Business

Via Pater Tenebrarum of Acting-Man.com,

Blow-Off Pattern Recognition

By EconMatters

We discuss Politicians on both sides of the aisle and the propensity for overpromising and under delivering, and what this means for the stock market longer term. Paper Profits do not count for much in the end. You can buy Dogshit Stocks at all-time highs, but then you are stuck with Dogshit Stocks at all-time highs in your portfolio. That usually ends well for investors!

In a somewhat surprising auction, despite trading special in repo this morning at -0.50%, traditionally an indicator of a squeeze into the auction, today's sale of $24 billion in 3 Year paper tailed modestly, printing at 1.63%, 0.6bps wide of the When Issued of 1.624% at 1pm.The yield was the highest going all the way back to April 2010, and certainly higher than the 1.427% in February or the 1.229% six prior auction average.

Once a shining beacon of American capitalism, malls around the U.S. are failing at an alarming rate due to a combination of shifting consumption patterns, years of underinvestment by mall owners and a spate of retailer bankruptcies over the past 12 months that have left large swaths of once prime real estate empty (see "Number Of Distressed US Retailers Highest Since The Great Recession"). 

As we warned earlier, the shorts have been unleashed in Snap (as T+3 settlement enables 'borrow'). Snap is down 12% today and down 30% from Friday's highs as S3 Partners says short-interest in the 'camera' company has reached $100 million...

• BROKERS LENDING SNAP SHARES TO SHORT SELLERS AT RATES BETWEEN 20 AND 40 PCT – S3 PARTNERS
• SNAP SHORT INTEREST APPROACHING $100 MLN – S3 PARTNERS

And the result..

Next stop $17?