TUESDAY 9/23/14; Global PMI's; US Airstrikes in Syria; 2-Year Note Auction; BBBY

The dollar/yen collapses to 108.31 but Japan receives a reprieve since markets are closed for the Autumnal Equinox holiday. The SPASX200 gains +1% recovering from recent beatings in miners and commodities. The KOSPI drops -0.5% since the electronics and car manufacturer’s trade lower.

China’s HS



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 points, -0.9%, to 1119. The market bears hit hard pushing equities strongly lower after the market highs late last week. AAPL is a bright spot gaining +1.6%.

After the closing bell, BBBY jumps +8% on an earnings beat reversing today’s negativity from the downgrade. Office furniture company Steelcase earnings are in line and SCS shares trades flat. CELG trades higher after the FDA approves the Otezla psoriasis drug. VIA is smacked-2% to one-year lows after receiving a downgrade. SBUX trades sideways after announcing plans to buy the remaining interest in Starbucks Japan. The move provides greater control for Starbucks concerning expansion plans in Japan and Asia. The market selling is drowning out any news from the global warming conference in New York.

The Citizens Bank IPO, owned by RBS, prices at 21.50 below the 23-25 target range. The market makers MS and GS claim the offering is well subscribed at the 21.50 price. The bank begins trading on the NYSE tomorrow under the symbol CFG.

Traders ignore the market selling as proven by the ongoing solid bullish sentiment. No one expects a multi-month or multi-year decline in the stock market. Television pundits and fund managers are of universal mind stating that all pullbacks should be bought. CNBC television trader Josh Brown mocks the death cross pattern for the Russell 2000 citing data from 2001 (two of the largest stock market rallies in history are in that period into the 2007 top and the ongoing rally from the March 2009 bottom to present). Looking at the RUT chart, the golden cross (50-day MA above the 200-day MA) occurred in early 2012 and has been a perfect predictor of the market upside to date. Television personality James Cramer suggests that anyone selling the market will likely regret it in the weeks forward. Cramer says, “I recommend staying the course in the market.”

In the evening, Fed’s George speaks and says the Fed should raise rates soon to stay ahead of inflation. George is a strong hawk stressing the need to return to more normal Fed policy. She says financial markets are distorted and investors are taking on too much risk. George does not want rates to rise quickly but instead wants a slow gradual increase to begin.