Submitted by Tyler Durden on 03/07/2016 - 12:06
US equity markets are soaring once again and two things are driving it - CTA-driven short-covering in commodities and the algo-driven squeeze of the most-shorted stocks. Having risen 13 of the last 16 days, "Most Shorted" stocks are now unchanged since The Fed rate-hike, soaring 25% in that time - the biggest squeeze in history. And Credit Suisse warns, it could get worse...as the dash for trash continues.
Submitted by Tyler Durden on 03/07/2016 - 13:39 With the S&P 500 trading back above 2,000, it appears The Fed needed to do something to tamp down the enthusiasm exhibited by this manic short squeeze. As Fed vice-chair unleashed the following: "We may be seeing the first stirrings of higher inflastion," the short-squeeze ended and everything reversed...
Submitted by Tyler Durden on 03/07/2016 - 13:52 China never had an actual economic model or growth model. It simply printed an obscene amount of money, especially after 2008, and used it to build factories, 30-storey see-through apartment blocks and highways into nowhere cities, without giving much if any thought to where this would lead when their formerly rich western customers had less to spend on its ever increasing amount of ever more useless products. It was "to infinity and beyond" from the start, but that’s a line from a kids’ fantasy story, not a 5-year plan or an economic model.
Submitted by Tyler Durden on 03/07/2016 - 13:26 "The most eye-catching of [fiscal stimulus] views is a call to deploy ‘helicopter money’, which we define as monetary financing of fiscal deficit. However, this argument is misleading. Surely this has already been implemented in many developed countries through QE. Why bring it up now despite it has been already deployed?"
economy stock markets?
Submitted by Tyler Durden on 03/07/2016 - 12:41 You can't make this up: Chinese hackers stole $100 million from the Bangladesh Central Bank's account at the New York Fed and then laundered it through Philippine casinos.
Submitted by Tyler Durden on 03/07/2016 - 12:27 What is worrisome is that since this trick can be applied basically anywhere in China, it will be and the elite in Shanghai and Beijing will catch on as will tier 2-4 cities, whose governments are even more desperate to rescue the housing market. With the elite and smart money milking the existing banking system in this way and moving money out, China's 3.2 Trillion (and declining for 4 consecutive months) official reserves doesn't look all that impressive.
Submitted by Tyler Durden on 03/07/2016 - 11:37 The effects of all this fundamental dishonesty have thundered through our national life to the degree that American society is now divided into the swindlers and the swindled, loosing the monster of collective Id known as Trump on the public. This is what comes of attempting to divorce truth from reality, which has been the principal business of American life for several decades now. When truth and reality become de-linked, a society literally doesn’t know what it is doing.
Submitted by Tyler Durden on 03/07/2016 - 11:15 Something strange happened on Friday: as a result of the 20% YTD surge in the price of gold and "surging demand", BlackRock announced it had temporarily suspended the creation of new shares of its $7.8 billion gold Exchange Traded Product IAU "until additional shares are registered with the Securities and Exchange Commission." Today, Blackrock explained what happened, and why it can buy gold again.
Submitted by Tyler Durden on 03/07/2016 - 11:01 The "berserk" iron ore market has created a tsunami of utter idiocy and short-covering across many sectors, most egregiously - dry bulk shippers. DRYS is up 18%, DSX up 20%, and NM up 25%, but Eagle Bulk (EGLE) is the big winner as the mania underlying iron ore combined with an earlier filing said to amend forebearance as the company tries to find financing alternatives, spiked the stock up 340% in 2 days.
Submitted by Tyler Durden on 03/07/2016 - 10:37 Shortly after JPMorgan's historically correct forecasters unleashed their "short stocks" prognostication, we joked that if only Goldman would go "long" the S&P500, then the confusion about what is really going on would be eliminated instantly. And so the alarm bells on this bounce should be ringing loud and clear as Goldman just told its portfolio manager clients that "S&P 500 calls are more attractive now than at any time on record."
Submitted by Tyler Durden on 03/07/2016 - 10:46 Alexis Tsipras is fuming. Austria is unilaterally closing the Balkan route. Merkel is shouting about the bloc's "damned duty." And Erdogan is, well... Erdogan.
Submitted by Tyler Durden on 03/07/2016 - 10:23 Stocks are up thanks to another mindless spike in WTI Crude this morning after Genscape reported a smaller than expected build at Cushing. WTI spiked over $37 and Brent back above $40 on the news as Futures and ETF shorts cover.
Submitted by Tyler Durden on 03/07/2016 - 10:12 "At this point, it would be ill advised to suddenly turn bullish of equities but instead at this point it might even be rational and reasonable to consider reducing long positions and become more and more neutral of equities.... Likely we shall be adding to our derivatives positions while reducing our long positions today in order to bring our “net” exposure to something far smaller than it is."
I have never investigated a story and have been so awestruck by the results of the investigation that I could not find the words to adequately describe the findings and the resulting implications, until now.
Let me shout this proclamation from the highest mountain the following statement:
DURING THIS PAST WEEK, MITT ROMNEY ISSUED A THINLY VEILED ASSASSINATION THREAT AGAINST DONALD TRUMP
Walk with me through the journey of discovery which will clearly demonstrate why Romney delivered his message to Trump in the manner that he did
To the casual observer, Saudi Arabia might seem like an emboldened nation that is asserting itself. They’ve been challenging Iran, fighting rebels in Yemen, threatening to invade Syria, and if some rumors are to be believed, they are currently trying to attain nuclear missiles from Pakistan. However, these aren’t the actions of a stable nation that is asserting its dominance in the region. These are the flailing death throes of a nation that is struggling to hang on.
Ever since global oil prices started to plummet, Saudi Arabia just hasn’t been the same. That’s no surprise. Since prices fell, other oil rich nations have been hurting as well.
If we’re judging by ETF inflows, the three areas that investors piled into were precious metals, government bonds, and low-volatility equities.
Notably, it was gold ETFs that set a new record with their highest monthly inflows in eight years, as investors bought $7.9 billion of securities in February. This is according to the latest from market data company Markit, that also noted that inflows relative to assets under management (AUM) were equally as impressive.
More specifically, last month’s buying represented an increase of 14.6% in terms of AUM. This is a level only surpassed once before during the heat of the Financial Crisis, when inflows relative to AUM hit 17.7% in February 2009.
Fantasy and fairy tales can go only so far when it comes to the true condition of anything or anyone. Sooner or later the truth must out. This is very much the case when looking at the true condition of the nation the Chinese call, The Hegemon, the not-anymore-so-United States of America. The official Obama Administration economic statistics have declared to the world for more than six years that the world’s largest paper economy was in a marvelous recovery and that unemployment was a mere 5%. Now, with the most severe collapse of oil prices in 13 years, the last remaining job-creating sector of the economy, the oil and gas industry, is rapidly becoming the domino that threatens to topple a mountain of dicey credits and threaten many banks. Only this time, unlike in 2009, the Federal Reserve is in a real pickle, and the Federal debt has doubled to $18 trillion since the beginning of the financial crisis in 2007.