ZURICH (Reuters) – Credit Suisse’s first quarter results could suffer a material impact after the bank started exiting positions after a U.S.-based hedge fund defaulted on margin calls it made, the bank said on Monday. “While at this time it is premature to quantify the exact size of the loss resulting from this exit, it could be highly significant and material to our first quarter results,” the bank said. Switzerland’s second biggest lender said the un-named hedge fund defaulted on margin calls made last week by Credit Suisse and other banks. A margin call is a demand from a broker to add more money to an account to cover potential losses. Following the failure of the fund to meet these margin commitments, Credit Suisse and a number of other banks are in the process of exiting these positions, Credit Suisse said. Credit Suisse said it would provide an update on the matter in “due course.” The warning is a further blow to the bank which is considering compensating investors hit by the collapse of funds linked to insolvent finance firm Greensill. The Swiss lender this month closed around $10 billion of supply-chain finance funds that bought notes from Greensill. Of this, $3.1 billion has so far been repaid and more than $1.2 billion in cash remains in the funds, leaving more than $5 billion outstanding. Nick Note: with a little bit of luck AND a lot of lucky guessing we may be able to turn these overleveraged hedge funds wiping out into a great big ugly bear trap. Won’t that be fun……. You don’t know how to to that? its OK because id do. Its called fucking them coming and going.. BlackJack
Nomura flags potential significant loss at U.S. unit
https://youtu.be/FbN9zs24Eb0
TOKYO — Nomura Holdings Inc said on Monday it discovered a case that could subject one of its U.S. units to “a significant loss” arising from transactions with a U.S. client. The estimated amount of the claim against the client is approximately $2 billion based on market prices as of March 26, the Japanese brokerage and investment bank said in a statement. Nomura said it is still assessing the impact of the loss on its consolidated earnings. Nick Note: This is spreading. A little birdy tells me its not just one Hedge funds that is in meltdown and up to 5 financial intuitions have taken a major mulit billion dollar hit. As we have been reporting for some time now our beloved stock indices have been highly manipulated. That unsuccessful velocity breakdown to the downside and reversal at the start of the month took a trillion dollars. It failed as their was no floolwthrough. Markets are nervous and as of yet we do not know what the hedge funds books that are blowing up look like. I got a feeling some big shot Wall Street mathematicians will be back at their almamarter teaching freshman statics classes. This is not over.AND AND AND i do not believe it involves buys in NASDAQ stocks. In fact my sniff is it MAY take off the selling pressure. The last few months the boys have been beating the band and pushing their high net worth types into overseas stocks especially China. That made me very suspicious. My rule number 6 hedge fund manager: Never leverage your trading capital by borrowing money… Another conflict i had with associates. It will take some time to unwind this hedge fund growing mess. Remember when funds have a blow up their loan commitments the lending contracts kick in. This means that their lenders take over the trading book. The last person in the world you want managing a hedge fund especially in a crises is a rules based banker and their risk department full of millennial, bitches and snot nosed prep school boarding schoolboys. My sniff here is i think the hedge funds originally did a bear bull spread. A very dangerous strategy. But its a good way to make a HIGH risk trade look benign. I have tried them and can tell you i was lucky to break even. The way this works is they may have gone long Asia high tech shares mostly out of China and short US tech stock shares on the NASDAQ. Something is fishy in CHINA. Remember when Jack Mouw disappeared? Also China’s recovery has occurred without a vaccinated population…. very strange. Cost to ship a 40 foot container has gone from $800 to $8,000. And do not forget the chip shortage…… again ALL very strange. Chip supply line have collapsed with no inventory available from Teir 2 Chinese workhorse chip manufactures. These are low tech embedded processors doing very specific jobs. Like controlling your anticlok breaks or your microwave oven. Also some chips in cell phones are coming up short like the WIFI module….. All very strange.
Large block trades that caused selling raises questions about cause
https://youtu.be/rdS0X3kWaQM
Highly Leveraged Hedge Fund Have Imploded: Some Stocks Remain Heavily Discounted
- Shares of ViacomCBS, Discovery fell as much as 35% Friday
- Goldman Sachs offered very large block shares of ViacomCBS Friday afternoon – Sources
- Multiple prime brokers sold shares aggressively Friday afternoon
- Archegos typically employs high leverage on its stock positions
- ViacomCBS earlier this week conducted large secondary offering
Hedge Fund Rumored to have gotten margin called; Forced to Liquidate over 30 Billion in assets; Some stocks heavily discounted. Over the last week, some stocks experienced sudden, extreme sell pressure: $BIDU, $IQ, $TME, $VIAC, $VIPS, $YY This is rumored to be caused by forced liquidation from one highly leveraged hedge fund: Archegos Capital. A liquidation of holdings at several major investment banks with ties to Tiger Cub Archegos Capital Management LLC contributed to an unseen daily decline Friday in shares of stocks including Discovery, Inc. and ViacomCBS Inc., according to people familiar with matter. Shares of media conglomerate ViacomCBS fell 26% while Discovery dropped 27% Friday, recovering from far steeper losses. The degree of the declines was unprecedented and occurred in an otherwise orderly market. Early selling came through so-called block trades from Goldman Sachs & Co., which offered over 30 million shares of ViacomCBS in midday trading. Morgan Stanley, earlier in the day, offered over 15 million shares of Discovery, according to people familiar with the matter.
The common thread is defunct Tiger Asia Management LLC founder Bill Hwang, who now runs Archegos Capital. His fund was and may still be an large owner of shares in both ViacomCBS and Discovery. Mr. Hwang did not respond to phone calls, emails, or Bloomberg messages sent by IPO Edge. Mr. Hwang’s fund is known employing leverage, meaning it borrows to invest in more securities than it could own with its own capital. One person familiar with the matter said Mr. Hwang’s fund received a margin call from one of the investment banks – not necessarily Morgan Stanley or Goldman Sachs – and was unable to meet it. As a result, that bank and others began to liquidate stocks owned by Archegos. Several other stocks swooned Friday for no apparent reason, but may be related to Mr. Hwang’s fund, which focuses on telecom, media, and technology, or TMT. Nick Note: You have been in a war with hedge funds trying to take the market against the grain. As i have been warning you these assholes are not almighty. They get margin calls too. Its a war of attrition. How long can we hold our positions is critical. If we would have spread this trade we would have played into their hands. When i declared the bottom… That is when their algorithms threw in desperation hundreds of billion trying to sink the market. That was on March 3, where the low was put in at 12200. I declared that a bottom. I can tell you i got death threats, because on no small part my getting you to hold and BUY we fucked them good. Its was a forced 10% correction that failed.
They were counting on a continued drop of a 20% . A EPIC CORRECTION THEIR ALGOS WERE PREDICTING. i GOT YOU TO NOT ONLY HOLD BUT BUY MORE. AND IT FUCKED THEM GOOD!
How many times do i have to scream at you that was a bottom….. and rob a bank. This is where millions are made in a trade. You might notice we went dark… WHY because whether you realize it or not the Hedge Funds know what a great danger we are to them. We keep a hold in the market when they are desperately trying to blow them out. Look you are seeing many MANY 100 billions of hedge funds entering forced liquidation. And guess who is their enemy….. Who else told you about this ahead of time…. Charles Schwab? Etarde?…. How about Raymond James? Did Fidelity give you a call? People on the inside new. And I new and told you the bottom was in documented and signed my name to it! they are keeping things very quiet. Friday was a blow up. Billions hundreds of billions of Hedge fund trades are underwater and facing FORCED liquidation which is what you saw STARTING on Friday. What you saw was shorted against our trades being liquidated…… Forced liquidation on the close and for a fact it was record liquidation. I new, so why do i have to suffer when i am the ONLY one giving you a seat at the table. This will be one of the greatest trades ever… And your sitting their doubting me……. And yes their will be volatility… SO!
Dow up 450 pts at close amid recovery hopes
- US stocks closed higher on Friday buoyed by optimism over the pace of vaccinations.
- Risk appetite returned as a heightened pace of the vaccine rollout promised by President Joe Biden suggested the economy was headed for a reopening.
- Oil prices edged higher following news that it could take weeks to dislodged the container ship blocking the Suez Canal.
The Dow Jones industrial average led US stock higher Friday as optimism around the economic recovery was boosted on the back of an accelerated pace of COVID-19 vaccinations. The Dow closed higher by over 450 points. Thus far, 25.7%, or 85 million Americans have received at least one dose of the vaccine and 14% or 46.3 million have received two doses. President Joe Biden pledged this week to double his administration’s original goal to 200 vaccine doses in by his 100th day in office. Energy producers and health care companies outperformed their peers on the last trading day of the week. Bank shares also rose after the Federal Reserve Thursday afternoon announced that banks can raise dividends and resume share repurchases after June 30.Here’s where US indexes stood at the 4 p.m. ET close on Friday:
- S&P 500: 3,974.52, up 1.66%
- Dow Jones industrial average: 33,072.45, up 1.39% (452.97 points)
- Nasdaq composite: 13,138.72, up 1.24%
Nick Note: Here is where market intelligence is so important. To gain the aforesaid intelligence takes resources, money and analysis. Nothing in the above story is anything that has not been in the markets for weeks. Here is the real story. Hedge funds are no longer traders… But market manipulators. They are not using their vast resources to analyze economic data. That is a failed model. Year over year the vast majority of hedge funds lose money or at beast return the 10 year treasury rate. The problem is the pool of talent has been reduced to PC correct people with a lefty grenniewinne LGBT agenda. Hiring people because they are Gay of color, perceived as oppressed minorities, under paid and under represented females does not necessary give you the best talent pool. SO hedge funds have become market manipulators. Unfortunately that only works for a short time. Take the trade we are in. Fundamentally we are in a massive restart of the global economy. Their is no discussion its a facy. In no small part due to two things. First the miracle of the mRNA vaccine…. a game changer. Second MASSIVE and i mean Massive stimulation efforts by the G20 countries. Add to this the greatest savings rate and record cash on the sidelines its not rocket science to see what is coming. I the meantime here comes the hedge funds to go against the fundamentals. By using their massive leverage and vast computer market execution resources and their media footprint to create massive internet media spin they have been able to stall the stock market rally. Key word here is temporarily stall the rally by creating market uncertainty and confusion among investors. Now a unenlightened person might consider that as bad. But au contraire, its the best situation in the world for us. It means we have gotten lower priced positions and and and it insures a bigger faster upside rally. Now as to Fridays market action. Price discovery is an important part of what we do. Not only the price but how the market arrives at that price. Often times this is farm more important then daily or even monthly swings. Fridays market is a concurrence of key events and once again demonstrates the present sorry state of the Hedge funds. They have become little more than temporarily driven market manipulators. Hedge funds employ massive computers to enable them to simply manipulate markets. using algo based high frequency trading. The present manipulation gave us the KEY beginning of March 10% correction and the long term market bottom. The violet swings we are now seeing in stock indices are a classic bottoming event. Now stay with me here. The majority of traders from a ethnic stand point are disproportionately JEWS… Like it or not, PC correct or not that is the fact. And the majority of advanced mathematicians are disproportionately Jews. See we have a massive advantage by being free of PC stupidness. Spain became a world power because it defied the PC of the time that the world was flat and the earth was the center of the universe. By understanding the world is round and the sun is the center of the universe navigation to the new world was possble. Wall Street is hand strung by the PC correct trading and hireing people of color, females at the switch, equally pay equal power LGBT PC correct employment and Grenniewinnie trading strategies… PC on Wall Street makes their quest for long term profits a failure… Political agenda trading is a recipe for failure. Putting people in control with a profound lack of talent to right perceived social wrongs is a feel good useless stratagey. Besides being a stupid narrative for sure. But insider knowledge free of PC constraints gives us GREAT success and trading edge. If you hire PC correct people and not the best talent your results will suffer. Now back to Fridays price action. It is settled business that hedge funds are taking the market against the grain and desperately attempting to stall the inedible massive coming stock market rally. To facilitate the aforesaid manipulation they are using algorithm based high frequency trading in a desperate attempt to keep a lid on this market as long as possible. Most of the trades are super computer algorithm driven trades. And the reality is most of the people running these hedge age funds are not market analysis but mathematicians. High level PHD types who are disproportionately Jews. And this weekend is Passover. Outside of Israel Passover is two days Sunday and Monday. Many of these algo traders are religious enough that they will not work the Sunday Night session and will miss all of Mondays day market. So they neutralized their trade book on Fridays close as i expected. And you saw the rally on the close. This is really good for us because it proves the hedge fund manipulation and the fact that their manipulation will soon fail. Now do not misunderstand the Jewish component. I owe my success as a market analysis to JEWISH mentors who realize i was gifted and took me under their wing. From Herbie Gutstein , to Abe Gerstein, to Tom Rubin to Danny Rosenthaw to Milton Freeman to name a few. i found my Jewish mentors to be brilliant, incredible generous, giving people. To my antisemitic Nazi friends. You are right about one thing. You should fear the Jew he will fuck you in ways you cannot imagine… it will not be a fair fight!. They have defeated their enemies throughout history conquering every mighty empire…… And mostly by trickery. The latest your blood brother Adolph. The Jew is smarter then the majority of people on the planet, better funded. better educated, far more manipulative and i believe blessed by GOD. They do dominate science, medicine, economics, banking and the legal profession. While the masses teach their kids nothing useful. Who are usually raised in poverty by a desperate mother (also a fuck up) alone who is powerless to stop them from fucking, fucking up and getting stoned. The Jew (among the most prosperous) marry, discipline and force their kids into business and/or higher education…….. As a foot note their are many very smart Jewish fundamental analysts usually trading private trade books.
Market is going to ‘tread water’ in the near-term: BlackRock’s Moore
Analysis: China airfares rebound in potential rehearsal for global recovery
BEIJING/SYDNEY (Reuters) – Widely watched airfares in China are recovering to pre-pandemic levels as domestic tourists lead a patchy air travel recovery, scattering crumbs of hope to a shattered global travel sector. With international markets like Europe still in partial lockdown, the global tourism industry’s attention is riveted on China’s new travel patterns as it brings COVID-19 under control and lifts curbs on movement. The Chinese domestic market quietly overtook the once-dominant U.S. market in size during the pandemic, but multiple coronavirus outbreaks before last month’s Lunar New Year halted the rebound and could lead to first-quarter losses. Now, with temporary testing and quarantine restrictions once again lifted, average prices for an economy seat during the April 3-5 Qingming festival, or tomb-sweeping holiday, have rebounded to 96% of 2019 levels, according to data from Ctrip. Economy-class airfares for trips over the Labour Day holiday in early May have risen 11% compared with 2019 levels, says Ctrip, run by online travel giant Trip.com Group Ltd. “It seems like demand has really caught up with capacity once again and airlines are deciding discounts are no longer needed to stimulate demand,” said Luya You, transportation analyst at BOCOM International in Hong Kong. “I think the pent-up demand that everyone has been expecting is finally showing up in full force,” said You, adding she expects yields and revenues to reach normal by the second half. Over the last year, Chinese domestic capacity had risen faster than demand, depressing airfares as carriers sought to fill as many seats as possible. A return to fare growth is seen as a final step in the recovery. There are signs the United States, a close second in domestic capacity, is following a similar trajectory months behind China as vaccination rates rise, case numbers fall and airlines add more flights. Average round-trip U.S. domestic fares for May to August remain up to 20% lower than 2019 levels, but are up as much as 36% higher than 2020, online travel agent Hopper said.Europe, however, is bracing for a second lost summer in part because of a hobbled COVID-19 vaccine rollout and a heavy reliance on cross-border traffic. When travel restrictions are lifted, the European market should expect a “bloodbath” with low-cost airlines like Ryanair and Wizz Air competing to offer the lowest possible fares, CAPA Centre for Aviation Chairman Emeritus Peter Harbison said this month. In China, the Lunar New Year holiday is usually the busiest time for local airlines. But this year’s celebration was a wash-out for air travel, with capacity slashed and ticket prices plunging to five-year lows. Now, Chinese airlines are ramping up domestic capacity for the next few months, diverting aircraft from the largely closed international market. Chinese carriers are scheduled to operate 20.7% more domestic flights from April to October compared with 2019, according to flight master, a Chinese aviation data provider. China Eastern Airlines will overtake China Southern Airlines to operate the most domestic flights, while planned flights by Spring Airlines will surge by 62.25% from 2019 levels, the company said. Investors have noticed. Stock prices for the three biggest Chinese airlines have recouped pandemic-related losses. But all airlines are facing new headwinds from rising oil prices – exacerbated this week by a shipping blockage in the Suez Canal – and concerns over COVID-19 restrictions in international markets. Parash Jain, head of Asia Pacific transport research at HSBC, expects 2021 to be another loss-making year for the three biggest Chinese airlines and warns their shares already look like they have overshot. “What we’re seeing is the initial rebound in share prices has reflected the recovery in domestic market for now, with oil as a headwind, with foreign exchange no longer a tailwind and the rest of the world not favourable,” he said. Nick Note: China got their first. They are my blueprint for our BlackJack trade. The reopening of the US economy. Of course the markets are not sure and our trade is hotly contest. The big ones always are.
Vaccines appear effective vs New York virus variant; super-spreader events drive variants
US closes mostly higher after Biden’s presser
US stocks ended higher as President Joe Biden held his first presidential conference and as weekly jobless claims slumped to a one-year low. The Dow Jones Industrial Average rose 0.6% to 32,619.48, the S&P 500 was also up 0.5% to 3,909.52 and the Nasdaq Composite was 0.1% higher to 12,977.68. Financials and industrials led the gainers, with the communication services and technology sectors the only decliners on Thursday. The US 10-year yield rose 1.62%. At a news conference held at the White House, US President Joe Biden on Thursday pledged 200 million COVID-19 vaccinations within the first 100 days in office, after the administration achieved its initial goal of 100 million shots on Friday, which was the 59th day of Biden’s term, according to CNBC. Initial jobless claims was 684,000 for the week ended March 20, a drop of 97,000 from the previous week’s filings. Analysts polled by Econoday expected 730,000 claims. The previous week was revised up by 11,000 to 781,000. The four-week moving average was 736,000, down 13,000 from the prior week’s revised rate. The US 10-year yield rose by 2.6 basis points to $1.64%, after declining earlier in the session. Fed could begin tapering its asset purchase program by rolling back Treasuries and mortgage-backed securities it has bought when the economy starts to make “substantial further progress toward our goals,” Powell was cited as saying in media reports. The West Texas Intermediate futures slumped by 4.5% to $58.42 due to worries Europe was facing a new wave of the COVID-19 pandemic even as Germany backed off from harsher measures in April, outweighing the potential impact on supply of a container ship blocking the Suez Canal. “The weak point in Europe remains around the vaccine rollout amid the rise in new virus cases and the tightening of restrictions… which likely means the mooted acceleration in Q2 may have to be pushed back by a quarter,” National Australian Bank director of economics and markets Tapas Strickland was cited as saying in a report from Reuters. In company news, Darden Restaurants (DRI) reported fiscal third-quarter earnings and sales that slid year-on-year but still topped Wall Street estimates. Shares jumped by 8.2%, the most on S&P 500. Nike (NKE) is facing social media furor and boycott in China after the company said it was concerned about reports of forced labor in, and connected to, the Xinjiang Uyghur Autonomous Region in China. Shares fell by 3.4%, the steepest decliner on the Dow.
In the precious metals markets, gold was down 0.4% to $1,728.20 an ounce, with silver down 0.3% to $25.16 an ounce.
Among energy ETFs, the United States Oil Fund fell 3.8% to $39.89 and the United States Natural Gas Fund was up 2% to $9.64. Among precious-metal funds, the Market Vectors Gold Miners ETF was down 0.2% to $32.24 and SPDR Gold Shares were down 0.4% to $161.78. The iShares Silver Trust was up 0.2% to $23.29.
United’s May flights to reach 52% of 2019 schedule
https://youtu.be/axdLu6L_-u4
(RTTNews) – As more travelers begin to plan long-awaited getaways with family and friends, United Airlines is kicking off summer vacation season with a robust May schedule that includes the addition of 26 new nonstop routes between Midwest cities such as Cleveland, Cincinnati and Milwaukee and popular vacation destinations such as Hilton Head, South Carolina; Pensacola, Florida; and Portland, Maine. The airline also plans to resume more than 20 domestic routes and will start new service between Orange County, California, and Honolulu.
Internationally, in May United will fly more than 100% of its pre-pandemic schedule to Latin America compared to what it operated in 2019, including more flights to Mexico, the Caribbean, Central America and South America.
The airline also plans to resume flights between Chicago and Tokyo Haneda, resume passenger flights between New York/Newark and Milan and Rome, and restart service between Chicago and Amsterdam. In total, United plans to operate 52% of its overall schedule compared to May 2019, whereas in May 2020 United operated 14% of its overall schedule compared to May 2019. Nick Note: sounds like a recovery to me…… The TSA reports over a million people flying a day.