depressed rate of just over 1% of the last six years.
Our thesis is that the Fed has become increasingly boxed in and at the mercy of adverse domestic and external events. The door is closing in terms of its ability to ‘normalise’ monetary policy, especially in the run-up to the US Presidential Election in November 2016, which means that QE4 cannot be ruled out.