There is so much confusion out there. On the days when the Dow goes down by several hundred points, lots of people pat me on the back and tell me that I “nailed” my call for the second half of this year. But on the days when the Dow goes up by several hundred points, I get lots of people contacting me and telling me that they are confused because they thought the stock market was supposed to go down. Well, the truth is that if there is going to be a full-blown market meltdown, we would expect for there to be wildly dramatic swings in the market both up and down. A perfect example of this is what we experienced during the financial crisis of 2008. 9 of the 20 largest single day declines in stock market history happened that year, but 9 of the 20 largest single day increases in stock market history also happened that year. If we are moving into another great financial crisis, there should be massive ups and massive downs, and that is precisely what we are witnessing right now.
Submitted by Tyler Durden on 09/10/2015 - 10:11 The Wholesale Inventories-to-Sales ratio has now been stuck deep in recession territory since January as the mal-investment boom-driven deflation-beckoning dream of "if we build it they will come" inventory surges smashes into the ugly reality of peak-debt-based lack of consumption worldwide. Inventories dropped 0.1% in July (notably lower than the 0.3% rise expected), but worse still Wholesale Sales tumbled 0.3% (missing expectations of a 0.1% rise). So inventories dropped (bad for Q3 GDP) and sales dropped more (even worse) leaving July's 1.30x inventories-to-sales ratio remains a flashing red beacon of over-capacity and looming production cuts (especially in Automakers).
China’s Shanghai Gold Exchange said it will allow physical gold to be used as collateral on futures contracts from September 29, according to a statement posted on its website this morning as reported by Reuters.
Physical gold will be permitted to be used for up to 80 percent of margin value, according to the statement.
Reuters then corrected the story and the second refiled story was changed and given a different focus:
Submitted by Tyler Durden on 09/10/2015 - 09:38 Exactly one month ago, in the aftermath of the Chinese devaluation announcement, we made a simple prediction. "Biggest immediate loser from China's devaluation: Brazil" Today, following the overdue, long anticipated, and yet "shocking" downgrade of Brazil by the S&P to junk, this prediction is coming true.
The overnight stock market revelry continued, led by Japan, which gained a “modest” 7.7%. Other Asian markets were also quite strong. Europe joined the party as well, gaining a couple of percent, and preopening the S&P futures were sporting a gain of better than 1%. However, as soon as the stock market actually opened, the indices sold back almost to unchanged before flopping sideways and then sinking slightly by midday.
In terms of yesterday’s hottest stocks, many of which were in the chip sector, this morning both chip supplier Fairchild Semiconductor and equipment company Kulicke and Soffa lowered guidance due to weak demand. I expect there will be plenty of disappointment from this industry going forward.
The Tepper Top? Appaloosa Manager Sees "Turbulence" Ahead, Warns "Flat Stocks Is Not A Bad Place To Be"Submitted by Tyler Durden on 09/10/2015 - 08:57 "The 17-year river [of reserve currency buildup and QE around the world] is no longer flowing," warns Appaloosa's David Tepper, and "turbulence" is now the norm. VIX 22 is too low - "expect surging volatility", 18x PE is too high - "margins are set to drop - I have problems with earnings growth and problems with multiples"
Simply put - "Flat stocks is not a bad place to be...unless central banks are on our side again, then every rally should be sold."
Submitted by Tyler Durden on 09/10/2015 - 09:24 This is getting way too stupid. The Keynesian Chorus has launched a full blast trilling campaign, emitting an increasingly shrill cackle of warnings against a Fed rate hike. Yes, 80 months of pumping free money into the canyons of Wall Street is not enough. Why? Well, this is hard to type with a straight face, but according to the cackling gaggle of Keynesian Chicken Littles, the Fed has already tightened too much!
Republican presidential front-runner Donald Trump was among the high-profile critics of the Iranian nuclear agreement to address a large crowd gathered for Wednesday’s rally at the U.S. Capitol. The bold businessman wasted no time exposing the perceived folly of the controversial deal.
“So, I’ve been doing deals for a long time,” he said. “I’ve been making lots of wonderful deals, great deals; that’s what I do. Never, ever, ever in my life have I seen any transaction so incompetently negotiated as our deal with Iran.”
While he deferred to other speakers – including fellow GOP presidential contender Ted Cruz – when it came to the deal’s specific foreign policy shortcomings, Trump focused on one recurring complaint.
Submitted by Tyler Durden on 09/10/2015 - 08:42 So much changes in three days. For proof look no further than just the last three days of Dennis Gartman virtual portfolio recommendations.
Submitted by Tyler Durden on 09/10/2015 - 08:30 Apparently fed up with the persistent spread between the onshore and offshore yuan, China has decided to add one more spinning plate to its collection by intervening in the offshore spot market.
Submitted by Tyler Durden on 09/10/2015 - 08:09 Anyone waking this morning will glance at US equity futures and happily note its unchanged-ness relative to weakness in Asia overnight. But behind the scenes of the last 12 hours was a total and utter farce of price discovery failure. S&P 500 e-mini futures have been halted twice (0551ET anbd 0612ET) in what one market observer exclaimed "looks like manipulation to me." So what exactly happened at 6:12am?
Submitted by Tyler Durden on 09/10/2015 - 08:03 Of course, with Goldman's desk making millions in commissions executing AAPL's weekly, if not daily, buyback orders, the last thing Goldman would dare to do is issue a report that angers Tim Cook. But another problem may be emerging for AAPL: China. As a reminder, China recently became the biggest end-market for iPhone demand and any hints this may be jeopardized could have severe repercussions on the stock price. Which is why we paid particular attention to the report overnight from China's finance ministry, which accused a China unit of Apple of underpaying taxes in 2013 by 452 million yuan ($71 million), "which comes as China toughens its stance on tax payments by foreign firms."
Submitted by Tyler Durden on 09/10/2015 - 07:35
- Compare: S&P 500 Futures Advance After U.S. Stocks Ignored Global Rally (BBG)
- And contrast: Global Stock Rally Grinds to a Halt (BBG)
- And be very confused: Global Stocks Lower on U.S. Interest Rate Uncertainty (WSJ)
- Hilsenrath: Fed Wavers on September Rate Rise (WSJ)
- Time for more QE: Abe Adviser Says Next Month Good Opportunity for BOJ Easing (BBG)
- Brazil downgraded to junk rating by S&P, deepening woes (Reuters)
- Kiwi dollar tumbles after New Zealand cuts interest rates (Reuters)
Futures Surge Overnight As Deteriorating Economic Data Unleashes Blur Of Central Bank Interventions And QE RumorsSubmitted by Tyler Durden on 09/10/2015 - 06:55 It has become virtually impossible to differentiate between actual central bank intervention, hopes of central bank intervention, and how the two interplay on what was once the "market" but is now merely the place where money printers duke it out every day in some pretense of price discovery set by those who literally print money.
Submitted by Tyler Durden on 09/09/2015 - 23:32 As of Friday the comex gold "coverage" or amount of paper claims on every ounce of physical, was literally off the chart, soaring to a mindblowing 207 ounces of paper gold claims for every ounce of deliverable gold. This also means that the dilution ratio between physical gold and paper gold has hit a new all-time low of just 0.48%!
Good evening Ladies and Gentlemen:
Here are the following closes for gold and silver today:
Gold: $1102.40 down $18.20 (comex closing time)
Silver $14.57 down 18 cents.
In the access market 5:15 pm
First, here is an outline of what will be discussed tonight:
At the gold comex today we had a poor delivery day, registering 4 notices for 400 ounces Silver saw 3 notices for 15,000 oz.
After a summer of missed opportunities, poisoned rhetoric and bitter recrimination, Spain faces what promises to be a very tumultuous autumn.
On September 27 its largest economic region, Catalonia, will hold its most important elections since Spain’s late dictator Francisco Franco passed away 40 years ago. If the pro-independence parties win a majority of seats in Catalonia’s parliament, they have pledged to declare unilateral independence from Spain.
As if that were not enough, in December the country will hold what could turn out to be its most tightly fought general election in decades.
Strawman – The Nature of the Cage is a cutting edge documentary like no other. It highlights the truth around debt, the Legal Fiction, Lawful and Legal, Debt Collectors, Bailiffs, and modern day Policing. The film gives a detailed overview as to how you can address these issues in your personal life, offering knowledge on how to Lawfully deal with any kind of authority, if you haven’t broken any Laws. Drawing on the expertise of Trailblazers whom have risked everything to deliver this usually unavailable information, Strawman will outline information that you would otherwise be completely unaware of.
John K Webster, who has spent 18 months researching and making this film, has one goal… having noticed the increase of suicides in the UK that relate directly to monetary worries, he says “If this film saves one life, my work is done.”
This film applies to everyone, regardless of your personal situation. It is important to know how the system works and more importantly, how it is working you.
It is said, that you must first know that you are in a cage, before you can escape from that cage.
Read More @ AntiCorruptionSociety.com
Citizen of Gotham:
Washington sources confirm that President Obama has rejected Russian President Putin’s intervention against the Islamic State inside Syria and is, predictably, trying to subvert the Russian efforts. Late last week, Obama communicated through Secretary of State Kerry to Russian Foreign Minister Lavrov that the U.S. opposes any Russian military action in support of the Assad government in Damascus. Obama’s message was that Russian action is “not productive” and that Russia should, instead, join the U.S.-led “coalition.” In addition, the White House has ordered pressure on all U.S. allies to deny Russia any overflight privileges for planes headed to Syria, and has already brought pressure to bear on both Greece and Bulgaria.
Lyndon LaRouche on Tuesday noted that Obama is walking right into Putin’s trap in Syria. Russian President Putin has already decided to intervene to preserve the Syrian state and the Assad government. Russian military “advisors” are already in the country, and more advanced Russian military equipment is coming in to Syria, aimed at enabling the Syrians to launch a full-scale conventional war against the Islamic State. According to one U.S. source, Russian surveillance drones are already mapping out territory held by ISIS and Nusra Front and other Western-backed rebel groups. Increasingly, Obama will be faced with exposure for backing ISIS or capitulating to the Russian operations. Either way, Putin has made his decision and will not back down, LaRouche emphasized. Obama cannot handle such a firm action by Russia and is headed for a real freak-out. Putin has decided to wipe out ISIS and Obama can’t handle that.
Read More @ LaRouchePAC.com
by Alcuin Bramerton, Henry Makow:
As Elizabeth II becomes England’s longest serving monarch, it is worth remembering that
she is really a symbol of economic disparity. Elizabeth Windsor and her covert syndicate in London are the world’s largest landowners by a significant margin.
It is accurate to posit that Australia, New Zealand and Canada are not independent, sovereign countries. However, these nations are not owned and run by the UK; they are owned and run by the House of Windsor Crown Temple syndicate within the City of London Corporation. The head signatory of the Crown Temple syndicate is Elizabeth Windsor (Queen Elizabeth II of England).
Hey friends, I received this nice e-mail today from newly inspired anti-mandatory vaccinations activist Marco, and want to share it with you:
Hello Sean, Your site along with Zero Hedge and The Freedom Report are my daily go-to sites for information. I’m a volunteer for the referendum movement against SB 277 in California that is set to commence July 2016. I’m not sure if you are aware but there are over 3,000 volunteers gathering signatures in California to nullify the law and take it to the voters come Nov 2016. You might say, ‘what is the point of that? With all the sheep in California it will probably pass anyway’. You may be right but by simply nullifying the law for at least the 5 months we will literally be saving thousands of children’s health and lives. You see, vaccine checks are done at Kindergarten and 7th grade. By moving at least moving the date from the start of the school year to November 2016 thousand of children entering Kindergarten and 7th grade will be spared having to have the mandated vaccines. My child would be one of them. My son is currently in Pre-school and will be entering Kindergarten next year. If the law remains as is to begin July 2016 he will not be allowed to continue at his private school where my daughter is also currently enrolled in (1st grade). If we at the very least push it out to a vote come Nov and it passes my son will already be in Kindergarten and will not be required or checked until he enters the 7th grade.
The chief economist for the World Bank, Kaushik Basu, says an interest rate hike by the Federal Reserve will cause “panic and turmoil” in emerging markets. “The world economy is looking so troubled that if the U.S. goes in for a very quick move in the middle of this I feel it is going to affect countries quite badly,” he told the Financial Times.
The remarks by Basu follow a similar warning by Christine Lagarde, the head of the International Monetary Fund.
Financial expert Peter Schiff told Fox Business from the floor of the U.S. Stock Exchange the banksters will not raise the interest because it will implode the bubble economy that has passed for an economic recovery.
The conditionality of the Soviet Union’s agreement to allow East Germany to be taken by West Germany and for the Cold War to end, was that NATO would not expand “one inch to the east.” This was the agreement that was approved by the Russian President of the Soviet Union, Mikhail Gorbachev, a great man and a subsequent hero to democrats around the world. He agreed then to end the Soviet Union and abandon communism and thus to end the entire Cold War; he agreed to this because he had been promised that NATO would expand not “one inch to the east,” or “one inch eastward,” depending upon how the promise was translated and understood — but it has the same meaning, no matter how it was translated. He trusted American President George Herbert Walker Bush, whose friend and Secretary of State James Baker made this promise to Gorbachev. With this promise, Gorbachev agreed to end the Soviet Union; end the communist mutual-defense pact which was their own equivalent of NATO, the Warsaw Pact; and he believed that the remaining nation that he would then be leading, which was Russia, would be accepted as being a Western democracy.