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Market Snapshot: Financials Flop, Credit Collapses, S&P Closes At 2011 Lows

Tyler Durden's picture




 

The S&P cash made new lows for the year as we aggressively probed lower into the close and penetrated Doug Kass's bottom from Aug 9th with cash and futures closing below 1100 back to 13 month lows, with the pain spreading wide following rumors of hedge fund blow ups. Financials led the dance and just could not get a break all day despite the early perfectly fadable cheerleading from Cramer et al.

Credit markets were a disaster with red everywhere and notable gaps suggesting some desperate reaching for hedges/unwinds as index overlays started to disengage from single-names. IG closed over 5bps wider at 149.5bps (while underlyings popped notably more) and HY cracked 50bps wider to around 900bps! Tail names were crushed as IG9 (the short-dated but most exposed to high tail risk and correlation traders) widened 14bps to 164bps and CMBX and ABX tranche prices all blew lower with seniors underperforming juniors (which represents more long correlation/systemic risk bets). 

Source: CMA

We have warned that sooner or later, managers/traders will need to sell/unwind longs as basis risk in the hedges/overlays becomes too much and the moves today suggest we are getting there (especially in financials) as it was the widest names in IG that cracked the most ( absolutely) even as low beta credits hugely underperformed relatively as traders grabbed at whatever was low cost protection with some market exposure (e.g. insurers). Insurers have been one of the best low cost long vol trades of the year as buying protection on a basket versus IG was very low carry and had excellent beta to HY (as these names are basically over-stuffed HY new issue soaks - they need the yield).

 

 

We have discussed the financials extensively today but while the chart and table above shows both stocks and credit getting sold aggressively, we thought it worth noting options activity and the front-end of the CDS curve. While counterparty risk is obviously significant (what else is a major trading partner to do when he sees this kind of market action?) the moves in the 1Y CDS today were dramatic in MS (and the other TBTFs to some extent). We opened 580/630, pushed wider, then flattened at 640/690 for much of the day until the last hour or so when the offer side got lifted aggressively to 650/725. At the same time volume in OTM puts was very large with $5 strikes most notably. While the stock and CDS weakened very significantly into the close, the $5 strike puts did not continue to push too much higher from their midday levels. The point is that we suspect with implied vols north of 200%, that capital structure arbs were in play, selling 'expensive' equity puts and buying 'cheap' protection (we discussed this rather complex idea a few times in the past - most notably here). We bring this up as it helps explain the moves at the front-end of the curve but while this may reduce some fear, the action in bonds and the rest of the credit-equity complex were horrible.

TSYs saw an enormous day as 'Twist' started with 30Y -19bps and 10Y -17bps and both investment grade and high yield bonds were net sold - something we have not seen for a while. Financials were the most net-sold corporate bonds (didn't we warn that the buying last week was basis traders and not 'real' money?) followed by Communications names. What was also worrisome - but in line with the huge flattening in TSYs - was the rush to net sell anything with duration/risk as 3year and above maturities were net-sold while 0-1Y was the most net-bought on the day

Instead of its normal sideways plod after Europe closes, FX
markets continued to weaken dramatically against the USD with only JPY holding stronger while EUR broke to a 1.31 handle and closed at its lows of the day as DXY managed to trade at its highest since Jan 13th 2011. Gold and Silver managed decent gains (the former outperforming the latter) as oil and copper lost 2-3% on the day.

As we closed broad risk assets (CONTEXT) and the S&P managed to reconnect - with ES overshooting a little after cash closed. While relative to credit we still see 20-30pts of downside for the S&P (based on current HY levels which obviously can deteriorate), we need to see further weakness in carry FX and oil as well as strength and flattening in TSYs (more 2s10s30s compression) to really 'enable' this sell-off to reach Janjuah levels - but given the momentum into the close, nothing would surprise us.

Charts: Bloomberg

 

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Mon, 10/03/2011 - 16:57 | 1734574 jm
jm's picture

Doug Kass can't be happy right now.

Mon, 10/03/2011 - 17:01 | 1734588 mfoste1
mfoste1's picture

james altucher cant be happy either

Mon, 10/03/2011 - 17:04 | 1734604 jm
jm's picture

Frankly, I'm not all that fucking happy aboutg today either.

I did trade down into some of that spread blow-out.  We'll see.

Mon, 10/03/2011 - 17:24 | 1734683 Troll Magnet
Troll Magnet's picture

my agro stocks took a big hit but i also bought three 100 ozt JM & Engelhard bars over the weekend. holding them is so empowering!

Mon, 10/03/2011 - 17:34 | 1734719 AldousHuxley
AldousHuxley's picture

feels like 2009.....

 

no safe haven except money markets.

Mon, 10/03/2011 - 18:54 | 1734937 max2205
max2205's picture

How can Ben not committ suicide. Look at the carnage he has caused by running IWM up last year. Now 87 to 61 in 2 months. Nice price stability Ben. Go fuck yourself. Hope you all didn't get burned

Mon, 10/03/2011 - 17:39 | 1734730 franzpick
franzpick's picture

Today's markets have given us lehmans, but there's still no way to make lehmanaide out of this technical, across the board, chart break.  My screens are pointing way down 5% plus.

Mon, 10/03/2011 - 18:35 | 1734887 Mauibrad
Mauibrad's picture

Would love to see Goldman go under.

Mon, 10/03/2011 - 18:46 | 1734914 SwingForce
SwingForce's picture

Biggest Blatant HAIR ON FIRE day in a long time. Insert WB7's Jamie LIFE cover here. Total BS.

Tue, 10/04/2011 - 07:54 | 1736417 UBIGDummy
UBIGDummy's picture

Your right.

I expect the very same headline as this article, repeated for several days this week.  ESPECIALLY the part where it says  S&P closes at 2011 lows;)

Mon, 10/03/2011 - 17:50 | 1734780 pasttense
pasttense's picture

I would expect most people on  ZH would be happy today--since gold went up  2.22% and silver went up 1.74%.

Mon, 10/03/2011 - 17:03 | 1734600 kito
kito's picture

i heard he likes having his bottom penetrated

Mon, 10/03/2011 - 17:00 | 1734582 CPL
CPL's picture

LOL!

 

Mon, 10/03/2011 - 17:00 | 1734583 zorba THE GREEK
zorba THE GREEK's picture

"Nothing could surprise us.."

It is nearing time for another short-covering rally.

Mon, 10/03/2011 - 17:31 | 1734710 scatterbrains
scatterbrains's picture

I wouldn't be surprised if we see a slow hypnotic grind lower into the 1st circuit breaker followed by a 2nd day of slow grind down into another circuit breaker (this time loading the bear trap) In the 2nd lock up they announce printing where upon we don't even bother to open as we re-lock this time on the upside.. by the time real trading takes place all Bears are boiled alive. 

Mon, 10/03/2011 - 17:00 | 1734584 reader2010
reader2010's picture

Financial Weapons of Mass Destruction finally arrived.

Mon, 10/03/2011 - 17:42 | 1734735 AldousHuxley
AldousHuxley's picture

banksters (aka. financial terrorists) already detonated it, but Fed tried to contain it with paper dollars. Well that failed and now we have clusterfuck of a society.

 

Lone superpower self destructs from her own stupidity.

 

 

Mon, 10/03/2011 - 17:02 | 1734590 slackrabbit
slackrabbit's picture

or his ass.

<Hey is that Liesman up there?>

Mon, 10/03/2011 - 17:02 | 1734595 razorthin
razorthin's picture

We penetrated his bottom?

Mon, 10/03/2011 - 17:15 | 1734650 falak pema
falak pema's picture

whose we?

Mon, 10/03/2011 - 17:04 | 1734597 z123
z123's picture

so after all these QE the us dollar is still the strongest currency in the world, it didn't lose that much, it isn't trading @ 0.5 euros

Mon, 10/03/2011 - 17:45 | 1734751 AldousHuxley
AldousHuxley's picture

fiat vs. fiat.

 

compare fiat vs. metal

 

 

Mon, 10/03/2011 - 17:47 | 1734759 redpill
redpill's picture

DXY should be a basket of commodities, it would be a lot more meaningful.

Mon, 10/03/2011 - 18:36 | 1734888 Esso
Esso's picture

No kidding. Comparing failing fiats to other failing fiats is just stupid.

It's like the people on the stern of the Titanic saying, "Those idiots on the bow are really in trouble!"

Mon, 10/03/2011 - 18:48 | 1734920 SwingForce
SwingForce's picture

S. O. 

Beautiful, standard oil would be the biggest company in the world if you were to put that humpty dumpty back together again. I love that story, PS its about DIVIDENDS.......

Mon, 10/03/2011 - 17:03 | 1734602 redpill
redpill's picture

The US Economy is fine.

 

/jimcramer

Mon, 10/03/2011 - 18:04 | 1734832 Strider52
Strider52's picture

Cramer shoudn't take a triple-dose of crack + meth ice + caffeine before he goes on. He looks like his head is gonna explode from blood pressure.

Mon, 10/03/2011 - 18:43 | 1734903 CharlieSDT
CharlieSDT's picture

That would be the only reason to watch that garbage program.

Mon, 10/03/2011 - 18:48 | 1734921 AldousHuxley
AldousHuxley's picture

I like Cramer because he tells you WHAT NOT TO DO.

You know he is a shill for banksters who are either trying to unload at highs or load up cheap.

so when Cramer says to buy BAC, wall st. insiders are trying to unload their positions.

When Cramer says to sell BAC, insiders know bailout is coming and they are trying to get in lower.

 

I'd be curious to know what is the alpha on a portfolio trading on exact opposite of Cramer's recommendations VS. another portfolio on all of his recommendations.

 

He is a journalist btw.....talker/entertainer speculator. Real traders trade and hide their secrets even within firms.

 

 

Mon, 10/03/2011 - 19:14 | 1735006 Schmuck Raker
Schmuck Raker's picture

Tyler! BIGGER AVATARS!

Mon, 10/03/2011 - 17:05 | 1734603 CClarity
CClarity's picture

I'm thinking that with Operation Twist, there is also an "Untwist" ala the hedge overlay unwinds.  Potentially, some violent traps are gonna snap in here.

Intended or unintended consequence? 


Mon, 10/03/2011 - 17:04 | 1734606 swissaustrian
swissaustrian's picture

Why are health care stocks getting slaughtered? Doesn´t make sense to me. They should be holding up like consumer staples...

Mon, 10/03/2011 - 17:05 | 1734608 razorthin
razorthin's picture

If this is indeed the big implosion, you expect any equity to be spared?

Mon, 10/03/2011 - 18:50 | 1734930 SwingForce
SwingForce's picture

Your avatar is awesome. If we implode, Ron Paul will be elected President. 

Mon, 10/03/2011 - 17:07 | 1734613 CClarity
CClarity's picture

They're liquid and can be sold.  Offsets for things with less liquidity.  

Really ugly 1st of month and quarter.  Doesn't auger well for rest of year, though there will be some brief spectaculr dangerous rallies.

Mon, 10/03/2011 - 18:53 | 1734935 SwingForce
SwingForce's picture

What's more liquid than Tbonds? Where's the most profit? 

335 of 500 S&P stocks now pay more than the 10 yr Tnote. That's 2/3's.

SPY pays more than 10T, XLU pays 1.5x 10T, IYR for chrissakes pays 2x 10yrT AUGH!

Mon, 10/03/2011 - 17:09 | 1734627 john39
john39's picture

how can the gov or individuals pay for outragously expensive (and largely useless) healthcare if both are broke?

Mon, 10/03/2011 - 17:12 | 1734636 jm
jm's picture

Hospitals and such--they carry huge amounts of debt and Medicare reimbursement rate cuts have screwed their business model.  Then you can see why they aren't going to be leasing a $10 mil/year robot surgical suite.  It all rolls downhill.

Mon, 10/03/2011 - 18:02 | 1734823 AldousHuxley
AldousHuxley's picture

all equities and even bonds are taking a hit. also commodities, except gold/silver and for some reason Nickle (up 5%)

 

economic depression (aka. reality without Fed)...portfolio asset rebalancing...

 

even funeral parlors (SCI) are down....

 

Get Low about a funeral party

http://www.youtube.com/watch?v=NVR6-HnKtM8

 

"people are dying in bunches everywhere but here"

"What are the odds of a funeral home going broke?"

"You have a business that everyone on Earth needs. If you can't make that work, it's you, right?"

Mon, 10/03/2011 - 17:07 | 1734615 Financial_Guard...
Financial_Guardian_Angel's picture

One sentence summary: "It's the end of the world as we know it, and I feel fine."

Mon, 10/03/2011 - 17:25 | 1734686 mayhem_korner
mayhem_korner's picture

 

 

Battlestations!

Mon, 10/03/2011 - 17:10 | 1734619 Minoan
Minoan's picture

Latest rumour:reverse split for Citi

Mon, 10/03/2011 - 17:09 | 1734626 Fips_OnTheSpot
Fips_OnTheSpot's picture

Tag: Investment Grade

 

Right.. countdown there.

Mon, 10/03/2011 - 17:12 | 1734639 mist929292
mist929292's picture

Good thing I bought SPXU yesterday. 

Mon, 10/03/2011 - 17:14 | 1734646 falak pema
falak pema's picture

banks/insurance, MIC, Health care, all govt supported all in trouble.

Mon, 10/03/2011 - 17:16 | 1734653 LawsofPhysics
LawsofPhysics's picture

Any update on how the Fed will inject the 400 billion.  Specifically will this be more POMO or some other event that we can front run? 

Mon, 10/03/2011 - 17:18 | 1734663 bill1102inf
bill1102inf's picture

4 trading days until Anon takes out the NYSE 

Mon, 10/03/2011 - 17:22 | 1734678 marcusfenix
marcusfenix's picture

very, very suspicious them targeting wall street, an attack on the NYSE plays right into the federal govts hands while doing no damage to them. it helps no one as the NYSE is already sinking like the titanic anyways and all this attack would achieve is not allowing us to watch it go under.

an attack on a major civilian institution will strengthen the feds position on "cyber terror" and will pave the way for further internet censorship, control and regulation all in the name of security and safety.

I would like to believe anon is legit but this casts to much doubt..

I call false flag.

Mon, 10/03/2011 - 17:24 | 1734682 Fips_OnTheSpot
Fips_OnTheSpot's picture

+10

Mon, 10/03/2011 - 17:51 | 1734783 redpill
redpill's picture

Not to mention that as it turns out, many of the "Invade Wall Street" crowd are Soros-funded Obama supporters whose shallow philosophy fails to extend much beyond trivial class warfare & envy.  The fleabaggers if you will.  Why they think re-electing the same dude who has been asleep at the wheel is going to help anything is beyond me, but there you have it.

Mon, 10/03/2011 - 18:45 | 1734909 CharlieSDT
CharlieSDT's picture

Name your source.

Mon, 10/03/2011 - 23:25 | 1735824 SheHunter
SheHunter's picture

Yeah red-pill.  Let's see your source.  Or are you talking out the same end as many others who want to undermine the protests.

Mon, 10/03/2011 - 18:16 | 1734850 DosZap
DosZap's picture

marcusfenix

I call it JUST what the Dr. ordered..........I am seeing the looming huge hand of FASCISM creeping into our homes.

Bottom Line: Event Horizon,pre-planned by the PTB.

Mon, 10/03/2011 - 17:47 | 1734761 Zenster
Zenster's picture

If it hasn't already failed by then.

Mon, 10/03/2011 - 17:21 | 1734670 toothpicker
toothpicker's picture

Surely this MUST be bullish: we have hit the bottom! From now on it's only UP UP and UP

 

(for PM:s)

Mon, 10/03/2011 - 17:25 | 1734676 Yen Cross
Yen Cross's picture

Dennis Gartman couldn't pluck a hemorroid from from " Big Bens ass", he's been calling the euro fall> for ever!

 

 Fore ever, is right up there with Asteroids!

Mon, 10/03/2011 - 17:23 | 1734681 mayhem_korner
mayhem_korner's picture

 

Is unwinding contagious? 

Mon, 10/03/2011 - 17:27 | 1734697 Yen Cross
Yen Cross's picture

ETF's are. Run .Run ,  RAPUnzel.>  drip, bwirp?

Mon, 10/03/2011 - 17:32 | 1734705 Yen Cross
Yen Cross's picture

v Overlays x   The { VIX/ XLF} , says it all!

 

  I'm tired of these CNBS ass holes stealing my trading ideas!

Mon, 10/03/2011 - 17:31 | 1734707 Mongrel
Mongrel's picture

But the Wall Street Protesters are still there! Read this and while you channel a little John Lennon:

 

Over at TakiMag, the ever-helpful Jim Goad spells it out for them:

The whole “Occupy Wall Street” thing was launched in July when consumer-culture-hating Canadian magazine Adbusters ran an ad asking whether America was “Ripe for a Tahrir Movement.” Adbusters founder Kalle Lasn seems to hate all things American and love all things global. He openly endorsed “Not just a carbon tax, but a global across-the-board pricing system.” Adbusters also hosted a “One Flag” competition to design a flag symbolizing “global citizenship.”

Over the past decade, Adbusters Media Foundation is said to have received over $300,000 from the giant progressive golden calf known as the Tides Foundation, which in turn has received millions in donations from culture-busting globalist currency-meddler George Soros’s Open Society Institute. Adbusters is also said to have received an additional $176,500 “from organizations associated with…George Soros’s Democracy Alliance.” The US Day of Rage site, another agitant in the Occupy Wall Street movement, has also allegedly received Tides Foundation cash injections.

The multicult left likes to imagine no countries -- and no religion, too. They imagine all the people living life in peace. They see themselves as dreamers.

But what they don't realize is that they're not the only ones.

Mon, 10/03/2011 - 18:16 | 1734849 Problem Is
Problem Is's picture

Goldman Says "Almost" Zero Bonuses
Now you Occupy Whore Street protesters move along and go home... Nothing to see here...

Mon, 10/03/2011 - 18:18 | 1734854 DosZap
DosZap's picture

Problem Is

"Almost" Zero Bonuses

Translated, for a select few, a WAD that willl choke a horse.

Mon, 10/03/2011 - 18:21 | 1734859 Problem Is
Problem Is's picture

+1 DosZap...

BTW: Mongrel -- 11 Weeker
Me thinks me found another TBTF corporate whore sock puppet...

Check that IP address, Tyler...

Mon, 10/03/2011 - 17:33 | 1734716 bill1102inf
bill1102inf's picture

Obama to order the confiscation of ALL GOLD.

Mon, 10/03/2011 - 17:43 | 1734742 InconvenientCou...
InconvenientCounterParty's picture

really?

So let me get this straight. He's the most incompetent meat puppet to ever hold the office of POTUS but he's intelligent enough to remake the whole world into everything you hate?

Why don't you quit your irrational whining and buy some silver?

 

Mon, 10/03/2011 - 18:03 | 1734828 Alex Kintner
Alex Kintner's picture

Very Bullish for Dentists!!

Mon, 10/03/2011 - 18:13 | 1734845 Problem Is
Problem Is's picture

Bullshit Barry: The Bitch of Wall Street
Barry Soetoro to read the teleprompter and do exactly what the 'prompter tells him to do...

Mon, 10/03/2011 - 17:36 | 1734725 Fate
Fate's picture

Somebody's gonna kill Cramer. 

That'll be a sad day.  He's hilarious.

Mon, 10/03/2011 - 17:40 | 1734731 Sophist Economicus
Sophist Economicus's picture

...They see themselves as dreamers.

 

Not all.   Some see themselves as LEADERS too.    The dreamers are just convenient tools

 

Mon, 10/03/2011 - 17:52 | 1734784 kornholio
kornholio's picture

i guess the doomsayers here will finally be satified when there is complete economic collapse, and there are no police to come when you dial 911, some people on here are unreal with their desire for armageddon, i hope YOU get it on a micro level in your life, like fucking brain cancer....

Mon, 10/03/2011 - 17:55 | 1734790 redpill
redpill's picture

Let me guess, long BAC?

Mon, 10/03/2011 - 17:56 | 1734797 Christoph830
Christoph830's picture

Kornholio, grow up. 

 

Mon, 10/03/2011 - 18:55 | 1734936 kornholio
kornholio's picture

fuck you and all the people like you that only deal in worst case, conspiratorial, bull shit, lots of people struggling right now and fuckers like you calling (wanting) more misery, dont tell me to grow up, you grow the fuck up dick shit, you can get fucked.....

Mon, 10/03/2011 - 18:17 | 1734852 Fate
Fate's picture

No room on the Ark for you...

Mon, 10/03/2011 - 18:19 | 1734856 DosZap
DosZap's picture

Fate

I already am IN the Ark.

Mon, 10/03/2011 - 19:00 | 1734954 kornholio
kornholio's picture

no fucking such thing as the ARK, you bible thumping hypocrite....

Mon, 10/03/2011 - 18:25 | 1734866 DosZap
DosZap's picture

kornholio

doomsayers, or truth tellers?.

WE are in the middle of this shitstorm like every one else, there are no special tickets.

We will all be scroomed equally.

Not a soul here (American at least), wanted ANY of this.

I sure didnt ask for it.Had ZERO say in it,way I see it, these bastards ruined the rest of my life, my kids, and their kids.

You think WE ARE GLAD for that?.

BS,grow the FU.

Mon, 10/03/2011 - 19:05 | 1734972 kornholio
kornholio's picture

we have had shit storms before and this will not be the last one asshole, you chicken shits pray for the end of the world, I hope you get it on a personal level if thats what you want, just leave the rest of us the fuck out of your biblical ending, yall build your little bunker and get you some shit food to eat, and kiss my ass...and after you are through kissing my ass YOU grown the fuck up....

Mon, 10/03/2011 - 18:29 | 1734870 Money 4 Nothing
Money 4 Nothing's picture

See, that's the difference, we knew Dooms Day was baked in the proverbial cake in '08 when Banks were put on life support, TARP was stolen and a little programe called POMO was enstated, so ultimately, there is no other direction to go but down. It was the indication of a hostile take over of America, because ultimately, the Americans are on the hook for all their bad decisions.

Kornholie, Dooms Day has been a foregone conclusion.

As for your 911 call, I handle all my own domestic 911 and I don't rely on anyone to keep me and my family safe but me. I don't need a big daddy to tuck me in at night and tell me everything is going to be fine tommorow, I make my own destiny, as you should.

Carry on..

 

The Bad Guy.. 

Mon, 10/03/2011 - 18:40 | 1734893 IAmNotMark
IAmNotMark's picture

I'm very pessimistic about the immediate future, so I guess you'd call me a doomsayer (although I'm very hopeful for humanity in the longer term).  I consider myself realistic, based on what is happening right now in the world, but...whatever...

That said, I only expect to dial 911 after an incident or to report a traffic problem.  I have zero expectation that the police would respond to any threat at my house before I had to deal with it.  "When seconds count, the police are only minutes away".  I also have the very real concern that any police interaction will make any situation worse.

And...just because I'm expecting trouble, potentially catastrophic trouble, doesn't mean I"m wishing it to happen.  Where as you....Wow!  who pissed in your cheerios enough for you to want strangers to get brain cancer? 

Mon, 10/03/2011 - 19:06 | 1734974 kornholio
kornholio's picture

good one mark

Mon, 10/03/2011 - 19:29 | 1735059 Schmuck Raker
Schmuck Raker's picture

That's not Mark, Agro-boy.

I may be new here, but I can read.

Mon, 10/03/2011 - 21:00 | 1735348 slewie the pi-rat
slewie the pi-rat's picture

hey, schmuck!  you seem to be paying attention

i think you should have an avatar

i put the google on "beltway baby" and got this:  b.baby.1  &  this:  b.baby.2

your choice!  L0L!!!

 

 

Mon, 10/03/2011 - 19:23 | 1735033 jomama
jomama's picture

the only way to get the cops to respond to something is to say to the 911 operator 'I HAVE A GUN AND I'M NOT AFRAID TO USE IT'.  but, only say this in the event of a real threat, as the cops will be there within minutes if not seconds of hanging up the phone.

Mon, 10/03/2011 - 19:25 | 1735041 jomama
Mon, 10/03/2011 - 20:11 | 1734794 slewie the pi-rat
slewie the pi-rat's picture

i think tyler's gone a whole day w/out mentioning QE III!

shhh! ..., ...don't tell him, for pete's sake!

another cocktail after the market porn snapshot, mr durden?  ok!...another double over here for tyler, stat!   stats? 

double stats, BiCheZ!!! 

new zH drink!  someone make up a recipe, quick~~~i mean stat!  oh, wait!  i know:

  • 1 bourbon
  • 1 scotch 
  • and 1 beer

and make that a double, stat!
slewie's triple double!  enjoy!

Mon, 10/03/2011 - 17:57 | 1734803 Lord Koos
Lord Koos's picture

The 2011 lows aren't in yet... we still have three months to go.

Mon, 10/03/2011 - 17:59 | 1734807 silvman
silvman's picture

Now I understand Operation Twist..... It's TARP II

The banks are going to have to raise capital... Going to sell all their agency depand bonds to the FED

FED will try to keep long rates low for awhile

Bond Market to big for the FED

Going short HARD!

Buying Gold and Silver at end of month after more redemptions

Mon, 10/03/2011 - 17:59 | 1734808 silvman
silvman's picture

Now I understand Operation Twist..... It's TARP II

The banks are going to have to raise capital... Going to sell all their agency depand bonds to the FED

FED will try to keep long rates low for awhile

Bond Market to big for the FED

Going short HARD!

Buying Gold and Silver at end of month after more redemptions

Mon, 10/03/2011 - 18:07 | 1734835 Problem Is
Problem Is's picture

Tyler: Are you going to make (or dust off) ZH "S&P 1000!" hats??

BTW: "just could not get a break all day despite the early perfectly fadable cheerleading from Cramer et al ..."

What was that 10am ramp job?

Mon, 10/03/2011 - 18:15 | 1734848 slewie the pi-rat
slewie the pi-rat's picture

perhaps we can get more gamma from our 11K chapeaux due to hi beta...

...hi beta gamma,  BiCheZ!

 

Mon, 10/03/2011 - 18:29 | 1734875 chump666
chump666's picture

credit markets, copper being slaughtered...ah sh*t we are going down. 

Mon, 10/03/2011 - 19:18 | 1735018 jomama
jomama's picture

obviously this means that the 'markets' will have a great rebound tomorrow!

Mon, 10/03/2011 - 20:26 | 1735259 stormsailor
stormsailor's picture

well, two massive down days,  i went long 20 /es at 1086, see if the plunge protection team might show up and make me some coin.  if not i have a stop loss set

Mon, 10/03/2011 - 20:30 | 1735274 HungrySeagull
HungrySeagull's picture

I don't understand what Credit they are referring to. We have officialy closed all credit cards and are cash only. No longer will we participate in the ongoing fleecing at 29% or higher interest. (We have been paying 7 but enough is enough.)

Mon, 10/03/2011 - 20:37 | 1735291 goldenbuddha454
goldenbuddha454's picture

I think people will really begin to bail out of the market on January 2,2012 knowing they won't have to pay capital gains for another year and a half.  IMO

Wed, 10/12/2011 - 14:29 | 1766591 karmete
karmete's picture

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