Mkt Fag: Slow motion train wreck in aisle Oh Fuq-TSLA share sales and reality of using that as collateral for loans edition
First some reality on the Musk purchase of Twatter—this is what it faces and since TSLA moves around moar than 7% on many days he is on thin-ice using this much as collateral.
This got bigger from last night. >>16174014 pb Tesla Inc sold by Elon Musk: $3.98B-April 26,27
It was up almost the entire day and HOD was $934.40 but dropped steadily throughout the day into the close and then closed red for the day at $870.76-6.75 (-0.77%). This is going to be a problem soon as 7% is nothing in this equity and all it takes is a cooperative Market Maker to send it there. Still remains to be seen how many shares "show up" to be tendered as in moar than have been issued because I think this will also be a problem as it exposes the corrupt DTCC, SEC as the dindu crew. It approximately $33.76 above the threshold for the below scenario to play out–as previously stated that is NUFFIN in this equity.
Spare me the "he is funding the Twatter acquisition purchase" -WELL AWARE of that-this is the reality of using his TSLA as collateral for the loans.
Musk Sells About $8.5 Billion in Tesla Stock After Twitter Deal
'excerpt
Before his most recent share sales, the Tesla co-founder had about $3 billion in cash and investments to cover that $21 billion commitment, according to Bloomberg calculations. The recent disposals bring that total to about $11.5 billion. But as a result of the trades, Musk has fewer shares to cover his margin loan, which has an initial loan-to-value ratio of 20%. That means he’ll need to post Tesla shares worth $62.5 billion when it’s funded so that means the ARKK fund is going to see some 'issues' when that habbens. Key pointIf the electric carmaker’s share price drops under $837 or roughly about 7% below where it is currently he won’t own enough stock to secure the loan. The shares traded as low as $821.70 as recently as Thursday.The calculations assume he can’t post shares related to Tesla options because the collateral needs to be “free of any lock-up or selling restrictions,” according to a filing. The options he owns convert to shares that can’t be sold for five years.
https://www.bnnbloomberg.ca/musk-s-8-5-billion-tesla-stock-sales-make-math-behind-twitter-deal-more-tricky-1.1759168
Watch what happens to ARKK ETF as it has TSLA as it's largest holding.
Futures indicated and open of about -158 on DOW, NAS -179 and SP500 -44 and opened dhat way-expected after yesterdays 'rescue' of the ^RUT-they panicked big time with the announcement on small biz assistance and the action on Weds with the HALO drops twice in it (major liquidations going on) confirmed the reaction that they had to do-they were being dumped HARD-and it still going on so it had ONE day of respite as it's fallen and can't get up-. Brought it up to the neckline and if you shorted dhat GOOD FOR YOU NIKKA you should have had your exit plan made on that entry too-and a nice exit would have been right at 10:48AM EST-because you can always get back in-bank it and don't "wait" for the juice to arrive-that is the essence of trading successfully. Big block showed up @ 10:52am and it was reported as a sale 1.17B-and it bounced a little and I would punched outta the 'short bus' then watched it try to get going again and then re-shorted HARD at about 11:54am cause it DONE and over just before that. This is the time of day 'they" come in and help it as Europe closes at 11:30am EST so you have to be careful for that (cough, ESF) but if held on you still doing fine because it did not make a higher high after that one at 11:04am and got tired. I write these reports as this action occurs so this is not with the benefit of hindsight that is why they are quite comprehensive as the action is captured as it occurs-look at the time stamps of the articles I include for proof this is done as it occurs. The FED released it's personal consumption expenditures price index inflation reading (PCE) and as expected it was "not as bad as it could have been"…..it rose 5.2% instead of 5.3%…..hilarious. This is ON FIRE-the inflation gauge jumped 6.6% in March from the previous year, beating out last month's measurement of 6.3% to become the fastest pace since 1981. But muh headlines still say "it beat"….by a 1/10th of a pt…some "beat"…kek. >>16176301 pb (ty for FRED graph anon)
AMZN got clobbered and on well over avg volume-it has been pinned to -406.30 (-14.05%) all day so there is much moar to come from this. NFLX got some early "buying" and that is most likely the "prop" for big boi exits-this thing is so over bloated and burns so much cash every day-not to mention it's huge off-the-books debt-this is just a dead-cat bounce. It may last a day or two but this is heading lower (or it should based on it's subs losses and cash burn rate) After starting the month with a panic-bid, Nasdaq ended April down almost 13%, its worst month since Oct 2008. On the week, Small Caps were the worst (closely followed by Nasdaq) and that followed the puke last Friday. The S&P's 3.6% puke is the worst day since June 2020 (as AMZN plunged 14% - its worst day since July 2006) FANG stocks have lost over $1.6 trillion in market capitalization since their peak over $5 trillion in Nov 2021
Russia’s Finance Ministry said Friday that it had attempted overdue dollar payments on its international debt obligations-The ministry said it had made a payment of $564.8 million on a 2022 eurobond and a payment of $84.4 million on a 2042 eurobond, according to Reuters, with both in dollars — which was originally stipulated on the debt agreements. The funds have reportedly been channeled to the London branch of Citibank but it’s unclear whether they will reach their intended recipients. The payments were due to be made in April and had entered a 30-day grace period before official default on May 4. Love the headline "last-ditch" as if system is in control here….kek moar https://www.cnbc.com/2022/04/29/russia-attempts-last-ditch-dollar-bond-payments-to-try-to-avert-historic-default.html
Treasury complex-see cap#3 Yields on a tear early on and 10 year got to 2.934% before settling down a little early but that was straight up (selling) and then some buying came in but has settled down. Muh Euro bonds also participating - yields on euro investment-grade corporate bonds have climbed to their highest in over eight years, a widely-followed index showed on Friday. The yield has risen four-fold from around 0.50% at the start of the year. It wasn't just stocks that were clubbed like a baby seal in April, Bonds were a bloodbath with 10Y Yields soaring a stunning 54bps.The yield curve steepened on the month but we note that 3s10s dipped back into inversion today.
>>16159264 pb on the FOMC at rate rises Told ya this on Tuesday
>Treasury complex-yields smershed today again becasue why not?-they are trying NOT to hike 75bp or even 50bp (dis pretty much baked into it at FedWatch though) next meeting in 8 days so the bond complex has to sorta "play along" otherwise they really show they are completely impotent (to the normies who think that they actuallly set rates that is)https://www.cmegroup.com/trading/interest-rates/countdown-to-fomc.html
from ZH today
>A 50bps hike is now a done-deal for next week's FOMC meeting and STIRs are now pricing a near 50% chance of a 75bps hike in June (not helped by a record surge in the Employment Cost Index this morning)!! That would be The Fed's first 75bps hike since 1994!
Muh Yen/Dollar/Ruble-see cap #4 Russian Central Bank cut rates to 14% from 17% and then sez inflation 'could' reach23%. Certainly still some pain for Russia's economy but they are the closest thing to a self-sustaining one on the entire planet–way better than the US and China ftm >>16176252 pb-see here. The world needs it's oil and natty gas so they will do much better than all these 'economists' predict-most of them are just academics and don't live in the real workls-hello Mr. "alien invasion needed to spur growth" Krugman-actually said that in 2011. Muh ¥ is back below 130/USD back down to 129.88-0.94 -0.72% from previous close @ ¥130.82 but that is just temporary imo because the Yen-carry trade has much to do with keeping this system propped before during and after the 2008 mkt event so this is by no means done at all. The dollar index (DXY) exploded higher in April - up almost 5% against its fiat peers (its biggest monthly jump since Jan 2015) - trading at its highest in 20 years. April was the Ruble's best month on record (going back to 1993)… so not "rubble" then? https://www.marketwatch.com/investing/currency/usdjpy
They sky'd Asian stocks last night (CONUS) time and even squeezed +4% outta the Hang Seng index.
https://www.marketwatch.com/market-data/asia
Oil/Energy-see cap#5-the first of Yuan payment Russian coal on it's way to China and will arrive in in April and May according to Epoch Times but the "economists" are already saying (and will continue to do this no matter what habbens) that "it won't affect the USD status as "leading global reserve currency"-wake up nikka did you not see the deal the Chinese made with the Saudis for protections AND payment in Yuan for Oil?…know you did. Oil continues it's march upwards….the "imminent Russian embargo"-because Germany is nao on-board with it as of yesterday- news still werking on that plus Exxon-Mobil and Cheron reported BIG profits (muh surprised face). They are pretty much ignoring the Chinese demand destruction but anything to get that up so Aramco can push out it's next chunk via IPO. Big volume in that from the start of it's open and right at 1pm EST the selling commenced sending it back down from $107.3x
https://www.theepochtimes.com/first-shipment-of-russian-coal-paid-for-in-yuan-on-its-way-to-china_4430080.html
and then this below-they got dhere "deals" made or most of them and likely that had a bit to do with Olaf Scholz' trip to Japan >>16174239, >>16176999 pb German PM Olaf Scholz departed Tokyo-Germany-Japan tap hydrogen to reduce Russia dependence
European Union likely to approve Russian oil embargo next week: report
https://www.foxbusiness.com/markets/european-union-russian-oil-embargo
https://www.macrotrends.net/2566/crude-oil-prices-today-live-chart
Metals Au improved +4.70 +0.25% and Ag -0.36 -1.53% down and well below $23 in a late day paper orgasm. Protip: it's going lower and every dollar in drops is a paper gain for bank of America of over $1T-but that improves the Gold/Silver ratio 83.425 +1.589 (+1.94%) -please KEEP doing this as all it does is bring attention as to why every other commodity is on a tear accept Ag-still at HALF of it's all time highs of 1980 and 2011- G-I-F-T. It has improved all week.
Credit Suisse’s Board Sued by Retirement Fund for Archegos Debacle
https://www.bnnbloomberg.ca/credit-suisse-s-board-sued-by-retirement-fund-for-archegos-debacle-1.1759159
Blythe Maters joined not along ago-how fitting….the queen of Credit Default Swaps and part of the JP Morgue 'clean' up crew that took care of the Silver issue in 2011-btw they dropped that $6 literally at the same second the the "we killed UBL" news came out-May 2nd 2011-that was a cover to send Ag back down because da 'clean-up crew spent the entire rise layering in MASSIVE short positions and then acquiring about 1.2Bozs in phyzz and who lead that? Chicago POS William Daley as Hussein's CoS cause he was only there for one year and ONLY for THAT.-all of that is in the archive use Silver, William Daley, May11th 2011 as yer search werds.
So this will be litigation hell for along time and get settled and no onoe will admit anything and a fine will be paid-because that is how they do it.
https://www.kitco.com/charts/livesilver.html https://www.kitco.com/charts/livegold.html
https://goldprice.com/gold-silver-ratio/
https://www.marketwatch.com/investing/currency/usdjpy
https://www.macrotrends.net/2566/crude-oil-prices-today-live-chart
https://finance.yahoo.com/quote/%5EIXIC?p=%5EIXIC