tyb
US Market Report
As mentioned this morning the news cycle for the markets is full on retard of bad news. The amount of headlines out last night and up to now would fill an entire panel and then some. Over the last 30 years I have seen many things-specifically if just ONE of the following headlines habbened it became enough to have a triple-digit lose in pre-market. It typically became worse until about lunchtime EST and then rose into the close. Prior to the algorithmic take-over of the markets in 2006 these drops were moar pronounced and lasted longer. After the High Frequency Traders (HFT) took it over it became an exercise in massive frustration as you were never going to get the jump on anything. Simply unable to do this because of the latency. If you were moar than 75 miles away from the main exchange(s) or aggregator sites you were at a disadvantage. This is where order spoofing came in. Moar on this later this week.
Some Headlines
10-year Treasury yield carves out fresh 21-month low on trade uncertainty
What are Treasurys doing?
The 10-year Treasury note yield TMUBMUSD10Y, -2.60% slipped 5.4 basis points to 2.085%, carving out a fresh 21-month closing low, while the 2-year note yield TMUBMUSD02Y, -5.59% tumbled 8.9 basis points to 1.848%, its lowest since Dec. 2017. The 30-year bond yield TMUBMUSD30Y, -1.25% fell 2.7 basis points to 2.550%, its lowest since Oct. 2016. Debt prices move inversely to yields.
https://www.marketwatch.com/story/10-year-treasury-yield-inches-closer-to-2-yield-on-recession-rate-cut-fears-2019-06-03?
'''See Cap#3
China opened optimistically, but faded soon after the open, only to flatline during the afternoon session.
European markets were the opposite, opening down hard then ramping all day long.
A double-whammy from Bullard boosted stocks briefly (but battered bond yields and the dollar)
1325ET FED'S BULLARD: RATE CUT MAY BE WARRANTED SOON TO LIFT
INFLATION
1505ET FED'S BULLARD: INFLATION BELOW TARGET IS ANOTHER RATE-CUT ARGUMENT
where have you heard this before? About 4 weeks ago pepe said the FRB cutting the discount rate would accelerate the yield curve implosion-that is exactly what habbened-embrace the pepe.
But tech-probe trouble trumped the Fed Put today…
IT"S THE POTUS PUT
(Dow ended unch, S&P red and Nasdaq clubbed like a baby seal)
’Don’t eat the yellow snow-especially you Alaska anon who checked in this morning-o7'
The reaction to the news that the DoJ is considering an antitrust investigation into Google parent Alphabet and an FTC probe of Facebook has been dramatic and justifiable in tech shares, with the Nasdaq 100 down hard today. But the reality is FAANG stocks have been in trouble for a while…
share buybacks will do that to you-look at the 10-Q's of any of these tech company's and you will find VERY LARGE holes-Google has an $18b one that was attributed to 'goodwill'.
Credit markets are starting to crack more systemically.
Credit insurance or Credit Default Swaps have been blowing out ever since Deutsche Bank’s issues could no longer be contained.
Cap#4
I am wondering if that unsauced item re: Deutsche Bank and the red castle is accurate-as in true-the stock certainly can speak to it.
Yields are utterly collapsing. Dramatically inverting the front-end of the curve. The entire curve is underwater now out to beyond the 20Y.
Think Mr Mackey-mmmmmkay!
Gold extended its recent surge.
See cap#5
Pushing to almost 90.0x ratio with Silver.
And notably gold is dramatically outperforming Yuan reaching near 6-year highs.
The Yuan is over as far as a growth engine for ANYTHING-SO OVER.
Finally, the market is pricing in 3 rate-cuts by the end of 2020.
Once again pepe told ya 2 by the end of the year starting in September, this morning the CME futures that watch the FRB and what it will do shifted a 6% chance taht a deeper rate cut will come at September mtg-perhaps a full 50 basis points-still early days on that posssibility.
https://www.marketwatch.com/story/10-year-treasury-yield-inches-closer-to-2-yield-on-recession-rate-cut-fears-2019-06-03?siteid=rss&rss=1
https://www.zerohedge.com/news/2019-06-03/fangd-tech-wreck-sparks-stock-slump-bonds-bullion-bid
https://finance.yahoo.com/quote/%5EIXIC?p=^IXIC
Cap#3 should be this.
it's paper but there is nothing else. I can only imagine these local coin shops doing this on a daily basis as they are not protected. most of them wholesale the buys they take in unless they have been smart. But they have to generate an income on a weekly/monthly basis. Silver/Gold ratio now at 90:1 or thereabouts.
Freedom boner!
they do and some of them have ridiculous ones at that. i have bought some locally last year but never moar than 3% as if you looked around enough you could get it at that level but this was summer last year. have not checked that out lately…I'm full!
ty anon and good luck to you as well.
Squeezed the shorts dry last few months and now no one buying.