Markets Tumble As Socialist Kool-Aid Fails To Materialize

S&P 500 e-mini futures are over 20pts below their day-session closing highs on Friday as energy and financials lead the plunge. The major financials appear to have finally woken up to the hypothecated reality of huge collateral calls on the back of their downgrades, the lack of a simple debt mutualization burden-sharing pile-on to Germany, and now Italian banks asking for a bailout from the ECB; with Citi and BofA  down almost 7% from pre-downgrades and JPM/MS/GS all down around 5%. VIX has extended its after-hours spike in futures from Friday and trades back above 21% (up almost 3 vols from day-session close). With oil tumbling once again and Treasury yields giving all of Friday's rise back, risk assets in general are leading stocks lower and as we opened this morning, ES snapped down to converge with CONTEXT. Gold and Silver are sideways as Copper and Oil fall while USD pushes higher still on EUR weakness below 1.25 (and only JPY stronger among the majors as carry gets unwound in a hurry). Not pretty. Spanish and Italian bank stocks (and credit) are being crushed/halted and Spanish 10Y yields are back over 6.50% (and spreads over 500bps).

The TBTFs have woken up to post-downgrade reality...

and S&P 500 e-mini futures are tumbling after the perfect 38.2% retracement bounce on Friday...

and risk assets, which led stocks lower all morning, have seen stocks recouple with them now at lower levels...

as Oil and Copper roll back towards lows, but Gold and Silver are holding in for now...

Charts: Bloomberg and Capital Context

Comments

[fonzannoon]

New homes sales just fixed it. Move along....

[ParkAveFlasher]

Of course, based on our rejiggered model that calculates as-if incomes over the rate of change of hypothecated populations re-configured to reflect re-animations of carboniferous bifurcations minus alleviated flow of OMG AN ICEBERG!!!!

[BoNeSxxx]

PMs holding at present... margin call forced liquidation in 3, 2, 1...

[mcguire]

go PMs!!!  if they go much lower, esp. with silver, there will be some ugly chart damage... 

[mcguire]

ok, i know this sounds really crazy..........   i saw "abraham lincoln: vampire slayer" yesterday.. as with all illuminati movies, i was entertained.  the vampires are, of course, the proxy for the illuminati.  what was really insteresting, and this is the crazy part, is that in the movie, the way to kill the vampires was with SILVER!!!!  over a century of stereotyped ways to kill vampires (light, with a stake), they take the traditional cure for warewolves, and in this movie, make it the way to kill the vampires... (again, if you watch the movie, you will see that it is clear the vampires are the illuminati class, and their role in american history.. if there is a part two, you would see them have their final victory in 1913!!!)...

so, i see this as a significant insider signal to buy silver.  take it for what it is worth..

[mcguire]

or, it could just be a message to us mortals that are battling the illuminati... the way to win is to buy silver!!! 

[SemperFord]

cocoaine is a hell of a drug ;)

[midgetrannyporn]

Save the very wealthy, stick it to the poor. It's the bernankenstein eCONoME.

[Caviar Emptor]

Yes. Save the Corporate Welfare State, bail out the rich in so doing. And the poor? Maybe they'll go to China

[mrktwtch2]

key level is 1305 spx..if that falls today we could see 1285 in the next 2 days..

[Chump]

Just curious, has TA actually been useful for the past 3 years?  I'm not a trader and if I were, I'd be more like a monkey pulling a slot machine lever instead of using stochastics.  It just seems like every time some key support or resistance is breached or met, a whole lot of nothing happens.

[bigwavedave]

Intesa Sanpaolo SpA

[Jim in MN]

Tokyo radiation hotspots: Bullish.

Radioactive hot spots found in Tokyo park

http://www3.nhk.or.jp/daily/english/20120625_29.html

(NHK) Tokyo officials are to start decontamination of a 92-hectare park where high levels of radiation have been detected.

On Monday, officials tested 14 locations at Mizumoto Park in Katsushika Ward, following reports from the public about radiation hot spots there.

Thirteen of tested locations registered radiation above one microsievert per hour at one meter above ground, with the highest reading at 1.22.

According to science ministry guidelines, decontamination is required when radiation is at least one microsievert higher than surrounding areas. Based on these guidelines, 9 of the 14 surveyed places in Mizumoto Park will be decontaminated.

Since last year's accident at the Fukushima Daiichi nuclear plant, the ministry has received about 150 reports of Tokyo hot spots, as of March.

Jun. 25, 2012 - Updated 09:51 UTC (18:51 JST)

[ParkAveFlasher]

"...following reports from the public of radioactive hotspots..."

That's encouraging. 

[fuu]

http://enenews.com/people-in-tokyo-the-black-substance-is-here-its-on-the-roof-on-the-asphalt-on-concrete%e2%80%a6-everywhere-on-all-surfaces-videos

The blue algea of doom has spread to Tokyo.

[Decay is Constant]

Lets see, 1.22 microSieverts/hour...what does this mean?

1 million hours = 1.22 Sieverts

1 million hours = about 114 years

1.22 Sieverts = 122 REM (I'm an old fart that still uses the old units)

We are looking at 122 REM/114 years

Rounding we get 1.1 REM per year

Background radiation in the US averages about 0.4 REM per year (without any of that medical radiation), so we are looking at about (rounding upwards) three times the average background radiation in the US.

Background radiation in places in India and Brazil is about 5.0 REM per year (without appreciable changes in cancer or genetic abnormalities) which makes it about 1/5th of the background radiaton at those sites.

What's missing?  The background radiation levels at those locations before the accident.

Just a bit of perspective.

[Colonial Intent]

It is a fearful problem for the ordinary person, with no special talents, to occupy himself, especially if he no longer has roots in the soil or in custom or in the beloved conventions of a traditional society. To judge from the behaviour and the achievements of the wealthy classes to-day in any quarter of the world, the outlook is very depressing!

For these are, so to speak, our advance guard-those who are spying out the promised land for the rest of us and pitching their camp there. For they have most of them failed disastrously, so it seems to me-those who have an independent income but no associations or duties or ties-to solve the problem which has been set them.

I feel sure that with a little more experience we shall use the new-found bounty of nature quite differently from the way in which the rich use it to-day, and will map out for ourselves a plan of life quite otherwise than theirs.

[Cognitive Dissonance]

I just love flying down steep ski slopes on a Monday morning.

[DormRoom]

There is no free lunch.

[Alea Iactaest]

No kidding. BIS as pawn shop:

http://ftalphaville.ft.com/blog/2012/06/25/1058101/a-propos-those-bis-go...

[Caviar Emptor]

The Corporate Welfare State gets another major case of indigestion, chocking on it's own BS

[BlueStreet]

What a beautiful color 'red' is.

[Caviar Emptor]

Red will soon fade to Gold as the end of another phase of paper dreams comes to an end

[slewie the pi-rat]

the best thing about a goldilocksCrisis^TM is that it is the juuust riiiight  crisis, BiCheZ!

[Silversinner]

Money junkies expected a bigger dose of heroin.

When they do not get what they want they get very sick

and will steal the money from you,so be carefull and

wach your pockets.

PATHETIC

[LawsofPhysics]

The banks have been short for a while, everyone should have seen this coming.  More "heads I win, tales you lose". Possession is the fucking law now.

[TrainWreck1]

With Zicklin's finest in the thick of things, what else would one expect?

http://www.nypost.com/p/news/local/manhattan/baruch_was_warned_M4GK32xegO7tzwPQj4eIIP

http://www.nypost.com/p/news/local/is_on_at_cuny_fvNDXnweTy7guoYG9K8hQP

Hey, didn't Brusca teach there?

[Quinvarius]

I assure you, the banks are collecting in the Socialist Koolaid from Ben out the back door.  I don't need to hear about it.  They would all be at zero right now if the Fed wasn't passing them secret trillions, just like they did in 2008.  Like in 2008, gold will mysterious ram into highs again as stocks are hitting lows.  And no one will know why, until Ron Paul orders another audit.  These secret loans are why the Fed is afraid to do public QE.  They know what they are doing in secret.

[LawsofPhysics]

Correct, moreover, ZIRP is fucking QE.  Unless of course you really believe that their is no real cost associated with capital creation.

The Fed is a criminal enterprise now, 100%.  Otherwise they would be more than happy to show there books in the light of day.

[slewie the pi-rat]

^{_{until Ron Paul orders another audit} made me laugh!}

good one!

the food commodities are up big today;  this is actually quite inflationary given the recent "script" around commodity-deflation

all the sabre-rattling about syria over the weekend and oil is down a buck, chuck!

corn, wheat and beans go up 5-6% on the morning, that seems like where de action mebbe baby

[Overflow-admin]

Take that sheeple!!! Drink the kool-aid: http://www.youtube.com/watch?v=Fyglwzzta7A

[dizzyfingers]

Who "Controls" The 30 Companies In The Dow Industrial Index - 2008

The main point of showing this information is to show that 1% or less of institutional shareholders
control a large chunk of the corporation, leaving much less for the other 99% to share.

Take American Express for example:
Although the Top 10 Major Holders make up less than 1% of 1094 holders,
they control over 38% of the shares. How they vote these shares, according to their private agenda,
may or may not be in the interest of the other 99% of the shareholders of that corporation.

What you should find interesting is that these major holders are also the major holders of banks
and commodity exchanges, as documented here.
Very twisted folks financially involved in most everything,
which explains most our current economic problems.

This is information as of 30-Jun-2008, the latest available today.
Column [1] shows the percentage of Top 10 Major Holders to the total number of institutional holders.
Column [2] shows the total number of institutional holders.
Under each year-column is the minimum percentage the TOP 10 Major Holders controlled in that year.
I say minimum because the Major Holders also control funds that also have investments in the same company.

The corporation's name is linked to the breakdown of its TOP 10 Major Holders.
You can now drill down for the last three years to see the trends.

Components of Dow Index [1] [2] 2008 2007 2006 Alcoa 1.3% 756 34.33% 30.29% 40.45% American Express 0.9% 1094 38.40% 37.38% 37.85% A T & T 0.7% 1389 25.00% 28.33% 32.34% Bank of America 0.7% 1347 23.46% 25.05% 24.42% Boeing Corporation 1.1% 944 30.95% 33.01% 36.39% Caterpillar Inc. 1.0% 986 29.99% 26.26% 27.62% Chevron Corp. 0.7% 1480 26.22% 27.16% 26.84% Citigroup 0.8% 1203 26.16% 24.77% 25.01% Coca-Cola Co. 0.8% 1298 29.46% 31.25% 30.44% EI DuPont de Nemours & Co. 1.0% 991 26.35% 31.81% 30.03% Exxon Mobil Corp. 0.6% 1654 21.10% 20.61% 19.66% General Electric Co. 0.6% 1712 20.62% 22.64% 21.95% General Motors Corporation 2.4% 415 64.41% 51.92% 59.25% Hewlett-Packard Co. 0.8% 1215 29.31% 31.96% 30.01% The Home Depot, Inc 1.0% 1008 24.72% 22.92% 27.18% Honeywell International Inc. 1.1% 905 38.16% 39.04% 35.74% Intel Corporation 0.7% 1429 22.50% 21.72% 22.60% International Business Machines Corp. 0.7% 1461 23.58% 27.15% 23.12% Johnson & Johnson 0.6% 1652 22.33% 22.71% 25.45% JP Morgan Chase 0.7% 1373 26.57% 28.37% 26.72% Merck & Co. Inc. 0.9% 1133 30.68% 30.87% 30.49% Microsoft Corporation 0.6% 1698 21.88% 22.76% 21.45% 3M Co. 0.8% 1183 24.13% 24.16% 27.51% Pfizer Inc. 0.7% 1429 24.73% 25.19% 21.49% Procter & Gamble Co. 0.7% 1522 22.98% 22.98% 22.02% United Technologies Corp. 0.8% 1214 32.66% 31.50% 31.04% Verizon Communications Inc. 0.8% 1181 27.24% 26.49% 24.24% Wal-Mart Stores Inc. 0.8% 1304 14.77% 14.87% 14.57% Walt Disney Co. 0.9% 1100 27.33% 26.31% 27.75% © 2008 by Edward Ulysses Cate
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[fuu]

Silver sporting some wood.