Market Update - The Damage So Far

Tyler Durden's picture

It seems the realization that i) Cyprus mattered, ii) If Europe slumps then US will be infected (no matter how clean the asset-gatherers believe the shirt to be) is impacting markets globally once again. A slew of horrible data overnight following yesterday's US data disappointments (following US earnings bellwether misses) is finally (now at quarter-end) having some impact on the euphoria. European stock markets are dropping rapidly with Spain and Italy down 5 to 6 % this week now. Spanish, Italian, and Portuguese bond spreads have blown back wider (Spain yield back over 5%) by 30 to 40bps this week alone and EURUSD is getting monkey-hammered breaking back below 1.2800 - its lowest in over 4 months. European (and US) banks are also in trouble with the former now negative year-to-date. US Treasuries are well bid on this safe-haven flow (down 6 to 7bps on the week) and Swiss and German 2Y bond yields are negative once again (with the latter more negative as the 'safety' of offshore financial centers seemed less than the core of Europe).


EURUSD at 4 month lows...


and European financial stocks are now negative year-to-date - playing catrch down to credit...


European stocks and bonds are not pretty...


meanwhile in the US...


Now let's see how quarter-end rebalancing helps the situation after such strong relative performance...


Charts: Bloomberg

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Irelevant's picture

I know we all gold bugs really dont like it, but in FIAT world the dollar is king.

GetZeeGold's picture



I'm sticking with the DOW....I like to feel safe.

Monedas's picture

In the kingdom of the blind .... the one eyed pyramid is king ?    BTFD

Passage's picture

Gold and USD will both appreciate against the rest of the world because of the bank levy.

espirit's picture

Captain Ben:

Take the presses to Warp 9, Mr. Sulu.

Scotty: She's nota gonna hold long Captain!

LawsofPhysics's picture

Yes, because with negative rates and the direct monetization rate of 85 billion per month, americans have already been conditioned to theft.  "Winning".

Passage's picture

Dear Lawofphysics,
We are on the same bandwidth. By now, I am humbly convinced that the best economic engineers are from US.

LawsofPhysics's picture

Maybe.  Don't forget, these sociopaths have had the luxury of standing behind a pretty significant military and black ops. group.  Take that away and let's see how brilliant these guys are.

GCT's picture

LOP right on!

There is a reason we spend so much on defense!  The world knows the USA has nukes and we are the only country that used them.  Even though several European countries have a standing military, we are not stationed in Europe for nothing.  Hell France ran out of ammo and had to buy it from us! 

matrix2012's picture


In 1975, during the Church Committee hearings, the existence of a secret assassination weapon came to light. The C1A had developed a poison that caused the victim to have an immediate heart attack. This poison could be frozen into the shape of a dart and then fired at high speed from a pistol. The gun was capable of shooting the icy projectile with enough speed that the dart would go right through the clothes of the target and leave just a tiny red mark. Once in the body the poison would melt and be absorbed into the blood and cause a heart attack! The poison was developed to be undetectable by modern autopsy procedures.

Can you give a person cancer?

If cancer in animals can be caused by injecting them with cancer viruses and bacteria, it would certainly be possible to do the same with human beings!

In 1931, Cornelius Rhoads, a pathologist from the Rockefeller Institute for Medical Research, purposely infects human test subjects in Puerto Rico with cancer cells; 13 of them died. Though a Puerto Rican doctor later discovers that Rhoads purposely covered up some of the details of his experiment and Rhoads himself gives a written testimony stating he believes that all Puerto Ricans should be killed, he later goes on to establish the U.S. Army Biological Warfare facilities in Fort Detrick Maryland (origin of the HIV/AIDS virus, the Avian Flu virus and the Swine Flu / A-H1N1 virus), Utah and Panama, and is named to the U.S. Atomic Energy Commission, where he begins a series of radiation exposure experiments on American soldiers and civilian hospital patients.

The answer to the question – Can you give a person cancer – is yes.  After nearly 80 years of research and development there is now a way to simulate a real heart attack and to give a healthy person cancer. Both have been used as a means of assassination. Only a very skilled pathologist, who knew exactly what to look for at an autopsy, could distinguish an assassination induced heart attack or cancer from the real thing.

Targeted Assassinations by Induced Heart Attack and Cancer - - ps. It  reminds me about Hugo Chavez's cancer! 


toys for tits's picture

Run, baby, run. Bank run, that is.

Cdad's picture

Cue The criminal syndicate known as Wall Street:  From 4 years of "global growth" to "Decoupling."  Because wise investing is never moar than one trite and oft repeated cliche' away.

TeamDepends's picture

Dow 30000 just around the corner.

the not so mighty maximiza's picture

I don't want to end my fiscal year like this, Bernanke print you fucker.

deKevelioc's picture

Round and round she goes; where she stops, nobody knows.

disabledvet's picture

"just a good old boys...never meaning no harm. Beats all you ever saw been in trouble with the law since the day they was born...

espirit's picture

Time to cue Cypriot Derivatives.

Randall Cabot's picture

Futures creeping back up now, big POMO days today and tomorrow-$5.5B to $7.5B

Zero Hedge got a mention on Bloomberg radio this morning about Cyprus by "Terrific" Tom Keene.

HD's picture

I'd love to know how much of the the current volume is Ben. I can't find hard and fast numbers...

SheepDog-One's picture

WOW $13 billion huh? Just the same amount as the entire Cyprus mess...we'll just imagine it up out of thin air by tomorrow!

asteroids's picture

Imagine that mdestly levered up 10:1, even the charisatan would pause before printing another $100B or so. Do not ber surprised if stores of $100B missing start coming out of Cyprus.

Going Loco's picture

I hope ZH isn't going to get quoted too often. I like to feel I am one step ahead of the sheep.

MFLTucson's picture

US Treasuries are well bid on this safe-haven flow -Treasuries and safe haven is an oxymoron.

Winston Churchill's picture

Right now the hot money is running to the percieved satety of UST's.

I think the penny will drop in peoples minds over the coming weekend that

nowhere is safe now.Was looking at how post  Keditansalt unfolded day by day.

Remarkably similar.The real panic took several weeks to kick in.

scatterbrains's picture

but the SPX is safe now if you ignore the 2 seperate 50% hair cuts over the last 10 years or so.

Chief Falling Knife's picture

I just looked at February's NYSE margin debt numbers.. figuring with the 'correction'(in the case of the DOW the major correction of almost 2%) maybe the number would've been lower than January.  Nope,  Feb NYSE Margin Debt higher than January, 3rd highest ever(June-July 2007.. what happened those 2 months?.. and after?).  Anyway, I'm REALLY excited to see March's number, of course the S&P will no doubt be around 1650 when those numbers are released.

glenlloyd's picture

cash in a bank account was safe...until it wasn't.

Confundido's picture

Amazed that gold is still below $1,600/oz....but I've been in similar situations before...laughed at....

Mr. Hudson's picture

The sky is falling, but what is amazing is how slow it falls.

Sheeple Shepard's picture

When everything is falling at the same time, it makes it kind of hard to notice; )


Simultaneous and syncronized Wile Coyote puffs of smoke coming right up.

Monedas's picture

Yeah, like in a dream .... you fall in slow motion .... then your dog farts .... and you wake up .... and you check you stash .... and it's still there !

101 years and counting's picture

id love to see the tylers put up that last chart (10yr vs SPX) over a 3 yr period.  from april 2010 to current.  i think spx is about 165% overpriced with those 10 yr yields.

SheepDog-One's picture

First they tried to TALK people into U.S. crap bubble, no one bought it so now they FORCE people into U.S. bawnds and stawks, so they'll wait a bit until enough 'depositors' are in and get the rug pulled out on them again....that's OK I'm just watching the clownshow like a Benny Hill skit, I've got PLENTY of popcorn.


LawsofPhysics's picture

Please, 85 billion per month, indefinitely.  Everything is going up in "price", period.

Edward Fiatski's picture

Cyprus happened!


Telegraph to Bob to withdraw all cookies from Spanish, Italian & UK jars ASAP. Dot

jeebus's picture

You know the "market" is all giant funds/ computers when the race to "safety" is US treasuries. 

Going Loco's picture

It is a significant (2%) decline in the quoted Ask for (probably paper) silver. The price is going down. This is not opinion so don't waste electrons adhominemming me. What this means for the price of silver bullion coins I have no idea.

EDIT: looks like it was a gap down, now filled.

eigenvalue's picture

I wonder why the bullion banks pummel silver. April is a big delivery month for gold not silver. Besides that, the divergence between silver and other precious metal is a tad too big today. 

Mr. Hudson's picture

Double bottom. Gold is headed for the moon on threats of war from North Korea.

LawsofPhysics's picture

Another chance to take delivery on the cheap?

insanelysane's picture

At 9:34 AM, showing DJIA +111 even though market was actually -, minus, negative, RED.  How does that happen?  I can't comprehend it because I would have thought it was an automated feed.  Things have gotten that bad where any bad news is automatically inverted.

glenlloyd's picture

seen that one before....they knew it was negative and didn't want it to show...bad for their ratings you know.

"when it's serious you have to lie" - Junker

MFLTucson's picture

No fear because by the end of the day Ben Bernake will give your money to his gangster friends at the banks to keep this equity fraud at the level it is.