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'Perception Is Reality' As Mystical Rally 'Shows' Spanish Budget A 'Success'

Tyler Durden's picture




 

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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Thu, 09/27/2012 - 12:56 | 2835840 jcia
jcia's picture

Cataluña me hace café en las bolas.

Thu, 09/27/2012 - 13:46 | 2836055 slaughterer
Thu, 09/27/2012 - 13:00 | 2835845 Cognitive Dissonance
Cognitive Dissonance's picture

Magical Mystery Tour.

<Stop the freaking bus cus I want off.>

MM Tour

Thu, 09/27/2012 - 14:34 | 2836247 PersonalRespons...
PersonalResponsibility's picture

ICP

... and get on the little yellow bus...

http://www.youtube.com/watch?v=IwwuZr6H1LQ&feature=related

 

Thu, 09/27/2012 - 12:58 | 2835849 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

perhaps just needed to run some stops to flush out any buyers before resuming the down-trend

lol k

Thu, 09/27/2012 - 13:01 | 2835856 LongSoupLine
LongSoupLine's picture

Just another day at the Hotel Ponzi.

Thu, 09/27/2012 - 13:01 | 2835858 Nothing To See Here
Nothing To See Here's picture

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...

Thu, 09/27/2012 - 13:03 | 2835865 orca
orca's picture

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.

Thu, 09/27/2012 - 13:03 | 2835866 Ned Zeppelin
Ned Zeppelin's picture

All about the end of the quarter.

Thu, 09/27/2012 - 14:21 | 2836202 Go Tribe
Go Tribe's picture

Yep. Buy puts on every pop.

Thu, 09/27/2012 - 13:13 | 2835896 Cult_of_Reason
Cult_of_Reason's picture

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.

Thu, 09/27/2012 - 13:10 | 2835909 fonzannoon
fonzannoon's picture

Until gold unlinks from stawks this is all just noise.

Thu, 09/27/2012 - 13:13 | 2835918 ptoemmes
ptoemmes's picture

So, Spain isn't saved - again.

Thu, 09/27/2012 - 13:16 | 2835931 gjp
gjp's picture

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.

Thu, 09/27/2012 - 13:16 | 2835932 youngman
youngman's picture

as of today 20% more of Spain´s business just went underground....

Thu, 09/27/2012 - 13:16 | 2835933 FiatFapper
FiatFapper's picture

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.

Thu, 09/27/2012 - 14:22 | 2836208 Go Tribe
Go Tribe's picture

Nicely stated.

Thu, 09/27/2012 - 13:22 | 2835964 Squid Vicious
Squid Vicious's picture

just woke up...wow, what did I miss? everything is fixed in Spain? super!

Thu, 09/27/2012 - 13:23 | 2835965 trebuchet
trebuchet's picture

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 "

Thu, 09/27/2012 - 13:27 | 2835985 Yen Cross
Yen Cross's picture

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!

Thu, 09/27/2012 - 13:52 | 2836071 q99x2
q99x2's picture

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.

Thu, 09/27/2012 - 15:13 | 2836350 RiskAverseAlertBlog
RiskAverseAlertBlog's picture

Still scrip.

Thu, 09/27/2012 - 15:14 | 2836359 bullmkt
bullmkt's picture

Durden,still (trying to)short and frustrated? Getting stopped out? Predicting the top? Bearish all year while stocks

up 30 plus percent? LOL.

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