Hopefully it will not lead to the inability to act when necessary
Comments »German Investor Confidence Drops to a Three Year Low
Copper Falls on Slower GDP in China
Despite a 9.1% GDP expansion in China the pace of growth has now slowed to 2009 levels. Copper was down 3% on that and other news out of Europe.
Comments »Economic Confidence in Canada Falls to a Two Year Low
Global Markets Meltdown
Flash: Global Markets Slump After Comments from Germany’s Finance Minister
Asian stocks and commodities fell on Tuesday after Germany’s finance minister cautioned against hopes for a quick fix to Europe’s debt problem, reminding investors not to become too optimistic about a rapid development to the two-year-old crisis.
Investors rushed to seek protection in the options market against losses, with the CBOE Volatility index VIX — Wall Street’s so-called fear gauge — rising 18.2 percent to 33.39 on Monday, its highest one-day jump since August.
In Asian credit markets, spreads on the iTraxx Asia ex-Japan investment grade index, another gauge for whether investor risk appetite is returning, were about 12 basis points wider early on Tuesday, after tightening by about 26 points over the past week on hopes of progress in Europe.
Germany’s finance minister, Wolfgang Schaeuble, said on Monday that even though European governments would adopt a five-point platform to address the crisis, a definitive solution would not be reached at the October 23 European Union summit.
This came in the heels of a Group of 20 meeting of finance ministers in Paris the past weekend, which had raised expectations that European banks would be recapitalized, and the region’s bailout fund expanded to deal with a potential debt default by Greece.
“Although markets were not expecting the debt crisis to be resolved overnight, shares prices are likely to succumb to profit-taking after a rally,” said Hiroichi Nishi, equity general manager at SMBC Nikko Securities.
MSCI’s broadest index of Asia Pacific shares outside Japan fell 1.2 percent, with the materials sector in the MSCI index slumping more than 2 percent.
The Nikkei stock average opened down 1.4 percent, while Australian shares were down 1.6 percent.
World stocks, as measured by the MSCI’s all-country world equity index, fell 1 percent, and U.S. stocks suffered their worst loss in two weeks on Monday, with the Dow Jones industrial average down 2.12 percent.
The MSCI have recovered from 15-month lows by more than 10 percent in the past nine days, on growing expectations Europe was finally accelerating efforts to resolve its debt crisis.
The euro fell from a one-month high against the dollar of $1.39148 hit on Monday.
Oil was also lower, with Brent crude down 0.2 percent to $109.90 a barrel and U.S. crude futuresdown 0.2 percent at $86.19.
Retreating appetite for risks benefited government bonds, with 10-year U.S. Treasuries gaining 23/32 in price to yield 2.17 percent on Monday.
The declines in the markets may be limited given a lack of rush into other assets perceived as safe-haven.
Gold was flat and the dollar index was also little changed.
Comments »Today’s Top Performing ETF’s
No. Ticker % Change
1 TVIX 24.05
2 VXX 12.31
3 VIXY 11.53
4 EDZ 10.94
5 VIIX 10.90
6 RUSS 10.88
7 TZA 10.47
8 LHB 10.43
9 SRTY 10.06
10 UVXY 9.91
11 FAZ 8.82
12 SOXS 8.34
13 BZQ 8.01
14 BGZ 7.46
15 SMN 7.45
16 DPK 7.25
17 TWM 7.23
18 SPXU 7.17
19 DRV 6.86
20 EPV 6.75
21 EEV 6.64
22 MWN 6.40
23 FXP 6.39
24 TYP 6.00
25 SKF 5.90
26 MZZ 5.88
27 SJH 5.80
28 SDD 5.37
29 ERY 5.20
30 SIJ 5.18
31 YANG 5.16
32 DIRT 5.00
33 TMF 4.98
34 EFU 4.84
35 SKK 4.82
36 SRS 4.74
37 SQQQ 4.65
38 DUST 4.64
39 SDS 4.61
40 SSG 4.55
41 QID 4.23
42 RSW 4.06
43 VXZ 4.05
44 DXD 4.00
45 LBND 3.95
46 REW 3.92
47 INDZ 3.70
48 BXDC 3.68
49 UBT 3.41
50 DUG 3.36
Bears Take Full Control At the Top of The Range
Germany’s cold water put reality back into perspective. Bank earnings out of C and WFC did not help either. Crude oil hung in there only down $0.39. Gold got smacked for $10+
DOW down 242
NASDAQ down 52
S&P down 23
FLASH: Market Hits Session Lows
Dow is off by 190 and nasdaq is down 47.
Comments »BANKS AND BASIC MATERIALS ARE GETTING HAMMERED
No. Ticker % Change Market Cap Sector
1 USU -10.78 248,840,000 BASIC MATERIALS
2 EPB -9.63 7,820,000,000 BASIC MATERIALS
3 PCX -9.45 988,610,000 BASIC MATERIALS
4 WH -8.93 57,220,000 BASIC MATERIALS
5 IVAN -7.97 474,910,000 BASIC MATERIALS
6 HAL -7.08 34,420,000,000 BASIC MATERIALS
7 SUTR -6.90 47,260,000 BASIC MATERIALS
8 QRM -6.83 198,770,000 BASIC MATERIALS
9 WLT -6.41 4,830,000,000 BASIC MATERIALS
10 PDC -6.13 495,430,000 BASIC MATERIALS
11 CXZ -5.94 23,550,000 BASIC MATERIALS
12 DNN -5.65 476,980,000 BASIC MATERIALS
13 UEC -5.54 235,820,000 BASIC MATERIALS
14 CRR -5.51 2,750,000,000 BASIC MATERIALS
15 TC -5.39 1,250,000,000 BASIC MATERIALS
16 SVBL -5.33 79,030,000 BASIC MATERIALS
17 CLF -5.28 9,520,000,000 BASIC MATERIALS
18 ACI -5.26 3,730,000,000 BASIC MATERIALS
19 IVN -5.17 12,930,000,000 BASIC MATERIALS
20 AWC -5.15 3,910,000,000 BASIC MATERIALS
21 NOR -5.11 618,440,000 BASIC MATERIALS
22 ALTI -5.07 95,980,000 BASIC MATERIALS
23 MTL -4.96 4,950,000,000 BASIC MATERIALS
24 GMO -4.94 294,110,000 BASIC MATERIALS
25 FCX -4.92 34,850,000,000 BASIC MATERIALS
26 ANW -4.85 231,390,000 BASIC MATERIALS
27 SID -4.83 12,670,000,000 BASIC MATERIALS
28 PZG -4.72 346,120,000 BASIC MATERIALS
29 BHI -4.71 24,720,000,000 BASIC MATERIALS
30 JRCC -4.61 316,120,000 BASIC MATERIALS
31 EXH -4.57 601,640,000 BASIC MATERIALS
32 URZ -4.50 153,910,000 BASIC MATERIALS
33 GPL -4.44 332,900,000 BASIC MATERIALS
34 ATPG -4.41 544,070,000 BASIC MATERIALS
35 AKS -4.39 829,190,000 BASIC MATERIALS
36 LLEN -4.37 80,400,000 BASIC MATERIALS
37 ZN -4.35 83,830,000 BASIC MATERIALS
38 GGR -4.35 19,030,000 BASIC MATERIALS
39 KMGB -4.34 156,530,000 BASIC MATERIALS
40 CENX -4.34 922,820,000 BASIC MATERIALS
41 ANR -4.30 4,900,000,000 BASIC MATERIALS
42 GIFI -4.28 395,540,000 BASIC MATERIALS
43 ALJ -4.27 445,000,000 BASIC MATERIALS
44 CGV -4.09 3,410,000,000 BASIC MATERIALS
45 HNR -4.03 355,240,000 BASIC MATERIALS
46 TPCG -4.02 334,130,000 BASIC MATERIALS
47 WTI -4.00 1,320,000,000 BASIC MATERIALS
48 REE -3.98 254,870,000 BASIC MATERIALS
49 WNR -3.98 1,570,000,000 BASIC MATERIALS
50 VALE -3.97 132,650,000,000 BASIC MATERIALS
No. Ticker % Change Market Cap Sector
1 NBG -11.24 2,890,000,000 FINANCIAL
2 IBCA -8.71 60,630,000 FINANCIAL
3 SLF -7.65 15,180,000,000 FINANCIAL
4 CMM -7.02 28,840,000 FINANCIAL
5 PNBK -6.09 75,570,000 FINANCIAL
6 WFC -5.62 140,810,000,000 FINANCIAL
7 FFNW -5.34 101,000,000 FINANCIAL
8 BFR -5.23 1,200,000,000 FINANCIAL
9 Z -5.12 763,880,000 FINANCIAL
10 FXCM -4.87 203,590,000 FINANCIAL
11 MKTG -4.87 541,130,000 FINANCIAL
12 CDZI -4.84 126,020,000 FINANCIAL
13 CHSP -4.78 425,400,000 FINANCIAL
14 TAOM -4.78 206,490,000 FINANCIAL
15 DB -4.73 34,830,000,000 FINANCIAL
16 MPG -4.52 109,520,000 FINANCIAL
17 CYN -4.33 2,200,000,000 FINANCIAL
18 AEG -4.30 9,180,000,000 FINANCIAL
19 MGI -4.25 1,000,000,000 FINANCIAL
20 UEPS -4.17 314,260,000 FINANCIAL
21 BANF -4.08 567,680,000 FINANCIAL
22 MFC -4.07 22,850,000,000 FINANCIAL
23 EJ -3.92 533,970,000 FINANCIAL
24 LPS -3.88 1,260,000,000 FINANCIAL
25 SUSQ -3.82 799,910,000 FINANCIAL
26 BX -3.81 6,500,000,000 FINANCIAL
27 ENOC -3.80 252,350,000 FINANCIAL
28 BKMU -3.75 135,450,000 FINANCIAL
29 AIG -3.72 44,360,000,000 FINANCIAL
30 PL -3.66 1,460,000,000 FINANCIAL
31 FITB -3.66 10,430,000,000 FINANCIAL
32 BSBR -3.65 3.00 FINANCIAL
33 PVTB -3.64 650,540,000 FINANCIAL
34 CMA -3.62 4,540,000,000 FINANCIAL
35 BMA -3.56 1,390,000,000 FINANCIAL
36 COBZ -3.54 186,660,000 FINANCIAL
37 CPF -3.51 475,810,000 FINANCIAL
38 RF -3.51 4,660,000,000 FINANCIAL
39 GGAL -3.45 1,220,000,000 FINANCIAL
40 JLL -3.44 2,570,000,000 FINANCIAL
41 ART -3.41 445,640,000 FINANCIAL
42 FFCH -3.40 92,220,000 FINANCIAL
43 FLIC -3.40 224,440,000 FINANCIAL
44 TOWN -3.39 377,570,000 FINANCIAL
45 SNBC -3.38 245,910,000 FINANCIAL
46 FCH -3.36 333,850,000 FINANCIAL
47 MTG -3.35 480,740,000 FINANCIAL
48 LTS -3.30 333,290,000 FINANCIAL
49 KB -3.29 13,580,000,000 FINANCIAL
50 GNW -3.24 2,880,000,000 FINANCIAL
Industrial Production Rises 0.2%
Upgrades and Downgrades This Morning
Upgrades
NE – Noble Corp upgraded to Strong Buy from Outperform at Raymond James
PG – Procter & Gamble upgraded to Outperform from Market Perform at BMO Capital
AAPL – Apple ests raised at Ticonderoga ahead of earnings
FDO – Family Dollar upgraded to Overweight from Equal Weight at Barclays
PH – Parker-Hannifin upgraded to Buy from Hold at Jefferies
ETN – Eaton upgraded to Buy from Hold at Jefferies
CAT – Caterpillar upgraded to Buy from Neutral at Goldman
RIG – Transocean upgraded to Strong Buy from Outperform at Raymond James
CNH – CNH Global upgraded to Buy from Hold at Jefferies
JOYG – Joy Global upgraded to Buy from Hold at Jefferies
TIF – Tiffany & Co initiated with a Buy at Sterne Agee
PPG – PPG Industries upgraded to Positive from Neutral at Susquehanna
VMC – Vulcan Materials upgraded to Neutral from Sell at Goldman
DLTR – Dollar Tree downgraded to Equal Weight from Overweight at Barclays
EGP – EastGroup upgraded to Buy from Neutral at Janney Montgomery Scott
Downgrades
CMI – Cummins removed from Conviction Buy List at Goldman
AA – Alcoa downgraded to Underperform from Market Perform at First Global
AAPL – Apple downgraded to Hold from Buy at BGC Financial
AGNC – American Capital Agency downgraded to Market Perform from Outperform at JMP Securities
CREE – Cree named short Research Tactical Idea at Morgan Stanley
NAV – Navistar downgraded to Sell from Neutral at Goldman
AIXG -Aixtron ests and target lowered to $8 at Canaccord Genuity
EPB – El Paso Pipeline Partners downgraded to Underperform from Buy at BofA/Merrill
VECO – Veeco Instruments downgraded to Sell from Hold at Canaccord Genuity
IPG – Interpublic Group downgraded to Hold at Deutsche Bank
ADM – Archer-Daniels initiated with a Hold at Argus
XEC – Cimarex downgraded to Neutral from Buy at Lazard
Comments »Gapping Up and Down This Morning
Gapping Up
C +1.1%, ANDS +244.2%, BEXP +18.6%, WMB +2.9%, WLL +1.4%, APC +3.9%, BP +4.3%, EP +27.6%, KMP +2.1%,
PRGO +2.2%, GFI +1.3%, SAP +1.3%, SNDA +15%, EK +9.7%, PRGO +2.2%, TEVA +1.8%, ADBE +1.6%, CAT +0.9%,
Gapping Down
EPB -4.2%, QQQ – 0.33%, TQQQ -0.98%, SINA -0.60%,
Comments »In Play and On the Wires
Empire Manufacturing: Prior -8.82, Market Expects -4.0, Actual -8.48
Electronic Exports Unexpectedly Decline in Singapore
Germany Enjoys Inflicting Pain; Comments Out of Germany Pare Market Gains and Destroy Bazooka Resolution Hopes
Merkel said all the ideas and dreams taking place to save Europe will not happen.
“The search for an end to the crisis “surely extends well into next year.”
Comments »Asian Markets Trade Higher, European Markets Trade Slightly Higher, and U.S. Futures Trade Unch
Pimco’s Gross Sends Out Mea Culpa Letter to Shareholders
The Biggest Winners During this Current Rally
No. Ticker 2-week Return Market Cap Sector
1 CPX 63.55 2,340,000,000 BASIC MATERIALS
2 EK 60.26 344,380,000 CONSUMER GOODS
3 FMCN 51.01 3,500,000,000 SERVICES
4 IO 47.57 1,060,000,000 TECHNOLOGY
5 LIZ 46.00 666,920,000 CONSUMER GOODS
6 TQNT 44.02 1,220,000,000 TECHNOLOGY
7 FBC 41.76 371,320,000 FINANCIAL
8 WNR 41.65 1,470,000,000 BASIC MATERIALS
9 AREX 41.26 625,110,000 BASIC MATERIALS
10 JRCC 40.82 284,890,000 BASIC MATERIALS
11 NAK 39.37 699,010,000 BASIC MATERIALS
12 TSO 36.21 3,560,000,000 BASIC MATERIALS
13 ATPG 36.19 468,460,000 BASIC MATERIALS
14 MDR 36.15 3,380,000,000 INDUSTRIAL GOODS
15 AXAS 34.66 310,560,000 BASIC MATERIALS
16 TZOO 34.15 481,810,000 TECHNOLOGY
17 CSTR 33.38 1,600,000,000 CONSUMER GOODS
18 ZAGG 33.06 382,140,000 SERVICES
19 WNC 32.49 424,130,000 CONSUMER GOODS
20 CTCM 32.36 1,860,000,000 SERVICES
21 QTM 32.32 549,600,000 TECHNOLOGY
22 ISS 32.20 465,830,000 TECHNOLOGY
23 PLAB 32.13 384,110,000 TECHNOLOGY
24 HFC 32.00 3,400,000,000 BASIC MATERIALS
25 ASIA 31.44 701,340,000 TECHNOLOGY
26 CETV 31.24 657,450,000 SERVICES
27 VLO 31.10 12,960,000,000 BASIC MATERIALS
29 ENTR 30.99 456,500,000 TECHNOLOGY
30 MPC 30.97 12,040,000,000 BASIC MATERIALS
31 GBX 30.90 364,790,000 SERVICES
32 GOL 30.58 1,940,000,000 SERVICES
33 EDU 30.56 4,600,000,000 SERVICES
34 IVN 30.29 11,990,000,000 BASIC MATERIALS
35 TEX 30.02 1,440,000,000 INDUSTRIAL GOODS
36 HAR 29.85 2,390,000,000 CONSUMER GOODS
37 BSFT 29.56 1,010,000,000 TECHNOLOGY
38 FTK 29.55 280,690,000 BASIC MATERIALS
39 SGY 29.55 949,940,000 BASIC MATERIALS
40 SINA 29.31 6,090,000,000 TECHNOLOGY
41 CHTP 28.85 275,840,000 HEALTHCARE
42 MPEL 28.76 5,730,000,000 SERVICES
43 RRR 28.75 945,470,000 SERVICES
44 BIDU 28.69 46,400,000,000 TECHNOLOGY
45 WLT 28.65 4,700,000,000 BASIC MATERIALS
46 TGB 28.63 605,540,000 BASIC MATERIALS
47 SWFT 28.57 1,150,000,000 CONSUMER GOODS
48 MTW 28.46 1,110,000,000 INDUSTRIAL GOODS
49 ROC 28.38 3,200,000,000 BASIC MATERIALS
50 BAS 28.32 695,840,000 BASIC MATERIALS
