American Markets Set to Rage Higher

Gains are bountiful in Europe. U.S. futures are following their lead, as people digest yesterday’s ECB actions, coupled with the yuan strength, and decided it was good news after all.

Crude is higher again, despite a sharply stronger dollar.

The DAX is ripping tits to the upside.

And of course, NASDAQ futures are through the roof.

There is a massive move in European banks taking place in Europe today, thanks to incentives offered to them by the ECB for lending money. The whole thing is sort of a mess. But in the interim, European stocks are spiraling higher, led by Unicredit, Axa and Deutsche Bank.

The euro is selling off v the dollar, a net positive for European exporters.

Look at those banks run.

These RNC hacks are incorrigible with their brazen, immoral, behavior, openly talking about ‘brokering’ the RNC convention in order to steal it from D. Trump. In other words, the time invested by the millions of republican voters are absolutely meaningless to the miscreants in the empty suits.

In the past, they’d at least try to be subtle about their corruption, hiding behind scandal and perfidy, using a controlled media to frame the narrative. Now they just come out and say it: ‘fuck this guy. He’s not one of us. We are going to take the election from him. Isn’t that a great idea, folks?”

You didn’t build your business.

You can keep your own Doctor.

We’ve won the war.

The upwards move in the Yuan is going to give the impression that the Chinese economy is strong. This is imperially important to the continuation of the commodity rally, which by extension, is key to the overall strength of the market.

They’ve figured out how to jimmy the markets. At the centre of the early 2016 collapse was forex dislocations in China, which cast a wide cloud of doom over the global growth narrative, which then caused commodities and plunge and the rest is history.

The yuan climbed 0.20 percent to 6.4948 a dollar as of 10:46 a.m. in Shanghai, according to China Foreign Exchange Trade System prices. The offshore rate in Hong Kong climbed 0.13 percent to 6.4966. The People’s Bank of China raised its fixing, which restricts onshore moves to 2 percent on either side, by 0.34 percent to 6.4905.

“The fixing and yuan moves reflect euro strength and dollar weakness overnight, as well as Chinese officials’ anticipation for further strength in non-dollar major currencies,” said Christy Tan, head of markets strategy at National Australia Bank Ltd. in Hong Kong. “The new yuan index continued its downward drift after falling below 99 in early February, and this is in line with the authorities’ aim of keeping the currency stable but allow gradual weakness against the basket.”

Nasdaq futures are higher by 0.9% and German DAX futures are higher by 1%.

This is the funniest story I’ve read in 2016. I could see it now, the average savage going about his day in the stock market and an elusive Gekko type character steps into the fray to completely fuck all participants. Apparently, this “dude” is so big, he bends the market to his will. Participants are going apeshit trying to find him, but cannot.

“Nobody knows anything for sure,” Ozaner said in his office in a picturesque neighborhood on the shores of the Bosporus. “And this is Turkey, where usually we all know what’s going on.”

“Herif,” or “the dude,” has helped lift the average daily trading volume on the Borsa Istanbul almost 8 percent this year, compared with a 15 percent decline on the main exchange in Warsaw and a 27 percent plunge in Moscow, data compiled by Bloomberg show. The Borsa Istanbul 100 Index has advanced 13 percent in the period, outpacing Russia’s Micex and Poland’s WIG20.

Closely held Yatirim Finansman, which handled less than 2 percent of all trades two years ago, now accounts for the majority on some days.

On Feb. 22, for example, the brokerage placed buy orders for 486 million liras ($167 million) of shares, about 15 times more than Merrill Lynch, the second-biggest dealer that day, according to official data. And in the 16 trading days to March 8, it registered almost 1 billion liras of buy orders for Turkey’s six largest banks and Turkish Airlines — helping push the Borsa index to consecutive three-month highs.

In all of January and February, Yatirim Finansman bought a net 1.23 billion liras of stock, almost 70 percent more than the next largest buyer, UBS Menkul Degerler AS. This is why Istanbul Portfolio’s Ozaner said the secretive buyer is now “making the market.”

“There’s a giant bull in the china shop,” said Kerem Baykal, a fund manager who oversees about $610 million at Ak Portfoy. “He’s got deeper pockets than anyone else in the game and can move the market in any direction.”

“The Dude” is straight up fucking with Turkey, a menace of the first magnitude. I hope he fucking destroys the exchange and makes it crumble into pieces.

Stone Energy has drawn down the entirety of its credit facility, amounting to $500 million total, which will now summarily burn in a giant flaming barrel of garbage.

Stone Energy Corporation (NYSE: SGY) today announced that it has borrowed $385 million under Stone’s Bank Credit Facility, which represents substantially all of the remaining undrawn amount that was available under the Credit Facility. These funds are intended to be used for general corporate purposes. As of March 10, 2016, following the funding of this borrowing, the aggregate principal amount of borrowings under the Credit Facility was $477 million. This is in addition to approximately $19 million of outstanding letters of credit. The bank borrowings will initially bear an interest rate of approximately 5 percent. On March 10, 2016, the banks provided notice to Stone under the Credit Facility of a request for a borrowing base redetermination. Stone expects that the borrowing base will be reduced to an amount below the current borrowings.

Chairman, President and Chief Executive Officer David Welch stated, “We felt it important to increase our liquidity in the current low price commodity environment to ensure we have adequate financial flexibility. We will continue to explore various options to strengthen our balance sheet, including alternatives to address our debt position.”

This, undoubtedly, is going to tighten credit at the banks, as oil and gas companies draw down on their credit facilities in record fashion. It’s like a giant run on the banks, all at once.

The bank group includes Bank of America, N.A. as administrative agent; BNP Paribas, Natixis, and the Bank of Nova Scotia as syndication agents; Capital One, N.A. and Toronto Dominion LLC as documentation agents; and Allied Irish Banks p.l.c., Barclays Bank PLC, Regions Bank, U.S. Bank, Whitney National Bank, JPMorgan Chase Bank, N.A. and Sumitomo Mitsui Banking Corporation as participating banks.

Fucked.

Aside from secondaries, expect to see a lot of this. These oil companies set up rich and cheap credit facilities with banks when times were good. Now that they’re all out of money and bleeding out, banks are ruing the day when they decide to tap them.

That day was just thrusted upon BNP Paribas today, by Bonanza Creek.

Co elected to draw down $209 million on its credit facility, and currently has an aggregate of $300 million of borrowings, including a $12 million letter of credit, under the facility. As of March 9, 2016, the Company had $235 million of cash on its balance sheet after taking the recent draw into account.
‘Our recent election to draw down $209 million on our revolver was a risk management decision structured to mitigate exposure to capital market externalities in 2016.’

This is the part of the story when the risk to the balance sheets of the banks expands, exponentially.

It was smoke and mirrors and you know it. Stocks staged a miraculous index rally, fooling all of the regular Joe’s into thinking their fortunes were about to change. Nothing could be further from the truth.

Market breadth closed at 28%, meaning 72% of the stocks in your portfolio closed with losses.

Today was the biggest, broad based, trick placed upon the Third Estate in a long time. Distribution was rampant and the only sectors that thrived were utilities, precious metals and steel.

You’ve been dispatched, without regard for decorum.

Healthcare stocks led the way lower, as Karl Marx and Dr. Hillary Clinton hone in on profitable American medicine as a conduit to fund their politically charged pet projects.

The barbarians are at the gates.

Trade accordingly.

Get the fuck out of here with this shit.

“Every other time I’ve ever gone on a diet, I’ve gone on a diet and then gone off the diet, because I had gotten to the weight I’d wanted to be,” Winfrey said in a private call with Weight Watchers members in January. “The difference is, I’ve made the shift and this is the way I’m going to live for the rest of my life.”

Weight management is simply a case of input vs output. The morons who subscribe to Weight Watchers are weak creatures, unable to stop stuffing their greedy fat faces with bread. Nevertheless, the power of Oprah persists.

WTW is higher by 3% on this idiotic news.

I know you’re all jumping into the pool headlong now. Just know, the water that you see, it’s an illusion.

Breadth stands at an abysmal 26%. According to the laws of mathematics, a reversal cannot happen today. It’s like pushing a fucking grand piano uphill with sponge bob arms.

All sectors, save gold and steel, are being ravaged today.

The market might rally tomorrow. But I’d bet both my nuts, this fucker isn’t rallying today.