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Futures Exhibit Peculiar Ungreen Color On 5th Consecutive Month Of Chinese PMI Contraction

Tyler Durden's picture


Moments ago the Chinese PMI as tracked by HSBC/Market (not to be confused with the other PMI, tracked by China itself, which will likely show expansion, like last month), came and printed at 48.1, down from 49.6, and representing a 5th consecutive monthly contraction for the Chinese economy. Whether this means that China will promptly unleash more easing, or will simply wait to import some of Bernanke's own QEasy cooking, remains to be seen. What is far more shocking is that futures are indicating some very odd, ungreen color. It is on the tip of our tongue, but we can't quite place it... We are trying to think back to the last time futures were bathed in this particular shade of non-green, and can't - after all it was banned by the Chairsatan himself. We can only assume that the algos responsible for ramping the futures up are currently on their oil change break.

And from Reuters:

China's manufacturing sector activity shrank in March for a fifth successive month, with the overall rate of contraction accelerating and new orders sinking to a four-month low, the HSBC flash purchasing managers index showed on Thursday.


The PMI, the earliest indicator of China's industrial activity, fell back from February's four month high, slipping to 48.1, within a whisker of the level that economists at HSBC consider a crucial level dividing decline from growth.


Slowing activity could mean a further relaxation of monetary policy to help underpin growth in the world's second biggest economy, but lingering inflation risks uncovered by the survey highlight the dilemma facing China's policymakers who are determined to keep a lid on prices.


The PMI reading, down from February's 49.6, is likely to reinforce the more bearish views on China's economic trajectory.


"Growth momentum could slow down further amid a combination of sluggish export new orders and softening domestic demand. This calls for further easing steps from the Beijing authorities," HSBC chief China economist, Qu Hongbin, said in a statement.

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Wed, 03/21/2012 - 22:52 | 2278881 transaccountin
transaccountin's picture


worthless bastards time to lube up! but hey im sure the magic futures will float tonight. i mean who cares about bad data, just more reason to print fiat. so sick.

HSBC: China employment at new low since March '09
Wed, 03/21/2012 - 23:15 | 2278909 Spirit Of Truth
Spirit Of Truth's picture

That's nothing compared to when the markets are informed there's been a power struggle and effective military coup in Beijing: ThePeoplesRepublicOfChina.com

Kudos to Art Cashin who was on top of this story early: http://www.businessinsider.com/art-cashin-china-wen-jiabao-bo-xilai-2012-3

Thu, 03/22/2012 - 02:15 | 2279512 AldousHuxley
AldousHuxley's picture

US told China to buy some shit while slowing down raw materials consumption to offset commodity inflation.


free market my ass.


Thu, 03/22/2012 - 08:22 | 2279889 goldfish1
goldfish1's picture

Another useless headline:

US to impose tariff on Chinese solar panels in victory for domestic makers

American solar panel manufactuers welcome Obama administration decision, saying it exposes unfair trade practices


In a much-anticipated decision, the commerce department on Tuesday said it would impose tariffs of 2.9% to 4.73% on Chinese-made solar panels, after finding the Beijing government was providing illegal subsidies to manufacturers. Yet Solyndra gets 500 billion fiat inflation and goes belly up.
Wed, 03/21/2012 - 22:49 | 2278884 Paul Thomason
Paul Thomason's picture

So goes Apple, so goes the market is the story.

Until that happens futures continue not to matter much.  Article on Apple bubble worth a read IMHO 'That Apple-Google Comparison Chart!'

Thu, 03/22/2012 - 00:44 | 2279323 Clockwork Orange
Clockwork Orange's picture

Bernanke, the treasonist f*kr, simply jacks apple when he can - takes less counterfeit $$ to ramp the market that way - don't have to lift the QQQs or SPYs, just jam AAPL and up we go as the 0% borrowing hedgies and proprietary-trading desks of the Fed-ponzi-circuit keep things rolling.

All you need to know is Goldman's call that equities are 'the generational buy of a lifetime' (AT 1400 s&p) and Cramer shilling every stock he can find.

These bankster thieves know it is now or never for their ponzi to suck everyone in, or fail outright.

I hope Bernanke is hung on pay-per-view.  Can't wait.  Bastard.


Thu, 03/22/2012 - 01:16 | 2279397 Troll Magnet
Troll Magnet's picture

I just upticked you. If you don't see me around here tomorrow, please inform my family that I'm probably in guantanamo bay.

Wed, 03/21/2012 - 22:49 | 2278889 oogs66
oogs66's picture

Hard landing, soft landing, or no landing? :)

Wed, 03/21/2012 - 22:53 | 2278906 brewing
brewing's picture

let me fix that for you, hard randing...

Wed, 03/21/2012 - 22:50 | 2278891 rockraider3
rockraider3's picture

Holy shit.  I had to go look for myself.  Red indeed.

Meh, probably green by morning.

Wed, 03/21/2012 - 22:57 | 2278928 Boston
Boston's picture

"Red"? What's that?

Please use English only, OK?

Thu, 03/22/2012 - 06:01 | 2279714 Mentaliusanything
Mentaliusanything's picture

Have You never heard the term ..

"Better Dead Then Red".

Tis The circle jerk that give the pleasure ..... Until.....

Reality strikes and you realize you have done a bit more than your load.

"an Apple a day keeps reality at bay" 

Wed, 03/21/2012 - 22:50 | 2278892 Tsar Pointless
Tsar Pointless's picture


Don't get yer tits in a tizzy. Plenty of ramp-fest data to be had tomorrow here in the States.

Case in pointless:


Buy. The. Dip.

Oh, yeah. Bullish!

Wed, 03/21/2012 - 22:53 | 2278907 Dr. Engali
Dr. Engali's picture

It's all converging nicely. China needs a good war to distract it's people and the U. S. needs a good war to do the same. And there sits Iran right in the middle.

Wed, 03/21/2012 - 23:06 | 2278961 xela2200
xela2200's picture

And Israel wants to kill all arabs, so there you go.

Wed, 03/21/2012 - 23:51 | 2279169 Gromit
Gromit's picture

It's tough to be the world's elite fighting force unless you engage frequently.

Fri, 03/23/2012 - 22:55 | 2285882 xela2200
xela2200's picture

They need all the practice that they can get.

Wed, 03/21/2012 - 22:53 | 2278908 ekm
ekm's picture

No biggie.

I've been following BAC every single day it's been 5 months already because I see it the very target of Fed action.

It has not been allowed to drop below 9.50 when all other financial have suffered day drops some times.

So let Benny get stuffed with BAC, till the last share. Only green allowed, till the last SPX is in Benny's pocket.

Wed, 03/21/2012 - 23:03 | 2278949 Caviar Emptor
Caviar Emptor's picture

You hit it. Been that way since 3/09

Wed, 03/21/2012 - 23:15 | 2278981 ekm
ekm's picture

Bear Stearns, Lehman and MF Global collapsed all the same way.

For MF Global they kept buying italian bonds in order to keep their price up and got stuck with them until nobody would lend them money.

Now, whoever is getting stuffed with BAC, I think it's going to collapse.

Do you know whether Merryll Lynch are allowed to buy BAC? On Fed's website they are not associated with BAC at all.

I'm trying to find out who is buying BAC to protect the stock price?

Thu, 03/22/2012 - 09:49 | 2280185 marathonman
marathonman's picture

MF Global got taken down by JP Morgan.  With new bankrupcy laws in the US and Europe holders of derivatives contracts get preference over even senior bond holders.  So now the strategy for the TBTF is to increase derivatives to get control of everything when they decide to blow something up:  http://www.informationclearinghouse.info/article30016.htm

Wed, 03/21/2012 - 23:00 | 2278937 seek
seek's picture

I come here for the headlines, but stay for the stories. This particular headline had me cracking up.

Wed, 03/21/2012 - 23:02 | 2278941 Caviar Emptor
Caviar Emptor's picture

No way. Bad is good. Always has, always will. Until the last HFT bot left after the global nuclear holocaust spews out it's last neural algo code and trades AAPL with itself using the last of its backup reserve power. Only then we'll get a downtrend. But it'll be too late 

Wed, 03/21/2012 - 23:03 | 2278945 monopoly
monopoly's picture

My Goodness. Call 911. Unbelievable. 

Where are you guys getting this hard and soft landing stuff. There will not be a "landing". The whole fucking global financial system will blow up in our faces. But not yet.

Now back to our regular programming.

Wed, 03/21/2012 - 23:03 | 2278946 spekulatn
spekulatn's picture

Ungreen is uncool, bitchez!

Wed, 03/21/2012 - 23:07 | 2278964 Jake88
Jake88's picture


Wed, 03/21/2012 - 23:14 | 2279003 trampstamp
trampstamp's picture

The Europeans will ramp this bitch after they have their expresso. Weeeeeeeeee.

I hope everyone is all in /sarc

Wed, 03/21/2012 - 23:12 | 2278986 Conman
Conman's picture

Eh i seen futures lobster red in asia session so many times only to open flat to up too many times to get all frisky about this.

Wed, 03/21/2012 - 23:13 | 2278994 SillySalesmanQu...
SillySalesmanQuestion's picture

Could be China is going to use a different playbook than the FED & ECB....?

Wed, 03/21/2012 - 23:14 | 2278998 non_anon
non_anon's picture

a coup in progress?

Wed, 03/21/2012 - 23:15 | 2279010 chump666
chump666's picture

hahaha that was funny.  Damn this market is so overbought it's comical.  Bernanke makes as much sense as a crack addict these days.  This thing is going down.  Yes there is Fed has support lines.  But, chairsatan did say that oil is pushing up inflation.  his chart at the moment is the WTI crude he'll hope for a break under 100 even.  When he gets it get then he'll turn the printers on.  Total lunacy.  But war is coming.  So, f*ck him and the Fed.

HFTs panic like there is no tommroow.  Flash crash is calling.

Wed, 03/21/2012 - 23:16 | 2279016 chump666
chump666's picture

AUD decimated.  It's all China, China and oil. They are delusional, but the oil price isn't.  It's stagflation for them

Wed, 03/21/2012 - 23:19 | 2279036 ekm
ekm's picture


Selling volume doubled since china news came out. Right before the news it was about 2100 contracts sold. Now it's 4084.

Thu, 03/22/2012 - 01:17 | 2279337 chump666
chump666's picture

Interesting.  So we make the assumption that the government and central banks are trying to steer the global economy by trying to influence prices.  That we know.  The problem these a-holes have, and they are a-holes big ones, is that inflation drives capital flight out of countries.  The USD is a reserve currency so it stays bid in the sense that other countries (who are showing inflation) like China start dumping their currency to buy USDs.  Hence the delusional Chinese goverment will have a major wave of inflation hit.  Comparable to the oil price, that if China does full bore crash, should collapse. But the commies like to steer things, they usually steer into a ammunition dump. So it will make no difference

The global economic machinery is breaking down.  All thanks to central planning lunacy.


Wed, 03/21/2012 - 23:16 | 2279019 pleseus
pleseus's picture

Time to crush Silver

Wed, 03/21/2012 - 23:54 | 2279179 rockraider3
rockraider3's picture

That's the new algorithm.  All roads lead to crushing silver.

Wed, 03/21/2012 - 23:18 | 2279024 tahoebumsmith
tahoebumsmith's picture

Remember this? Time for the puppet masters to take a cruise on the yacht of dreams... Honestly, there is only so many toxic trinkets one can buy before they die from exposure or become the next star on the A&E show hoarders...


Wed, 03/21/2012 - 23:30 | 2279085 gwar5
gwar5's picture

Washington Times via Drudge: Reports of shots fired, tanks in Beijing, censorship ramping up. 

Word out of China: Bang Dai Ho is OK.

Wed, 03/21/2012 - 23:42 | 2279132 q99x2
q99x2's picture

China's elite to let tension build internally as a precedent to a controlled nuclear exchange with the US.

Just kidding.

Thu, 03/22/2012 - 00:27 | 2279262 bankonzhongguo
bankonzhongguo's picture

What is all this tank activity in Beijing?

Shanghai faction shake-out?

Thu, 03/22/2012 - 00:35 | 2279294 chindit13
chindit13's picture

And I thought I was just red-green colorblind.  Now I can put away the Ishihara tests.

Thu, 03/22/2012 - 00:54 | 2279352 Sandoz
Sandoz's picture

That's not the only interesting news coming out of China. 

Apparently on Wednesday China ordered all lawyers to swear allegiance to the communist party (http://www.bbc.co.uk/news/world-asia-china-17470818).

Imagine getting into a commercial dispute with a Chinese firm that has local or central government ties and where your lawyer has sworn allegiance to the communist party. 

Thu, 03/22/2012 - 02:10 | 2279501 FXPortent
FXPortent's picture

So it begins.....



Thu, 03/22/2012 - 02:21 | 2279525 StockMarketBott...
StockMarketBottom.com's picture

Stock market bottom April 2012


Thu, 03/22/2012 - 06:50 | 2279743 bigkahuna
bigkahuna's picture

Somethings cookin' - not sure what, but it is probably some Chinese "politicians".

Fri, 03/23/2012 - 04:17 | 2282771 Youri Carma
Youri Carma's picture

Nobody escapes the wrath of bubble economics.

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