Tag: finance

As "Expected" EURJPY 139.00 Lifts Stocks Into The Green

Mission Accomplished

From 2:45 pm

Then from 3:33 pm

And sure enough, the Lift is complete as Stocks get back to green…

 

So opening and closing ‘beta’ to EURJPY is skyrocketing… in the last few minutes S&P futures added 16 points for a 50 pip rise in EURJPY… more than double the overnight highly correlated 7 points per 50 pip beta…

In other words, the entire market is now a high beta derivative of a currency pair

Thanks K-Hen, and Ben-B!


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/nSHiUogNGZ4/story01.htm Tyler Durden

As “Expected” EURJPY 139.00 Lifts Stocks Into The Green

Mission Accomplished

From 2:45 pm

Then from 3:33 pm

And sure enough, the Lift is complete as Stocks get back to green…

 

So opening and closing ‘beta’ to EURJPY is skyrocketing… in the last few minutes S&P futures added 16 points for a 50 pip rise in EURJPY… more than double the overnight highly correlated 7 points per 50 pip beta…

In other words, the entire market is now a high beta derivative of a currency pair

Thanks K-Hen, and Ben-B!


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/nSHiUogNGZ4/story01.htm Tyler Durden

The Last Two Times This Happened, Things Didn't End Well

With the almost extinction of ‘bears’ we noted last week, the bull-bear index has now crossed the Rubicon into a euphoria mode that marked the turning point before the last 2 major corrections in the US equity market. Of course, we are sure, this time is different; but hasn’t the Fed ‘always’ had our back? Perhaps, as GenRe’s CIO notes, “gravity will win,” after all?

 

 

Shrugging that off… this has happened 15 times in the last 24 years with stocks falling 79% of the time in the following 3 months…

 

h/t @Not_Jim_Cramer


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/7eM9NQdpIuU/story01.htm Tyler Durden

The Last Two Times This Happened, Things Didn’t End Well

With the almost extinction of ‘bears’ we noted last week, the bull-bear index has now crossed the Rubicon into a euphoria mode that marked the turning point before the last 2 major corrections in the US equity market. Of course, we are sure, this time is different; but hasn’t the Fed ‘always’ had our back? Perhaps, as GenRe’s CIO notes, “gravity will win,” after all?

 

 

Shrugging that off… this has happened 15 times in the last 24 years with stocks falling 79% of the time in the following 3 months…

 

h/t @Not_Jim_Cramer


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/7eM9NQdpIuU/story01.htm Tyler Durden

How Has The UK Economy Performed Since The Coalition Came To Power?

On December 5 2013, George Osborne will deliver the Autumn Statement, providing an update on the state of the UK economy. In the address, the Chancellor of the Exchequer will detail the coalition’s plans to reduce the budget deficit and extend the UK economic recovery into 2014. Saxo Capital Markets latest infographic outlines the changes in the economy since the coalition government formed in 2010. In 2010, the Chancellor projected that the coalition would slash the structural budget deficit to zero by 2016. Three years on, net public debt has risen as a consequence of the government’s measures to reduce the deficit. While there is some hope in the figures – and we are sure they will be projected in nothing but glowing glorious ways, Brits are drawing down savings at record rates to cover soaring costs of living and the UK’s debt-load is surging. What happens if/when Carney lifts his foot even a little?

 


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/xz9X570vLKc/story01.htm Tyler Durden

President Unleashes The Obama Youth To Preach Obamacare Gospel

Or, as they may also be known, die Obamagesundheitjugend.

  • OBAMA SAYS HE NEEDS YOUNG PEOPLE TO SPREAD WORD ABOUT OBAMACARE

It gets better:

Non-compliance will be punished by “Amazon delivery”…


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/R3Y4oY6bG6k/story01.htm Tyler Durden

Hugh Hendry Goes Stock, Bitcoin Bull Retard: "Don't Tell Me The Valuation, It Is Trending"

Everyone knows "you never go bull retard," but it seems Eclectica's Hugh Hendry, the hardiest of hardy Scots, has accepted that there is only one way for this farce to end (as we predicted back in 2009). As Investment Week reports, the bear-turned-bull has bought 3D printing stocks as a play on trend-driven, QE-fuelled equity markets, and said the rise in the valuation of Bitcoin amounts to “the same thing”. Perhaps summing up the "trend-driven, QE-fueled" new normal better than anyone, Hendry added:

"I say to my team 'don't tell me the valuations, it is trending'… This is the environment where Bitcoin could go to $1m. There is no qualitative reason, but it is trending. If I could own Bitcoin, I would.

It gets worse: Hendry is now chasing the biggest momentum trend of all, that of Bitcoin, which he now "expects" to rise to $1 million! As for his hedge – don't laugh – 3D printing stocks…

Sigh.

We suspect, as he noted previously, he will be avoiding mirrors even more now. And yes, that this whole series now reeks of an Onion viral marketing campaign, is clear to everyone. Although sadly, we fear it is all too sincere, and a sad consequence of what happens when Bernanke's centrally-planned markets crush one after another talented asset manager and leave the E-Trade momo babies in charge.

Via Investment Week,

Eclectica’s Hugh Hendry has said he would buy into online currency Bitcoin if it were feasible to do so within his funds.

 

Hendry has bought 3D printing stocks as a play on trend-driven, QE-fuelled equity markets, and said the rise in the valuation of Bitcoin amounts to “the same thing”.

 

All US-listed 3D printing stocks are trading on at least 50 times earnings, but Hendry said he has little concern over the sector’s sky-high valuations.

 

"We are in 3D printing stocks. I say to my team 'don’t tell me the valuations, it is trending,'" he said, speaking at a Harrington Cooper conference at which he also revealed he is no longer bearish.

 

The power of those trends is such that Hendry said he would own Bitcoin if it was accessible on a regular exchange. The value of the volatile online currency passed $1,000 per coin for the first time last week.

 

“This is the environment where Bitcoin could go to $1m. There is no qualitative reason, but it is trending. If I could own Bitcoin, I would. If I own 3D printing, it is just the same thing,” he said.

 

read more here

 

Of course, while Hendry's asset allocation may appear bullish, it is not from a sense of impending positivity – more of resignation…

Hendry added equity market fundamentals do not matter at a time when policy is misaligned, emphasising instead the ‘feedback loops’ created by US quantitative easing.

 

“There is no point arguing about the one-way causality we [as an industry] believe determines our processes. That is all about a belief this is rational.

 

“We want to believe markets go up because the economy is improving, because corporate cashflows are improving. But when you get monetary disturbances creating loops, it does not really matter.”

Poor guy.


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/Mrd35WJ2WH8/story01.htm Tyler Durden

Hugh Hendry Goes Stock, Bitcoin Bull Retard: “Don’t Tell Me The Valuation, It Is Trending”

Everyone knows "you never go bull retard," but it seems Eclectica's Hugh Hendry, the hardiest of hardy Scots, has accepted that there is only one way for this farce to end (as we predicted back in 2009). As Investment Week reports, the bear-turned-bull has bought 3D printing stocks as a play on trend-driven, QE-fuelled equity markets, and said the rise in the valuation of Bitcoin amounts to “the same thing”. Perhaps summing up the "trend-driven, QE-fueled" new normal better than anyone, Hendry added:

"I say to my team 'don't tell me the valuations, it is trending'… This is the environment where Bitcoin could go to $1m. There is no qualitative reason, but it is trending. If I could own Bitcoin, I would.

It gets worse: Hendry is now chasing the biggest momentum trend of all, that of Bitcoin, which he now "expects" to rise to $1 million! As for his hedge – don't laugh – 3D printing stocks…

Sigh.

We suspect, as he noted previously, he will be avoiding mirrors even more now. And yes, that this whole series now reeks of an Onion viral marketing campaign, is clear to everyone. Although sadly, we fear it is all too sincere, and a sad consequence of what happens when Bernanke's centrally-planned markets crush one after another talented asset manager and leave the E-Trade momo babies in charge.

Via Investment Week,

Eclectica’s Hugh Hendry has said he would buy into online currency Bitcoin if it were feasible to do so within his funds.

 

Hendry has bought 3D printing stocks as a play on trend-driven, QE-fuelled equity markets, and said the rise in the valuation of Bitcoin amounts to “the same thing”.

 

All US-listed 3D printing stocks are trading on at least 50 times earnings, but Hendry said he has little concern over the sector’s sky-high valuations.

 

"We are in 3D printing stocks. I say to my team 'don’t tell me the valuations, it is trending,'" he said, speaking at a Harrington Cooper conference at which he also revealed he is no longer bearish.

 

The power of those trends is such that Hendry said he would own Bitcoin if it was accessible on a regular exchange. The value of the volatile online currency passed $1,000 per coin for the first time last week.

 

“This is the environment where Bitcoin could go to $1m. There is no qualitative reason, but it is trending. If I could own Bitcoin, I would. If I own 3D printing, it is just the same thing,” he said.

 

read more here

 

Of course, while Hendry's asset allocation may appear bullish, it is not from a sense of impending positivity – more of resignation…

Hendry added equity market fundamentals do not matter at a time when policy is misaligned, emphasising instead the ‘feedback loops’ created by US quantitative easing.

 

“There is no point arguing about the one-way causality we [as an industry] believe determines our processes. That is all about a belief this is rational.

 

“We want to believe markets go up because the economy is improving, because corporate cashflows are improving. But when you get monetary disturbances creating loops, it does not really matter.”

Poor guy.


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/Mrd35WJ2WH8/story01.htm Tyler Durden

Beige Book "Modest To Moderate" In Its Boredom, Bashes Obamacare

Living up to its name once again, there is little here to raise any flags…

  • *FED SAW `MODEST TO MODERATE' GROWTH WITH STRONGER MANUFACTURING
  • *FED SAYS `HIRING SHOWED A MODEST INCREASE OR WAS UNCHANGED'
  • *FED SAYS CONSUMER SPENDNG ROSE `AT A MODEST TO MODERATE PACE'
  • *FED SAYS SALES OF NEW AUTOS WERE `MODERATE TO STRONG'
Not exactly what a +30% stock market is calling for (or a Fed Taper)…But there is another theme that is strong "concerns about future cost increases attributable to [Obamacare]." This is now the 11th consecutive Beige Book in which the Fed has heard loud complaining about the Affordable Care Act.
 
Excerpts from December Beige Book…
 
…Contacts in many Districts voiced concern about future cost increases attributable to the Affordable Care Act and other types of federal regulation.
 
…Contacts across many Districts continue to voice concerns about future cost increases attributable to the Affordable Care Act and other types of federal regulation.
 
…One contact says the Affordable Care Act is significantly increasing health care costs for his firm.
 
…In regard to hiring and capital expenditure plans, firms continued to expand cautiously, as they face ongoing uncertainty from federal fiscal debates and implementation of the Affordable Care Act.
 
…Wage pressures were up slightly. Non-wage labor costs were steady, though a number of contacts reported higher health insurance premiums because of regulatory changes in the Affordable Care Act.
…across all regions

 


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/OI_jgqA6ohQ/story01.htm Tyler Durden

Beige Book “Modest To Moderate” In Its Boredom, Bashes Obamacare

Living up to its name once again, there is little here to raise any flags…

  • *FED SAW `MODEST TO MODERATE' GROWTH WITH STRONGER MANUFACTURING
  • *FED SAYS `HIRING SHOWED A MODEST INCREASE OR WAS UNCHANGED'
  • *FED SAYS CONSUMER SPENDNG ROSE `AT A MODEST TO MODERATE PACE'
  • *FED SAYS SALES OF NEW AUTOS WERE `MODERATE TO STRONG'
Not exactly what a +30% stock market is calling for (or a Fed Taper)…But there is another theme that is strong "concerns about future cost increases attributable to [Obamacare]." This is now the 11th consecutive Beige Book in which the Fed has heard loud complaining about the Affordable Care Act.
 
Excerpts from December Beige Book…
 
…Contacts in many Districts voiced concern about future cost increases attributable to the Affordable Care Act and other types of federal regulation.
 
…Contacts across many Districts continue to voice concerns about future cost increases attributable to the Affordable Care Act and other types of federal regulation.
 
…One contact says the Affordable Care Act is significantly increasing health care costs for his firm.
 
…In regard to hiring and capital expenditure plans, firms continued to expand cautiously, as they face ongoing uncertainty from federal fiscal debates and implementation of the Affordable Care Act.
 
…Wage pressures were up slightly. Non-wage labor costs were steady, though a number of contacts reported higher health insurance premiums because of regulatory changes in the Affordable Care Act.
…across all regions

 


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/OI_jgqA6ohQ/story01.htm Tyler Durden