Submitted by Credit Trader Stocks Up BUT Risk Aversion Up S&P Futures managed to test the Jan 11th highs but risk aversion in credit remains significantly shifted since then which we find intriguing. VIX is slightly higher than at 1/11, 10Y TSY 10bps lower in yield with a notable duration extension into the 5-7Y region of the curve and away from 2Y and 30Y, DXY is up 4.5% but oil is a smidge lower while Gold is -$44. All of these changes as equities reach 2010 highs once again
I’m never one to pass up mentioning a key negative divergence in price and market internals, and we had another one set-in on today’s market action. Divergences aren’t perfect, so let’s look at the structure of the most recent development, this time using the NYSE Index itself to compare to its internals
Today's letter by John Hussman is as insightful as ever, yet what caught our eye is one of the most lyrical and gorgeous Crucifixions ever performed of Wall Street's favorite mouthpiece, CNBC, and specifically,its most vocal anchor: one James Cramer. From the full letter ( must read ) Can we rely on investor myopia? Over the past decade, it has been an uncomfortable lesson to accept that investors can be relied on to behave in ways that are ultimately unsustainable and destructive to their wealth, as long as market internals are temporarily supportive
From Brian P. Sack , Executive Vice President
While we are not sure how Betty Liu feels about Rogers' invitation to come eat some Wienerschnitzel, what is certain is that Greek PM Papandreou is not too happy with the commodities pundit right about now. When asked should Europe bail out Greece, Jim says: " No, of course not, they should let Greece go bankrupt. It would be good for the euro, it would be good for Greece, it would be good for everybody ." Alas, more true words have rarely been spoken
The appearance of the Chair of the Congressional Oversight Panel, Elizabeth Warren, on Charlie Rose is a must watch. In addition to an in depth discussion of the the consumer protection agency, which despite all valiant attempts to the contrary, will likely end up under the Fed's jurisdiction, thereby making the world's most powerful cabal even more powerful, Warren touches on a variety of other issues, including the sovereign debt situation, commercial real estate, and the one concept at the heart of it all: the lack of impairments by stockholders (and certainly by debtholders) in what was a bankrupt financial industry. The world would not have ended had banks been forced to readjust their balance sheets: the outcome would have been far simpler - all those who had their collective net wealth associated with the balance sheets, and specifically the equity tranche, of firms like Goldman, JPM, Citi, BofA and Wells would have been wiped out.
With Erik Hane Zero Hedge has previously discussed the bifurcation in market performance when comparing regular hour trading with that of the afterhours session, noting that in the September through December 2009 period, the market would have been flat if one were to strip away the benefit of gains after the market closed. Today, we take a look at a different set of data, namely observing a very peculiar market phenomenon associated with the term coined as Mutual Fund Mondays , especially over the past 6 months
Barely had we finished bashing Deutsche Bank in our prior post, that we noticed that Moody's had just notched Deustche Banknot once, but twice, from Aa1 to Aa3. Now where the hell are those pesky shorts who are #*$!ing up the grand German uberplan of trying to mimic the US in its don't ask/don't tell plan of financial gayness. Without further ado, here's Moody's: London, 04 March 2010 -- Moody's Investors Service has today downgraded Deutsche Bank AG's long-term deposit and senior debt ratings to Aa3 from Aa1, and its bank financial strength rating (BFSR) to C+ from B
Today's BLS release on initial claims showed a moderate improvement in SA initial claims, which declined by29,000 from 498,000 to 469,000, which lead to a just noticeable improvement in the 4-week average, and a 134,000 decline in the SA unemployment to 4.5 million. Yet this week once again saw a divergence between the SA and NSA numbers, where NSA initial claims increased by 17,128, and SA unemployed went up by 24,534 to 5.6 million
From Dow Jones: Greek PM Says If EU Doesn't Help Greece It May Go To IMF. Also, this is the definition of a complete lack of leverage: Greek Cabinet Member: PM Says Greece Needs EU To Show Its Support Now, and that the Time for EU Help Has Arrived. And screw strikes - here comes the civil war: Greece to cut public sector salary benefits by 30%, Cuts wages across the board.
Thursday, March 11, 2010
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