“Ben it’s Jamie. Uh we’ve got a problem here. The bets went bad and it will take down a couple hundred billion worth of market funds. I need $100 billion deposited in our account Sunday night. A 5% jump in our momo basket should be enough to cover the base loss. Typical terms, .25% goes back to the Fed at the end of the day on top of the $100 [...]
Published on May 11, 2012 by CapitalAccount
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Welcome to Capital Account. From Whale Tails to Unicorn Fairytales, this week has ended with a bigger splash then anyone could have expected. The London Whale has officially capsized JP Morgan’s balance sheet with a reportedly 2 billion dollar trading loss. Jamie Dimon, the firm’s CEO, admitted “egregious mistakes” were made and that he and his colleagues were “stupid.” Fair enough, but why [...]
From Frank Holmes of U.S. Global Investors:
As the saying goes, “every dog has its day” and global markets appear to have followed this historical trend lately as last year’s dogs became the darlings of January. Notably, small-caps, copper, and junior resources stocks have climbed recently, indicating that momentum has shifted.
Take a look at the small-cap Russell 2000 Index, which was decimated in July, days before the 50-day moving average fell [...]
From John Kinnucan of BroadBand Capital Management
Be Careful What You Wish For, Such As ECB Printing Money
Last month, global equity markets fairly demanded that the ECB hurry up and print, through buying euro zone debt. Effete euro elites publicly demurred at first, insisting that unlike crass Anglo-Saxons, they didn’t let financial markets push them around. Shortly thereafter, to markets’ thrill, LTRO was launched, i.e. backdoor money printing, since any sentient [...]
As we present Morgan Stanley in the role of the biggest Netflix bull (or is that loser? We are not sure we can use that word without preclearing it with the Wall Street directorate of truth), we eagerly await the barrage from the media that has a “gag order” on the investment bank with massive French bank exposure, that will shoot the messenger for suggesting that in addition to [...]
Anyway, big rally today that hardly stopped until this last hour. The interesting thing about it was that we saw a whopping two whole instances of +1000 tick to drive the ES up to 1180! Talk about traveling higher on fumes!! Say what you will, it did go there…………but, recognize reality, as well…….it ain’t holding through the end of the day with a showing of strength, either! There was [...]
“The attached liquidity analysis by Abel-Noser indicates that the US stock market has now become a concentrated pool in which just the top 99 stocks account for 50.09% of total domestic trading volume. In June, the top 20 stocks accounted for 28.94% of all domestic volume, an increase of 2.2% over May’s 26.7% and a record.
The HFT algos are increasingly trading less and less stocks in their attempt to corner [...]