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Here We Go: US Futures Plunge As Milan, Dax Down 5%, Italian Fins Halted, EURUSD Sub 1.41
It is unclear what just spooked the market, but whatever it is, stocks have had enough fun for the day. After the ECB just announced that it had monetized a whopping E13.3 billion in the past week, nearly double expectations, and a total of E134 billion since the SMP program's inception, the market took one quick look at just how effective this program has been, shuddered, and plunged realizing that neither ECB intervention, nor the shorting halt is doing anything at all. As a result, ES is now down 21, EURUSD just dropped below 1.41 (Chinabot is about to give up), and rolling halt of Italian banks have started, with Intessa, Mediaset and Impreglio all halted. We expect UniCredit to follow suit as usual.
ES:
And bond purchases:
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This is what happens when Benny is taking out of the equation for just ONE day.
I was feeling quite depressed about my equity portfolio this morning, when it dawned on me that there is a major problem with our economic system. Why is it that interest rates remain exceptionally low, yet stock prices are plummeting? The answer is simple. The prices of debt instruments are heavily influenced by educated professionals at our Federal Reserve, whereas stock prices are largely determined by the market. This clearly demonstrates that experts and intellectuals are much more competent at setting prices than the general population. The solution is therefore beautifully simple: set up a central body for setting all equity prices. If it so happens that a stock is influenced by an underlying consumer good, then we should set up a body for pricing that good too. The experts that price these goods will be learned professors and intellectuals who are specialists in the relevant field.
You Have an equity portfolio? Man, you are brave. Thats so 1999 retro its cool.
I have an equity porfolio...
Junior miners, bitchez.
Very overweight.
Yea, I tried that back in 1980-82. drill results, infered resources, Reminds me of the Mark Twain quote. Good luck to you. 1 out of 10 hits the Jackpot and can make up for the other 9. Fun stuff though.
My equity fund is called Ancona's paid off house and cars fund. It can never be tapped, but I pay no fees other than the local extortion levy each year. You couldn't pay me to be in paper of any kind right now; too much panic and fear on the streets. I have a bad feeling about tomorrow's open. Very bad.
I call mine Cowboy's, First Ass National.
Crisis = opportunity... but ONLY for those with balls, baby. This place is full of people hiding in their basements, financially speaking.
It's all correlated, you'll lose your ass too.
Everyone will lose their asses for a while. Then a few metallic asses will begin to shine again. But that too shall be brief. I think we're going to see a bath full of blood (sadly no ukelele floating in it) tomorrow, come Asia open.
No pleasure in seeing this forecast come good. none at all, for anyone here I hope. It's an unfolding tragedy of rather historic proportions.
And of course it si unfolding exactly as per plan
V
http://aadivaahan.wordpress.com/2011/09/02/first-print-and-some-amazing-...
Miners look like they've been decoupling from the general market since the beginning of August.
Cmon guys it's satire.
We have a new Hamy, or maybe the old one has returned.
you must be from Princeton?
Kinda like your morning horoscope.
Million,
That would work pretty well, but why not go the whole enchilada and just nationalize all companies - no need for stocks, or prices! The smart dudes and dudettes from the Ivy League could run things.
That be the problem, Ivy League PHDs are running it now. You know, by and hold, diversification,technical charts,mutual funds, efficient markets and all the other theories they have brainwashed the sheep into believing while they backdate the options, dilute the stock, issue bonuses and run HTF and naked shorting scams. Oh but you get a .12 cent dividend LOL
Been there, done that, escaped.
Without the stocks or prices, the alpha males in charge of the companies have nothing to measure their manhood by. The need for competition eventually evolves into competition between two production lines - left shoes vs. right shoes. Pointless exercise.
And Ivy League is best left to what it does best - corrupt the minds of the next generation of Ivy League graduates...
nothing wrong with an equity portfolio but it should be overweight large gold miners. My stock portfolio contains 25% gold miners and has outperformed the market since late July.
Sorry but crazy not to anchor your stocks with some sort of major hedge.
"nothing wrong with an equity portfolio but it should be overweight large gold miners."
Hmmm. Is there an ETF for big obese gold miners ?
NUGT and GDX, GDXJ for Juniors. But FSG is an interesting vehicle.
Bravo. This level of trolling deserves some respect. :D
Hahaha!
It is Hamy!
I just know it. Funny man!
Ideas like this should be relegated to the dustbin of history.
This has already been tried and failed miserably...every time.
You're not too bright...are you?
I just gave you an example of it working fantastically well. Interest rates have remained low throughout the past 5 years despite all the economic challenges we have faced. This is a remarkable achievement, and should be admired as such. This can only be the work of true genius, and could never be achieved by market participants of mediocre intelligence.
Oh, I see, something for nothing? Hmmm...
Yes...a new way to wealth creation...out of thin air... hahahah!
you sir, are dangerous, and need to be taken out back and shot.......
<theinebriatedsot >@ 12:04,
TO whom are your speaking of?.
After second thought, whoever your speaking about does not deserve that rash, and kind of judgement.
Esp from a keyboard commando.
You are the Samaurai of Sarcasm.
Robotrader is too in a more suttle way.
Maybe he is like Calvin Bear, who's genius required years to shine through.
Wow, with the S&P futures down 62 I hope your equity port is short! I am holding the Oct. 7$ puts:) that is the sum of my equity exposure. All cash and short here. S&P is at 1999 levels.
I can only add holy effin shit.
The answer is very simple.Bond prices are predicting at least a bad recession or a depression for a protracted period of time.In that atmosphere earnings ,which are at their highest in history,will plunge.So your E in P/E is going to decrease dramatically.And your point about the Fed influencing interest rates is not correct.This is Just governmnet controlled interest rates ,which will eventaully backfire massively.Get out of all stocks.Buy when the Dow hits 5000
That is bullshit. The lower stocks go in the US, the more money the tresereve has to print to makeup for the shortfall in tax revenue to service the debt. That is bond negative.
"I love the smell of napalm in the morning."
MDS, you see it all with such clarity. I'll dust off my econometrics textbook and head to Washington. I'm going to change the world, dammit!!
Asset bubbles 101.
Perception is not was ends asset bubbles. Perception only changes after prices start falling. Everyone (except Austrians) thought house prices would never fall in the US until they fell. People in Canada and Australia still think house prices will never fall even though their valuations are worse then the US was.
the west destroyed its productive base and moved to the massage-the-figures-with-benny model.
chickens coming home to roost, bitchez
http://azizonomics.com/2011/09/03/the-shape-of-global-parasitism/
Or, this is what happens when the Fed uses the shadow banking apparatus (hedge funds) to pump liquidity into equity markets, using leverage from TARPed banks, with access to the Fed discount window. It was a blunt move.
Now the shadow banking apparatus is deleveraging, collapsing global equity markets.
Das Kapital, bitchez.
Ah, a day of Reality! Don't fret, Benny will be hard at work tomorrow and rainbows will lighten the sky as skittles fall from the heavens into rich bankers' pockets.
Green Shoots!
Marone !
It is actually spelled "Madonna!".
Yep, same as the pop singer, but pronounced the way you wrote it.
they monetized and couldn't hold yields down...the market has spoken and once again govt intervention in markets has a half life of less than a month!
Yep. The only boards green today are the ones showing interest rates in the PIIGS. Up, up, and away!
Bullish dip
perfect with rocky mountain oysters. grab a good red and i'll bring the whiskey.
You will all have to excuse gold if it goes down a bit this week, but people are going to be needing the cash me thinks. It's about to get UGLY!
Who really cares where PAPER gold/silver go ... Holding PHYSICAL in large quantities adds a sense of calm while entering The Perfect Storm ... I hope America survives and enters a New Golden Age on the other side.
You are right. If you hold physical PMs and read the horrible news everyday (offical news as well as blogs such as zerohedge) you have a sense of calm. However there is another way. Not read/watch any news and hold no PMs at all. I think that also gives you sense of calm ^^
Unky,
Yes the latter, it's like stepping off a curb, and getting HIT BY A BUS.
Still you are quite calm and collected, until the bus hits.
Yup! Like jumping off a huge (hugh for you Yahoo! readers) cliff and plummeting face up, enjoying the beautiful blue sky with the occasional puffy cloud, the soaring eagle, the transitory contrail...Ahhhhhhh...I even get a really neat feeling in my groin ... Ahhhhhh ... serenity
AH, having a family full of contractors, marksmen, and cooks gives me the sense of calm......beings that I am the farmer hedged accordingly with alcohol!
And have a nice day. i think we have just started the 6th inning of this double header. What amazes me is that so little of this is a surprise to me and many here and am positioned for it as we have been discussing all of this for months, at least. Tomorrow going to be very interesting.
Happy Libor, I mean, labor day.
//conspiracy theory on/
pre-Sept20-21 mini crash for QE3.
........"we have no choice" time approaching.............
Your position assumes that TPTB are controlling this. I would disagree. I think they've lost control and are now searching for a clean pair of shorts.
But this time QE won't make a difference. Everyone saw the show and got the T-Shirt for QE2--didn't work out so well. Shifting maturities out the curve on a bloated balance sheet isn't going to achieve much.
Game over.
van rompuy is spooking the markets with his blabla and the 10y italian @ 5.52
Maybe van Rompuy should recite one of his poems in front of the EU parliament. Might have a calming effect.
for how many years can they keep the sham going?
A) 1 year
B) 2 years
C) The end is closer than I can even imagine
2 years. They can go all in and buy all equities with printed money. The comex can short sell trillion dollars worth of PMs and other commodities with future contracts due in 2014 or something. Just my idea what the EE could do ;- )
They will simply ban private trade of gold and silver.
sun tzu,
Then they can pay us the going rate when and if that time comes, or I will have a boatload of new Jewelry.Or, better yet, get the hell outa dodge.
When they do that, they will cost us another few million jobs.......................
all that would do is sweeten the price even higher. For then gold + silver would become like drugs: illegal so ya gotta pay thru the nose to get 'em!. Do you really think that's gonna solve any problems?
theinebriatedsot @11:50,
Since I am just a peon, serf slave in the elites world, all I can do is try and look out for my family first, help others that deserve it, and do my best to retain a lifes worth of labor.I am in no position, as are you, to SOLVE any problem/s.
If you think we are, your delusional.
They can keep it going foreva! The question is, how long will enough people believe in the sham?
emancipate yourself... good song
Doesnt look good at all for the DAX. (Can you include a chart) Luckily I dont have any equities ;- )
Spooked by its own deranged headlines, the bots now make up news and then promptly react to it(their own headlines) so that we have the illusion that there is a market out there.
It's all just tradition.
On the bright side I hear the Vacationer in Chief is working a Union Rally today......
LMAO, good one.
...and DOW futures down 220. nice.
edit: three minutes later...and it's down 245.
looks like a fun week shaping up here.
DJIA futures down mostly because fair value is -230 after Friday's tumble. But, how many times have I watch with anticipatory glee for the opening bell with major red ink in the futures only to see a triple digit rally? Any serious selling pressure will only trigger the PPT to staunch losses. Unless they are setting a trap that is, there are days they need to set either bear traps or to force liquidity into the open by getting long suckers to BTFD. Either way I am as suspicious of the free market pricing theory of equities as I am of debt. No matter what you believe in the truth is that the cost of living is rising faster than any investment scheme except PM's and even that is subject to manipulations if TPTB decide against you, so in nominal terms alpha is out there, in real terms you had better get some physical and keep quiet about it.
I thought your 'leaders' in the States were a bunch of self-serving foreskinless shitbags -- but over here in Europe we don't have leaders. Period. You could homogenise the entire Establishment, feed it to a planar worm, and employ Fukushima-mutated amoeba with more intelligence than exists in europe.gov
Byte me, thank you for the thought. But we do not have leaders here either. They just do whatever it takes to keep their job, salary, expense accounts, perks, health care and retirement intact. That alone is job 1. We are next in line and still waiting.
As in the first task that a pol has...
...to get re-elected.
so has Nigel ripped Van Rompuy's ass lately?....... :-p
does anyone know what limit down is on es?
No but I suspect I'm going to find out soonish.
edit: I think 5% before the open at 9:30 am on Tuesday.
http://sandpfutures.org/
There is a word missing somewhere in the title.... "unexpectedly"....
As in "US Futures plunge unexpectedly". Now it is like reading major news outlets. I feel a lot better somehow.
LOL! Its just like watching CNBC!
dupe
Dow futures under 11,000 now. Geesh. Is it finally starting? Bernank going to move the meeting forward? 21st way too late.
The DOW is where you want to concentrate your short positions starting tomorrow.
@Cdad
That was last Thursday closing bell. Of course, any one trading/shorting should be very concerned about counterparty risk at this juncture.
You must be nuts! The puts are so rich now, last week at anytime was the buy! I bought BAC and GE puts for pennies.
I have to admit I almost felt guilty buying BAC puts after Buffet goosed up the price.
No, it's not supposed to start until Dow 9,000. That's the way we planned it.
The Bernank
Is it just me or doesn't that chart look like Fed balance sheet around 2008? Flat, then spiking..
Hockey sticks! (You curs!)
Isn't WAY past time real Men and Women took control of their markets, and countries again, the chiddddren, have screwed up the compooter, yet again.
Why do they have to halt trading on certains stocks? I don't get that... it limits earning potential of people with put options (since short selling was not allowed anymore)
They are not interested in the earning potential of put holders, they want to control the carnage. The theory is by stopping trading on individual stocks that are dropping too fast they give a chance for reason to return and buyers decide to step in. Sometimes it even works, but mostly the carnage starts again as soon as trading resumes.
The Bloomberg screen is getting better by the minute..
Many indexes in Europe now at new lows.
Wow.
And there you are with a boatload of netflix, if it was'nt so funny it would be sad.
Yeah, but he can get disaster flicks really cheap ... then again ... he can just watch his portfolio, I guess.
Hehe
I doubt robo is stupid with spec money.
I learned the hard way a long time ago to recognize losses quick. I lost about 7 percent in EWZ but it could have been 20 percent if I hadnt gone ahead and admitted I was a fucking idiot.
Cash may not always be king, but right now I don't want to bet on the competence of central planners to keep inflation alive. That is an awfully big assumption right now for you gold buggers.
The other lesson the old double down ha! Won't ever do the again ha! When to sell a buy or a short is really one of the hardest lessons I think we all have had. Early on, I made a number of mistakes not taking my losses and preserving my capital for the next trades. Now I can afford to be a bit more patient at only trigger at a 20% loss. This year is my first year of no losses (pat on the back here) put options only on Dow with a few calls on the dead cat bounces. This will work until everyone is on it ha!
Cash is a whore.
ZIRP, greedy boomers, bankers and government employees have ensured the destruction of fiat into worthlessness.
Gold and Silver are King, and always have been.
Two reasons gold is going up
1. inflation
2. instability
topcallingtroll,'
Cash may not always be king, but right now I don't want to bet on the competence of central planners to keep inflation alive. That is an awfully big assumption right now for you gold buggers.
Matters not, Gold and PM's will decouple completely from the USD.(if they haven't already).
This is not 2008.
Globally people know we are in the same shitter as the rest of them.Safe haven status my ass.
Inflation, deflation, stagflation, etc,etc, PM's are going to beat cash, simply because folks with half a brain have figured out that their dollars are basically worthless.
Any IDIOT that dumps their assets into UST's, and the USD, is as crazy as a Loon.
I HOPE they do, so that I can dump the rest of my cache,at 80, instead of 55.
Plus, gold is at a new high in euros (currently 1347). A local dealer had a half-ounce Belgian bullion coin at 602 on August 25th, now it's a 687. The gold rise plus the euro fall is a wicked combo.
So Robo, how do you think my puts are doing, eh?
Let's see what happens with the miners. Could be a good time to get in if you don't have any.
Ah the paper playas... My condolences.
Especially the juniors right now. Even if gold just consolidates here for a while the miners look enticing.
GDXJ is worth a look.
Fuck paper.
IF THAT's your thing go for it..
I prefer the opposite sex personally. But then, I'm old fashioned..
Cash shortages, margin calls and more cash shortages.
or just good old fashioned sobriety.
Can't the europeans just ban short sales "again" or maybe just ban selling any equities...only buying permitted? sarc off.
Looks like September will live up to its reputation for being one of the most difficult months for equities. The shorts are really raking it in lately. Europe a disaster. Glad that cannot happen here. This is America.
cough, cough.
I think what spooked the market was ECB having spend almost 15billion euros trying to keep Italian 10 year yields at 5% - and obviously failing.
That means all their ammo is used up and to no avail. Bye bye eurozone as we know it.
Yeah, agree. They may take a good hit tomorrow as those "brilliant ones" who buy NFLX on margin have to find cash somewhere and what is up? Our miners, of course. Might add some at end of day if they take a real hit. Always like getting rid of the weak holders as it makes the next leg up, if I am correct, more sustainable.
Somehow I don't think that the people who loaded up on NFLX are the same people that have any PM miners in their portfolio whatsoever.
DAX down 5.5%. Crazy, bitches.
Okay ... so are the Futures plunging or plummeting or imploding or in a downtrend or brown shoots? ... I am soooooo confused.
http://www.bloomberg.com/markets/stocks/futures/
The janitor accidently kicked the cord out. They seem to be spending a lot of time looking for the guilty janitor instead of just plugging it back in.
They have the flight path of a punctured balloon.
Gold, silver up off the lows and rising.... with the USD. Hilarious, silver has gone from wild speculation play to safe haven in a few short months. I guess is if was European I'd want to park my money far away from banks as possible too.
Yeah, please allow a minor modification... "I guess if I was a sane rational Human I'd want to park my money..."
Going to be an Interesting week.
President of Iceland says the EU and IMF tried to bully Iceland to make taxpayers pay for the Landesbanki collapse and losses. As we all know, they gave them the middle finger. Message for continental Europeans?
Iceland and Greece could form the FU, a counter to the EU.
If this keeps up LSAP and duration extension will soon come Sept. 21. Long term deflation is the problem and that just can't happen.
Which means Belarus bitchez. Or something else. Maybe total revolution agains't the despotic madmen ruining the worlds we all live in....and complete debt forgiveness. Nah. That wold cause civil war amongst the people. All roads lead to Belarus.
ZH is being too kind, of course they know what is spooking this market. TCE ratios at the banks naturally; unemployment, no robotic algo HFT's today, etc. I'm just surprised circuit breakers aren't going to be hit all over the world and our futures are only down +200 or so on the DOW.
At any rate, at lease Benny is getting the crises so he can do anything and blame anyone he wants when he announces a $2.5 trillion debt monetization.
Did I say Belarus bitchez yet?
so if M2 is $10T and we inject another $2.5T that is a 25% devaluation? Problem is I can't find a current realistic M2 number....
DS:
It would be if it were in circulation. But it has been parked on the banks' balance sheets to fill the void left when all of them CDSs vanished.
So: not yet.
- Ned
It would be if it were in circulation.
I've heard this argument many times before. It's just sitting at the banks by god--look at the velociity of money, right? Sure. But ya ever hear of backdoor beauty? You see, the credit in waiting is mostly just sitting idle at banks. However, the $2 trillion in unfunded deficit is making its way into the economy via corporate welfare, social welfare, and transfer payments....
That's how you get rising oil and food prices--rising demand from "speculators" and the real economy--while the economy is a nightmare. The money does enter the system: through the backdoor.
Backdoor beauty, bitchez.
Bloodbaths are becoming a déjà-vu. T3h end is near.
They'll be a QE3 rumor tomorrow and we'll close even on the day.
NO! EVERYTHING IS FINE! JOSE BARROSO SAYS SO!
"Barroso says Europe will avoid return to recession" - http://www.bbc.co.uk/news/business-14784180
Could William Banzai please make a picture of Barroso as Sancho Pansa and Trichet as Don Quixote ?
Jose Baboso.
DogSlime,
Who's, payroll is JOSE on?.3 guesses and fisrt 2 no countee.
Awaiting Roubini statement claiming Gold is crap and just crashed as it hit $1,899.90
It's shaping up to be a Rule 48 Tuesday morning.
I can see it now, the market opens and immediately closes, forever. HA
Greek 2YR Yield north of 50%, 1YR Yield above 82(!)%.
Travelling to Greece tomorrow (not kidding), it will be interesting to see whether I will get new Drachmas during the next two weeks...
London Bridge is falling down.........falling down..............falling down.......................
http://www.youtube.com/watch?v=WHE4dPr9cWY
sorry didn't know you already had that avatar, I will look for a new one.
"US Futures Plunge" I wouldn't call it so dramatic, currently down 235 points.
Gold up about 11.70, also cannot call it "surge" :) Relax, don't panic, there is always Welfare :)))
Ha! Down 200, but lately people have been saying that those numbers are more accurate the following day when multiplied by 5-10... Hmmm.
Labor Day may save the US makets. Give Ber-shankie and Timmay 24 hours to cook something up beforethe open on Tuesday. That's if they want to. A crash may in fact serve thweir evil plans to a "t". We'll see.
So what does this have to do with the price of tea in China, the price of weed in the US, the price of opium in Afghanistan, the price of guns in Mexico, the price of peace in the Middle East, the price of ETC ETC........
Exactly, why would Americans care about f*cking Greece or Italy, we are not one of their states, f*k'em.. US Markets should go up 500 points instead while those rats are moving their funds into Dollar assets. Why would Harley Davidson or Hershey should give a f*k about Greece?
Well is it because the Fed, I mean the IMF, is backstopping them? Is that why 'we' care?
Ultimately, I, as an American, really don't care; but that's not the point. It appears we be attached at the hip until the dullard is no more. As it was stated, "it may be our currency, but it's your problem..." FOFOA charts the way... Without blood...
But, 'we' Americans, will exhaust every other possibility before doing the 'right' thing... (thanks Winston)
because the Fed is just as leveraged with their debt crap as the European banks are....if the Eurozone blows up, it'll take the Fed with it......this is why one should own gold + silver. And I hope the Eurozone does collapse.......and takes the NWO with it....... :-)
"and takes the NWO with it..."
Amen bro... Can I get a witness up in heeyah!?