Sunday, January 17, 2016

The Bursting of the Bond Bubble Has Begun - Pt 2 / Interest-Rates / International Bond Market

By: Graham_Summers

As we wrote earlier this week, bursting of the bond bubble has begun.

The decision by Central Banks to “inflate” the system’s debts away post-2008 has resulted in the misallocation of trillions of Dollars of capital.

The worst offenders were Chinese corporates. China has created the single largest mountain of bad debt in the world. Indeed, things are so out of control in China that 45% of all proceeds from new bond issuance are being used just to pay off interest on old loans.

Sunday, January 17, 2016

Gold and Silver Rally, Miners Spanked on Stock Option Expiry / Commodities / Gold and Silver 2016

By: Jesse

"Price discovery is not a sexy function of markets, but it is critical to the efficient allocation of scarce capital and resources, and to the preservation of the long term wealth of investors and the economy as a whole. If price discovery is compromised by manipulation, then we will all be gradually impoverished and the economy will be imbalanced and unstable."

London Banker, Lies, Damn Lies, and Libor

Sunday, January 17, 2016

U.S. Economy - The Chart that Explains Everything! / Economics / US Economy

By: Mike_Whitney

Why is the economy barely growing after seven years of zero rates and easy money? Why are wages and incomes sagging when stock and bond prices have gone through the roof? Why are stocks experiencing such extreme volatility when the Fed increased rates by a mere quarter of a percent?

It’s the policy, stupid. And here’s the chart that explains exactly what the policy is.

Sunday, January 17, 2016

California Major Catastrophe: Major Media Problem / Commodities / Natural Gas

By: Walter_Brasch

On Oct. 23, Southern California Gas technicians discovered a leak of methane from a failed casing on one of the pipes in its Alisa Canyon storage facility, about 30 miles northwest of Los Angeles.

The company estimates it will be the end of March until it can plug that leak from the pipe that is about 9,000 feet deep.

Sunday, January 17, 2016

Crude Oil Price Crash Triggering Global Instability, Trend Forecast 2016 / Commodities / Crude Oil

By: Nadeem_Walayat

The crude oil price collapse of 2015 has continued into 2016 with the price of oil plunging to a 12 year low of just under $30 per barrel as a consequence of a perfect storm of falling demand, primarily due to the slowing Chinese economy and relentlessly rising output that is not just limited to the usual OPEC suspects but is as the natural consequences of the fracking boom that continued to ripple out from the US to across the world during 2015.

Saturday, January 16, 2016

Themes, Dreams, and Schemes - Global Economy at Stall Speed, Monetary Velocity and Interest Rates / Economics / Global Economy

By: Andy_Sutton

First I must offer an apology of sorts for being in absentia for an extended period of time. I would imagine that those of you who struggle to keep up with the demands of work, family, and everyday stresses understand this, but I apologize anyway. There are links on the blog to the Liberty Talk Radio appearances I’ve made over the past few months just to prove that I’m still vertical. Graham joins me once again and as always has some interesting takeaways.

Saturday, January 16, 2016

Stocks Bear Market Underway / Stock-Markets / Stocks Bear Market

By: Tony_Caldaro

First things first. An equity bear market has been confirmed on Friday by OEW. The market started the week at SPX 1922. After three gap up openings the market gyrated its way up to SPX 1950 by Wednesday, then started to head lower. Thursday also had a gap up opening, and the market recovered to SPX 1934. Friday, however, we had a big gap down opening and the market traded down to SPX 1858 before recovering to end the week at 1880. For the week the SPX/DOW lost 2.20%, the NDX/NAZ lost 3.15%, and the DJ World index lost 3.0%. Economic reports for the week were nearly all negative. On the uptick only Consumer sentiment. On the downtick: export/import prices, retail sales, the PPI, the NY FED, industrial production, capacity utilization, business inventories, the WLEI, the GDPn, plus the treasury deficit and weekly jobless claims rose. Next week we get reports on the Philly FED, the CPI, and Housing.

Saturday, January 16, 2016

Gold And Silver: New World Order: Public Be Damned, Preferably Dead / Commodities / Gold and Silver 2016

By: Michael_Noonan

In the midst of this political and economic maelstrom that appears to be reaching its peak since the pivotal 9/11 "attack" on the US, when the twin towers of the World Trade Center were destroyed, partially by an airplane flying into each tower, then more fully by the detonation of all the explosives planted in the buildings to insure their destruction. Should there be any question as to that assessment, which has gained greater acceptance by those willing to do their due diligence, the unprovoked destruction of building seven [WTC 7] adds proof of how these buildings were planned for certain demolition, in advance.

Saturday, January 16, 2016

Stock Market Crash Apocalypse or Bull Market Severe Correction? / Stock-Markets / Stock Markets 2016

By: Nadeem_Walayat

The 7 year long mature stocks bull market has got off to a disastrous start to 2016, apparently the worst start to a new year EVER! Which on Friday saw the Dow close sharply lower at 15,988, down 391 points and recovering from an earlier 537 point plunge. Whilst the relentless selling of the past 2 weeks has increasingly emboldened the usual suspects, the perma bears who tend to see the start of a bear market in EVERY dip. However for those who actually managed to ride this 7 year long stocks bull market (15 Mar 2009 - Stealth Bull Market Follows Stocks Bear Market Bottom at Dow 6,470 ), which for its first full 3 years at least was a stealth bull market that was met with denial from right across the financial media, never mind the blogosfear, now have to seriously consider whether the relentless weakness could be an early sign that the stocks bull market may be rolling over into a bear market.

Saturday, January 16, 2016

Stock Market Another Day In The Downtrend....7-Year Uptrend Line Gone For Now.. / Stock-Markets / Stock Markets 2016

By: Jack_Steiman

We had a confluence of events come together this morning. Last night we had the usual bad action out of China, which naturally put some pressure on the global markets. Europe follows China and we follow Europe, thus, step one took place. Step two was the price of oil, which is definitely affecting the markets. Oil got crushed overnight and this too had an adverse effect on our futures. Lastly, and in my opinion, most importantly, we had a cascade of bad earnings reports from two key sectors in the market. In the world of semi-conductors, we saw Analog Devices, Inc. (ADI) warn on future guidance. They are a key supplier to Apple Inc. (AAPL), and this also verifies the reports coming in that AAPL is seeing a slowdown. Intel Corportation (INTC) joined in with the bad news as well.

Saturday, January 16, 2016

Don't ya Want to SHORT This Stock Market Like Crazy? / Stock-Markets / Stock Markets 2016

By: Denali_Guide

And get the snot knocked out us in the process?  Admittedly, the DJIA has made it's way into the 15's.   The real question is, how long before THEY decide the DOW must be back in the 17's?  I don't think they can make it happen.  Rather I think they will pump like madmen aboard a sinking ship, using MLK Day as a smokescreen, resting the market, and then a burst to 16 + some change, and then let it burn out. 

Friday, January 15, 2016

Stock Market Hour of Truth is Upon Us / Stock-Markets / Stock Markets 2016

By: Anthony_Cherniawski

The algos are attempting a ramp into 3:00 because they know that the institutional investors are coming back into the market to close out the trading day. This will reveal how they have been positioned for options expiration, since the word on the street is that nearly all the major dealer banks have been net short the market for the past two weeks.

Friday, January 15, 2016

How to Survive and Prosper in a Global Financial Crisis 2016 / Stock-Markets / Financial Crisis 2016

By: EWI

Dear Investor,

As I'm writing this email, over 3 trillion dollars have been wiped off the value of global stocks since the start of 2016.

With that in mind, I urge you to read Robert Prechter's free report, How to Survive and Prosper in this Global Financial Crisis.

Friday, January 15, 2016

Another Atrocious Stock Market Week Going Out With A Bang / Stock-Markets / Stock Markets 2016

By: John_Rubino

On days when lots of financial numbers are released, the normal pattern is for some to point one way and some another, giving everyone a little of what they want and overall presenting a reassuringly muddled picture of the economy.

Not today. A wave of economic stats flowed out of Washington, almost all of them terrible, while corporate news was, in some high-profile cases, shocking. Let's go to the highlight reel:

Friday, January 15, 2016

Major Stocks Bear Market Awakening / Stock-Markets / Stocks Bear Market

By: Zeal_LLC

The US stock markets have suffered their worst early-year losses in history in young 2016, an ominous proof that a major trend change is underway.  The Fed’s new tightening cycle is already slaying recent years’ extraordinary easy-Fed-fueled stock-market levitation.  Unfortunately the only possible reckoning after such a record artificial stock boost is a long-overdue major bear market that is finally awakening.

Just a month ago, the stock markets looked radically different.  The Federal Reserve’s Federal Open Market Committee that sets monetary policy mustered the courage to hike rates, ending exactly 7 years of a record zero-interest-rate policy.  Stock traders rejoiced, interpreting the first rate hike in 9.5 years as a sign the Fed had great confidence that the US economy was improving.  So they bid stocks higher that day.

Friday, January 15, 2016

U.S. Consumers Drowning Their Sorrows At The Bar / Economics / US Economy

By: James_Quinn

Month after month I watch as the MSM mouthpieces try to spin declining consumer spending in a positive light. They are practically out of excuses. They are befuddled, because month after month they report “awesome” job gains and can’t understand why all these gainfully employed Americans aren’t buying shit they don’t need like they used to. These faux journalists, spouting propaganda for their ruling class bosses, are willfully ignorant of the fact the job gains are in low paying part-time jobs and the fact that Obamacare and record high rents are sapping any discretionary income households would use to buy stuff.

Friday, January 15, 2016

Gold Price in 2016 / Commodities / Gold and Silver 2016

By: DeviantInvestor

We all know that gold prices in US dollars have been in a downtrend for about 4.5 years.

We all know that gold prices rise, on average, as the underlying currency declines in value.  Gold in the US was priced under $21 per ounce when the Federal Reserve was established.  Since then the dollar has been devalued and gold has increased in price by a factor of about 50.

It is the same story around the world, whether you evaluate in terms of British pounds, euros, rubles, yen, or any other debt based fiat paper currency.

Friday, January 15, 2016

VIX Asleep as Stock Market Weakness Escalates / Stock-Markets / Stock Markets 2016

By: Ashraf_Laidi

One notable reason the VIX is trading at only half the level seen in August (53.0), a time when equity indices plunged near today's levels is related to market's absorption of risk versus macro negatives.

The China devaluation of August 24 came as a complete surprise to financial markets, which were neither ready for the PBOC's FX manoeuvres, nor prepared for the dangers of rapid decline in the currency of the world's biggest buyer of commodities as they are today.

Friday, January 15, 2016

Gold Bullion Retains “Key Role Of A Major Diversifier” – Dr Gurdgiev / Commodities / Gold and Silver 2016

By: GoldCore

- 2015 and start 2016 “worrying” for markets
- Gold’s long term performance strong in all currencies (see table)
- “Improved performance in market for gold coins”
- “Demand for U.S. Mint issued gold coins rose 45.6% y/y in weight terms”
- “2015 the third busiest year over the last ten years”
- Gold has key role of a major diversifier in portfolios

Friday, January 15, 2016

A Huge Gap Down Awaits the Stock Market / Stock-Markets / Financial Markets 2016

By: Anthony_Cherniawski

Good Morning!

SPX appears to have crossed beneath its neckline and may be challenging its September 29 low at 1871.91. A fall beneath the August 24 low at 1867.01 may release a barrage of sell orders, driving the SPX to the final support level at 1820.66 made on October 15, 2014.

Whether intentional or not, this may trap a lot of bulls in a very dicey proposition. Hoping for a bottom today is not a viable strategy. Today’s outcome was amply suggested yesterday by the Hi-Lo Index, which closed very near the bottom of its range at -698.00.