Quote of the Day from the Friars Club Encyclopedia of Jokes: “Anyone can do any amount of work, provided it isn’t the work he is supposed to be doing at that moment.” – Robert Benchley
Bloomberg Quote of the Day: “All the arts we practice are apprenticeships. The big art it life.” – M.C. Richards
Bloomberg Top Stories:
*Stocks Fall With S&P Futures (?) as Treasuries Gain Before FOMC Meeting; Ruble Weak
*World’s Biggest Banks Said to Overhaul Trading Practices After FX Scandal – had no choice!
*Calpers Removing entier $4 Billion Invested in Hedge Funds, Citing Costs – low returns???
*Mega-Deal of $100 Billion No Sweat for Bankers Floating Idea Among Clients – only money!
*RBS Said to Dismiss Most of Team Overseeing Central European Debt Markets – !?!
*Assurant Promotes Ex-Bain Manager Colberg to CEO Amid Home-Insurance Slump
*Goldman Sachs Seeking to Raise $500 Million in First Sale of Islamic Debt – Allah willing!
*Ambev to Vale Missing World’s Biggest Stock Market Rally – Brazil lagging…
*Streaming ‘ House of Cards’ at 51,000 Coming Down to Private Jets by 2016 – oh joy!
*Tiger’s Robertson Back Chopra to Top His Hedge-Fund Empire After Stumbles
*Obama Dispatching 3,000 Troops, Medical Assistance to Stem Spread of Ebola
*Scotland Turns Crucible for U.K. Leaders Pledging to Save Union
*Dartmouth Posts 19.2% Investment Return in Year Through June – but: year ago just 12.1%
Monday’s Market Summary:
Bifurcated! The most heavily watched S&P 500 closed -0.1%; Dow 30 and Utilities +0.3% while Transports fell 0.4%. Not for the really bad news: Both Nasdaq’s and the Russell 2000 were off from 1-1.2%! Breadth on the Nasdaq 100 was -4:1! Volume fell back from 3.2B shares (highest since 8/70) to a below average 2.76B shares while NYSE shares traded on the floor declined from an ‘average’ 694M shares to a WEAK 591M! A/D’s and Breadth were negative for a 2nd day – especially Nasdaq issues! Now look: new 52 week highs plunged to just 59 from an already weak 101 while new lows rose sharply to a solid 185. VIX rose again…this time to well into bear territory at 14.12 +.81 – highest since 8/12 and options expiry is now just four days away!
Total NYSE Volume fell back to a below average of 2.76B shares from 3.2B (highest since 8/7!) vs 2.93B vs 2.86B vs 2.87B. Real NYSE Volume also fell to 591M shares from an average 694M (highest since 8/15’s 758M shares) vs 605M vs 608M vs 603M The average for the week ended 8/29 was 522M shares – a new 2014 low – average volume at the closing bell was also a new low for the year of 387M shares! Note that the average for the final week of 2013 was 424M! There have been just four sessions above 800M since 4/28! The 12-month average is a historically weak 697M shares. Since 4/30 the average volume has been just 649M shares, and slipping ranging from 517M to 927B….12 month high is 2.06B shares on 9/20/13!
A/D’s were negative for a 2nd day, especially the Nasdaq this time – note last five days! NYSE: -1.9x vs -3.8x vs +1.3x vs +1.1x vs -3.3x; Nasdaq -3.2x! vs -2.1x vs +1.4x vs +1.6x vs -3.2x. Breadth was similar:: NYSE -1.6x vs -2.6x vs +1.9x vs +1.2x vs -3.4x; Nasdaq -4.8x!!! vs -1.5x vs +1.7x vs +2x vs -3.9x. New 52 Week Highs nearly halved to 59 from a weak 101 vs 113 vs 107 vs 121 – recent range is 146-580!!! New Lows jumped to a strong 185! vs 110 vs 104 vs 128 vs 109 – recent range is 24-260! S&P VIX now above 14! closing at 14.12 +.81 AND with a range of 13.54-14.19! – not even a ‘12’ print! 11th straight close above ‘12’!
U.S. bond market barely budged: 10 yr 2.59% +3/16; 30 yr 3.34% +1/16, the long TIP 1.08% (low was 0.87%!) unched-1-13/16!!! Higher overnight: 2.58% +1/8; 30’s 3.33% +3/16; and long TIP 1.08% +3/16.
Libor update: 0.235% 3 mos.; 0.331% 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 remains 0.08%-0.10%, where it has been for weeks! T-Bills range from ZERO, one-month, to 0.09% one year!!! Foreign bond yields mixed with PIIGS weaker (benchmark is the 10yrs): Germany 1.05% -1; UK 2.53% -1; France 1.43% –; Italy 2.49% +3; Spain 2.35% +1; Portugal 3.20% –; Greece 5.70% +8! – losing ground since the recovery low: 5.42%; Crisis high: 12.57%. Japan: 0.57% –. Bonds remain ‘risky business’!
Gold closed slightly higher but not before diving to another new low of $1225.30 – lowest since 1/9/14 – before closing at $1235.10 +$3.60 – this marks it’s 20th straight sub-$1300 close. It is way below the 40/50 and 200 day m/a’s. 7/17’s session high was $1346.60, highest since March 19th!!! 6/9’s $1240.20 was lowest since 1/31/14!!! RES is the 200 – and now the 40 day both at $1285!, then the 50 day at $1291 – falling! Recent high was $1392.60 on 3/17, highest high since 9/4/13. Jan. 2’s low was $1181.40 – A MULTI-DECADE LOW!!! Overnight it is slightly higher at $1236.40 +$1.30.
Crude also closed slightly higher in a wide ranging session at $92.92 +.45. Thursday’s low of $90.43 was lowest since 6/28/13! There have been SEVENTEEN handles since peaking at $107.73 on June 20th. 6/20’s run to $107.73 was highest since 9/19/13 (a huge down session which put it in freefall. The record high of $147.27 was on 9/30/08, the low since on 12/30/11 is $74.95: $93.60 is the midpoint!!! Recent rally high and close are $110.70 and $110.53 respectively. RES at the 40 day ($96.65!!!), then the 50/200 day ($97.75/99.93) – 40/50 falling fast now! The range is $85.61-$112.24 since 3/1/12. Overnight it is little changed in an ‘inside session’ at $93.24 -.32.
Global equity markets weaker: UK -0.5% vs -0.1% vs +0.3% vs -0.7% vs –; France -0.6% vs -0.2% vs – vs -0.8% vs -0.1%; Germany -0.6% vs +0.1% vs –0.2% vs -0.6% vs –0.3%; Japan -0.2% vs closed vs +0.3% vs +0.8% vs -0.3%; Hang Seng -0.9% vs -1%! vs -0.3% vs -0.2% vs -1.9%; Korea +0.4% vs -0.3% vs +0.4% vs -0.7% vs 0.3%; India -1.2%! vs -0.9% vs +0.2% vs –0.2% vs -0.8%. U.S. equity futures weak and near session lows: Dow -38! (range 45); SPX -4.10 (5!); NDQ -15! (17).
Some random thoughts:
…watched The Roosevelts again last night…and there may never have been a president as mercurial or complex as Teddy Roosevelt! He made Patton (‘old blood and guts’) look like a sissy. He was the first American to occupy the present White House, the first to invite a black man (and his wife and daughter) to dine with him – for which he received so much grief that while he and the man – Booker T. Washington – remained friends and confidantes, he never invited him again…such was the power of the slave movement – still! He gave birth however to the Red Dog Republicans as they switched their allegiance to the Dems…for effect! He was also the first sitting president to travel abroad, was responsible for the Panama Canal (with some skullduggery by the way), and the first American to be awarded – any – Nobel Prize. This list goes on!
He was admired by his cousin, FDR, who with fiancé Eleanor, attended his inauguration (his first as he succeeded the assassinated McKinley – and at it he made a statement that he would forever regret and which set a precedent: he would not seek a ‘third’ term since Washington only served two but he later regretted the remark since he did not serve two ‘complete’ terms (Johnson continued with this precedent, after the GOP furious over FDR’s third term got the ‘two term limit’ passed – which they regretted when Ike was president…history might have been different if he had run again).
The strength of both Roosevelts however was their belief in all individuals being treated fairly under the law…and Congress – something people like the Koch brothers and our biggest financial institutions have done their utmost to kill. They don’t want democracy, they want oligarchy and plutocracy. Is that what this country was founded on? If you think, so, pity you…pity us. Jefferson will be proved right yet, the ‘great experiment’ is being ruined by the few, the greedy, the wealthiest.
TB gets irate whenever he hears “I did it on my own” – no you did not! You had opportunities that you would have had nowhere else in the world, yet you begrudge those who work hard to make an honest living…could this be the reason the crime rate is high and we have the highest incarceraton rate of any industrialized nation? Meanwhile those who ‘cheat’ the people and the system get ‘handslaps’ that amount to a mere cost of doing business…are you proud of that?
Just a few gripes to think about while ignoring the plight of the poor.
Ah,…but TB digresses…have a great day…but think about our nations, your kids, future…