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phil
February 23rd, 2015 at 5:26 am

Good morning!  

Hang Seng opened back up and ended the day flat after a 200-point pop but Shanghai still on vacation and /NKD still not holding 18,500.  India had a sharp sell-off on a corruption crackdown that didn't make the top 1% happy. 



President of India's Speech to Parliament in Full

Pranab Mukherjee said that India's government was committed to development for all as it looks to jumpstart the economy and boost investment.

Indian Outsourcers Struggle to Evolve as Growth Slows

Japan Shares Hit Fresh 15-Year High

Shanghai exchange to open doors to foreign short sellers.  Foreign investors will be able to short Chinese shares next month for the first time under the Shanghai-Hong Kong Stock Connect programme, in the latest move by China’s regulators to open up the country’s stock market.

Chinese Cars Fall Farther Behind

Europe has been fading since the open as Greek euphoria turns into "so now what?"  HSBC's earnings were a train wreck and yanked the FTSE down (they make up a big percentage) and, of course, Greece isn't officially fixed yet as we await them turning in their weekend homework assignment.  

Tsipras Can Expect More Humble Pie


Europe File: Greek leader Alexis Tsipras will have to capitulate on yet more issues if he is serious about putting Greece’s place in the eurozone beyond doubt, says Simon Nixon.

• Greek Leader to Temper Expectations



Greece's Tsipras Is on a High Wire. Greek Prime Minister Alexis Tsipras walks another high wire over the next 24 hours as he tries to come up with financial measures that satisfy both the demands of euro-region creditors and his anti-austerity party. 

An orderly Greek exit is the only option for Europe. The eurozone will generate spiralling financial instability until it finally implodes or is deliberately dismantled.

How the eurozone could tear apart. A standoff between Greece and its creditors nearly ended in the breakup of the euro project. How could a country leave the currency union? ?

How Greece Folded To Germany: The Complete Breakdown

What Ordinary Greeks Think Of Friday's Deal: "We Went Through Two Months Of Agony To Realize We Are Still A Debt Colony"

Germany Gives Greece Just Enough Rope: Varoufakis Says If Troika Rejects Reforms "The Deal Is Dead And Buried"

Putin’s Stealth Incursions Hinder NATO’s Ability to Strike Back

Kerry Warns of More Russia Sanctions as Ukraine Simmers

Moody's "Junks" Russia, Expects Deep Recession In 2015

The Ultimate "Easy Money Paradox": How The ECB's Previous Actions Are Assuring The Failure Of Its Current Actions

U.S. Units of Deutsche Bank, Santander Expected to Fail Fed’s Stress Test. Shortcomings seen in how banks measure and predict potential losses and risks. Two large European banks, Deutsche Bank AG and Banco Santander SA, are expected to fail the Federal Reserve’s stress test over shortcomings in how they measure and predict potential losses and risks, according to people familiar with the matter.

HSBC drops as profit misses estimates

• HSBC (NYSE:HSBC) -4.8% premarket after reporting that profits fell  17% to $18.7B in 2014, down from $22.6B the year before and below the average analyst forecast of $21B.
• The bank, which faced a significant number of fines and settlements this year, also cut its target for RoE to "more than 10%" from a previous target of more than 12%.
• "We deeply regret and apologize for conduct and compliance failures…which were in contravention of our own policies," added HSBC, addressing the allegations about tax evasion at its Swiss operations.
• HSBC chief executive, Stuart Gulliver, has been recently dragged into the tax-evasion scandal after it was claimed that he sheltered millions of dollars in a Panamanian company via its Swiss private bank.

Our Futures are down about 0.2% but seem to be holding up there on the strong Dollar (94.915 now).  Gold not so hot, at $1,194 after testing $1,190, Silver $16.125, Copper $2.588, Nat Gas $3.03, Gasoline $1.652 and

Oil falling to $50 but BNO still $22.40 so I like /CL long at this line with tight stops here.  

Monday's economic calendar

• 8:30 Chicago Fed National Activity Index
• 9:45 PMI Services Index Flash
• 10:00 Existing Home Sales
• 10:30 Dallas Fed Manufacturing Outlook

Are You Ready For Total Currency War

The "Liquidity Glut" Springs Eternal: Global Central Bank Easing Quadruples In 2015

Trickle-Down QE

The Smart Money Is Selling, Not Buying" Goldman(GS) Warns With Valuations In The "99th Percentile

Carlyle Hedge-Fund Unit Has Big Outflow. Withdrawals follow losses due to investments in Fannie Mae, Freddie Mac. Investors have pulled about $2.5 billion since October from a hedge-fund firm owned by Carlyle Group LP after an outsize bet on mortgage giants Fannie Mae and Freddie Mac led to steep losses last year, people familiar with the matter said.

The largest US refinery strike in 35 years is killing one fifth of the country's production capacity

Doctors on demand: Affordable and getting more popular

The "War On Terror" Turns Inward – DHS Report Warns Of Right Wing Terror Threat





For now, however, the music is playing. Why? Thanks to management teams, whose equity-linked incentives and compensation go up the higher their stocks goes, which is why companies are forecast to buyback a record $450 billion in stocks, and probably much more, in 2015.



The bottom line is simple: there is no longer any question if the market is in a bubble: it is, and in fact it is the biggest bubble in history. The only question is who starts the selling avalanche, and when?