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Month: February 2020

A Great Debate Emerges On Wall Street: Are Men Or Machines Behind The “Panic Selling”?

A Great Debate Emerges On Wall Street: Are Men Or Machines Behind The “Panic Selling”? Over the past few days, we have carefully tried to put together the pieces of the “liquidation puzzle”, to find out i) just who is selling, whether machines or people or some combination of both, and ii) is there more selling to go? Readers can catch up on some of our most recent articles on the topic below: Gamma Trapdoor Opens: Markets Brace For “Shock Down” As Dealers Puke What’s Behind Today’s Market Plunge? A Stunned Wall Street Responds Morgan Stanley: If We Close Below 3,235, Systematic Selling Will Become “Self-Fulfilling” The $60 Billion Puke: Here Comes The Systematic Selling… And Watch The Russell 2000 CTAs Begin Selling Nomura: Investors Are Finally Considering A “Previously Unthinkable Scenario” And while, as often happens with such opaque market positioning and flow topics, no clear answer has emerged, with contradictory and confusing evidence pointing to the recent sharp drop in dealer gamma, the triggering of CTA deleveraging, the unwind of record net long SPX speculative positions, forced selling by quant/systematic (vol targeting, risk parity) funds as well as liquidations by discretionary hedge funds operated by carbon-based traders. What has emerged is yet another great Wall Street debate, with some, such as JPMorgan, claiming the selling was mostly systematic (i.e., algos and model quants), while others such as...

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Leaked Docs Reveal Covid-19 Infections Up To 52 Times Higher Than ‘Official’ Figures In China’s Shandong Province

Leaked Docs Reveal Covid-19 Infections Up To 52 Times Higher Than ‘Official’ Figures In China’s Shandong Province Authored by Nicole Hao via The Epoch Times, The novel coronavirus outbreak in eastern China’s Shandong province is much worse than the officially reported, according to a series of internal government documents obtained by The Epoch Times. Between Feb. 9 to 23, Shandong authorities underreported the number of infections every day, according to internal data compiled by the Shandong Centers for Disease Prevention and Control (CDC). The latter kept a tally of the number of patients who tested positive for the virus during nucleic acid testing—using a diagnostic kit to test body samples and detect whether they contain the virus’s genetic sequence. The Shandong CDC daily new infection numbers ranged from being 1.36 times to 52 times greater than the officially published data by the Shandong health commission and China’s National Health Commission. As of Feb. 25, the Shandong government stated that there were a total of 755 infections in the province. But the internal document showed that 1,992 people had tested positive for the virus via nucleic acid testing as of Feb. 23. The government publicly stated that there were four newly diagnosed coronavirus patients on Feb. 22, but the internal document said that 61 patients were diagnosed with the virus that day. In recent days, official data has shown new infections leveling off. For example, on Feb. 25, the National Health...

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Paying The Price For Our Faustian Bargain With China

Paying The Price For Our Faustian Bargain With China Authored by Charles “Sam” Faddis via, “Faustian bargain, a pact whereby a person trades something of supreme moral or spiritual importance, such as personal values or the soul, for some worldly or material benefit, such as knowledge, power, or riches.” Roughly forty years ago we and the Chinese entered into a true Faustian bargain.   We agreed to open our markets to Chinese goods, and the Chinese in exchange opened their nation to foreign investment and manufacturing. We were motivated by greed.  Factories in China would have access to seemingly unlimited quantities of low cost workers.  It did not hurt that those factories would be unencumbered by unions, workplace safety laws or environmental regulations. The Chinese were motivated by a desire to survive.  The Soviet Union was tottering toward extinction, destroyed not by American forces on the battlefield but by rot and inefficiency in its economy.  The Chinese would escape that fate by giving their people a higher standard of living and a more comfortable lifestyle in exchange for the continued acceptance of an oppressive, totalitarian regime. The bargain was made.  As with all pacts with the devil the bill has come due, this time in the form of the coronavirus. Well over two months ago the coronavirus began to explode in China.  The Chinese government did what it...

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Japan Cancels Sport And Cultural Events Amid Concerns Olympics Could BeĀ CanceledĀ 

Japan Cancels Sport And Cultural Events Amid Concerns Olympics Could Be Canceled  With the 2020 Tokyo Summer Olympics scheduled to begin on July 24, Japan has already started canceling sport and cultural events amid the broadening of the Covid-19 outbreak.  Tokyo’s Yomiuri Giants baseball team is expected to play two preseason games in an empty stadium to minimize the transmission of the virus.  The move comes as Japanese Prime Minister Shinzo Abe ordered all sport and cultural events to be halted for the next two weeks, reported Reuters. “Taking into account that the next one to two weeks are extremely important in stopping the spread of infection, the government considers there to be a large risk of transmission at sports, cultural events, and large gatherings of people,” Abe told parliament on Wednesday.  Japan has at least 170 cases of infections, apart from the 691 reported from a cruise ship that has been quarantined at Yokohama cruise port.  International Olympic Committee (IOC) member Dick Pound told AP News on Wednesday that the Games would most likely be canceled than postponed if the outbreak continued to worsen in the months ahead. Pound said there’s a three-month window to decide the fate of the Games: “You could certainly go to two months out if you had to,” he said, which would mean the decision would come around late May. “A lot of things have to...

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At Least 7 Dead In Mass Shooting At MillerCoors Milwaukee HQ

At Least 7 Dead In Mass Shooting At MillerCoors Milwaukee HQ Milwaukee police are responding to reports of an active shooting on the campus of the MillerCoors headquarters, according to a local radio station. There are multiple victims, and the suspect has reportedly been neutralized. MPD confirms: Active “situation” at MillerCoors headquarters. We’re hearing reports of a shooting. — Dana Bishop (@danafbishop) February 26, 2020 Police source: multiple victims, suspect is down. #millercoors #milwaukee — Dana Bishop (@danafbishop) February 26, 2020 The Milwaukee Journal Sentinel reported that at least seven people are dead, including the suspected gunman, according to its sources. JUST IN: Reports of 8 people shot at a #MillerCoors facility in Milwaukee. @cbschicago — Chris Tye (@TVTye) February 26, 2020 Milwaukee Mayor Tom Barrett says multiple people have been killed in a shooting on the Molson Coors Brewing Co. campus. Barrett did not give an exact number of people killed in Wednesday’s shooting. “It is a horrible, horrible day for the employees here. A very rough day for anyone who is close to this situation,” he told reporters. At least 600 people work at the complex, which is widely known in the Milwaukee area as “Miller Valley,” a reference to the Miller Brewing Co. that is now part of Molson Coors. Tyler Durden Wed, 02/26/2020 –...

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