Having released the Turkish hostages, because "Turkey refused to agree to the US demand for 'active support of the coalition'," ISIS have come out swinging (in its first 'official' statement since President Obama unveiled his 'strategy' for "degrading and destroying" them), with a call for all followers of Allah to make the coalition campaign the "last crusader campaign," and calls Obama "vile", more foolish than Bush, and a "mule of the Jews." Warning Americans and Europeans that "you will pay a great price, when your economies collapse," ISIS blasts Kerry, "the uncircumcised old geezer," for his "false arguments." The statement concludes by telling ISIS followers, "if you can kill a disbelieving American or European - especially the spiteful and filthy French - or an Australian, or a Canadian, or any other disbeliever from the disbelievers waging war, including the citizens of the countries that entered into a coalition against the Islamic State, then rely upon Allah, and kill him in any manner or way however it may be."
8 in 10 "Yes" voters said they were motivated more by 'hope' than 'fear'. 6 in 10 "No" voters said they were motivated by 'fear' of independence and the "No" vote was almost entirely secured by overwhelming support from those aged above 55. So in a nutshell, old people filled with fear blocked independence. Going forward, the older generation problem will naturally resolve itself. So we know that the youth will be deciding the future. Thus, the real question becomes, what will influence the youth?
As I was shorting S&P Futures late Thursday night it once again hit home how close financial markets are to some major shocks all due to ridiculous amounts of liquidity by Central Banks all over the world.
Given the pre-vote polls and 300 years of historical resentment, many were somewhat surprised at the overwhelming "No" vote in last night's Scottish Independence referendum. While we now know that the vote broke very cleanly between old ("no") and young ("yes") Scots, the following clip suggests the possibility that more was afoot than that. As the commentator blasts, "Busted! Absolutely busted!" You decide... As Martin Armstrong rages, "Is anything real anymore?"
As business media pats itself on the back for the BABA IPO, proclaiming how it's the most important, and biggest IPO of all-time and on "the most efficient and transparent" exchange, perhaps it was just oversight that they forgot to mention BABA's 7-second halt "glitch" this afternoon as BABA trading exceeded 25% of all volume at some points. But that was minor compared to the utter clusterfuck that occurred as AAPL shares started to tumble and, as Nanex points out, 100s of individual stocks instantly flash-crashed and dashed by over 1% at 1550ET as the Russell rebalanced. These are your unrigged, transparent, efficient markets...
While none of these people, many of whom are unemployed and paid by others to stay in line for days, will spend the $3,600 someone in China just paid for a "gold" iPhone, they will gladly pay hundreds of dollars out of pocket, or in many cases simply lease with zero money down, the latest and greatest aspirational gadget to show they are cooler than they actually are.
The deal is done...
*ALIBABA SAID TO PRICE IPO AT $68: CNBC CITES DOW JONES
At that price, BABA is valued at ~$170 billion - higher than 95% of the S&P 500 and the biggest US IPO ever at $21.8 billion (bigger than Visa's $19.7bn debut in 2008). So if you want to buy some BABA shares, here's what happens next...
For the first time since July 2011's plunge, and with almost half its components already in bear market, the Russell 2000 looks set to experience a 'death cross' in the next few days (50-day moving average crossing below the 200-day). But don't look at that - the S&P 500 and Dow hit new record highs (despite market internals slumping) today ahead of the BABA IPO to keep the dream alive just a little longer ahead of tomorrow's quad-witching malarkey. Today's action was dominated by dismal housing data (demolishing yesterday's exuberance in homebuilders), Poroshenko's "Ukraine invasion" headlines, and hopes ahead of BABA and Scottish votes. USD down on the day, commodities down, bonds unch, stocks... UP.
What's up with the Troika?
UPDATE: Stocks have roundtripped again since she started...
Having oscillated in a wide range immediately after the FOMC statement's release, stocks have decided that up is the way to go and the S&P 500 just hit new all-time record intraday highs (helped by a VIXnado collapse under 12 and surge in USDJPY). Treasury yields are higher, USDdollar is higher (but fading back from its initial spike), and gold and silver and unchanged.
The Islamic State/ISIS/ISIL has released its initial 'rebuff' propaganda response to President Obama's declaration of war against the 'non-islamic' terrorist organization. The brief video entitled "Flames of War" is shot like a blockbuster-movie-style trailer and threatens US troops and the White House. As Politico reports, the militant terror group vows that the “fighting has just begun” in the minute-long video, which features clips of American military forces under fire and a wounded U.S. soldier being taken from the battlefield. The video concludes as the words "Flames of War" flash on the screen, followed by "Fighting has just begun" and ends ominously: "Coming Soon." Even more concerning perhaps is al-Qaeda branches calling for all jihadists to unite against the common threat from a US-led coalition.
From copper to high-yield credit and from stocks to bonds and gold, markets are reacting violently to the headlines from China that they are unleashing another 500bn Yuan "stealth QE"... everything is rallying.. except the USD (biggest drop since May).
In the past month, a group of radical Islamic extremists based in the Middle East beheaded at least 23 people and enforced a ban on Christianity by arresting a group of people for practicing the faith in a private home. No, we're not talking about ISIS. The real culprit is the Kingdom of Saudi Arabia, one of the America’s closest global allies.
Venezuelan women are revolting complaining. While the citizens of the socialist utopia can withstand shortages of food, toilet paper, and now even news paper, in a nation thought to have one of the world's highest plastic surgery rates, AP reports beauty-obsessed Venezuelans face a scarcity of brand-name breast implants, and women are so desperate that they and their doctors are turning to devices that are the wrong size or made in China, with less rigorous quality standards. No one is giving the frustrated women much sympathy, especially not the government where late President Hugo Chavez called the country's plastic surgery fixation "monstrous," and railed against the practice of giving implants to girls on their 15th birthdays. However, many have taken to Twitter under the hashtag "Without Boobs, There's No Paradise."