After hours stats
Some after the close stats. It took the market 48 days to fall from1290 to 1090. It took us 18 days to go from 1090 to 1290 during this past aggressive squeeze. Short gamma got killed both ways. They still tell us market falls in panic mood….
Market Update
The outlined Trend Channel we have been posting over the last couple of weeks is still intact. The circle marks the shake out before we got the final short capitulation today. There are many big “smart” guys getting run over today, especially in Europe. In this complex world, it’s best to keep it simple. Stay tuned for our full chart review later.
Hugh Hendry Must See
Although not really in fashion today as the ES futures are soaring, we present some must see videos with Hugh Hendry.
More videos below.
Rational Markets and Herd Behavior
Somehow this video says a lot about the action we are witnessing today. ES futures up 55 handles in less than 20 hours. I buy, you buy, I buy, you buy, I sell…. People’s psychology does not change.
New Transatlantic Cable Built to Shave 5 Milliseconds off Stock Trades
This is Evolution, period. Too bad there is no cable we could connect to Greece and just fix the problem. By Popular Mechanics.
Hibernian Atlantic is building an undersea fiberoptic cable that will stretch from New York to London. The purpose of this engineering feat? To allow computers to complete financial transactions 5 milliseconds faster than their competitors. Finance is now increasingly dominated by automated trading, and to a computer 5 milliseconds is an eternity.
Read more: A Transatlantic Cable to Shave 5 Milliseconds off Stock Trades – Popular Mechanics
How much does it take to reduce the Debt to 90% Debt to GDP?
Now when Greece is fixed, let’s shift focus back to Italy. Good Luck.
Chart, courtesy McDonough
Snapshot of Economic Crisis
Guest Post by World Complex.
Today we look at the monthly change in net foreign purchases of US long-term securities. Data comes from the US Treasury site. By net foreign purchases they mean the difference between foreign purchases of US long-dated securities and US purchases of foreign securities.
What I found most surprising is the negative bias. In this chart, a negative number means US purchases of foreign long-dated securities exceeds foreign purchases of US long-dated securities. We note the negative bias becomes quite pronounced beginning in the early ’90s (wasn’t this the era of the US strong dollar policy?)
Grande Silvio
At least one guy is taking the European Debt Crisis with some humor. Silvio checking out the Danish Prime Ministers Plan B.
Unemployment falls sharply in October
As the World is saved, and news flow is all positive, let’s add some to the positivness from the latest Gallup Unemployment Survey. Unemployment is showing a sharp drop in October, get ready for next week….
Unemployment, as measured by Gallup without seasonal adjustment, was 8.3% for the 30 days ending Oct. 23 — down sharply from 9.0% for the 30 days ending Sept. 4. Over the same period last year, Gallup’s U.S. unemployment rate was steady or increasing, suggesting the lower unemployment Gallup has measured in recent weeks is not fully the result of seasonal hiring patterns. As a result, the government next week is likely to report a seasonally adjusted October unemployment rate of less than 9.0%.
Full article here.
News That Matters
Ft.com
European leaders reached a deal with Greek debtholders on Thursday morning that would see private investors take a 50 per cent cut in the face value of their bonds, a deep haircut that officials believe will reduce Greek debt levels to 120 per cent of gross domestic product by the end of the decade, http://ftalphaville.ft.com/thecut/2011/10/27/713356/eurozone-agreement-reached/
Europe’s banks will be forced to find about €106bn of extra capital by the end of June, under a mandatory scheme agreed by European Union leaders to temporarily bolster the defences of the banking system. A recapitalisation plan overseen by the European Banking Authority will require around 70 banks to meet a higher 9 per cent threshold of the “highest quality capital”, after revaluing sovereign debt at market rate. http://www.ft.com/intl/cms/s/0/ede0bc94-ffee-11e0-ba79-00144feabdc0.html#axzz1bxFOLwak
South Korea has doubled its currency swap arrangement with China to Rmb360bn ($57bn), further increasing the firepower available to protect its financial system from any turmoil in the eurozone. This latest swap agreement with Beijing, announced during a visit to Seoul by China’s vice premier Li Keqiang, comes only a week after Seoul increased its swap facility with Japan to $70bn from $13bn.http://www.ft.com/intl/cms/s/0/35911e14-ffd4-11e0-89ce-00144feabdc0.html#axzz1bxFOLwak
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