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'Perception Is Reality' As Mystical Rally 'Shows' Spanish Budget A 'Success'
As the words were spewing from the mouths of Saenz, Montoro, and Guindos - with little to no substance at all, so EURUSD started to push higher - in a hurry. In today's quiet market, the correlated-monkeys took over and US equities - thanks to weakness in the USD - and Gold and Oil spurted higher. AAPL - as the high beta proxy for all things market - surged 2% (we assume as the Spaniards will need to buy more AAPL stock to fund the shortfalls in their pension funds). The bottom-line is we have fallen for a few days and so a bounce is not unlikely but the timing and size smells very fishy and the front-running of quarter-end front-running wind-dressing front-runners remains a quagmire of circular logic to us. The bottom-line is that the media can now say the words "the market seemed to 'like' what Spain was saying - is the bottom in?" despite there being no news at all.
EURUSD...
Gold is leading and green on the week now - stocks and the USD are tracking perfectly and Treasuries are lagging the exuberance...
The S&P futures though did auction up to a previous high-and-low volume node region in the last few days (see distribution left of chart) - and perhaps just needed to run some stops to flush out any buyers before resuming the down-trend...
Forgive our somewhat jaded view of this budget... but all of this had been leaked over the past few days and in fact ot is somewhat stunniong that it could have any impact as it offers no 'hope' for a bailout request and is pure fallacy when it comes to circular funding of the budget deficit via pension reserves... the need to show a brave face and postivity from the market is incredible...
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Cataluña me hace café en las bolas.
Sour grapes?
http://www.youtube.com/watch?v=EmfE4KAZicY
Magical Mystery Tour.
<Stop the freaking bus cus I want off.>
ICP
... and get on the little yellow bus...
http://www.youtube.com/watch?v=IwwuZr6H1LQ&feature=related
lol k
Just another day at the Hotel Ponzi.
And every progressive figures that governments budget are always respected to the penny, especially when it comes to the PIIGS. Why not trust Spain? If they don't manage to respect their budget, it's gonna be a surprise and not their fault...
On the day Edwards of SocGen has gone to 70% cash. Even my grandmother, who is deceased since 1991, can see what is happening. whatever ponzifiat you still own, plus 30%, should be invested. This is crashing upwards, as you can see on the ultimate BS barometer gold.
There are 2 things missing: velocity on full throttle and decoupling the goldfut from physical delivery. Don't worry, we'll see both soon enough.
All about the end of the quarter.
Yep. Buy puts on every pop.
They always do these violent mark-ups on European no news.
Everyone just pretends the news is positive and sends the algos in hopes of activating a few major stops.
What is the most perplexing is how they were able to completely ignore horrible economic data this morning. They knew about the pre-planned mark-up on Spanish no news and absorbed all the selling earlier this morning.
Until gold unlinks from stawks this is all just noise.
So, Spain isn't saved - again.
Please let it happen soon. I am so sick of this knee-jerk-buy-American=momo-100-PE-stocks-because-some-European-stooge-is-lying-at-a-press-conference meme.
as of today 20% more of Spain´s business just went underground....
You refer to 'the market' as if it's a collective decision to buy hard and fast; it's a handful of people from various instituions with a g'ment mandate to hit that button hard @ 16:30 GMT.
Nicely stated.
just woke up...wow, what did I miss? everything is fixed in Spain? super!
HFT rally: all Guidos had to say is "we reform MORE than expected by EU "
THAT is the moment rally began... check the tapes..
Please see my earlier post in earlier thread that we will get bounce today....
"you might not like the rattlesnake, but you dance to the tune it plays "
One more thing to add to Tylers conspiracy list. " Financial news is leaked early "TPTB"! Thus suckering the markets short , for the afternoon ramp fest!
If something doesn't seem right, week after week, month after month, and it involves the price discovery mechanisms of the world economy, then it is time to find a spot to hold out in because the SHTF and will be a blowin in the wind faster than you can say get me outta here.
Still scrip.
Durden,still (trying to)short and frustrated? Getting stopped out? Predicting the top? Bearish all year while stocks
up 30 plus percent? LOL.