"We're hunting for a creature called the Bernanke..."
Creditcane™: REPETERE AD INFINITUM: CAVEAT EMPTOR.
Bearish long day (confirmed shooting star). Midpoint above EMA(10). Tested and held SMA(55). Tested and held the 38.2% minor retrace (1416.67). No daily 3LB changes (reversal is 1418.07). QE2infinity. Still below 2 of 3 trend lines and RSI(14) above 50.
Spinning top day. Midpoint below EMA(10). Tested and failed the 38.2% retrace (79.97). Now failing all SMA's. No dally 3LB changes (reversal is 79.67).
Bullish long day. Midpoint above EMA(10). Tested and held SMA(21,55,89). Still failing its 61.8% minor retrace (18.81). No daily 3LB changes (reversal is 15.06).
Bearish long day. Midpoint below EMA(10). Still failing its 38.2% retrace (1733.20). Still failing SMA(21,55,89). No daily 3LB changes (reversal is 1718.80). Must have the precious.
Spinning top day. Midpoint above EMA(10). Still above all SMA's. Tested and failed its 38.2% retrace (1.3134). No daily 3LB changes (reversal is 1.3112).
Bearish short day. Midpoint above EMA(10). Still above all SMA's. Tested and failed its 100.0% retrace (40.86). No daily 3LB changes (reversal is 40.65).
Bullish short day. Now above all SMA's. Midpoint above EMA(10). Still failing its 38.2% minor retrace (17.47). New high on daily 3LB (reversal is 15.81).
Bearish short day. Now failing all SMA's. Midpoint below EMA(10). Still failing its 38.2% minor retrace (88.45). No dally 3LB changes (reversal is 84.87).
Bearish long day. Tested and failed SMA(21,55,89). Midpoint below EMA(10). Holding above its 38.2% minor retrace (32.24). New low on daily 3LB (reversal is 34.24).
Bearish short day. Midpoint above EMA(10). Tested and held SMA(55). Now failing its 50.0% minor retrace (50.01). No daily 3LB changes (reversal is 49.17).
Doji day (evening star forming?). Now above all SMA's. Midpoint above EMA(10). Tested and held its 50.0% minor retrace (0.7722). New high on daily 3LB (reversal is 0.7647).
Bearish long day. Midpoint above EMA(10). Still above all SMA's. Tested and failed its 38.2% retrace (3.681). No daily 3LB changes (reversal is 3.658).
Spinning top day. Still failing all SMA's. Midpoint below EMA(10). Still failing its 38.2% retrace (555.47). Still failing BB(2,200). New low on daily 3LB (reversal is 571.50).
Bearish long day. Midpoint below EMA(10). Tested and failed SMA(21). Still failing its 61.8% minor retrace (570.80). New low on daily 3LB (reversal is 575.22).
IT HAS BEGUN. YOU HAVE BEEN WARNED.
3 comments:
http://www.americanbanker.com/issues/177_238/big-banks-flunk-occ-risk-tests-1055128-1.html?zkPrintable=1&nopagination=1
Big Banks Flunk OCC Risk Tests
Think corporate governance at the largest banks is weak? You're right, but you probably have no idea just how right you are.
The Office of the Comptroller of the Currency recently graded the 19 largest national banks on five factors designed to gauge how well they are being run.
The results are startling.
Not a single bank met the OCC's requirements for internal auditing, risk management or succession planning. Only two of the 19 banks met the regulator's requirements for defining the company's appetite for risk-taking and communicating it across the company. Only two banks were judged to have boards of directors willing to stand up to their CEOs.
This miserable picture was painted by OCC leaders last month at a closed-door conference for large-bank directors. I obtained a copy of the presentation materials and I asked the OCC to help me understand them.
In an interview Monday, Mike Brosnan, an agency veteran who now leads large-bank supervision, walked me through the progress bankers and examiners alike have made over the last two years. He is confident that the next year will bring marked improvement.
"I'm satisfied with where they have come from, and I like the momentum," Brosnan says. "I think we're at a C-plus/B-minus point, and what we are looking to get to is B-plus or A-minus. We are not looking for A-plus."
Brosnan predicted each of the 19 banks will meet the agency's thresholds in at least one of the five categories by July.
"All these are motherhood and apple pie, but they are really hard to do," he says.
Hard indeed. According to the conference materials, the number of outstanding "matters requiring attention" at the 19 banks stood at 1,083 on Sept. 30, which works out to an average of 57 separate problems cited at each bank.
Brosnan stressed that national banks are being held to higher and tighter standards than ever before. "We've raised the bar significantly."
Amenra, Re: Last night and the Fed:
1. It is very unlikely that the Fed will own a majority of the long bonds. There are a ton of off the runs still out there and the treasury is minting them faster than the Fed will be buying.
2. The whole point of the Fed removing duration from the market is to force investors into riskier assets (and ease financial conditions, etc.). If "no one" is willing to own long treasuries, I think the Fed will say, "Mission Accomplished." Of course, we know that long treasuries are a primary component of pension liability hedging so there will be no shortage of of demand under any circumstance (albeit, if liquidity concerns do arise, as you propose, there will have to be a much higher emphasis on derivative overlay strategies, which will make the big banks even more systemically important).
Keep in mind that the Fed is operating in tremendously deep markets. When you hear people say the bond market is THE MARKET, they mean it. I can go out tomorrow, put a buy order for $250 million long bonds on my Bloomber terminal, and the Street will fill me, instantly. This is AFTER years of the Fed accumulating long duration treasuries. Try doing that with any equity (even Apple) and watch the market impact.
It is hard for me to imagine a case where there is so little float in long treasuries that traders just stop trading them. If anything, they will be even more desirable to investors.
Funny how correlations blow up when you least expect it. Ex: EURUSD up, SPX down.
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