Long View Revisited
Remember Napier from earlier this spring? Now when markets are closed, good recap time. We have another 1000 SPX points to the downside before Napier’s Long View is reached.
Flash Crash JPY
Flash Crash in JPY happening now. Intervention time coming up, or is the balance sheet a little stressed?
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What happened to broken Volatility?
Many investors are “confused” with what is happening. We have Debt problems, countries about to default, equities markets supported by the central banks, HFT etc. But there is one biggest factor driving us lower, and eventually creating the big panic. The single most important driver of these abnormal moves, is Volatility having been mispriced for too many years. We have posted this year’s best vol report before, and now is time to reread it. In order to know the future, we must understand the past.
Flash Crash Deja Vú
As we are approaching the Big Flash Crash, recall what it looked like last time. Action in GE during the 2010 Flash Crash.
Black Monday?
Europe is collapsing. News flow coming out almost impossible to follow. Halting of Italian Stocks just started….
Friday Eurozone Panic
Some renewed fear spreading in Europe after chatter of Greek Default this weekend. Stark is to resign due to “arguments” over bond buying. Also, Rehn sees “challenges” in Bank’s Funding. CDS blowing up, yields in Greece at ridiculous levels, Eur selling off and Equties digesting some of the news coming in, with the Banks falling hard.
The Future of Computer Trading in Financial Markets-Dead (Hu)Man walking
Daily Gold
By GoldCore;
Gold is trading at USD 1,836.60, EUR 1,330.90 , GBP 1,153.90, JPY 142,750 per ounce and reached a new record nominal high in Swiss francs at CHF 1,652.83. Gold was higher in all currencies prior to sharp selling was seen in the hour after the London AM fix.
Gold’s London AM fix this morning was USD 1,879.50, EUR 1,359.39, GBP 1,177.12 per ounce. Yesterday’s AM fix was USD 1,827.00, EUR 1,298.88, GBP 1,146.68 per ounce.
Gold in Swiss Francs – 5 Day (Tick)
The speeches from Trichet, Bernanke and Obama were as expected and did not materially impact markets – but did belatedly confirm the extremely challenging macro environment.
Trichet’s angry outburst may lead to concerns about the long term health of euro. The outburst came after a question from a German reporter who asked what Trichet’s message was for German people who say their country should revert to the Deutsche mark.
Risk aversion has seen equity markets in the U.S., Asia and Europe fall again and peripheral European bond yields are edging up again, as are European CDS.
Collapse (quick version) in Gold and Silver
Remember Efficient Markets theory from Eco 101? Well that was then, now is different. The World by HFT and Intervention. How strange these precious metals collapse in time for the fixing….
US Budget
We just can’t stop republishing the below chart. While listening to Obama yesterday (explaining the Japanese style US Economy), we couldn’t but think of a better chart explaining the US Economy and the Budget. Zoom in the dot to the left on the Chart. By Elefint Design;
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