7/17/13…blame it on the bankers! Please!!!

From The Friars Club Encyclopedia of Jokes: “You don’t want another Enron? Here’s  your law: If a company can’t explain in one sentence what it does, it’s illegal.” – Lewis Black

Bloomberg Quotes of the Day: “The time I kill is killing me.”  – Mason Cooley

Bloomberg Top Stories:

*Bernanke Says Fed’s Policy of Purchasing Assets Isn’t on a ‘Preset Course.’ – ???

*Bank of America Profit Rises 63% as Moynihan Keeps Squeeze on Expenses

*Housing Starts in U.S. Unexpectedly Decline to the Lowest Level in a Year – hello?? Couldn’t they figure that rising rates and less mortgage buying might do that???

*Dollar Losses Gain as Treasuries, S&P 500 Futures Rise on Bernanke Comments

*Goldman Sachs Rejects Case for Dollar Gains Seeing 6% Decline Against Euro

*Bank of America’s Estimated Leverage Ratios Meet Proposed U.S. Requirement

*MasterCard-Visa Fees From Retailers Face Caps Under EU Plan to Legislate

*Negative Yields Return as ECB Curves Away From Fede Policies

*School Lunch Kills 22 Children in India, Sickens 25, Triggering Protests

*Putin Tells U.S. Russia Won’t Succumb to Pressure for Handover of Snowden

*Obamacare Is Said to Have Cut N.Y. Insurance Rates for Individuals by 50%

*Glaxo Probe Shows China Corruption Endemic Since Execution of Health Czar   

The only important thing about yesterday’s market was that we are approaching options  expiry, this Friday.

…and away we go:

* Dow 30 -0.2% vs +0.1% vs FLAT vs +1.1% vs -0.1% +0.5%; Dow Transports -0.7% vs +0.5% vs -0.6% vs +1.2% vs -0.7% vs +2.3%!; Russell 2000 -0.4% vs +0.7% vs +0.5% vs +1.3% vs +0.2% vs +0.9%; Dow Utilities -0.5% vs +1.6%!!! vs +0.4%!!! vs +1.7%!!! vs +0.4%; S&P 500 -0.4% vs +0.1% vs +0.3% vs +1.4% vs flat; Nasdaq Composite -0.3% vs +0.2% vs +0.6% vs +1.6% vs +0.5%; NDQ 100 -0.1% vs FLAT vs +0.6% vs +2%!!! vs +0.6%.

*NYSE Volume rose slightly to a still below average 3.05B shares vs 2.6B shares vs 2.97B vs 3.43B vs 2.99B (1.96B is the lowest of 2013). REAL NYSE Volume rose slightly to another below average 617M shares vs 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 674M shares, 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 32 down…there have been 26 mixed sessions.

*New 52 week highs have ranged from 33-864. They dropped to 456 from 687! vs 574 vs 484 vs 451 vs 606 vs 669. New lows slipped slightly to 37 vs 40 vs 32 vs 29 (a new recent low!).

  1. Advance/Declines were negative: -1.8x! vs +1.6x vs +1.1x vs +6.6x! vs +1.1x vs +2.8x (recent range -17.5x to +4.4x) on NYSE and -1.2x vs +1.9x vs +1.2x vs +2.5x vs +1.4x vs +1.6x (recent -3.5x to +3x). Breadth was similst: -1.6x vs +1.8x vs +1.3x vs +6.9x!!! vs -1.2x vs +3.4x! (recent -18.6x!!! to +6.9x!!!) on NYSE and -1.3x vs +1.7x vs +1.6x vs +4.8x!!! vs +1.3x vs +1.2x (recent -12.8x to +6.2x)  
  2. NYSE Financials declined by 0.3% vs +0.5% vs +0.3% vs +1.5% vs 0.4%. BofA was most active: +0.4% vs +0.7% vs +1.9%??? vs +1.1% vs -1.2% vs +1.9%. It closed at $13.95 +.05 barely setting a new high of $13.99 –after putting in a new high at $14.02…watch closely! Brokers -1.2%!; KBW Banks -0.8%; Nasdaq Banks -0.5%. WFC -0.8%; GS -1.7%; MS -1.2%; UBS +0.7%  
  3. Volatility (S&P VIX) ROSE after 7 straight declines below 15 and rose to14.47 +.68 vs13.76 – 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 slightly higher – Korea strong!: UK flat vs flat vs +0.4% vs +0.3% vs +0.6%; France +0.3% vs -0.6% vs +0.4% vs +0.2% vs +0.9%; Germany +0.2% vs -0.3% vs +0.2% vs +0.9% vs +1.1%!; Japan +0.1% vs +0.6% vs closed vs +0.2% vs +0.4%; Hang Seng +0.2% vs flat vs +0.1% vs -0.8% vs +2.6% vs +1.1%; Korea UP 1.1%! vs -0.5% vs +0.3% vs -0.4% vs +2.9%!!! vs -0.3%; India +0.5% vs -0.9% vs +0.4% vs +1.4%!!! vs +2%. U.S. equity futures little changed in another extremely narrow trading range: DOW -2; SPX +0.60; NDQ +5.

Bonds closed slightly higher Tuesday but are weaker overnight: 10 yr Treasury 2.55% -1/8 (recent range 2.74% to 1.63%!!!), and the 30 yr range of 2.82% to 3.71%, currently 3.61% -3/8. The long TIP is 1.30% -1/4 – still the weakest link since the (record?) low of 0.36% on 4/5. Recent high 1.53%! Libor update: 0.266% 3 mos, 0.400% 6 mos – dropping again! Both remain close to the Jan. 2010 record lows (0.245% and 0.382% respectively). Foreign bond yields slighltly higher ex-Greece: Germany 1.59% +4; UK 2.33% +7; France 2.22% +4, Italy 4.48% +2; Spain 4.69% +2; Portugal 6.96% +2; Greece 10.07% -2 vs 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 $1292.00 +$6.60 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: $1331/1352 – stabilizing, and way above, the 200 day – $1578!!! Overnight it is $1289.90 -$4.10. Crude closed slightly lower, ignoring last Thursday’s rally high of $107.45, highest since 3/1/12 and then plunge) at $106.00 -.32. It remains well above the 40/50 day m/a’s (97.79/97.18), while the 200 day ($92.83), 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 slightly lower overnight at $105.78 -.22. The range is $85.61-$107.45 since March 1, 2012..

Some random thoughts:

My sincere apologies for the late commentary yesterday. Forgot to hit send and was out all day. Hope this didn’t inconvenience you.

Today, it is short and sweet: write your Congressman and Senators…and perhaps some committee chairman and demand – don’t ask – for more regulatory controls and accountability from the banking system. Specifically, this means, but is not limited to JPMorganChase, Citigroup, Bank of America, and the faux banks: Goldman Sachs, Morgan Stanley, and UBS.

Also, ask why the response to Jon Corzine’s scandal has been so muted. His actions were egregious.

A Bloomberg article today explains what killing Glass-Steagall caused. Will try to provide a link tomorrow once disseminated.

Have a great day…change is up to you!

TB

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