Translation 101 (and other Themis Thoughts 1/27/11)
But first, two snow shots from my house this morning, before and after, followed by a picture from the Exchange this morning as well.
I love 4:00am. Such a peaceful time for Hall Road… except when, of course, I have to fire up Bessy, my trusty Honda Horse, and break out “The Gun Show” (insert pic of me flexing my biceps), so I can “shovel it” like Fed Governor.
And from one of your Local Exchanges, the server room, and the parking lot cleared out this morning using heat exhaust from the server room.
Now back to our regularly scheduled programming… Lessons in Translation:
Our VWAP and TWAP algos will save you money! We actually will rebate you guys to use them!
Translation: Once the order starts, we will internalize it versus our prop desk, and then take the backwash and pimp the hell out of it in Pools A, B, and C, get rebated if there are fills, IOI the sucker to Pool D, then Flashy Flash it through Jersey City. You won’t give a flying fedora because you got a lame average price that didn’t top tick or bottom tick it. PS Our tech guy likes AAPL and GOOG. Oh, and Cloud.
Congressman Dennis Kucinich:
Good morning Sue! You look radiant yet again today, almost as if you beamed right down from a UFO! And I mean that as a compliment dear. Me? Oh I’ll have that same thing I always have… the wrap with the olives in it; you know me! Hey can I have one to go as well? Need one to cheer on the Big O you know!
Translation: I am suing your damn crappy lunchroom and the taxpayers for compensation of $150,000 (plus interest and costs) for “past and future dental and medical expenses, compensation for pain, suffering and loss of enjoyment and other damages. God damn olive pit! The sandwich wrap was unwholesome and unfit for human consumption!”
The FED: (courtesy of a posting on Slate.com)
Information received since the Federal Open Market Committee met in December confirms that the economic recovery is continuing, though at a rate that has been insufficient to bring about a significant improvement in labor market conditions. Growth in household spending picked up late last year, but remains constrained by high unemployment, modest income growth, lower housing wealth, and tight credit. Business spending on equipment and software is rising, while investment in nonresidential structures is still weak. Employers remain reluctant to add to payrolls. The housing sector continues to be depressed. Although commodity prices have risen, longer-term inflation expectations have remained stable, and measures of underlying inflation have been trending downward. Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. Currently, the unemployment rate is elevated, and measures of underlying inflation are somewhat low, relative to levels that the Committee judges to be consistent, over the longer run, with its dual mandate. Although the Committee anticipates a gradual return to higher levels of resource utilization in a context of price stability, progress toward its objectives has been disappointingly slow. To promote a stronger pace of economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate, the Committee decided today to continue expanding its holdings of securities as announced in November. In particular, the Committee is maintaining its existing policy of reinvesting principal payments from its securities holdings and intends to purchase $600 billion of longer-term Treasury securities by the end of the second quarter of 2011. The Committee will regularly review the pace of its securities purchases and the overall size of the asset-purchase program in light of incoming information and will adjust the program as needed to best foster maximum employment and price stability. The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent and continues to anticipate that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels for the federal funds rate for an extended period. The Committee will continue to monitor the economic outlook and financial developments and will employ its policy tools as necessary to support the economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate. Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C. Dudley, Vice Chairman; Elizabeth A. Duke; Charles L. Evans; Richard W. Fisher; Narayana Kocherlakota; Charles I. Plosser; Sarah Bloom Raskin; Daniel K. Tarullo; Kevin M. Warsh; and Janet L. Yellen.
Translation: The jobs picture is still bleak. The housing market still sucks. We’re still not worried about inflation. So we’re sticking with our plans to create $600 billion out of thin air and let banks borrow money for free.If all this sounds familiar, it’s because we said almost exactly the same thing in our statement last month. For more details, see that statement. By the way, the one guy on the committee who was voting against our policies last year is gone now. His term expired. This time, we’re unanimous.
(PS I am not saying they are monkeys. This is a “hear no evil” reference to what they are now being reduced to, due to insane cuts in funding pushed by certain agenda-ridden politicians).
Commodity Futures Trading Commission member Michael V. Dunn said Wednesday that the regulator cannot fulfill its new duties under the Dodd-Frank Wall Street Reform Act unless it gets more funding.
“We lack the staff and resources necessary to both implement Dodd-Frank and continue to fulfill our pre-Dodd-Frank duties under the Commodity Exchange Act,’’ he said at a CFTC meeting on implementing the Dodd-Frank Act. “Without additional funding, the strain will only become worse in July, when much of Dodd-Frank goes into effect.’’
SEC and CFTC 2011 Action Agenda is as follows:
cricket. Chirp. Cricket. Chirp.
Translation: Whose idea was it to sign $500 million in new office leases when we all know that Obama will be a lame duck in the second half of his presidency? Now the new Congress is not going to up our budget after all, and we can’t hire anyone except the kids of Washington Insiders, and those damn Bachus and Corker guys. #$#$%$#%$. $#%$%$#$#. Sheeet! Damn! Flash orders? HFT? Data Feeds? Predatory trading? CAT? New rules? Dodd Freaking Frank? And rule 747! Gone. Sheeeet! %$$#%$%$#. Argh!!!!!! FTW!!!!!!!! We can’t even go to a damn Washington Party without being laughed at. “Hey well if it isn’t the folks from the NYC Sanitation Snow Removal Department” Very $%^%&^%^& Funny. FTW!!!!
Where we left off 4:00pm EST:
INDU 11,985.44 +8.25
SPX 1,296.63 +5.45
CCMP 2,739.50 +20.25
Futures now at 7:30am EST:
Key Data out today:
08:30: Chicago Fed Activity Index
08:30: Durable Goods
08:30: Initial Jobless Claims
08:30: Continuing Claims
10:00: Pending Home Sales
Since the prior close, some key stories:
– NYSE sends out notice stating that it has taken the necessary steps to open on time following the snow storm. The CEO turned the server room switch to ON.
– Japan credit rating cut. Like this matters.
– Riot-induced Food Costs drive up the price of Campbell Soup Credit Default Swaps. Can’t wait till the Exchanges and High Freaks trade these. There of course will be no way that values will be distorted in any way that will affect regular folks.
– Moody’s assumes 4% home price appreciation for its ratings of MUNIS. And I look like I am 28 years old in my Vegas shirt.
– Israel Plays Whack-a-mole as Foreign Investments Buoy Shekel (Bloomberg). I don’t know what this means but the title of the article is awesome!
– In China, KFC kicks MCD’s derriere (Bloomberg).
– Egypt bans demonstrations. Yep that will work.
– Earnings Earnings Earnings. Numerous!
Pre-market: ACAT, AME, AMRB, AUO, AVT, AZN, BARI, BAX, BC, BEN, BGG, BLL, BMY, NYSNY, CAJ, CASS, CAT, CCMP, CELG, CL, CLP, CLS, CNH, CNX, CRUS, CSH, CY, DDE, DEST, CHI, CHR, DLX, DVD, EQT, ETN, FCF, FLWS, FNFG, FRC, GNTX, HAFC, HP, HSC, HUB.B, IIIN, ISCA, IVZ, IXYS, JBLU, JNS, KMT, KSU, LANC, LG, LLL, LLY, LMT, LYTS, MEG, MJN, MO, MPW, MSI, NEI, NOK, NPBC, NUE, NVR, NWL, OXPS, PCP, PG, PII, POT, PROV, PSSI, RCL, RTN, SASR, SFNC, STL, SWK, T, TDY, TKR, TSM, TWC, UA, UMPQ, UTEK, VLY, WCC, WRLD, WTNY, XEL XMH, AIRT, FISI, FRME
After the Close: ABAX, ACTS, AMCC, AMZN, ANEN, ARAY, ARBA, BPFH, BCS, CDE, CB, COBZ, COHR, COLM. CPHD, CPSI, CPWR, CRBC, CRDC, CVCO, CYT, DLA, DLLR, DNBK, DRIV, EPAY, ESIO, FFIN, FII, FNF, GBCI, HPOL, HUBG, INFA, INFN, ISBC, KLAC, KTEC, LSCC, MBFI, MCRL, MCRS, MSCC, MSFT, MWW, MYGN, NST, OIIM, OMCL, OPLK, OPNT, PMCS, PXLW, QLGC, RLRN, RMD, RVBD, SCSC, SFK, SNDK, SOFO, STRT, SXL, THOR, TNAV, TSRA, UPI, VPRT, VRSN, VSEA, WRLS, ZOLL
Significant Movers This Morning:
NFLX +13%, QCOM+ 6%, TER + 11%, AMLN +6%, SYMC +5%, ZMH +4%, CTXS +4%, CAT +3% QTM -25%, ARUN -4%, T -3%, GT -3%, MUT, -11%, SWC -4%