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Sideways action is just what the doctor ordered for gold. Better then a spike up.
Buy gold and silver now and hide it!!!
U.S. Geological Survey, Mineral Commodity Summaries, January 2011
Government Silver Stockpile: None.
Fort Knox Gold Stores: Empty!!
Ever dance with the devil in the pale moonlight?
are you talking about Lloyd Blankfein?
It was intended to be ambiguous, but you're right that he is doing "God's work" afterall, and we all know whatever god he may be referring to is not a benevolent one.
As part of the Illuminati Blankfein is by definition on of the "benevolent ones".
Attended Portland, Or version of "Occupy Wall St." on my lunch break today for it's kickoff...bout 5k, maybe up to 10k people (way beyond expectations...maybe the fact it wasn't raining helped?) but repeated again and again was the anti Wall St. "casino" slogans, that the real economy has completely disconnected from the "financial" world, that HFT was a joke and backrupting the many for the few. Fewer wackos than I expected and generally a good crowd...later this afternoon was the march and that should be interesting so I'll watch that on the 6 'oclock news (that's when the strange "lurkers" around the fringes of the crowd who have little to no idea what it's all about likely have their chance to vent their displeasure and hijack the day).
Too bad you never attended a TEA party rally.
Yeah, I guess the fact I and other somewhat "normal" middle class folks are attending shows how social mood is turning dark, desperate.
Our little slice of highly indebted suburbia is on the line!
am probably just too stupid to understand, but not sure what the implication of the article is as far as the markets? bullish bearish? credit capitulated? what does that imply?
IG9 is CDS index on corporate paper. The higher the spread, the more likely that some corporate entity will default on some coupon of their bonds. Therefore, if IG9 trades higher (in spread), it is bearish for the underlying corporations in the index (for a list, look here: http://lcdx.wikidot.com/ig9-summary), because presumably a corporation that cannot service it's debt is a sell, not a buy.
On the other hand, the S&P and other equity indexes that include many of the corporations in the aforementioned IG9 are trading higher, which is contrary to the credit market (IG9) which is trading at a higher spread. In other words, credit and equity should be inversely correlated, and that inverse correlation is used by traders for hedging equity indexes.
Which is why the article asks 'Did credit just capitulate?', because the gap up in IG9 indicates a move to risk OFF, and credit markets are usually a more reliable indicator than equity markets.
I think ....
Thanks, o2sd. Your post was insightful.
Seems you're newer o2sd, but great shades of the old ZH where parsing of stuff like this made the comments great reading for those of us wanting to learn as to know the enemy.
No problem, happy to help out. Equities are still on a tear today, so it is either the corporate credit market is about to reverse, or we are seeing yet another Friday pump n dump, just in case there are any greater fools still left in equity markets.
90D commercial paper seems to be holding steady for non-financials, but there is no secondary market for it, so it tends to be a lot more stable than CDS. I assume that IG9 is primarily used for hedging equity indices, rather than being a useful indicator of short term corporate debt stress.
30/60/90D non-asset-backed commercial paper in financials on the other hand seems to be extremely volatile, although I'm not sure how big that market is as financials tend to use other instruments for short term funding (repos, swaps, bankbills).
What about HGY popping while LQD was selling towards the close? Kept the trigger from being pulled...
Never mind, found it. These old eyes kept skipping the relevant sentence.
LQD:HYG, normal 3 day pullback in an uptrend?
You fuckers,i clicked to the US President's talk,just a few previous posts.Then ,i deleted the flash cookies as i always do.There was a cookie named whitehouse.gov.And i am not even from US.As for the markets,meltdown is near.
Don't worry, only the TSA stole your information with that cookie.
Uh, if you watch a GOV video linked from a GOV webserver, then umm, you'll download something from the GOV.... capito, retard? Or do you also expect, that if you i.e. watch a youtube video, your computer will not connect to.... youtube?
....and yep, lots of meltdowns seeming near recently, but some happen earlier than others - your brain appears to be among the those "earlier" things.
Wow, sounds like ZH went bullish equities.
No, just shorts getting wiped out and compressing yields, with a dose of inflation thrown in. I think.
Seems to sum it up pretty good.
Why would I get junked? Right there in the article is says something to the effect, "believe it or not, equities look undervalued to credit." I know ZH"ls stance...."on a long enough timline..." and am with them so don't get alll puffy and out of sorts....
Jeesssh. I love ZH.
If you care, you shouldn't be here. And I'm the belated up.
you got junked for falling out of line buddy
everyone knows it's dollar to zero, euro to zero, stocks to zero, gold to infinity
Anyone notice this? --- Forex swaps with ECB total $500 million - NY Fed - RTRS Today 14:06 NEW YORK, Oct 6 (Reuters) - The Federal Reserve provided $500 million of liquidity to the European Central Bank in the latest week via its swap lines for foreign central banks, the New York Fed said on Thursday. The ECB was the sole institution to tap the swap lines in the week ended Oct. 5, swapping the full amount. The terms for the ECB swap were seven days at 1.09 percent, the New York Fed added. The Federal Reserve has established swap arrangements with the Bank of Canada, the Bank of England, the European Central Bank, the Swiss National Bank and the Bank of Japan in an effort to respond to the reemergence of strains in short-term funding markets in Europe.
They've done this sort of shit before. $500 million isn't anything to the ECB or the Fed. It's like they do a trial run in case things get hairy and they need a lot more ($500 billion would be more like it).
True enough, but nonetheless second time (since they reopened the swap lines) in what? Two weeks? But it's not like we don't know Europe is already screwed...
I ask is Bernank a friend or foe if you are Europe? We bailed out Dexia the first time...but not this time. Europe came after the USA with a vengeance when our policy makers had to make their crisis choices...there's no silence when they call us for help (swap lines)...but are we helping them? Or is Big Ben sending a message by "twisting"? We think of it as a dance...but it can also mean "arm twisting"...
and that's no dance.
Is he saying "I can keep my long end under control. Can you?"
Cue to gold...and "how much is on the line." Tons? Sounds like a big deal.
same old, watching Asia again for clues. markets are now overbought.
To me it looks like risk-off without hurting the correlation matrix too much, So equities won't be sold off in the process. Does't this along with equity volume differences in up and down moves suggest a major shift from equity to IG credit. IG credit appears to be the save haven to best cope with the turmoil to come.
Europe will have its moment of truth, sooner or later, but rather sooner, the fragile US economy will react crashing as it does by no means have the strength to even withstand a slight quake. The IG companies cash reserves, though, provide a pretty reliable backstop for save haven.
This major shift tells me that investors do not believe in a mid-term recovery of productivity and thus equity markets. If that's the case, cash reserves will still serve credit.
The only thing, I am really waiting to see is whether there will be another tricking of NFP numbers as there has been in the majority of recent US econ stats and if that trick manages to convince the increasing doubts with the stats. Once those doubts crash, tell the entire system goodbye. Then, the least problem will be Benny's expectation management flunk.
Once, monetary policy, true econ perception, fiscal execution and an adminuistation in power are all exhausted, 666 will be random number, no one will associate a bottom with.
These white background charts suck.
...and the EUR is rangy, nice. Struggling to get the 50day ma.
the 'short squeeze' should run up against the 'who wants to hold the bag over the weekend' issue..
Another Market Snapshot with a longer term analysis of the SPX and Gold. http://bit.ly/quEbB2 -- Both are looking bullish for the next several weeks.
anyway to find charts for cds indices like cdx.na.ig or cdx.na.hy online?
havent been able to find it
Register for free with Markit and you get access to pricing and charts. They include charts for both cdx.na.hy and .ig
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