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One Minute Macro Summary: It's All "Good"

Tyler Durden's picture




 

Overview: Markets mostly up this morning as the G7 intervened in foreign exchange markets, providing stability to the ailing yen.

U.S.:  Futures up this morning. Apparently quantitative easing, world strife, and currency intervention are interpreted as bullish. CPI reported yesterday showed an increase of 0.5% MoM v estimates of 0.4% MoM, driven by higher energy prices. Core CPI also picked up 0.2% MoM, due to higher car prices, showing an increasing trend in core prices. The Philadelphia Fed’s industrial report yesterday showed an increase to 43.4 v 28.8E, showing further expansion.

Europe: ECB executive board members told reporters that the Japanese earthquake will not affect intentions to raise interest rates. The European Banking Authority released details on its 2011 stress tests. The assumed GDP contraction shock will be 4% v 3% in last year’s tests. The EBS will only look at sovereign risk in banks’ trading books, rather than their overall portfolios, disappointing markets focused on an unfolding sovereign debt crisis. The U.N. Security Council at last came to an agreement yesterday for a no-fly zone over Libya. German parliament voted yesterday to prevent the ESM from buying government bonds, clashing with Merkel’s recent negotiating positions. Germany’s regional election in Saxony-Anhalt on Sunday will likely reveal the growing political disunity in the nation.  German producer prices rose 0.7% MoM v 0.7%E MoM and 6.4% YoY v 6.3%E YoY, showing a major increase in inflation for the area. Being the first few links in the supply chain, producers take the price hit first. UK consumer confidence fell to 38 v 47E in February, its lowest level since the index’s creation in 2004.

Asia: The G7 together stepped into the foreign exchange market to help support the ailing yen after a request to the G7 from the Japanese. The buying effort is intended to put a limit on Japan’s rapidly rising exchange rate. The move has already made the yen fall and calmed markets worldwide. Workers in Japan are continuing through the night to restore power to the troubled nuclear power plant in efforts to stop a meltdown. China increased reserve requirements for the third time this year, as inflation has become one of the government’s leading economic concerns.

From Brian Yelvington at Knight Capital

 

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Fri, 03/18/2011 - 07:59 | 1070602 AccreditedEYE
AccreditedEYE's picture

Government-supported returns forever. What the hell do I need a hedge fund for anymore? I have global central banks! (for waayyyyy lower fees to boot. lol)

Fri, 03/18/2011 - 08:09 | 1070622 jus_lite_reading
jus_lite_reading's picture

It's all good! ALL good!

http://www.lewrockwell.com/orig12/martenson3.1.1.html

Great read.

Fri, 03/18/2011 - 08:01 | 1070604 Racer
Racer's picture

Don't they want to push the futures higher for best price for options expiry?

Fri, 03/18/2011 - 08:05 | 1070618 HelluvaEngineer
HelluvaEngineer's picture

I suspect you're right.  We need a bounce before we sell off again anyway.  The bulltards are well trained at this point (ref CMG msg board @ yahoo)

Fri, 03/18/2011 - 08:04 | 1070613 jkruffin
jkruffin's picture

Okay, I think I got it now...

Dollar up = Stocks up

Dollar down = Stocks up

No fly Zone = Stocks up

Nuclear reactor failure with radiation leakage = stocks soar higher

POMO = Stocks accelerate to green

Treasury Broke = Stocks on fire

 

I get it now!!! LOL  

 

And when this ponzi blows up in the faces of the ignorant American investor, will AAPL launch I-Pad 3 to calm to people down?

You can't tell me people don't realize this thing is broken,  and broken so badly that the FED has to play price manipulator everyday to save face.  This is nuts.....GOD help us when the first sign of an interest rate increase comes around.

Fri, 03/18/2011 - 08:18 | 1070655 wandstrasse
wandstrasse's picture

'And when this ponzi blows up in the faces of the ignorant American investor, will AAPL launch I-Pad 3 to calm to people down?'

 

exactly! Helicopters will grab I-Pad 3s from the Foxconn sweathops and throw them down on the people in US and Europe to cool them down to prevent revolutionary meltdown.

Fri, 03/18/2011 - 08:35 | 1070701 jus_lite_reading
jus_lite_reading's picture

Well said. Now every Central bank the world over is "intervening" in this situation. Ironically the only free capital market in the world is now the black market. The entire globe has reached the end now. iPad3,4 and 5 released all at once could stop the real disaster thats coming

Fri, 03/18/2011 - 10:15 | 1071143 AhhhItBurns
AhhhItBurns's picture

Revolutionary meldown? I can't find the app for that...

I hate to think what will happen when Jobs succumbs to cancer and the people are not told what their likes and interests are anymore. *Shudder*

Fri, 03/18/2011 - 08:06 | 1070621 gordengeko
gordengeko's picture

Days of Purim, triple witching, 77th day of the year and full moon tomorrow.  Let the craziness continue!

Fri, 03/18/2011 - 08:09 | 1070624 HelluvaEngineer
HelluvaEngineer's picture

What time does the sun go down in Libya?

Fri, 03/18/2011 - 08:11 | 1070630 HelluvaEngineer
HelluvaEngineer's picture

I think around 1PM EST.

Fri, 03/18/2011 - 08:14 | 1070638 gordengeko
gordengeko's picture

Since these control freaks are into numbers and symbols so much, don't be surprised if the bombs starta droppin today!

Fri, 03/18/2011 - 08:19 | 1070656 rubearish10
rubearish10's picture

It'll be another "Shock 'n' Awe" moment for world leaders and banksters!

Fri, 03/18/2011 - 08:11 | 1070628 jesse livermoore
jesse livermoore's picture

It is all good, ..... go back to watching jersey shore.....

Fri, 03/18/2011 - 08:13 | 1070633 jkruffin
jkruffin's picture

Time to watch Hellcats, with a bottle of Pantene in one hand, and the knob in the other.  LOL

Fri, 03/18/2011 - 08:11 | 1070634 99er
Fri, 03/18/2011 - 08:13 | 1070640 Larry Darrell
Larry Darrell's picture

Brent touching $115 is also majorly bullish for stocks.

 

Fri, 03/18/2011 - 08:16 | 1070647 rubearish10
rubearish10's picture

$116.00 basis May. Now even more bullish!

Fri, 03/18/2011 - 08:22 | 1070662 Larry Darrell
Larry Darrell's picture

Couple this with loss of control over the silver suppression scheme in May, and it's easy to see that this next financial 'morning after the party" is just about to have its dawn.

Fri, 03/18/2011 - 08:14 | 1070644 papaswamp
papaswamp's picture

Might want to buy some ordinance stocks.

Fri, 03/18/2011 - 08:18 | 1070657 AccreditedEYE
AccreditedEYE's picture

LMT is actually looking good.

Fri, 03/18/2011 - 08:28 | 1070677 dcb
dcb's picture

may you guy skills me, go back and run some tests, I can't remember the last time we didn't have a big up day friday. If you invest on just those days you will do very well!!!

Fri, 03/18/2011 - 08:28 | 1070683 dcb
dcb's picture

Oh, you can almost go long at 2 pm each adn every day, just have to watch about 3:30. "the joke market"

Fri, 03/18/2011 - 08:57 | 1070774 Wyndtunnel
Wyndtunnel's picture

One number and three words will signal the collapse of the Global Economy: 9.0 Earthquake in California.  With extra special downside bonus if the Diablo Canyon Nuclear Power Plant crumbles into the sea.

http://news.yahoo.com/s/ap/20110317/ap_on_re_us/us_japan_quake_us_fault_...

It seems that nothing but the Wrath of Mother Nature (with a possible assist from Homoretardus) will turn this sociopathic herd around.

 

Fri, 03/18/2011 - 11:39 | 1071606 Jessica6
Jessica6's picture

Nah, just buy the f***ing dip.

A Cali EQ - even if it flattens both LA and Silicon Valley would just present another buying opportunity.

According to CNBS, the worst case scenario including complete crustal displacement a la Hapgood was already priced in earlier this week.

Fri, 03/18/2011 - 08:55 | 1070786 buzzsaw99
buzzsaw99's picture

Meltdown, meltup, both make me wretch.

Fri, 03/18/2011 - 09:09 | 1070863 clones2
clones2's picture

Well - today is going to be extremely volatile.

2 days in a row with huge gaps to the upside...  Over 1% gaps both days...

I would be extremely surprised if those don't fill over the next few sessions.

Fri, 03/18/2011 - 09:17 | 1070886 lordcoke
lordcoke's picture

learn to swim.... c u down in arizona bay.......

Fri, 03/18/2011 - 09:36 | 1070938 John Law Lives
John Law Lives's picture

NY Fed admits to intervention in FX markets:

http://hosted.ap.org/dynamic/stories/U/US_FED_INTERVENTION?SITE=AP&SECTI...

 

 

Fri, 03/18/2011 - 10:04 | 1071079 HedgeFundLIVE
HedgeFundLIVE's picture

Bearish for Friday- calling for down 60-90bps.  But short term bullish: http://www.hedgefundlive.com/blog/thursdays-market-recovery-following-two-large-down-days-how-unusual-was-it

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