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Europe Closes Green As Macro Data Drops Most In 19 Months
European macro data surprises have dropped into negative territory for the first time in 3 months as the last 3 weeks have seen the biggest drop in 19 months. Of course, none of that matters, as EURJPY was bid all the way through the European day, lifting European stocks and the all-important Italian and Spanish bond markets. Markets were relatively thin still today but just as we have seen around the world (most specifically in Japan and the US recently) equity markets push on ahead despite the collapse in macro data - but we've seen this before a few times (and it did not end well)...
European macro data has plunged in the last 3 weeks...
but EURUSD appears to expect European macro data to deteriorate even further relative to the US...
but it appears the US and Europe have recoupled (remember its never a decoupling - it's a lead-lag relationship)...
But it is stocks that remain aloof to macro reality - as they do around the world (but we saw this before in Q1 2011)...
and today in Europe...everything is fine...
Charts: Bloomberg
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US large caps making new highs but small caps not following. Rolling over more like.
http://finance.yahoo.com/echarts?s=^RUT+Interactive#symbol=^rut;range=1y;compare=;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;
Ben probably thinks he can print reality.
The reality of it is that stocks have decoupled from reality.
They dont give a FUCK
Stocks are what grandma used to buy into when she actually worked at the denim factory. This is not the case anymore.
Chances are that over the next year to see the U.S. economy going up and down Europe's economy. Similarly, we will see Wall Street and reaching values ??higher European shares falling or staying flat. Bad years come to Europe.
Wow, thanks for the tip. Brilliant stuff.
they always do. and then they play catch up to reality in a hurry.
$85B a month in new reserve currency. Gotta end up somewhere.
Man, is this going to end badly.
An obvious market ram job by central regulators.... what a farce!
Truman show meets 1984.
i don't like reality anyway.
Worsening data means that everybody is counting on an ECB rate cut:
http://dareconomics.wordpress.com/2013/04/02/eurozone-recession-worsens-...
LMFAO, to what -15 %, -20%, just drop the fiat from helicopters already.
But if they do that, some poor or middle class people might get ahold of some. This way, it all stays within the top 1%.
What? From bugger all to f*ck all?
Obviously a planned run on the bears. Seems everyone (or their algos) is broken in, so that every data release, whatever it is, causes pavlovian panic buying. This insane shit will be in the history books.
Bet you thought after the Italian elections that SPX/Gold parity won't be reached. Here you go again with 1572/1577.
Stocks are starting to be perceived as stores of value.
Well, the FED definitely is desperate for that....but then why do they have to buy basically 100% of it all themselves? Who's buyin stawks, you?
Cha-cha-cha... dancing with the stars to the POMO
What news did I miss that is the reason for the viagra induced morning wood in the Healthcare sector? Or is it the 'new norm' of no news?
http://www.youtube.com/watch?v=AG7LjVCj50Y
I feel like i'm taking crazy pills.
Every day sicker and more depraved than the one before. On the plus side, it's better today than it will be tomorrow.
With this kind of diconnect between macro and equities, I am nagged by the possibility that the flow into equities is the beginning of a crack-up boom as discussed by von Mises. Maybe the market is looking ahead to a large increase in the monetary base of both the Euro and Dollar as both central banks are forced to monetize their assets. The negative PM market action goes against this argument of course.
No. Equities aren't big enough.
Sovereign bonds and currencies are the thing that go:
http://www.youtube.com/watch?v=LppP51Vwv10#t=60s
All of these charts and analyses are wonderful at proving that the world is effed up. The markets don't give a s#*t however and if the reader wants to make money he has to ignore the noise in this news and pay attention to the momentum in the markets. I am long because my technical analysis tell me I should be long. I could not give a fart if what I already know about the economies of the world is correct or if it will blow up until I see the changes as they appear in my system.
Eventually the author of this article can say he told us so because his data is correct but if he is short or out of the market he is a fool.
Remember the good old days (2008) when we actually debated the existence of the Plunge Protection Team? I believe it was this blog that essentially predicted that goosing the markets was like doing smack: recreational use will inevitably spiral into hard core addiction. Here we are.
So now the only thing running the world is an ocean of fake money having to go somewhere, so it goes into lifting phony markets daily while everything else is plunging to new all time lows. What a shit covered situation.
You'll know the end is near when: there will be rumors and...
No really why do you think the chinese sub lobbed a test missile off the Catalina coast of CA a year and a half ago. And a russian one was also seen out of the Gulf over Texas. Banksters preparing the enemy for a move on the US. If they were able to get away with 911 do you think they'd try something bigger? All or nothing for the gambling banksters. They're going for broke on this one. Until you see mushroom clouds in the sky...BTFD.