Quote of the Day from the Friars Club Encyclopedia of Jokes: “Nerve is going to a psychiatrist because of a split personality and asking for a group rate.” – anon
– Chuck Mills
Bloomberg Quote of the Day: “Beauty is power; a smile is its sword.” – Charles Reade
Bloomberg Top Stories:
*Retail Sales Little Changed in July for Slow Start to U.S. Third Quarter – Heed!
*Carney Sees No BOE Push to Raise Rates While Focusing on Risks to Economy – Duh!
*Stocks in U.S. Advance as Investors Weigh Corporate Earnings Retail Sales – hello, investors?
*Banks Wooing Treasury‘s Sanctions Experts to Navigate Complex U.S. Rules – a pity…
*Atlantic City’s Downward Spiral Is Accelerating With Revel Casino’s Demise – poor Donald!
*Deere Lowers Full-Year Profit Outlook, Reduces Production to Match Demand
*Google’s Hold runs Deep in 41% Selloff in Israeli Software Company Perion – “do no harm?”
*Turkish Stocks Set for Six-Week Low as Islamic State Seizes Towns in Syria
*Mexican Oil Output Said Bloated With Barrels of Water; Data May Be Revised
*Default-Swaps Traders for Brazil Rattled by Rousseff Re-Election Odds
*World Awash in Oil Shields Markets From Repeat of 2008 Record Price Shock
*Obama Donors Altman, Effron Embrace Inversions Even as He Condemns Deals – Swell!!!
*Kurdish Forces Attack Islamists in Northern Iraq as Maliki Clings to Power
*Russia Aid Convoy Approaches Border as Ukraine, Red Cross, Present Demands – tanks too!
*Expat Oil Workers Flee Iraq’s Boom Town After Islamic State Attacks Kurds
*Mid-August Is Fast Approaching, So Where Are All the Atlantic Hurricanes – don’t worry…
Tuesday’s Market Summary:
A truly nothing day…it was about nothing. All indices were flat to down except NYSE Financials which rose 0.2%…somehow. Both Dow Transports and Utilities were FLAT…the goat was the Russell 2000 -0.8%! How much lower can Volume go? Total dropped to a very weak 2.59B shaqres from 2.76B while real volume was slammed to 543M shares – now tied for third lowest of 2014 and that thanks to 98M at the bell! Year-to-Date, Dow Transports and Dow Utilities remain tied for honors at +10.2% the pair! Only the Russell 2000 is now off -2.6% ytd!
Total NYSE Volume continued its swan dive to an extremely weak 2.59B shares vs 2.76B vs 2.87B vs 3.22B vs 3.5B. Real NYSE Volume dropped yet again to tie for 3rd lowest of 2014 at 543M shares – with 98M at the closing bell vs 596M vs 629M vs 670M vs 689M vs 703M. There have been just four sessions above 800M since 4/28! The 12-month average remains at a very weak 703M shares. Since 4/30 the average volume has been just 673M shares ranging from 531M to 927B….12 month high is 2.06B shares on 9/20/13!
A/D’s were negative for the first time in three sessions: NYSE -1.4x vs +2.8x vs +3.1x vs -1.1x vs +1.5x vs -2.5x vs +1.6x vs -1.7x vs -6.3x!!! Nasdaq -2.1x vs +2.7x vs +2.3x vs -1.8x vs +1.5x vs -1.4x vs +1.7x vs -1.8x vs -5.1x! Breadth was similar: NYSE -1.8x vs +2.9x vs +4.2x! vs -2.3x vs -1.05x vs -3.6x vs +2.3x vs –1.7x vs -8.4x!!!; Nasdaq -2.1x vs +3.7x vs +2.3x vs -1.7x vs -1.1x vs -1.8x vs +2.1x vs -1.9x vs -5.6x! New 52 Week Highs shrugged off their false start and fell to a weak 96 vs155 vs 86 vs 67 vs 49 vs 54 v 57 vs 46 – recent range is 46-580!!! New Lows rose to 84 vs 64 vs 145 vs 167 vs 146 vs 166 vs 179 vs 260!!! – recent range is 24-260! This is a perfect set-up for options expiration! Beware! S&P VIX was little changed following Monday’s plunge and is in neutral territory at 14.13 -.10 while the range was 13.76-14.74.
Bonds closed lower for a 2nd day but not that far from their new 12-month highs set last Thursday! 10 yr closed at 2.45% -3/16; 30 yr 3.27% -9/16; the long TIP 0.95% -15/16. Overnight they are a little higher: 10’s 2.43% +3/16; 30’s 3.27% +1/4; and long TIP 0.95% +1/4. Cycle highs: 30 yr high was 3.97% on 12/31; the 10 yr recent high 3.03%! Long TIP was 1.64%. The (record?) low of 0.36% was set on 4/5/13.
Libor update: 0.234% 3 mos.; 0.328% 6 mos., both remain near their record lows, set recently: 0.222% and 0.320% respectively! NOTE the Fed Funds rate has averaged 0.09% since 5/22/13 and is at 0.08-0.10% where they have been for weeks! Foreign bond yields little changed but mostly lower: Germany 1.04% -1; UK 2.45% -3; France 1.44% -1; Italy 2.75% -1; Spain 2.60% +1; Portugal 3.67% -6; Greece 6.18% -1. The recent high on selloff was 6.75%. Recently 5.42% to 12.57%. Japan: 0.50% –.
Gold closed little changed for a third day at $1310.60 +.10, in another very narrow range session two days after setting a new high of $1324.30 – highest since 7/18! Monday’s low was $1279.70, lowest since 6/19. It is now above all three moving averages and the psychological support level of $1300! 7/17’s session high was $1346.60, highest since March 19th!!! 6/9’s $1240.20 was lowest since 1/31/14!!! First support is just below at the 40 day $1309, then the 50 day at $1298, and the 200 day at $1287 – these are VERY tight ranges! 50/200 are critical support levels! Note the recent high of $1392.60 on 3/17, highest high since 9/4/13…that too ended the session with a negative key reversal sparking the downturn! Jan. 2’s low was $1181.40 – A MULTI-DECADE LOW!!! Overnight it is higher at $1314.80 +$4.10.
Crude closed lower in a third straight ‘nothing session’ at $97.37 -.71. This three days after trading down to $96.55 – lowest since 2/4! – NINE handles since 6/30! 7/22’s high was $105.20, still highest since 7/2. 7/15’s session low was $90.01 – lowest since 3/21. 6/20’s run to $107.73 was highest since 9/19/13 (a huge down session which put it in freefall well below what was critical support at $99.79 – the 200 day! 3/2’s session low was $97.37, lowest since 2/4! 1/14’s low was worst since 5/2/13: $91.24! The record high of $114.83 was on 5/2/11, the low since on 10/4/11 is $74.95: $93.60 is the midpoint!!! Recent rally high and close are $110.70 and $110.53 respectively. RES at the 200 day ($99.80), then the 40 day ($102.38), and then the 50 day ($102.78). The range is $85.61-$112.24 since March 1, 2012. Overnight it is little changed again at $97.52 +.15.
Global equity markets generally higher: UK +0.1% vs -0.1% vs +0.9% vs -0.3% vs –; France +0.6% vs -0.6% vs +1% vs +0.2% vs -0.2%; Germany +0.9% vs -0.7% vs +1.7%! vs +0.1% vs +0.3% vs -1.4% vs -1.2%! Japan +0.4% vs +0.2% vs +2.4%!!! vs -3%!!! vs +0.5% vs -1.1% vs -1%; Hang Seng +0.8% vs +0.2% vs +1.3%! vs -0.2% vs -0.8%; Korea +1%! vs +0.1% vs +0.4% vs -1.1%! vs -0.3%; India +0.2% vs +1.4%!!! vs +0.8% vs -1%! vs -0.3%. U.S. equity futures higher: Dow +36 (range 43); SPX +6 (10); NDQ +14.25 (20).
Some random thoughts
…isn’t that the motto of Google? Well, TB just ran across a company that doesn’t refund fees on 7-day free trials, RealtyTrac. TB tried to write Google about how can their mission statement read do no harm? Try he says because he couldn’t get a response to why they are willing to collect fees from companies with unethical practices? No such luck!
As for RealtyTrac, TB was trying to check on recent sales prices in his area. When this company popped up first – second and third too! – he decided to give it a try. On the free site he found only stale data, so he signed up for the 7-day free trial: there were no additional listings despite TB knowing there were at least two! So he immediately cancelled the trial and received confirmation. He then emailed to the company twice using their ‘support’ email address, and once to respond to their notice that they had started the subscription. That had him worried so he checked further. Nothing but complaints…some taking as long as a year to get out of the contract! On Monday, he called and with no runaround was transferred to customer service where they showed the account to be closed…perhaps they have cleaned up their act…one can hope.
As for their data, however, it is miserable and as TB found out, stale. Too many complaints to list! $49.95 for this ‘service’? Sometimes you don’t even get what you pay for…even in cyberspace, right?
It’s getting close to options expiration…act accordingly!
Have a great day!