From The Friars Club Encyclopedia of Jokes: “No one really listens to anyone else, and if you try it for a while, you’ll see why.” – Mignon McLaughlin
Bloomberg Quotes of the Day: “I must govern the clock, not be governed by it.” – Golda Meir
Bloomberg Top Stories:
*Goldman Sachs Beats Estimates on Increase in Trading, Investment Banking – a bank?
*Car Sales in Europe Dive to Two-Decade Low While German Confidence Wanes – !!!
*India Joins Brazil to China in Reducing Liquidity to Stem Currency Plunge
*Bernanke Bond Rout Is No European Crisis as Corporate Issuance Increases
*Italy to Spain Real Estate Beckons to Investors With Yields Beating Germany
*Wealth Products Threaten China as Risk of Shadow-Bank Ponzi Scheme Swells
*Mursi Supporters’ Battle With Police Leaves Seven Dead as U.S. Urges Talks
*U.S. Senate Nears Showdown Vote on Nominees as Last-Minute Deal is Sought
*Egyptian Television Bias Deepens Divided With Broadcasters Villifying Mursi
*Zetas Drug Cartel Leader Is Captured in Boost for Mexico Anti-Drug Efforts
*Christie’s Sales Rise 9% as Basquiat, Pollock Works Push Auction to Record
Written this morning…sorry…
Before you do anything today please read…or re-read…the top stories above.
Also note that Friday is yep…options expiry again! This time the combination of a plunging VIX to well below its moving averages may force short-covering…just a thought. Volume was even worse yesterday at 2.6B shares vs 2.97B shares from an average 3.43B shares on Thursday. Meanwhile, floor-traded shares slumped agin to 562M shares (lowest since 7/3!) vs 681M vs 742M, below even the mediocre 12-month average (722M). It barely qualified as an ‘up’ day with the best performer being Dow Utilities (???) +1.6% and worst, the Nasdaq 100 FLAT while the Dow and S&P 500 were up a puny 0.1%. Away from utilities, the Russell 2000 rose 0.7%, followed by the volatile of late Dow Transports and NYSE Financials both up 0.5%.
…and away we go:
* Dow 30 +0.1% vs FLAT vs +1.1% vs -0.1% vs +0.5%; Dow Transports +0.5% vs -0.6% vs +1.2% vs -0.7% vs +2.3%!; Russell 2000 +0.7% vs +0.5% vs +1.3% vs +0.2% vs +0.9%; Dow Utilities +1.6%!!! vs +0.4%!!! vs +1.7%!!! vs +0.4% vs +0.6%; S&P 500 +0.1% vs +0.3% vs +1.4% vs flat vs +0.7%; Nasdaq Composite +0.2% vs +0.6% vs +1.6% vs +0.5% vs +0.6%; NDQ 100 FLAT vs +0.6% vs +2%!!! vs +0.6% vs +0.6%.
*NYSE Volume fell sharply again to a well below average 2.6B shares vs 2.97B vs 3.43B vs 2.99B vs 3.14B (1.96B is the lowest of 2013). REAL NYSE Volume plunged to a well below average 562M shares (lowest since 7/3) vs 681M shares vs 752M vs 671M vs 692M vs 905M! – 482M is the 2013 low! The 12-month average is 721M shares! The average since 6/30 is just 679M shares vs 692!, ranging from 482M to 906M, 482M being the 2013 low! There have been just SEVEN 1B+ share sessions! There have been 27 800M+ shares in 2013: 10 up, 17 down, but on trades of less than that 88 have been up and 31 down…there have been 26 mixed sessions.
*New 52 week highs have ranged from 33-864. They rose sharply to 687!!! vs 574 vs 484 vs 451 vs 606 vs 669. New lows rose slightly to 40 vs 32 vs 29 (a new recent low!).
- Advance/Declines were modestly positive: +1.6x vs +1.1x vs +6.6x! vs +1.1x vs +2.8x (recent range -17.5x to +4.4x) on NYSE and +1.9x vs +1.2x vs +2.5x vs +1.4x vs +1.6x (recent -3.5x to +3x). Breadth was slightly better: +1.8x vs +1.3x vs +6.9x!!! vs -1.2x vs +3.4x! (recent -18.6x!!! to +6.9x!!!) on NYSE and +1.7x vs +1.6x vs +4.8x!!! vs +1.3x vs +1.2x (recent -12.8x to +6.2x)
- NYSE Financials rose by 0.5% vs +0.3% vs +1.5% vs 0.4% vs +0.6%. BofA was most active: +0.7% vs +1.9%??? vs +1.1% vs -1.2% vs +1.9%. BofA closed at $13.88 +.10 barely setting a new high of $13.99; C rose 2%!!!
- Volatility (S&P VIX) declined for a 7th straight day below 15 and close of 13.76 -.08, lowest since May 22! 6/25’s session high of 21.91 was highest since 12/31/12!!! The range since 4/12 is 11.99 (multi year low) to 21.92, It is well below the 40/50 day (15.72/15.24) and the 200 day (15.06)!!!…ytd the range is 11.05 (3/14) to 21.92 (6/24)!
Global equities mixed: UK flat vs +0.4% vs +0.3% vs +0.6% vs -0.6%; France -0.6% vs +0.4% vs +0.2% vs +0.9% vs -0.7%; Germany -0.3% vs +0.2% vs +0.9% vs +1.1%! vs -0.5%; Japan +0.6% vs closed vs +0.2% vs +0.4%; Hang Seng flat vs +0.1% vs -0.8% vs +2.6% vs +1.1%; Korea -0.5% vs +0.3% vs -0.4% vs +2.9%!!! vs -0.3%; India -0.9% vs +0.4% vs +1.4%!!! vs +2% vs -0.8%. U.S. equity futures little changed in an absurdly narrow trading range: DOW -2; SPX -1; NDQ +1.75.
Bonds closed strong Tuesday after opening weak and are up again overnight: 10 yr Treasury 2.51% +3/16 (recent range 2.74% to 1.63%!!!), and the 30 yr range of 2.82% to 3.71%, currently 3.57% -3/8. The long TIP is 1.29% vs 1.42% +7/16 – still the weakest link since the (record?) low of 0.36% on 4/5. Recent high 1.53%! Libor update: 0.266% 3 mos, 0.402% 6 mos – dropping agan! Both remain close to the Jan. 2010 record lows (0.245% and 0.382% respectively). Foreign bond yields lower across the board: Germany 1.55% -3; UK 2.27% -7; France 2.19% -2, Italy 4.46% -1; Spain 4.67% -4; Portugal 6.98%! -3; Greece 10.02% -16!!! vs 10.27% -19!!! vs 10.33% -25!!! vs 10.69% vs 10.85% +28!!! vs 10.52% vs 10.54% +40!!! vs 10.85% -37!!! vs 11.22%. Recent range: 8.04% to 12.57%. Japan 0.82% +1. Imagine being a Greek bond trader…or a trader who does Greek bonds!!!
Gold closed slightly higher at $1283.50 +$5.90 in another narrow range session! Thursday’s session high was $1297.20 not seen since 6/24! – contrast to 6/27’s intraday low of $1179.40 – lowest since at least 2011 and now critical support. Major res is the 40 day/50 day: $1331/1353 – both declining rapidly, and way higher, the 200 day – $1577!!! Overnight it is $1291.40 +$7.90. Crude closed slightly higher following Thursday’s rally high of $107.45, highest since 3/1/12 and then plunge) at $106.32 +.37. It remains well above the 40/50 day m/a’s (97.73/96.98), both climbing sharply now, while the 200 day ($92.76), is distant support. First support is $104.21-36 – the lows of the last three sessions! 4/18’s low of $85.61 was lowest since 12/11! It is stronger overnight at $107.60 +.68. The range is $85.61-$107.45 since March 1, 2012..
Some random thoughts:
Having been busy on Sunday TB watched the Sunday Funnies last night (MTP, This Week, Face the Nation). How can three hours be spent on a piece of slime like George Zimmerman?…worse, only near the end did ONE commentator mention O.J. Simpson.
Can you imagine reporters who cannot even connect the dots between Simpson and Zimmerman? Just reverse the black and white and then mix in some inept prosecutors, absurd Florida law, and Houston: we have a problem.
Zimmerman never should have been tried for murder…manslaughter might have flown. He had a jury of six women??? O.J. committed murder in the Brentwood suburb of L.A. and would routinely have been tried in Santa Monica Superior Court by a jury of his peers…white men and women. Instead, he was tried downtown with a mostly black jury.In both cases the judges acted strangely…especially Ito who loved the limelight.
Then surprise, surprise Zimmerman was acquitted as was O.J. Who can forget O.J. saying he wouldn’t be caught dead in those ‘ugly ass shoes.’ The same ones that cost him the civil case. Or the pained look as the prosecution was sucker-punched into him trying on the bloodstained gloves…with a plastic glove over his hand of course. Fools! Fools all.
There was some rioting after the decision…and would have been if O.J. had been convicted.
In a civil court the case will revolve around the fact that a black man (not a boy as they have pictured him) was followed by a white man…what if a white man had been followed by a black man? You either run or confront them. Hence, had Zimmerman not ‘played cop’ both would be alive and Zimmerman wouldn’t be spending his days in a courtroom.
This is what happens when people like Wayne LaPierre convince people that the only way to stop a ‘bad guy with a gun’ is a ‘good guy with a gun.’ The message has now been sent: stand your ground and shoot anyone who is suspicious.
Is that what you want to see in America? Have your children and grandchildren grow up to see? If so, I pity you friend,
Hope you had a productive day,