Apple is leading an army of centaurs to the NYSE, where they will kick the eyebrows off all of its traders.
This is the very worst case scenario for stocks. Oil stocks are lower by 7.6% FOR THE DAY. Biotech stocks are down more than 4%, FOR THE DAY. Bear in mind, the lower these oil and gas stocks dive, the worse the debt crisis looms. Right now, it’s looming pretty fucking terrible.
Earlier this morning, at the open, I sold 1/6th of my SPY position–as scheduled.
Lastly, TWTR’s stock price is diving lower by 8% and SQ is down by 11%. In other words, Jack Dorsey is actively destroying the purses of all parties involved. He’s a destroyer of wealth on a monumental scale.
This is the rally we’ve been waiting for? Clearly the futures guys were drunk off toilet bowl moonshine, because this market is trying for lower prices.
Huge disappointment in commodity assets, led by oil. Huge let down in everything but SHAK.
Bottom line: I’m invested in a positive outcome for a bounce; but anti climatic opens like this is what draws men into the world of science fiction and mental insanity. I’ve never seen such a stupid tape, frozen in its own waste, unable to mount a mere counter trend rally.
Alas, the day is young. Perhaps this is all part of an elaborate rouse that will provide the markets the tinder it needs to set flame to prices and burn the flesh off short sellers.
Bob Parker from Credit Suisse is easily my favorite market strategist. I do not pretend to know more than him and will not debate the merits of his argument. If he thinks fears of a Chinese hard landing have dissipated, I’m inclined to give him the benefit of the doubt and surmise that the market is very soon going to adopt Bob’s opinion and run higher.
Truth be told, I’m inclined to think that nonetheless, as I am 200% long SPY.
Judging by European indices and U.S. futures, it appears the party has only just started.
Chinese GDP came in as expected, hitting 2009 lows of 6.8%.
“Growth is still soft but it’s not collapsing,” said Shane Oliver, head of investment strategy and chief economist at AMP Capital Investors Ltd. in Sydney. “Policy stimulus measures are helping but more is needed to help the economy as it transitions from a reliance on manufacturing and investment to services and consumption.”
Industrial production rose 5.9 percent in December from a year earlier, compared with the 6 percent median estimate of analysts and November’s 6.2 percent. Retail sales increased 11.1 percent from a year earlier, compared with the 11.3 percent seen by economists. Fixed-asset investment excluding rural areas expanded 10 percent last year, the weakest pace since 2000.
Hang on for a rebuttal from a certain Mr. Marc Faber.
Next up June. Futures traders are playing with fire, lulling an already scared-shitless stock market into a false sense of security, attempting to hemlock the Fed into not jacking up interest rates, (count ’em) four times in 2016.
Futures traders at the CME now indicate the central bank will not move on rates until June, following a major selloff in the market Friday morning. The chance of a March hike, above 50 percent just a few days ago, has dwindled to 35 percent.
The next closest month for a hike is now June, which has a 54 percent probability. Earlier in the morning, expectations had put the hike off until July, but that pulled in after New York Fed President William Dudley said in a speech that he still sees rates on a steady trajectory higher.
Despite global equity markets crashing through the floor boards the first 10 days of 2016, Federal Reserve talking heads still went out and said the economy was strong enough and awesome enough to absorb, and rather enjoy, 16 rate hikes over the next 3 years.
Should the Fed pursue this strategy with vigor, the last rate hike will be announced atop of mountain of smoldering rubble–in the midst of American revolt.
Does anyone really doubt it? Tonight, the Chinese will announce Q4 GDP numbers–which are expected to come in at 6.9%. This analyst says, according to the data he’s reading, the Chinese are lying and their economy grew by just 4.5% in 2015.
Judging by the price of copper, oil and iron ore, I’d be surprised to learn if the Chinese were growing at all.
I smell recession.
Classic expression on the face of the CNBC asia host when he said 4.5%
This is going to be a live, interactive, event, spanning 5 days. Guest hosts will include Jeff Macke, The Option Addict and Raul, who will dive into Exodus.
I strongly encourage you to give this a hard look, as it is designed to tackle the complexities of investing in a tape like this. Demand providing, I will be making these bootcamps regular features for iBC, at least once per quarter.
Sign up now and BEHOLD the greatness and grandeur of an iBankCoin hosted investor conference.
You didn’t think we could have a market panic without the european banks having a go at your emotions, did you? Out of nowhere, the PIGS are back on the charcuterie table- with Portuguese/German bonds spreads widening, Italian, Greek banks plummeted. And, of course, the ECB is interested in making matters infinitely more complicated by throwing a bunch of red tape around the issue.
An ECB spokesman said on Sunday a number of banks would be asked about high levels of non-performing loans. The burden of such loans, particularly in Greece, Portugal, Spain and Italy, is curbing the euro zone’s economic recovery by limiting banks’ ability to lend.
“The uncertainty in the market, be it in Europe or wherever else, is causing these banks to suffer,” Mark Foulds, sales trader at ETX Capital, said, adding that the sector was also under pressure from recent volatility linked to China.
“When the markets fall like they have done, everyone feels on edge. The market is dire, and there’s not the liquidity that there used to be, which can mean the market gets oversold.”
Truth be told, I have a headache and don’t have the patience to dive into this right now. Let’s just assume everything is horrible in Europe and the Nazis will make life exceedingly difficult for the PIGS (Portugal, Italy, Greece, Spain). I am certain this new crisis will escalate on a cartoonish scale until the irresponsible half-men in europe decide to end it by bailing everyone out again.
IMPORTANT NOTICE: Ibc is hosting a February investors boot camp, online, with Jeff Macke, The Option Addict and Raul giving a thorough review of Exodus. It’s a one week live video event that will help you get a better read on this tape.
THERE IS NOTHING TO SEE HERE. Move along. The economy is doing fantastic. We’re all super rich and the Fed should hike interest rates 20 times this year.
