Philly Manufacturing Index plummets/gold and silver withstand another raid

Harvey Organ, Thursday, June 15, 2011

Philly Manufacturing Index plummets/gold and silver withstand another raid

 

 

The UK Is Preparing To Return To "Glass-Steagall" 

Submitted by Tyler Durden on 06/16/2011 18:20 -0400

In a very surprising move, the AP reports that the UK finance minister George Osborne has announced a major overhaul of British banks, the key provision of which will be the separation of bank retail and investment business "in order to help avoid another financial crisis" - an act which is in essence a reintroduction of Glass-Steagall. What is stunning about this development is that the banking cartel has allowed the UK to get so far as to effectively repeal Gramm-Leach-Bliley, the act that ended Glass Steagall and allowed unprecedented deregulation to convert formerly safe banks into the mastodon, 50x levered, TBTF hedge funds they are now. And if this is happening in the UK, how long before Europe adopts the same overhaul in order to placate its austerity-ired population, and deflect populist anger where it belongs: the banking oligarchy which continues to defy nature, and the simple laws of bankruptcy, and demands that there is never even the smallest impairment of senior claims. All this may very soon be changing.

CME Lowers Gold Margins, Hikes Corn, Hogs 

Submitted by Tyler Durden on 06/16/2011 17:38 -0400

Well, all that bitching at the Comex over PM manipulation has paid off. The Chicago exchange just lowered its initial and maintenance margins by 10% from $6,751 to $6,075 and $5,001 to $4,500 respectively. In addition to GC, the CME lowered MGC, CGT, QO and 8Q contracts. Yet while it also dropped a bunch of irrelevant petroproduct margins, the CME is now targeting the Corn and Hogs speculators, apparently doing China's job for it, by hiking margins by 50% for the same crop year in C and lean hogs LN all months by 66%. Other products that saw a margin hike were Wheat, Soybean, Lumber, Dry Whey and Live Cattle. But back to gold: is this the catalyst for the next big move up? We should know within a few days... 

Thom Calandra: Many a gold and silver stock moved by GATA supporters

 

 

RIMMberrrrrrrrrrrr (Resumes Trading At $29.75) ^new

Submitted by Tyler Durden on 06/16/2011 16:28 -0400

• RESEARCH IN MOTION SEES 2Q REVENUE $4.2B-$4.8B, EST $5.47B
• RESEARCH IN MOTION 1Q REVENUE $4.91B, EST. $5.15B    
• RESEARCH IN MOTION SEES 2Q ADJ. EPS 75C-$1.05, EST $1.40
• RIM SEES YEAR OPER EPS $5.25-$6.00, HAD SEEN $7.50; EST. $6.24
• RIM SEES 2Q GROSS MARGIN 39% VS EST. 41.5%
• RIM CUTS YEAR FORECAST, SETS BUYBACK, JOB CUT PLAN

HY ETF Flash Crash Prevented In Last Minute By 3 PM Market Ramp 

Submitted by Tyler Durden on 06/16/2011 15:53 -0400

While the furious tape painting attempt into quad witching continues courtesy of a surging EURUSD, which we anticipate will sell off shortly once again, as tomorrow brings absolutely nothing actionable out of Greece, a better indication of what is happening in the market are the High Yield ETF JNK/HYG which both were just been punched out. It is unclear if this ETF was the plaything of some HFT algo (we will follow up with Nanex shortly), but it appears that these ETFs would have been a direct casualty had the sell off continued after 3pm, at which point the bidside of the Level 2 order book essentially disappeared, and the only thing that prevented an epic collapse was central bank purchasing of the EURUSD which lifted the entire market. Yet what is nonetheless quite bad for holders is that the JNK/HYG has now taking out not only 2011 lows, but lows unseen since September 2010. The ETFs tend to be a good proxy of the actual cash HY market as can be seen in the second chart below. Which is why we send our condolences to all HY fixed income hedge funds which are about to be dealing with some very substantial margin calls. The crash may have been delayed but has not been prevented. 

 

 

 

 

And For That Flashy Crashy Smell, Here Are Surging Vol And Implied Correlation 

Submitted by Tyler Durden on 06/16/2011 15:01 -0400

You can look at the Dow which is hilariously green on the day despite the now doubly confirmed contraction of the US economy. Or you can look at the VIX which is now surging in what can be classified as an offerless market, and up well over 10% at last check. NYSE Circuit breakers now off.