10/1/14…Elizabeth Warren to the rescue…one can hope!

Quote of the Day from the Friars Club Encyclopedia of Jokes: “My school was so tough,

when the kids had their school pictures taken, there was one taken from the front and

one from the side.” Norm Crosby

Bloomberg Quote of the Day: “Sublimity is the echo of a noble mind.” – Longinus

Bloomberg Top Stories:

*Factory Prices Tumble in Europe as German Manufacturing Shrinks Before ECB

*Stocks Fall on Signs of Euro-Area Economic Weakness, Ukraine Tension; Bunds Climb

*Fed Said to Boost Leveraged-Loan Scrutiny as Low Rates Lift Bubble Concern

*Fat Fingers Seen as $617 Billion of Voided Stock Orders Roil Tokyo Market – !!!

*U.S. Companies Added $213,000 Jobs Last Month, ADP Says, Topping Estimates

*Doral Financial Called Significantly Undercapitalized by FDIC Seeking Fix – !!!

*BlackRock Bond ETF Posts Record Inflows After Gross’s Departure From Pimco

*IMF Urges More Oversight of $60 Trillion Shadow Bank System on Risk Threat

*Endo Said to Pay More Than $400 Million to Resolve Vaginal-Mesh Lawsuits

*Germany Is First G-8 Member Where renewables Account for Most Electricity – Kudos!!!

*UPS Lagging FedEx by most Since ’99 IPO Offers Contrarian U.S. Growth Bet

*Boomer Auto Nut’s $600,000 Man Cave Features Ferrari Parked Next to Sofa

*Ebola Patient in Dallas Had Been Sent Home From Hospital With Antibiotics

*Secret Service Chief Hit by Bipartisan Outrage Over White House Security

*Netanyahu To Tell Obama That Iran’s Nuclear Ambitions Trump Islamic State

*Cameron Pledges Cut for Middle-Income Workerws If Tories Re-Elected

Tuesday’s Market Summary:

…a very weird and inconclusive quarterend. NDQ 100 +0.2%?, Dow Utilities +0.1%, all others down led by the Russell 2000, -1.3%! Dow Transports -0.6%! Dow 30 -0.2%; S&P 500 +0.3%, Nasdaq Composite -0.3%.A/D’s and Breadth negative with just two minor positives in the past six sessions! Volume soared to 3.89B shares on a day that was down-up-down. Shares traded on the NYSE floor jumped to 940M – only the 6th 800M+ day since 4/30. Caution: the VIX rose to 16.29, a big negative.

Total NYSE Volume rose sharply to a 3.89B shares vs 3.07B vs 2.91B vs 3.27B vs 3.4B. Real NYSE Volume rose to 940M shares (669M at the closing bell! vs 654M vs 630M vs 736 vs 734M. There have been just five 700M+ day in 32 sessions! There have been just six sessions above 800M since 4/28! The 12-month average is a historically weak 697M shares. Since 4/30 the average volume is just 664M. 12 month high is 2.06B shares on 9/20/13!

A/D’s were negative: NYSE: –1.7x vs -1.4x vs +2.7x vs -4.8x! vs +1.5x; Nasdaq -2.2x vs -1.3x vs +2.1x vs -4.2x! vs +2x. Breadth was similar: NYSE –2.4x vs -2.6x vs +3.3x vs -10.6x!!! vs +1.8x; Nasdaq -1.6x vs -1.1x vs +4.1x vs -6.8x!!! vs +2.4x. New 52 Week Highs slightly higher again but remain weak:90 vs 71 vs 58 vs 46! vs 57 vs 39!!! – recent range is 39-580!!! New Lows rose again and remain very high 367! vs 322! vs 250 vs 382!!! from 289 – recent range is 24-382!!! S&P VIX took rose slighlty but from a high and bearish level to 16.29 +.31 – highest since 8/8! The range was 15.18–16.43!!! Only two ’12 prints in the last 23 sessions.

U.S. bond market closed slightly weaker: 10 yr 2.48% -3/16; 30 yr 3.20% -5/8; the long TIP closed at 1.07% (record low was 0.87%!) -5/8. Rallying overnight: 2.45% +5/16; 30’s 3.17% +5/8; and long TIP 1.04%! +3/4.  

Libor update: 0.235% 3 mos.; 0.331% 6 mos., both remain near their record lows, set recently: 0.233% and 0.320% respectively! The Fed Funds rate has averaged 0.09% since 5/22/13 and has returned to 0.08-0.10%. T-Bills range from 0.01%, one-month, to just 0.09% one year!!! Foreign bond yields lower across the board (Benchmark is 10yr): Germany 0.91%! -4; UK 2.38% -4; France 1.25% -3; Italy 2.30% -3; Spain 2.08% -6; Portugal 3.05% -9; Greece 6.33% -17! – volatile since the recovery low of 5.42%; Crisis high: 12.57%. Japan: 0.52% –. Bonds remain ‘risky business’!

Gold closed slightly lower at $1211.60 -$5.90, with another new low of $1204.30 in a very narrow range inside session. Last Thursday’s low was $1206.60 – lowest since 1/2/14. Tuesday’s high was $1236.10. This marks it’s 31st 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 40 day at $1264, then the 50 day at $1271, and the 200 day at $1284 – incredibly tight and still 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 in a narrow inside session: $1215.00 +$3.40. Silver still trading with a ’17’ handle. Yesterday’s low was $17.08 – lowest since 2/26/2010!!!

Crude hammered on a ‘key reversal’ (higher high, lower low, close below prior day’s low) closing at $91.16!!! -$3.39! Recent low is 9/18’s $90.43 – 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 ($94.38), then the 50 day ($95.69), and lastly the 200 day (99.56) – all declining, especially 40/50! The range is $85.61-$112.24 since 3/1/12. Overnight little changed at $91.85 +.69 in an inside session.

Global equity markets WEAK, ex-Korea: UK -0.7% vs -0.3% vs -0.5% vs +0.2% vs -0.1%; France -0.8% vs +1.1% vs -1.2% vs +0.9% vs +0.3%; Germany -0.4% vs +0.4% vs -1.1%! vs +0.1% vs +0.5%; Japan -0.6% vs -0.8% vs +0.5% vs -0.9% vs +1.3%! Hang Seng CLOSED vs -1.3%! vs -1.9%!!! vs -0.4% vs -0.6% vs +0.4%; Korea +1.3%! vs -0.3% vs -0.3% vs -0.1% vs -0.1%; India -0.2% vs +0.1% vs -0.1% vs +0.6% vs -1%. U.S. equity futures weaker but off lows after gapping down on open: Dow -20 (range 60 +11 on gap); SPX -4.20 (9 +6); NDQ -10.25 (28 +6). US market opening accordingly….Dow Transports -130!!! VIX higher.

 

Some random thoughts:

…listened to the Fed tapes yesterday…appalling lack of regulatory control…and influence by Goldman Sachs. We owe Carmen Segarra for risking her job (lost it), and her career to come out…thankfully with a secret tape recorder. Invasion of privacy? How else could she prove it??? Then this morning Sen. Elizabeth Warren outraged over the Fed and its regulatory staff. “why are we held to the law, as well as community and regional banks while the wealthy control the country?” Ignore this at your (our) peril! This is SICK!!! Here is the link again, very disturbing:: the-secret-goldman-sachs-tapes

Have a great day…leaving tomorrow for Venice, Italy, Dalmatian coast, Athens, and Istanbul.

TB

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