Chart Of The Day: Bulls Better Hope It's Different This Time

If earnings are the mother's milk of stock bull markets, then the endless supply of talking heads bloviating on the next leg of the stock market rally being driven by a post Q1 renaissance in earnings growth (ever ready to pull out their hockey-stick forecasts) may want to look away from the following chart...

A Union Divided: "More Europe" Means "More Germany"

The tense division in Europe's union are becoming increasingly evident. Between Greece's "no" vote, yesterday's EU Parliament outbursts, and today's German parliament commentary it is clear that, as Bloomberg reports, the centerpiece of Merkel’s cure for Europe - fiscal retrenchment - has catalyzed her in the eyes of many as despite her calm but firm entreaties, an economic bully. “The lesson of this crisis is more Europe, not less Europe,” Angela Merkel said in 2012 as the integrity of the region’s monetary union was threatened by financial instability, but many, like Greece, have come to understand "more Europe" means something different: "more Germany."

3 Things: Correction, Interest Rates & Oil Prices

While yesterday's suspension of trading on the New York Stock Exchange drew attention to the plunge in equity prices, the reality is that stocks have been in a correction since the all-time highs posted back in May. Of course, until yesterday's headlines, you may not have realized that the correction was in process as it has been "as slow as a turtle running in peanut butter."

Nobel Prize-Winning Economist Demands US Taxpayers "Show Humanity & Save Greece"

When the going gets tough, the taxed get going and that is what Nobel Prize winning economist Joseph Stiglitz thinks should happen. In a Time op-ed, Stiglitz warns (likely correctly) that if Greece continues with austerity, it would be depression without end; and so his solution is simple... "The U.S. was generous with Germany as we defeated it. Now, it is time for the U.S. to be generous with our friends in Greece in their time of need, as they have been crushed for the second time in a century by Germany, this time with the support of the troika." Strawman much?

Rick Santelli Unleashed: It's Not The Economy, Stupid - "The Central Planners Are In Control"

"China is not doing anything that the US has not already tried," exclaims Rick Santelli as he derides the 'entitlement' society that has reached the investor class. Whether it's US, Japan, Europe, or China, "the idea of trying to prop up returns in the equity market - admitted or not - is going on," Santelli notes, asking - after forcing every mom and pop out of savings and into investment, "if it doesn't turn out well... do they have a moral obligation to help out?" Simply put, he rages - drawing the chart of the year - "the central planners are in control... and I don't suspect they will give up the reins any time soon."

Greek "Compromise" Proposal Leaked, And There May Be A Problem

Moments ago MarketNews reported that during today's "marathon governmental meeting" in which Greek PM Alexis Tsipras sat down with his party to hammer out and complete the "compromise" Greek proposal to be sent to the Troika before midnight, the prime minister told his ministers that he was "ready for compromises," suggesting he was willing to clash with the ultra-left part his party, Syriza. So far so good, and perhaps indeed suggestive of a big step down. The problem emerges upon a closer read of the proposal, which is clearly not nearly "capitulatory" enough.

Nasdaq Gives Up All "China & Greece Are Fixed" Gains, Dow 500-Point Pump-&-Dump

Who could have seen that coming? A US equity rally on the basis of an entirely manipulated Chinese stock market rally overnight and hope for a last minute Greek deal (dashed by calls for a massive EUR80billion bailout which zee Germans will never give in to). The Dow just experienced a 500-point-pump-and-dump as this morning's exuberant TV anchors are suddenly silenced by the reality that China and Greece matter after all...

Are The EU And Asia Turning A Blind Eye To Russian Sanctions?

We previously questioned whether western sanctions imposed on Russia were being regularly breached by E.U. and Asian companies, noting that sanctions only work if all countries unite behind them. Now, only one year after being imposed, the sanctions are eroding as it seems that government and business policies are pulling in opposite directions. A U.S. State Dept. representative may have let the truth slip out recently when he noted, "if you tell us you’re going [to break a sanction], we’ll probably order you not to, but if you go and don’t tell us, we’ll probably do nothing."

"Hostile Sellers" Send S&P 500 Back Below 200DMA

The Dow is now down 170 points from its intraday highs and the S&P 500 is at the cash session lows, breaking back below the 200-day moving-average. It appears we have some "malicious short sellers" in the US equity market that need to be reprimanded...

Tailing, Weak 30 Year Bond Auction Disrupts Treasury Long End

If yesterday's 10 Year auction priced stronger than expected during yesterday's NYSE-trading vacuum, today's 30 Year was the mirror image, with the Treasury selling $13 billion in 30 Year paper far weaker than the When Issued market had expected, resulting in a 3.084% high yield, a tail of 1.6 bps to the When Issued.

Greece Enters Its Crack-Up Boom Phase - When Fridges Become Money

The Austrian School of economics has a concept called a “crack-up boom” in which a critical mass of people conclude that their government is actively trying to devalue its currency. Consumers respond by front-running the government, spending their paychecks immediately in order to convert their soon-to-be-less-valuable money into real things. Merchants, not happy about the sudden influx of suspect currency (and sensing the panic of their customers) hold out for ever-higher prices, causing inflation to spike. But it’s a special kind of inflation, driven not by a sudden increase in the money supply but by collapsing confidence among holders of the currency. In a very short time, so goes the theory, the supply of stuff available for purchase dries up, prices hyperinflate, and the economy collapses. Welcome, in other words, to Greece...

NYSE Issues Official Explanation Why Its Was Offline For Nearly 4 Hours, Blames Software Upgrade

"On Tuesday evening, the NYSE began the rollout of a software release in preparation for the July 11 industry test of the upcoming SIP timestamp requirement. As is standard NYSE practice, the initial release was deployed on one trading unit. As customers began connecting after 7am on Wednesday morning, there were communication issues between customer gateways and the trading unit with the new release. It was determined that the NYSE and NYSE MKT customer gateways were not loaded with the proper configuration compatible with the new release."

"Wall Street Has Been A World Of Pain Trades Since The End Of QE"

These mediocre asset returns disguise treacherous trading conditions in past six months. Indeed, Wall Street has been a world of Pain Trades ever since the Fed signaled the end of QE early last year. The end of Max Liquidity means the end of Minimum Volatility, and the lack of strong economic growth in recent quarters has caused the cyclical upside to asset prices to fade.

Why Janet Is Lost: Her Favorite Charts Show 'JOLTing' Disconnects

Janet Yellen’s reputed favorite jobs measure, the JOLTS (Job Openings and Labor Turnover Survey) reported blockbuster record job openings in May. But look beneath the headlines and you will see just how distorted and maladjusted the US job market is.