Financial Review

Pause

http://media.blubrry.com/eatthebankers/p/content.blubrry.com/eatthebankers/SINCLAIR_NOE-SEG_1-11-16-2016.mp3Podcast: Play in new window | Download (Duration: 13:16 — 6.1MB)Subscribe: Apple Podcasts | Android | RSS…..Dow waits for assault on 19,000. PPI unchanged. Industrial production unchanged. Mortgage rates up. Fed ready to hike rates. Bill Gross isn’t buying the Trump Bump. Snapchat files to go public. Amazon goes after knockoffs. Twitter goes after trolls. EU will fine more banksters. SEC finally addresses Flash Crash. Ford still going to Mexico. Playstation Fiesta Bowl. Financial Review by Sinclair Noe for 11-16-2016

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Financial Review

Do Computers Dream of Algorithmic Capitulation?

http://media.blubrry.com/eatthebankers/p/content.blubrry.com/eatthebankers/SINCLAIR_NOE-SEG_1-08-28-2015.mp3Podcast: Play in new window | Download (Duration: 13:16 — 6.1MB)Subscribe: Apple Podcasts | Android | RSSFinancial Review by Sinclair Noe for 08-28-2015 DOW – 11 = 16,643 SPX + 1 = 1988 NAS + 15 = 4828 10 YR YLD + .02 = 2.19% OIL + 2.71 = 45.27 GOLD + 8.30 = 1134.80 SILV + .08 = 14.70   The week roared in like a lion and left like a lamb. For the week, the Dow gained 1.1 percent, the S&P rose 0.9 percent and the Nasdaq added 2.6 percent. Go figure. Panicked selling on Monday and Tuesday gave way to a rush to buy on Wednesday and Thursday.  And for many investors, it was just too much. Equity funds saw $29.5 billion head for the exits, the largest weekly outflow on record. On Tuesday, investors pulled out $19 billion, the biggest single day for outflows in the past 8 years.  Some traders would call that “capitulation”, a sign of a bottom in the markets.   The chaos of this week’s markets appeared to hit smaller investors especially hard, leaving yet another dent in their stock market confidence. The Monday flash crash resulted in smaller investors being locked out of their online accounts. Strange glitches appeared. Exchanges spit out the wrong prices for widely held funds. For example, the SPDR S&P Dividend ETF dropped 33% in 15 minutes, then shot right back up 30 minutes later, while the stocks tracked by the ETF never fell that far. The QQQ, …

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Financial Review

Sheepish Algorithms

http://media.blubrry.com/eatthebankers/p/content.blubrry.com/eatthebankers/SINCLAIR_NOE-SEG_1-07-14-2015.mp3Podcast: Play in new window | Download (Duration: 13:16 — 6.1MB)Subscribe: Apple Podcasts | Android | RSSFinancial Review by Sinclair Noe DOW + 75 = 18,053 SPX + 9 = 2108 NAS + 33 = 5104 10 YR YLD – .03 = 2.40% OIL + .84 = 53.04 GOLD – 2.70 = 1155.80 SILV – .13 = 15.48   The stock market posted its first 4-day winning streak since January. The S&P 500 last week fell as much as 4 percent from its all-time high, and has since recovered to trade within 1 percent of its record set in May. The S&P 500 and the Dow are up 3 percent over four sessions, while the Nasdaq Composite has added 4 percent. The United States and other world powers reached an agreement with Iran that calls for limits on Tehran’s nuclear program in return for lifting economic sanctions that have crippled Iran’s economy, enabling the oil-rich nation to ramp up its energy exports, access international finance and open the doors to global investors. Full implementation of the agreement will likely take months and is contingent on the pace at which Iran meets its obligations. The deal will keep Iran from producing enough material for an atomic weapon for at least 10 years and impose provisions for inspections of Iranian facilities, including military sites.   Oil prices initially dropped when the Iran deal was announced, but then prices climbed higher. The oil markets were not surprised by the news announcement, and a …

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Tuesday, April 23, 2913 – A Tweet Day

A Tweet Day by Sinclair Noe DOW + 152 = 14719SPX + 16 = 1578NAS + 35 = 326910 YR YLD un 1.70%OIL + .38 = 89.57GOLD – 12.70 = 1414.60SILV – .47 = 23.04 Some days you hear a bit of news and it’s bad, really bad. And then some days, hackers hack into the Associated Press Twitter account and tweet that there are bombs at the White House, and the stock market goes into a freefall, and it’s bad, but not really bad. Yes, a false tweet sent stocks plummeting. The 143-point fall in the Dow industrial average came after hackers sent a message from the Twitter feed of the Associated Press saying the White House had been hit by two explosions and that Barack Obama was injured. The fake tweet, which was immediately corrected by Associated Press employees, caused a sensation on Twitter and in the stock market. White House officials were unimpressed. An AP reporter apologized for the Twitter hacking at the start of the daily White House press briefing, saying the tweet had been deleted as soon as it was discovered. A stoney-faced Jay Carney, Obama’s personal spokesman, thanked the reporter but did not look amused. “The president is fine. I was just with him,” added Carney. The market recovered within a few minutes of the misunderstanding, but the incident raised many questions. We still have a problem with high frequency trading algorithms that scan the news and trade quickly, causing flash crashes. And then …

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Friday, October 19. 2012 – Sometimes I Forget What I’m Supposed To Remember

Sometimes I Forget What I’m Supposed To Remember by Sinclair Noe DOW – 205 = 13,343SPX – 24 = 1433NAS – 67 = 300510 YR YLD -.06 = 1.77% OIL – 1.96 = 90.14GOLD – 21.10 = 1721.50SILV – .75 = 32.17PLAT – 29.00 = 1625.00 Today is the 25th anniversary of Black Monday, and the markets paid homage with a 205 point drop, nothing close to the 508 point drop in 1987. On a percentage basis, 1987 was 16 times worse than today. The Crash of 1987 would be about a 3,100 point drop in today’s markets. That would get your attention. Still, the more things change the more they stay the same. Back in 1987, the Crash was blamed, at least in part, on program trading, based on portfolio insurance and a process called dynamic hedging. I remember computers back then that weren’t fast enough to play Pong, much less cause a crash. Maybe the Wall Street crowd had really fast floppies. Today we have high frequency trading or HFT, and they can whip out trades in milliseconds; and if you’re looking for a market crash in the future, don’t be surprised if it comes from HFT. The whole idea of HFT is legalized theft and it doesn’t add to market liquidity, stability or efficiency. They are not market-makers. They are market-manipulators. They have no obligation to make a market in any stock. The never have to post a market or ever honor the bids and offers they …

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