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Home Our Perspective Can You Hear Me Now? 17th Weekly Fund Outflow As Equity Fund Redemptions Accelerate
Can You Hear Me Now? 17th Weekly Fund Outflow As Equity Fund Redemptions Accelerate PDF Print E-mail
Written by Steve Meyers   
Thursday, 02 September 2010 09:18

This is just getting silly: perhaps the next update on ICI mutual fund flows should occur if there is an inflow for once...ever again. In the meantime,

ICI reports

we have just recorded the 17th

consecutive

weekly outflow from domestic equity mutual funds, and what's worse for mutual funds' depleted liquidity ratios, it is now accelerating, hitting a total of $4.3 billion, a more than 50% increase from last week's $2.7 billion. YTD outflows have now hit $54 billion, as ever more capital is going into far safer fixed income instruments. As a reminder, here is what Rosenberg said on the issue yesterday: "

As for liquidity ratios, equity funds portfolio manages have theirs at an all-time low of 3.4%, down from 3.8% in June

. Tack on the fact that there are really not very many shorts to be covered – since the market peaked in April, short interest is 4.3% of the S&P 500 market cap (in August 2008 it was 6%) and

there’s not a whole lot of underlying fund-flow support for the stock market here.

" As for this being a contrarian signal, hopefully all those who see this as a buying opportunity can also find a way to make the now retiring baby boomers about 10 years younger and force them away from fixed income capital reallocation. Oh, and fix the broken market and restore investor confidence that the casino is only modestly rigged.

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Ron Rebner |2010-09-02 09:29:20
Early volume is very slow.
TitanTrader  - Manufactured #'s |2010-09-02 10:43:20
Of course they are going to manufacture that number, they didn't piss away all that money in this phony rally to let the market end down before a long weekend.

Sounds crazy, I know but Fridays ramp on a boring speech by Bennie convinced me the fix is in. It's been hard to believe my government would do that. Call me naive, I had more faith in people.

looking at next weeks basic news vacume makes me believe they will run this pig all or most of next week, i've noticed that before, no news is good news. The only think I am noticing is more earnings warning's I wouldn't be surprised to hear more of those next week. That's all I see that could throw a money wrench into this blatantly obvious manipulation. Yesterday's ISM was a total fraud, if you need more evidence.
Mars  - WED/THUR=deja vu |2010-09-02 13:05:44
today appears to be mimicking WED....ala, day's essentially over by 11EST after morning ramp

perhaps senior managers are off to the Hamptons early!
Mars  - Bernanke on Capitol Hill |2010-09-02 10:41:53
Listening to Bernanke's testimony. I can't believe anything he says, as it's his job to lie and mislead the public. If you watched the Overdose video that Chuck posted WED, you'll be reminded that in his public statements, he totally missed the housing and financial bubbles. The Federal Reserve is a private banking cartel (think OPEC) whose mission is to keep Americans in debt, and thus their interest-paying slaves. I have to periodically remind myself that this financial depression we're entering was most likely a planned event....thus the powers that be are not trying to avoid it....they're following the plan, hoping it doesn't spiral out of control too fast, as they don't want to lose control.
OK, that's my contribution to the growing negative public mood!
Matt  - Gulf Oil ig Explodes |2010-09-02 11:44:08
Could be more trouble for the Gulf
Add that to Hurricane Gasto and there could be problems..

http://www.wafb.com/Global/story.asp?S=13089364
Matt  - Up date on oil rig |2010-09-02 14:22:51
One mile sheen of oil near blown up rig
and spreading.
AP reporting
Mars  - Burning Down The House |2010-09-02 12:00:08
..what was accomplished by spending tens of billions of dollars to prop up the housing market? it allowed millions of people to sell their home over this period at a higher price than would have otherwise been the case...thus they could pay off their mortgage. This made banks who could have been holding underwater mortgages very happy. Of course someone had to issue the mortgage to all those people who bought homes at prices that are still inflated by the bubble. The overwhelming majority of the mortgages issued in the last year and a half are insured by the government, either through Fannie Mae and Freddie Mac, or through HUD. So, taxpayers are carrying the risk that further price declines will push these mortgages underwater, not banks or private investors. http://www.counterpunch.org/
http://www.youtube.com/watch?v=xNnAvTTaJjM
Ron Rebner |2010-09-02 16:15:55
Volume was very weak. A/D's were positive at roughly 2 to 1. Monthly employment out in the A.M. Have a good night.
Mars  - For FRI: SP 500 daytrader |2010-09-02 22:48:43
TIAP Model signals THUR night to anticipate lower closes FRI for McClellan Oscillator and SP500......and corresponding higher closes for the leveraged ETF's: SDS, BGZ, SKF

A short-term trend down initiating FRI for SP500 would also fulfill the Pivot Projection Model. Gold is expected to complete a short-term peak on FRI, before initiating a short-term trend down.

For those leaving early FRI, have a very relaxing long weekend, and remember to appreciate those in your life who support you.
Ron Rebner |2010-09-03 06:54:23
“Double-Dip” Deepens as Housing Collapses

http://www.moneyandmarkets.com/double-dip-deepens-as-housing-collapses-40047?FIELD9=1
Ron Rebner |2010-09-03 06:56:19
IMF ponders the improbable: Will U.S. default?


http://www.moneyandmarkets.com/double-dip-deepens-as-housing-collapses-40047?FIELD9=1
Ron Rebner |2010-09-03 07:08:41
Good analysis of the "good ISM" report. Also, check out the video of Art Cashin at the bottom and the link to 7 more lean years just below the video.
Ron Rebner |2010-09-03 07:16:43
Remember, August started with a 200+ move in the DOW and ended the month down 450. This economy is in bad shape.
TitanTrader  - Now we know |2010-09-03 07:44:02
They cooked it just as I suspected.

I know have to trade not on what I know but on how I the Gov will cook the numbers.

They obviously pumped money into the markets last week to make the puplic think Bennie knows what he is doing. My take was they wouldn't let all that money go to waste.


Again, it isn't what we know it's how we think they will game this thing. What scam and a shame.

Sound crazy? Ask yourself how does this report jive with the deteriorating weekly jobless claims?
Matt  - Rigged Scam |2010-09-03 08:01:48
You are right on Titan. Ben's been pumping like crazy. Ben didn't announce it as QE 2 or 3 or what ever but they went and did it very secretly. What a game. Well it's the run up before the elections that I have been waiting for. We will have to wait for the Christmas numbers to see how things are doing in the real world.
But until the elections we are going to hold up here. Good luck to you..
Matt
SteveP |2010-09-03 07:44:07
Steve, I hope you get to feeling better and healthy soon! Regarding bonds, if they can not better their recent top and end up in a left translated trading cycle; thus, causing rates to begin to rise, wouldn't that cause the dollar to rise, gold to fall, stocks to fall and ultimately led to massive deflation through rising borrowing costs? Thanks for your insight and time
TitanTrader  - Birth/Death |2010-09-03 07:56:19
Now we know how they did it:
Private payrolls come in at +67K as Birth Death adds 115K, compared to just 6K previously, as U-6 rises from 16.5 to 16.7%"


Because we have all those new business start ups that we can't measure. People are selling lemonade and pencils on the corner.

U6 increases, that's all you need to know that and the participation rate continues to decline.

The only think this adminstration can point to is the stock market so get it to 11.000 before the election must be their midterm election goal.
SteveM |2010-09-03 08:36:56
Steve P, back in the old days when economics made sense, this would have been the conclusion. However, we are printing massive amounts of money to buy our own treasuries so if they begin to drop, the dollar will drop as well due to a lack of interest in U.S. paper. (IMO)
TitanTrader  - re: Rigged Scam |2010-09-03 08:06:47
Matt wrote:
You are right on Titan. Ben's been pumping like crazy. Ben didn't announce it as QE 2 or 3 or what ever but they went and did it very secretly. What a game. Well it's the run up before the elections that I have been waiting for. We will have to wait for the Christmas numbers to see how things are doing in the real world.
But until the elections we are going to hold up here. Good luck to you..
Matt


Yeah things are so good that retail laid off 5000 last month, how does that jive? It doesn't of course.
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