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First Response To Downgraded "Non-Event": Saudi Tadawul Down 5.5%

Tyler Durden's picture




 

Those seeking a harbinger of what may be in store for global capital markets come Sunday 5 pm should look to Saudi Arabia where the Tadawul just dropped by over 5% today.

Saudi Arabia's Tadawul index fell 5.46pc on Saturday.

 

Sayeth the Telegraph: "The Tadawul All-Shares Index closed down 350.43 points 6,073.44 as all shares tumbled following a tumultous week for global markets which was capped by Standard & Poor's cutting the US credit rating over its $14.3 trillion deficit and debt. "The S&P rating and problems in Europe... have scared investors," said financial analyst Abdulwahab Abu Dahesh. The Saudi market was the first to react globally to the S&P statement late on Friday, with the start of the trading week in Saudi Arabia, while all other markets remained shut for the weekend. Analysts expect markets in Asia and Europe to follow the Tadawul lower on Monday. "Saudi shares have reacted to two events: sharp drops on Thursday in markets, especially oil, and the S&P cut of the US rating," economist Mohammed al-Omran told Al-Arabiya news channel."

Granted Saudi Arabia may be reacting more to the fact that crude plunged by about 15% last week than anything, although absent some very motivated buying force we do believe that some rather substantial downward momentum is imminent, especially once some "unintended consequence" pops up. And when you have a historic event like a US downgrade, there always are unintended consequences.

 

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Sat, 08/06/2011 - 12:13 | 1530568 Milton Waddams
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According to classical technical analysis, that is widely known as the 'camel toe' formation.

Sat, 08/06/2011 - 12:13 | 1530571 caerus
caerus's picture

lol

Sat, 08/06/2011 - 12:57 | 1530799 bigdumbnugly
bigdumbnugly's picture

yeah, gotta be bullish. 

isn't the camel toe pattern a precursor to the closely followed SCHWINGGG formation?

Sat, 08/06/2011 - 12:59 | 1530807 Ahmeexnal
Ahmeexnal's picture

peak camel dung

Sat, 08/06/2011 - 13:10 | 1530855 augie
augie's picture

"It is easier for a camel to go through the eye of a needle, than for a rich man to enter into the kingdom of God"

Sat, 08/06/2011 - 14:08 | 1531148 mt paul
mt paul's picture

camelish

for the markets

Sat, 08/06/2011 - 12:21 | 1530606 Drag Racer
Drag Racer's picture

almost as funny as the fact they just made it illegal for foreigners to trade camels. must be for security reasons, maybe they use camels to carry the sacks of dollars.

Sat, 08/06/2011 - 19:51 | 1531960 Libertarian777
Sat, 08/06/2011 - 12:46 | 1530730 IMA5U
IMA5U's picture

Bahahahahahaha

a classical camel toe indeed. With a distinct smell of bad fish

Sat, 08/06/2011 - 13:51 | 1530994 BlackholeDivestment
BlackholeDivestment's picture

Milton, that was funny. Thank's for that laugh. ''Camel Toe'',lol, proof that it still looks bad, even when it's the market. Yoo little devil you. lol. http://www.youtube.com/watch?v=hEix4asVQVY&NR=1

Sat, 08/06/2011 - 15:09 | 1531373 static
static's picture

hilarious!  that's a nugget... i will use that one..taking full credit of course...LOL

Sat, 08/06/2011 - 15:04 | 1531382 static
static's picture

halarious!  thats a nugget... i will use that one..taking full credit ofcourse...LOL

Sat, 08/06/2011 - 12:13 | 1530569 caerus
caerus's picture

uh-oh...time for another "benefits package"

Sat, 08/06/2011 - 12:17 | 1530570 Doyle Hargraves
Doyle Hargraves's picture

I thought debt brotha/timmay/the bernank said the downgrade din't matter?! Guess debt brotha wil have to go bow and kiss the house of Saud's ring again!  BWAHAHAHAHAHA Bitchez!!!

Sat, 08/06/2011 - 12:38 | 1530689 Zero Govt
Zero Govt's picture

you need to be specific with Our Timmay, he talks fast as a machine gun firing snake oil pellets at you! What Timmay actually said to the risk of a US downgrade was:

"There's no risk of that happening"

Asked a 2nd time the same question he replied: "No Risk"

Timmay lives in a riskless world, Croneland, but his unbalanced fiscally unsustainable budgets live in quite another!

Sat, 08/06/2011 - 12:14 | 1530575 dearth vader
dearth vader's picture

This Tadawul Index, shouldn't it be read "Tad awful"?

Sat, 08/06/2011 - 12:56 | 1530787 Doña K
Doña K's picture

A good anagram for tadawul:

Adult aw!

Sat, 08/06/2011 - 12:15 | 1530577 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

My guess is that oil was the driving force. If you have an authoritarian regime whose main source of income is oil that is dropping like a rock, insolvency is not far away.

Sat, 08/06/2011 - 16:03 | 1531474 gina distrusts gov
gina distrusts gov's picture

Wait until they try to get there gold out of London and new york and find out it was all double and triple (or higher multiples) sold out from under them

Sat, 08/06/2011 - 12:18 | 1530587 oogs66
oogs66's picture

I really think this market was closed on Thursday and Friday.  They are just catching up to the moves we had on thursday and Friday, Oil's steep decline since last time they were open

Sat, 08/06/2011 - 13:09 | 1530853 ZeroPower
ZeroPower's picture

Yes, arab weekend is days 2 early.

Sat, 08/06/2011 - 14:55 | 1531344 dpr10
dpr10's picture

open on thursday, just closed on friday...i think..nope closed both days..you are correct...

Sat, 08/06/2011 - 16:57 | 1531619 Stuart
Stuart's picture

it's just catching up.  relax with the hyperbole TD.

 

Sat, 08/06/2011 - 12:19 | 1530613 Highrev
Highrev's picture

I’m looking for a reaction rally very soon if not immediately.

Inverse Head and Shoulders, Market Structure and Rising Channels on the RUT
http://img508.imageshack.us/img508/4287/rut050811.png

Inverse Head and Shoulders and Rising Channels on the NDX
http://img837.imageshack.us/img837/6770/ndx050811.png

Rising Channels in the U.S.
http://img153.imageshack.us/img153/30/usa050811.png

Surprising China
http://img534.imageshack.us/img534/7210/china050811.png

Troubled Europe as cash strapped investors go to the well again to cover losses back home
http://img171.imageshack.us/img171/2995/europe050811.png

And DON’T FORGET that the Euro is STILL ON A WEEKLY BUY SIGNAL.

Bonds at overbought extremes, volitilaty and sentiment at extremes, and, well, let’s just keep in mind an old Wall Street addage: NOTHING GOES ANYWHERE IN A STRAIGHT LINE!!!!****

****Nevertheless, if this is that rare ocasion where we get an equity crash, I don't think we'll have to wait long at all to find out.

(Previous comments on this setup can be backtracked starting here: http://www.zerohedge.com/news/sp-goes-red-year-its-about-time#comment-15... )

Sat, 08/06/2011 - 13:20 | 1530900 augie
augie's picture

Don't be offended, but are you trolling? 

Sat, 08/06/2011 - 17:18 | 1531663 Highrev
Highrev's picture

That depends on your sense of humor, and, of course, and most importantly, your ability to reason.

So, let me know what you come up with.

 

Sun, 08/07/2011 - 06:56 | 1532437 Highrev
Highrev's picture

Fot those of us who are able to reason, but for whatever reason, be it the overwhelming mindless commentaries or the steamrolling imposition of ideas, whatever the reason, if there are doubts about what I post, here's what I was saying in April:

http://www.zerohedge.com/forum/supersize-snapback 

or you can just click the link to the chart: http://img690.imageshack.us/img690/274/rutweekly080411.jpg

THE NAME OF THE GAME IS TO SELL HIGH AND BUY LOW, not the other way around.

 

Sun, 08/07/2011 - 11:45 | 1532641 nscholten
nscholten's picture

China looks like shit

Sat, 08/06/2011 - 12:23 | 1530619 joak
joak's picture

Shut the windows or some bankers might fall by Monday... What a thriller, this month is epic, long pop-corn and PM, short all the rest.

Sat, 08/06/2011 - 12:55 | 1530779 Mesquite
Mesquite's picture

Don't forget long ant-acids also..<smile>

Sat, 08/06/2011 - 12:58 | 1530804 Jonas Parker
Jonas Parker's picture

... and "Depends" for the bamksters...

Sat, 08/06/2011 - 12:23 | 1530620 Troll Magnet
Troll Magnet's picture

This is a great opportunity for President Obama to hunt down and take out Osama bin Lad...WHAT?  He's dead?  Well, can he take out other bin Ladens and declare them terrorists?  

Sat, 08/06/2011 - 12:42 | 1530704 7bit
7bit's picture

"take out Osama bin Lad...WHAT?  He's dead?"

No, this must have been a mathematical error. You can kill him again.

Sat, 08/06/2011 - 13:03 | 1530819 Pure Evil
Pure Evil's picture

Nah, they don't need Osama Ali Bin Baba anymore. Anyone that openly opposes the Obama regime is now considered a 'terrorist', soon to be re-educated or suicided at a FEMA camp near your hometown.

Sat, 08/06/2011 - 12:23 | 1530622 Spitzer
Spitzer's picture

Just like I though with all of these mentally fucking retarded market partisipants. US treasuries will probably rally even though they where the asset that got downgraded.

Sat, 08/06/2011 - 12:24 | 1530625 kaiten
kaiten's picture

Now, as US is downgraded, QE3 is essentially slam dunk.

Sat, 08/06/2011 - 12:58 | 1530802 Id fight Gandhi
Id fight Gandhi's picture

Great, people are gonna love paying $6 gallon for gas and more job losses as the bankers roll up record profits.

Sat, 08/06/2011 - 13:09 | 1530858 Pure Evil
Pure Evil's picture

Are you kidding?

I can't wait until it gas gets to be $15/gal.

Nothin says 'conspicuous consumption' like drivin' an ole gas guzzler.

Sat, 08/06/2011 - 13:38 | 1530977 Jonas Parker
Jonas Parker's picture

Like BAC???

Sat, 08/06/2011 - 12:33 | 1530649 CrashisOptimistic
CrashisOptimistic's picture

 

>

Granted Saudi Arabia may be reacting more to the fact that crude plunged by about 15% last week than anything

>

Here's the prices of oil:

 

Brent $109.43 Tapis $117.00 Alaska $106.88 Dubai $102.73 Louisiana $110.63 Urals $107.99 WTI $ 86.88 Oman $103.15 Minas $117.45 Forties $109.46 Bonny $118.85

The US imports 60% of its oil. WTI is not the price of US oil. Frankly, it's absurd and everyone knows it.

 

Sat, 08/06/2011 - 12:39 | 1530694 warchopper
warchopper's picture

I'll be off in the Middle East in about 9 months. Looks like good times ahead.

Sat, 08/06/2011 - 13:20 | 1530898 Oboneterm
Oboneterm's picture

Sat, 08/06/2011 - 13:31 | 1530947 RiverRoad
RiverRoad's picture

Arab Spring, Summer, Fall, Winter....

Sat, 08/06/2011 - 13:32 | 1530951 10044
10044's picture

I'm getting word from trading desks that gold will definitely hit 2k next week (and why shouldn't it?)

Sat, 08/06/2011 - 15:59 | 1531457 Manthong
Manthong's picture

I spent 50 bucks on 5 September 1990 GLD's a few weeks back..

Damn things might be worth something next week.

LOL.

Sat, 08/06/2011 - 13:33 | 1530961 Bear
Bear's picture

I should think that the Saudis are concerned ... they have more dollars than we do

Sat, 08/06/2011 - 13:40 | 1530988 Hammurabi
Hammurabi's picture

Tadawul Camel stock market close on thursday at 9 am eastern time, and open on saturday.  Tadawul missed 1 day of bear market. this is normal for a country who hold US bonds.

Sat, 08/06/2011 - 13:45 | 1531019 frostfan
frostfan's picture

Saudi Market is closed Thursday and Fridays so they're just reacting to everything else on Thursday.    Tyler wasn't the only one acting lazy.  Cavuto opened his Fox show this morning the same way. 

Sat, 08/06/2011 - 14:01 | 1531092 UglyTimes
UglyTimes's picture

As others pointed out the saudi stock exchange was closed Thursday and Friday. Don't get me wrong I'm in the bear camp, but however I truly do believe that this downgrade is a non-event for Monday trading. Wouldn't be surprised to see stock markets rise. However we have the problems in Europe to look forward to. :)

Sat, 08/06/2011 - 15:02 | 1531372 dpr10
dpr10's picture

non-event meaning we wont drop more than 5% right..so why are they scrambling for tele confs in the middle of the night..

Sat, 08/06/2011 - 15:02 | 1531374 dpr10
dpr10's picture

non-event meaning we wont drop more than 5% right..so why are they scrambling for tele confs in the middle of the night..

Sat, 08/06/2011 - 15:03 | 1531377 dpr10
dpr10's picture

non-event meaning we wont drop more than 5% right..so why are they scrambling for tele confs in the middle of the night..

Sat, 08/06/2011 - 16:29 | 1531541 oogs66
oogs66's picture

i agree...this isn't telling us much as they are just catching up.  if Europe doesn't have some positive noise for Monday, it will get ugly in a hurry.  it all comes down to Italy and Spain has they have solvency issues.

Sat, 08/06/2011 - 14:04 | 1531133 hyperbole2000
hyperbole2000's picture

Saudi's Islamic Calander has their weekend on our Thursday and Friday (Friday is their holy day, the seventh day). They are just playing catch up. The S&P declaration pissed me off.
I took profit on my shorts Friday as I was not going to let the FED screw me over the weekend when the market was closed. I was going to buy buck pre-opening Monday morning hopefully at same price if FED was comtose or at reduced price if FED tried a Shock & Awe event. The S&P action will likely cause me to buy back at a higher price; however, there is still 72 hours for the FED to charge like the Polish Cavalry in WW1.

Sat, 08/06/2011 - 14:42 | 1531303 bernorange
bernorange's picture

Green shoots, obviously.

Sat, 08/06/2011 - 14:44 | 1531310 tictawk
tictawk's picture

Armageddon was promised by everyone if the DEBT CEILING was NOT raised because S&P would downgrade our debt.  We have been downgraded anyway because we stupidly agreed to spend more and no ARMAGEDDON?  Fasten your seatbelts, its about to get ugly, very ugly.  My bold prediction is Stocks, Bonds and Dollar lower for starters. 

Sat, 08/06/2011 - 15:00 | 1531363 dust to dust
dust to dust's picture

 Long the FLINT GROUP distributers of printers ink. Hee, Hee.

Sat, 08/06/2011 - 15:01 | 1531369 dust to dust
dust to dust's picture

 Long the FLINT GROUP distributers of printers ink. Hee, Hee.

Sat, 08/06/2011 - 15:04 | 1531381 dust to dust
dust to dust's picture

 Long the FLINT GROUP distributers of printers ink. Hee, Hee.

Sat, 08/06/2011 - 15:12 | 1531396 PulauHantu29
PulauHantu29's picture

Saudi's hold a ton of treasuries so they may be in deep doo doo.

Sat, 08/06/2011 - 16:04 | 1531478 Manthong
Manthong's picture

Ol' Prince Alwaleed might want to think about holding off on his new tower for a bit.

http://www.dailyfinance.com/2011/08/03/saudi-arabian-prince-to-build-worlds-tallest-tower/

Sat, 08/06/2011 - 18:36 | 1531823 polizeros
polizeros's picture

"Everywhere I hear the sound of marching, charging people..."

Sun, 08/07/2011 - 14:27 | 1533313 hungarianboy
hungarianboy's picture

And ended positive 0.08% :-)

Wed, 09/14/2011 - 04:58 | 1667461 chinawholesaler
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