Tag: news

We noted previously the comedic melt-up in stocks in the last few minutes of the day but away from the simple-to-see shenanigans in VIX and the major equity indices, Nanex shows a massive number of stocks experienced a stunning coordinated WTF moment at 1550ET… unrigged?

Not enough riggedness in the major indices…?

 

Take a look under the covers… (via Nanex)

On Friday, June 27, 2014 at 15:50:00 – 143 stocks suddenly moved at least 2% (with some exceeding 10%) in just a few seconds. There were 678 stocks that moved 1/2 of a percent or more.  This explosion of trading activity dwarfed even the closing seconds of the day, when the annual Russell Reconstitution process occurred (changing of symbols in the Russell Indexes).

1. Each line represents one of 678 stocks that moved 0.5% or more.

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2. Same chart as above, but color coded by reporting exchange.
Note the many green lines after 16:00 when the market closes. These are dark pool trades which were reported late.

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3. Each line represents one of the 143 Stocks that moved 2% or more in a few seconds at 15:50:00. Value scale shows percent change from 15:50:00.

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4. Zooming in closer (27 seconds) we can see there were several waves of explosive activity.

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5. Chart shows about 5 seconds of time.

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Did someone make a dark pool angry?

via Zero Hedge http://ift.tt/1oaNgCr Tyler Durden

Submitted by Lance Roberts of STA Wealth Management,

"Ah, is it just me or does anybody see
The new improved tomorrow isn't what it used to be
Yesterday keeps comin' 'round, it's just reality
It's the same damn song with a different melody

 

The market keeps on crashin'
Tattered jeans are back in fashion
'Stead of records, now it's MP3s
I tell you one more time with feeling
Even though this world is reeling
You're still you and I'm still me
I didn't mean to cause a scene
But I guess it's time to roll up our sleeves

 

The more things change, the more they stay the same."

 

Bon Jovi

This week's "Things To Ponder" is focused on things that, in my opinion, far too many individuals are ignoring. Bob Farrell once wrote that "when all experts and forecasts agree; something else is bound to happen." Today, that is the case as much as it ever was. Despite rising geopolitical risks, weak economic data, deteriorating fundamentals and softer internals – the overwhelming belief is "equities are the only game in town."

Of course, we have seen this mentality many times in past history whether it was 1929, 1987,2000 or 2007. While ever market peak was different, there were all the same. 

Once portfolios are invested, riding the "bull market" wave is the easy part. What the majority of analysts and media forget is that as an investor I do not need information telling me why the market is going up. I am already invested. What I need is information that helps me identify when the wave will crest. Today, I wanted to share some things I will be reading and thinking about over the weekend that we should at least be considering in regards to managing potential portfolio risk.

1) The Beginning Of The End Of The Bull Market? by Mark Hulbert via WSJ Marketwatch

"Few paid attention a couple of weeks ago when the government announced that corporate profitability had declined markedly last quarter.

 

Yet future historians may eventually look back and pinpoint that report as the beginning of the end of this aging bull market. That’s because the first-quarter’s decrease could signal the long-awaited return to historically average profitability levels. If so, the stock market will have to struggle mightily just to keep its head above water over the next five years.

 

Once we make these assumptions, calculating the stock market’s return over the next five years becomes a matter of simple math. The picture isn’t pretty: Its five-year return, annualized, is minus 2.8%."

2) Ultra-Easy Monetary Policy Could Be The Medicine That Kills by Katy Barnato via CNBC

"'Monetary accommodation, to the point of ignoring the stresses and strains of financial stability and what they mean for asset markets and credit markets, is something that needs to be seriously rethought,' the Stephen Roach, Yale lecturer and former chairman of Morgan Stanley Asia told CNBC.

 

'As long as the Fed remains as widely accommodative as a $4.25-4.50 trillion dollar-balance sheet would suggest, there is good reason to question the Fed's commitment to financial stability and there is good reason to believe that we could, in the not too distant future, find ourselves in another mess'"

This concern echoed that of Wilbur Ross, who is also concerned of the potential "bubble" in sovereign debt.

"I've felt for some time that the ultimate bubble, when we look back a few years from now, is going to be sovereign debt, both U.S. and other, because it's way below any sort of reversion to the mean of interest rates,"

3) What We Can Learn From The History Of Interest Rates by Market Anthropology

"We believe that where a complicated market becomes even more so, is when one considers  1.) the relative extreme in yields that was reached at the end of last year, 2.) the uniqueness of the capital markets relative to what the Fed has provided over the past five years; and 3.) the rear-view proximity, density and casualties in participants memories to the spectrum of financial bubbles and crises from LTCM to GFC."

"Although a contraction in the US equity markets has so far failed to materialize, we do expect one to gain traction as the Fed steps further away from their extraordinary measures this fall. Similar to expectations in the mid to late 1940's, we anticipate that investors will continue to support the Treasury market even in the face of inflation – as the broader underlying skepticism of their collective anxieties will finally be realized when equity market conditions pivot lower without extraneous assistance."

4) Q2 Buyback Announcements Lowest In 7 Quarters by Cullen Roche via Pragmatic Capitalist

"'Stock buyback announcements in the second quarter are on track to be the lowest in seven quarters,' said David Santschi, Chief Executive Officer of TrimTabs.  'Buybacks in June have sunk to just $11.5 billion, the lowest level since May 2012.'

 

'The sharp slowdown in buybacks is a negative sign for the U.S. stock market,' Santschi said.  'Share repurchases are the main way companies reduce the float of shares. Perhaps fewer companies like what they see when they look into the future.'

 

TrimTabs explained that the decline in buybacks is not the only cautionary sign for U.S. equity investors. Merger activity has skyrocketed, while companies are selling new shares at the fastest pace since last autumn. 'Our liquidity indicators aren’t as positive for U.S. equities as they were a month ago,' said Santschi.  'While the bull market isn’t necessarily ending, investors should be more cautious on the long side.'"

Also Read: Why Corporate Executives Love Stock Buybacks via Harvard Business Review

 

 

5) Annotated History Of Global Volatilityvia ZeroHedge

"The decline in economic and asset market volatility this year from already low levels in 2013 has been striking, which as Markus Brunnermeier states, means 'the whole system is more prone to a financial crisis when measured volatility is low, which tends to lead to a build-up of risk in the background – the so-called 'volatility paradox'.

"When measured market volatility is low, people feel empowered to take on more leverage and more liquidity mismatch, which leaves the whole system more prone to sharp movements. This dynamic occurred during the 'Great Moderation.' During that period, fundamental and asset volatility was generally low and market participants took on much more leverage."

In The "Wash, Rinse, Repeat" Category: My Credit Score Is Terrible…I'm Surprised They'd Give Me So Much Credit

via Zero Hedge http://ift.tt/1jsXvxH Tyler Durden

Before 330ET, the Nasdaq was the lone survivor in the green this week despite every effort to spark short squeezes and ramps day after day – but that all changed as the ubiquitous late-Friday buying panic occurred of course – lifting stock green for the day (and desperately searching for green on the week). There was a sudden heavy volume dump at 1315ET with no news catalyst amking many wonder if a dark pool puked its orders? A glance at the week's market moves would suggest 'volatility' is anything but low – yet we always manage to close day-to-day calmly. Wondering what provides the ammo for Nasdaq's rise? "Most shorted" stocks are up for the 7th week in a row. Despite all that idiocy, bond yields tumbled the most in 6 weeks and USDJPY fell the most in 14 weeks. Oil slipped on the week but copper, gold, and silver all gained. With the Rusell rebalance, volume was extreme today (but only at the close and that 1315ET dump).

 

Despite the idiocy on Friday afternoons – yet another epic buying panic in the last 30 minutes… Is this what humans do?

 

h/t arbitrage41

 

It was a busy week… Shittiest GDP print in 5 years, dismal consumption data, and European confidence and PMIs plunge (and Japanese macro data just collapsed)

• JPY's biggest gain in 14 weeks
• 10Y Yield's biggest drop in 6 weeks
• USD Index worst week in 14 weeks
• European stock's worst week in 14 weeks

"Most Shorted" stocks continue to surge back to what looks like a great double top forming (7th week in a row)…

 

On the day we saw three selling dumps (two of which were very odd)…

 

The sudden heavy volume dump at 1315 was odd – and no news catalyst appeared… one wonders if a dark pool puked its orders?

 

One glance at the week's action and it's clear something is not right…

 

But June has been a banner month for squeeze-driven rallies in high beta momo…

 

Stocks continue to ignore JPY carry and Bonds… for now…

 

 

Charts: Bloomberg

Bonus Chart: Unless the index falls 5% on Monday, the S&P 500 will close higher for six consecutive quarters – that is the first time since 1998.

via Zero Hedge http://ift.tt/1jWfaOl Tyler Durden

Fact or Fiction…

Noting that it has had thousands of years to develop a more agreeable option, humankind expressed bewilderment this week that it has yet to devise a better alternative to governing itself than always letting power-hungry assholes run everything, sources worldwide reported.

Individuals in every country on earth voiced their frustration that, in spite of generations of mistreatment, neglect, and abuse they have suffered at the hands of those in positions of authority, they continue to allow control over the world’s governments, businesses, and virtually every other type of organization and social group to fall to the most megalomaniacal pricks among them.

“We’ve all seen what this system leads to, so you’d think that by now, someone, somewhere would have sat down and thought up another way to keep our societies functioning without giving all the power to arrogant, amoral dicks whose only concern is improving their own status,” said Mumbai software designer Ankan Rao, one of 7.1 billion humans who conveyed continued surprise that their species has so far proven incapable of formulating a method of governance that was even slightly more tolerable. “Everybody dislikes the people in charge and everybody knows they’re only serving their own personal agendas at the expense of everyone else, but we just keep allowing these jerks to make our decisions time and time again. And it’s not just here—it’s everywhere in the world.”

“Boy, maybe we shouldn’t do that anymore,” Rao added. “Anyone have any better ideas?”

Speaking with reporters, citizens across the planet unanimously expressed their bafflement at the consistency with which they either formally or informally select corrupt and self-obsessed sacks of shit for leadership roles in all facets of life, including positions atop corporate boards, judicial and legislative bodies, religious institutions, parent-teacher associations, the military, intramural softball teams, and international and national professional associations, as well as groups of friends deciding where to eat.

In addition, sources offered countless examples of the counterproductive and perplexing practice of entrusting power to the world’s least scrupulous individuals, ranging in scale from a domineering dictator who plunges his country into civil war in order to consolidate his power, to a Foot Locker shift manager who forces his subordinates to close up without him so that he can go home early.

Moreover, everyone across the planet acknowledged that the tradition of allowing an exploitative asshole to take charge of a given situation has been the principal system for group decision-making from the earliest formation of tribal societies to the present day, an admission that caused each member of the human race to either emit an exasperated sigh, shake his or her head, or mutter a profanity.

“My old boss, my sorority president, my congressional representative, my current boss—they’ve all been soulless, backstabbing dickheads whose only concern is getting what they want,” said administrative assistant Sheryl Gittens of Fort Worth, TX, who went on to list the bully back in her seventh grade class, her homeowners association president, and the coordinator of her Bible study group among the legions of selfish jagoffs who have inexplicably been granted commanding roles by the acquiescent masses. “What’s even more annoying is that we essentially reward these people for only thinking of themselves and repeatedly screwing us over. If you stop and think about it, that’s pretty messed up.”

“Jesus,” she continued. “What the hell’s wrong with us?”

Given the prevalence throughout history of compassionless, two-faced leaders whose lust for control and inflated self-importance have led to disastrous results for society at large, many individuals questioned if, going forward, they should instead try giving power to someone other than a greedy, self-serving bastard.

“Maybe we should try letting a kind, responsible person run things for a change,” Cairo resident Nathifa Bakhoum told reporters. “I, for one, don’t want to be told what to do by another narcissist who’s drunk on power and who has absolutely no regard for my well-being. It’s just a thought, but perhaps we could go with a good, decent human next time, or at least someone who’s not a completely egotistical pile of dogshit. That seems like a good thing to try at least once, right? Could we even do that? It’s probably worth a shot.”

When pressed for further comment, however, every member of humanity agreed that the current system, though deeply flawed, remains far better than one in which they actually have to make decisions for themselves.

Source: The Onion

via Zero Hedge http://ift.tt/URp2TV Tyler Durden

The news that hundreds of thousands of people will lose water supplies is not a stunning headline anymore – poor old Ukraine… or Iraq. However, this time, the ‘it couldn’t happen here’ crowd might be stunned to hear that The Motor City is playing serious hardball with residents who have fallen behind on paying their water bills. Detroit’s Water and Sewerage Department has begun turning off the taps of 150,000 residents who are at least two months behind on payments. As one advocate notes, “sick people have been left without running water and working toilets. People recovering from surgery cannot wash and change bandages. Children cannot bathe, and parents cannot cook.” Of course, given that these are generally voting members of the US public, we would be stunned if the Federal government did not create a new fund to ‘help’ them out of this ‘unfairness’.

 

As Yahoo reports, The Motor City is playing serious hardball with residents who have fallen behind on paying their water bills.

Detroit’s Water and Sewerage Department has begun turning off the taps of 150,000 residents who are at least two months behind on payments. People are being left without a drop to drink and no ability to bathe or use the toilet. Now a coalition of water and human rights activists has banded together to ask the United Nations to step in and end the disconnections.

 

Last week, advocates from the Detroit People’s Water Board, Food and Water Watch, Blue Planet Project, and Michigan Welfare Rights Organization submitted a comprehensive report to the U.N.’s special rapporteur that details the dire situation facing folks whose water has been cut off.

 

“Sick people have been left without running water and working toilets. People recovering from surgery cannot wash and change bandages. Children cannot bathe, and parents cannot cook,” write the report’s authors. And “families concerned about children being taken away by authorities due to lack of water and sanitation services in the home have been sending their children to live with relatives and friends, which has an impact on school attendance and related activities.”

In 2013, Detroit declared bankruptcy—it’s $18 billion in the hole. Half of the 323,000 customers served by the city’s Department of Water and Sanitation have either paid their bills late or simply can’t afford service, to the tune of $175 million.

Back in March, the department announced that it would be cutting service to residents who hadn’t paid up. Although the city claims that it started sending out notices about the disconnections in March, the report’s authors write that they heard “directly from people impacted by the water cutoffs who say they were given no warning and had no time to fill buckets, sinks, and tubs before losing access to water.”

 

“We really don’t want to shut off anyone’s water, but it’s really our duty to go after those who don’t pay, because if they don’t pay, then our other customers pay for them,” department spokesperson Curtrise Garner told Al Jazeera America. “That’s not fair to our other customers.”

However, activists claim the city has been unfairly overcharging Detroit residents for water to compensate for its significant financial woes.

According to the U.S. Census Bureau, 38.1 percent of Detroit residents are living below the poverty line. Despite the tough times many people are facing, they’ve been paying an average of $64.99 a month, significantly higher than the national average of about $40, and rates are only going up. The Detroit City Council just approved a nearly 9 percent rate increase for water.

“What we see is a violation of the human right to water,” Meera Karunananthan, an international campaigner with Blue Planet Project, told Al Jazeera America. “The U.S. has international obligations in terms of people’s right to water, and this is a blatant violation of that right. We’re hoping the U.N. will put pressure on the federal government and the state of Michigan to do something about it.”

Three U.N. human rights experts issued a statement on Wednesday, declaring that “disconnection of water services because of failure to pay due to lack of means constitutes a violation of the human right to water and other international human rights.”

“When I conducted an official country mission to the U.S. in 2011, I encouraged the U.S. government to adopt a federal minimum standard on affordability for water and sanitation and a standard to provide protection against disconnections for vulnerable groups and people living in poverty,” said Catarina de Albuquerque, who is the U.N.’s special rapporteur on the right to safe drinking water and sanitation. “I also urged the government to ensure due process guarantees in relation to water disconnection.”

 

One of the experts, Leilani Farha, who focuses on the right to adequate housing, also pointed out the racial implications of shutting off water to the nearly 83 percent black population. “If these water disconnections disproportionately affect African Americans, they may be discriminatory, in violation of treaties the U.S. has ratified,” said Farha.

Although the experts declared that “households [that] suffered unjustified disconnections must be immediately reconnected,” when was the last time the U.N. issued sanctions against an American municipality for human rights violations? In the meantime, 3,000 residents have lost their water, and Detroit plans to turn off the service of thousands more every week.

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So people didnt pay their bills… advocates claim demanding payment for services rendered is capitalist exploitation (and racist)… and now the UN explains how that doesn’t matter, water is a right? Tell that to Cambodians?

Welcome to the free market America

via Zero Hedge http://ift.tt/1veGpJ7 Tyler Durden