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Rest-Of-World Equities Rapidly Going Red Year-To-Date

Tyler Durden's picture




 

Asia is deteriorating rapidly this evening - extending losses from the US day session. S&P 500 futures just touched 1300 once again and credit markets are bleeding wider. Only the DAX remains positive for the year so far in Europe; today's price action pushed the Dow Transports into the red year-to-date and the rest of the US indices are rolling over rapidly; and in Asia-Pac - Japan and Australia are now in the red year-to-date (in USD terms) with the HangSeng getting close.

Sea of red this evening in Asia (orange oval) but YTD returns in USD terms are all heading rapidly towards the red side (red oval) of the ledger...

With Europe just a mess - leaving only the DAX in the green in local currency and USD terms...

and in the US, the Dow Transports turned negative for the year today and the rest are following closely behind...

Of course, credit and Treasury markets have been flashing the warning signals for a while now but we do still have Facebook tomorrow...does credit keep telling us that S&P 500 at 1000-1100 is more like 'fair' without all the monetary juice?

Charts: Bloomberg

 

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Fri, 05/18/2012 - 00:36 | 2438520 cherry picker
cherry picker's picture

Oh well, the young people at facebook will have to support California's budget deficit with their billions so I suppose this IPO is really charity for government

Fri, 05/18/2012 - 00:56 | 2438566 barliman
barliman's picture

 

Well, aren't you just a cute little bundle of naivete?

My money is on a lot of the "vested" employees getting the hell out of California and obtaining citizenship in ... Brazil.

No later than June 29, 2012 to be specific.

Then let the USA and California tax people try to collect their taxes.

(I surely would if I was one of them.)

barliman

Fri, 05/18/2012 - 01:46 | 2438664 onelight
onelight's picture

Oh they're too busy running up local home prices in Palo Alto, CA -- into the stratosphere

http://tech.fortune.cnn.com/2012/04/30/fb/

And from last Summer, the anticipation of earlier social media IPOs did likewise

http://tech.fortune.cnn.com/2011/07/11/dont-call-it-the-next-tech-bubble-yet/

Grew up just north of PA, decades ago; visiting always brings shock at the home prices.

Silicon valley is having an entirely different experience of this time in the nation's history.

Fri, 05/18/2012 - 02:06 | 2438691 AustriAnnie
AustriAnnie's picture

Silicon valley is full of companies with federal contracts/military contracts.  Keeps the cash flowing in that area.

War is a racket.  

Fri, 05/18/2012 - 02:26 | 2438716 Spirit Of Truth
Spirit Of Truth's picture

Seems to me that war is attending to foreign affairs with decisive means.  You should watch this video of a speech by Jeff Nyquist regarding 'Western stupidity' when it comes to thinking that money is what makes the world go 'round.  Russia and China don't share this myopic Western point-of-view:

http://www.youtube.com/watch?v=621kb9seuf8&list=PLE4459C280C37FAD2&index=4&feature=plpp_video

The 'Old Enemy' believe missiles with thermonuclear warheads have far more strategic impact on world affairs than printed fiat confetti everyone has come to so value and worship.

Seems to me the Bible forewarned about this somewhere...

Fri, 05/18/2012 - 04:45 | 2438796 TraitorsHang
TraitorsHang's picture

You got junked, but I think you're right. I have a friend that is fond of saying that the world is on a nuclear standard. That considering the destructive capacity of a nuke, you should be willing to pay whatever price is asked for one, because the control that you have by holding a red button that large is greater than any amount of money. With money, there is no ceiling. No matter how much you have, someone else will always have more. But if you have a single nuke, you don't get fucked with.

His logic makes sense, but only if the money is arbitrary.

"Until and unless you discover that money is the root of all good, you ask for your own destruction. When money ceases to be the tool by which men deal with one another, then men become the tools of men. Blood, whips and guns – or dollars. Take your choice – there is no other – and your time is running out."

http://www.working-minds.com/money.htm

 

Fri, 05/18/2012 - 05:49 | 2438818 falak pema
falak pema's picture

simple minds and simple solutions; simplicity is elegance but a lot of half truths, as the basic assumptions of the system are that those who deal in money have the highest moral ideals to promote the fruit of their intelligence.

Reality proves to us the opposite; money creates its own fools precisely as it is a dangerous tool and the golden calf it represents makes monkeys and greedy followers out of all of us. Thus the money changers use "greed is good" to further their own aims as money changers should, which is to make us debt slaves forever. So much for the high ideals that Atlas shrugged entails, they are as bushy tailed as those of an eager beaver on the make!

Fri, 05/18/2012 - 06:53 | 2438865 RockyRacoon
RockyRacoon's picture

Speaking of going nukular!

This from Ed Steer's latest:

BOMBSHELL REPORT: Jamie Dimon Personally Approved The Concept Of The Disastrous Trade, Losses Could Total $5 Billion

Details continue to emerge regarding JP Morgan's shocking multi-billion trading losses.

However, the biggest behind-the-scenes report so far was just published by The Wall Street Journal and written by Monica Langley.

Here's how Dimon first found out about the losses: On April 30, associates who were gathered in a conference room handed Mr. Dimon summaries and analyses of the losses. But there were no details about the trades themselves. "I want to see the positions!" he barked, throwing down the papers, according to attendees. "Now! I want to see everything!"

When Mr. Dimon saw the numbers, these people say, he couldn't breathe.

This story was posted on the businessinsider.com website late yesterday....

The link is here.

Fri, 05/18/2012 - 08:35 | 2439088 LawsofPhysics
LawsofPhysics's picture

Wrong.  The world is on a resource standard.  Always has been.  Power and control of resources is the only thing that matters.  Taking power and control by force happens all the time.

Fri, 05/18/2012 - 01:52 | 2438670 onelight
onelight's picture

barliman you have a good point about Brazil, that is the window, and some of them must be considering it

I'm a lifer in the US, but there is lots to be found in Brazil

Fri, 05/18/2012 - 02:01 | 2438687 barliman
barliman's picture

 

Long time ago in a senior ethics class (scheduled for 3 hours) we had an amazingly honest professor teaching it.

First words out of his mouth, "If your parents didn't teach you to be ethical, there is nothing I can say in 3 hours to make you behave ethically. So what I am going to tell you is - if you are going to sell your soul to the devil (or your careeer for a bribe), be sure you get enough money to live on for the rest of your life."

We then spent 10 minutes discussing some recent cases of stupidity (selling out for a $ 2k bribe and getting caught) and some historic cases of 'flexible ethics' (taking a $ 10 million USD bribe and then going to Brazil before anybody wised up).

And then he dismissed the class.

I can be bought but my price is REALLY high.  (Do I hear $ 100 million USD?)

barliman

Fri, 05/18/2012 - 05:09 | 2438802 bdc63
bdc63's picture

so now that we have established what you are, we're just haggling over price ...

good to know ...

Fri, 05/18/2012 - 08:18 | 2439032 barliman
barliman's picture

 

Me love you loooonng time.

Make USDCHF trade, 

Me get you FB shares only $ 30/share!

barriman

Fri, 05/18/2012 - 01:53 | 2438673 pleseus
pleseus's picture

Isn't Facebook called Yahoo in Latin?

Fri, 05/18/2012 - 00:39 | 2438527 derek_vineyard
derek_vineyard's picture

facebook will pay NO taxes for at least 10 years due to tax laws surrounding start ups

Fri, 05/18/2012 - 06:49 | 2438864 Zero Govt
Zero Govt's picture

Eh?!

Small businesses pay Tax from the get-go. Can you explain better pls?

Fri, 05/18/2012 - 00:40 | 2438528 derek_vineyard
derek_vineyard's picture

and if the laws change expect them all become ex-pats

Fri, 05/18/2012 - 00:42 | 2438535 HD
HD's picture

Regardless to what the street thinks - all the QE that is coming (sooner or later) will not save them this time. Inflating risky asset prices will give way to just trying to hold the system together.

Fri, 05/18/2012 - 00:44 | 2438537 derek_vineyard
derek_vineyard's picture

no shit?

Fri, 05/18/2012 - 01:00 | 2438578 HD
HD's picture

Tis true good Sir. We are right fucked.

The only good news (if you can call it that) is best said in Billy Joel's "Goodnight Saigon"

 

And we would all go down together

We said we'd all go down together

Yes we would all go down together

Fri, 05/18/2012 - 01:06 | 2438594 barliman
barliman's picture

 

It should be "Tis true good Sir. We are PROPER fucked."

barliman

Fri, 05/18/2012 - 01:24 | 2438628 HD
HD's picture

I defer to you on this - my command of the english language is undoubtedly lacking...but that's what happens when you learn to talk by watching "Welcome Back Kotter" reruns.

Fri, 05/18/2012 - 01:41 | 2438647 barliman
barliman's picture

 

WOW!

If you have any ability to understand the English language based on that collection of New Joisey accents, I must say I am truly impressed!

barliman

Fri, 05/18/2012 - 01:54 | 2438675 HD
HD's picture

Up your nose with a rubber hose!

Fri, 05/18/2012 - 00:44 | 2438539 SMG
SMG's picture

Oh don't worry, the Fed will come in and prop everything up like they have been for the last 2 or 3 years.  Now or -50% from now, right?

Fri, 05/18/2012 - 00:45 | 2438542 walküre
walküre's picture

DAX will be neg. by end of next week - tops.

One way or another we are below the infamous yet completely meaningless garden variety of xyz dmas' and there's absolutely nothing on the horizon to attract any buying interest.

Where's bottom? We've traded 3 years on the outlook of recovery and finally a manifestation of a weak and unstable recovery. Now the recovery is faltering again and the current problems are the old problems.

We need to start debate on a global reset, debt jubilee and currency reset. Not advocating a global formation of one currency but the global concerted effort to eliminate debt and unfunded and unsustainable liabilities. It's coming either way at some point. Might as well get a head start!

Fri, 05/18/2012 - 00:52 | 2438558 barliman
barliman's picture

 

You know ...

... I'd like to be able to buy in to the whole "debt jubilee" concept (sounds like some sort of old Southern party) except ...

... the wiseguys looking for their vig will be using tanks, attack helicopters and ground support fighter planes as their opening position - and then things will get UGLY if they can't collect.

No offense, walkure, but there won't be a 'debate'. There will be wars.

barliman

Fri, 05/18/2012 - 01:15 | 2438606 walküre
walküre's picture

None taken

Reason will most likely not prevail and in essence, we're not anymore sophisticated or evolved than cavemen. What's mine is mine and I won't share and if you try and take it from me, I will hire myself an army to protect what is mine. Such a dumb concept. Yet, our life expectancy is still limited and we can't extend the time to enjoy our wealth either.

The paper and digital wealth that is sloshing around can not be sustained. It cannot be hedged for inflation and it cannot produce any real returns unless global GDP goes down. Peak debt, peak wealth and BOOM the system is broken. Don't think I need to explain this further.

War is a possible scenario but who is going to fall for it? Who is going to war for their country when all this nonsense is exposed and everyone understands war is just a means to protect the wealth of a few. Who cares?

Fri, 05/18/2012 - 01:38 | 2438643 barliman
barliman's picture

 

Good question.

I'd hope Europeans could be counted on to see everything you describe ... but I used to travel over there a good deal until a few years ago. The nationalistic perspectives on one another are still very strong. To be fair, no one has a much venom for another country as the people of northern France express towards the people fo Southern France - which is fully reciprocated.

Unfortunately they are also beset and goaded on by these sort of scum:

Ex-ECB Head Unveils Bold Plan to Save the Euro:  Europe could strengthen its monetary union by giving European politicians the power to declare a sovereign state bankrupt and take over its fiscal policy, the former head of the European Central Bank said on Thursday in unveiling a bold proposal to salvage the euro. The plan offered by Jean-Claude Trichet, who stepped down last November as ECB president, would address a fundamental weakness of the 13-year-old single currency [EUR= 1.2656 -0.0028 (-0.22%)  ] , the survival of which is threatened by the Greek crisis.

http://www.cnbc.com/id/47471171

Which for the Frenchman to suggest to the Greeks is equivalent to telling them they should sell their children to Thai pedo brothels in order to pay their debt to the French and German banks.

Almost make you think they want Greece out of the EU, wouldn't it?

barliman

Fri, 05/18/2012 - 01:42 | 2438653 Oh regional Indian
Oh regional Indian's picture

A government directed education and a draft will ensure that Cannon Fodder is always available.

The US is currently an all volunteer army and look at how well the war is already running.

ori

Fri, 05/18/2012 - 07:37 | 2438924 Bicycle Repairman
Bicycle Repairman's picture

"Who is going to war for their country when all this nonsense is exposed and everyone understands war is just a means to protect the wealth of a few. Who cares?"

The world is filled with mercenaries, cyber-warriors, drones, bombers and tomahawk missles.  And cannon fodder.

Fri, 05/18/2012 - 00:46 | 2438544 barliman
barliman's picture

 

Level of difficulty: Asian

Jeopardy answer: May 2012

Jeopardy question: What is the actual month and year  the Mayan "End of Days" Cycle was completed?

Trivial Pursuit Post Apocalypse Version - FUCKED category - Which group of markets were the first to come to terms with the end of the EU/euro fiat currency charade?

IPO the shit out of FaceBook tomorrow suckers - it's the equivalent a requesting an upbeat tune from the musicians on the deck of the Titanic.

barliman

 

Fri, 05/18/2012 - 00:48 | 2438552 RmcAZ
RmcAZ's picture

Not to worry, Facebook will bail out the world tomorrow.

Fri, 05/18/2012 - 00:55 | 2438565 FlyoverCountryS...
FlyoverCountrySchmuck's picture

ANOTHER TAKE:

Everyone was selling today, so they would have the money to buy FACEBOOK.

Fri, 05/18/2012 - 00:58 | 2438574 barliman
barliman's picture

 

Fortunately enough has been sold this week to let them bid the price up to $ 100/share

/s

or not.

barliman

Fri, 05/18/2012 - 00:59 | 2438576 RmcAZ
RmcAZ's picture

I sold all my stocks, my house, and two of my children to buy FB shares... they are going to the MOON.

Fri, 05/18/2012 - 01:05 | 2438590 barliman
barliman's picture

 

Were those the SAME two of your children that I sold?

Just asking 'cause I didn't bother to set up a MBS (Minor Backed Security) trust to hide my tracks.

barliman

Fri, 05/18/2012 - 01:59 | 2438680 Bunker Boy
Bunker Boy's picture

Upped you for selling the two children comment, from which I know is hyperbole b/c all American children know how to do it eat ice cream, complain and play WII. What productive slavic purspose could they serve? Nobody, obviously, would want them.

Facebook will be crashing for all the follow on suckers the next month or two. Just like aapl.

Fri, 05/18/2012 - 05:13 | 2438803 bdc63
bdc63's picture

... how much did you get for the kids? ...

Fri, 05/18/2012 - 07:40 | 2438929 Bicycle Repairman
Bicycle Repairman's picture

I re-hypothecated my children.

Fri, 05/18/2012 - 07:40 | 2438932 Dapper Dan
Dapper Dan's picture

It is the simplest explanation that makes the most sense! 

Lex Parsimoniae

The Law of what can be spared, should

Article Source: http://EzineArticles.com/1015888

Fri, 05/18/2012 - 00:57 | 2438569 Alexandros
Alexandros's picture

The end of the world is near... The ten plagues of Pharaoh “have been brought upon” the USA.

From the Wall Street Crash of 1929 to the Global Financial Crisis of 2007

www.eamb-ydrohoos.blogspot.com/2010/02/ten-plagues-of-pharaoh.html

.

World War III - The First Private War in History

http://eamb-ydrohoos.blogspot.com/2012/02/world-war-iii.html

Fri, 05/18/2012 - 01:01 | 2438581 barliman
barliman's picture

 

I'd click on your links ...

... but then I am pretty sure my IQ would go down.

barliman

Fri, 05/18/2012 - 01:50 | 2438666 Oh regional Indian
Oh regional Indian's picture

Click them Barliman, the man is brilliant, even if you may not agree with everything he says.

ori

Fri, 05/18/2012 - 07:06 | 2438883 Mitzibitzi
Mitzibitzi's picture

"when the same factory “shuts down” and becomes a bunch of iron, the only difference is that this iron did not turn into pieces.

You clearly haven't witnessed the efficiency of British scrap metal thieves! A few miles from here, they stripped a 3000 square foot steel-framed industrial unit down to the concrete floor in less than 3 days after it closed down. With nothing more than hand tools, 5 guys and a couple of beat up Ford vans.

Does kinda make me wonder where all this scrap metal is actually going?? If no-one is making anything anymore and even the BRICs are slowing down, who's buying the stuff THAT fast at prices THAT high?

Fri, 05/18/2012 - 00:58 | 2438572 Zgangsta
Zgangsta's picture
TSE Issues Emergency Margin Call

It's breaking down in Tokyo!

Fri, 05/18/2012 - 01:03 | 2438587 barliman
barliman's picture

 

I did click on your link ...

... but I am not interested in getting a paid subscription to Nikkei.com

Thank you very much all the same.

barliman

Fri, 05/18/2012 - 01:21 | 2438620 walküre
walküre's picture

They do that alot over there.

In related news, Godzilla has been sighted attacking Tokyo's exchange!

Banzai!

Fri, 05/18/2012 - 01:43 | 2438657 barliman
barliman's picture

 

ROFL!!!!        Wait!

Are you sure it isn't the Power Rangers attacking?

barliman

Fri, 05/18/2012 - 01:07 | 2438584 q99x2
q99x2's picture

Iran and Chicago are becoming more important to the campaign platform of one CIA agent Obama as the financial world falters.

The 5 year chart of AIG is about to become contagious.

Fri, 05/18/2012 - 01:46 | 2438650 PersonalRespons...
PersonalResponsibility's picture

Yup. QE year after year and you'll see the same thing.  So, what next?  

 

EDIT:

2002-2008!!!!!!  wow

Fri, 05/18/2012 - 01:16 | 2438613 Bastiat009
Bastiat009's picture

Stocks are just like gold then, but with dividends for some.

Fri, 05/18/2012 - 01:23 | 2438624 jimmyjames
jimmyjames's picture

Stocks are just like gold then, but with dividends for some.

**************

And zero for others-unlike gold-

Fri, 05/18/2012 - 04:00 | 2438785 css1971
css1971's picture

Yes exactly like gold. Except for losses, bankruptcies,stock dilution and so on.

Fri, 05/18/2012 - 02:16 | 2438700 MayerRothschild
MayerRothschild's picture

I'm Seeing Red! 

Fri, 05/18/2012 - 03:19 | 2438756 silverdragon
silverdragon's picture

Shanghai and Hong Kong doing OK.

Fri, 05/18/2012 - 03:44 | 2438777 EZYJET PILOT
EZYJET PILOT's picture

Just the manufactured prelude before QE3. How long will QE3 juice the market for now, not very long I'd say.

Fri, 05/18/2012 - 05:55 | 2438823 Boilermaker
Boilermaker's picture

Yea, well, they've just MAGICALLY reversed the ES by 13 handles and are ass slamming it higher now.

SURPRISE!!!

Fri, 05/18/2012 - 07:00 | 2438876 gatorengineer
gatorengineer's picture

I think you posted same comment yesterday........  The futures fairy is doing some heavy lifting today, and it may be a short squishing pop today with farcebook as an excuse, time will tell......

Fri, 05/18/2012 - 07:27 | 2438903 Boilermaker
Boilermaker's picture

Options expiration also.

Should a full blown fraud-fest.  Gotta jam the SPY away from 130 where there are probably a shitload of put options about to go worthless.

Fri, 05/18/2012 - 07:10 | 2438886 orangegeek
orangegeek's picture

Yep - it sure looks like primary wave 3 down is underway.

 

SP500 weekly does not have a good outlook.

 

http://bullandbearmash.com/index/sp-500/weekly/

Fri, 05/18/2012 - 07:59 | 2438978 Let The Wurlitz...
Let The Wurlitzer Play's picture

It is time for the Dow ans S&P to close the spread and catch up with other world indicies.

 

Sun, 05/20/2012 - 14:06 | 2445392 INMUDEELZIZ
Sun, 05/20/2012 - 14:07 | 2445395 INMUDEELZIZ
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