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Art Cashin: "The New Battle Of Thermopylae Is On The Way"

Tyler Durden's picture




 

Nothing actually new here, but listening to Art Cashin retall the latest end of the world episode in that wise, grizzled voice of his brings a soothing element to what is set to be another dramamine-friendly week.

From UBS:

Friday’s stock market crumbled under the weight of rumors and worries about the Eurozone. Would Greece default over the weekend? Was Jurgen Stark’s sudden resignation from the ECB a power play by Merkel or the first shot of bringing the bailout debate to the German public? Would the weekend G-7 meeting result in a surprise policy lift? All those concerns, and more, crushed stocks on both sides of the pond.

Over the weekend, the battle has shifted. German authorities talk openly of the likelihood of a Greek default. They are said to be developing a plan to backstop German banks in the event of a Greek default. That puts pressure on other banks, especially French banks, since there is no Gallic backstop plan. Collateral damage could be to bring no bids to the next Greek auction, or make them pay such high rates as to make the auction toxic. The Euro crisis is quickly evolving into a Gordian Knot.

Although it is called a sovereign debt crisis, it was not the sovereigns who were in the front lines of the battle. It was the European banks that held a portion of the bonds issued by the weak sovereigns. If the market value of the sovereigns they held fell to, say, 50 cents on the dollar, those losses could make those banks insolvent. They would become the new Bear Stearns and Lehman. That’s why the rescue effort quickly shifted from simply bailing out Greece and the others to buying the sovereign debt to put a floor under those bonds. The rumored German backstop would, as we noted, shift focus back to the sovereigns with Greece running out of funds, possibly by month’s end.

U.S. markets are at near-critical levels. The uptrend line that caused the last bounce (S&P 1140) is around 1145. Key support levels are 1140, 1132, 1120 and ultimately 1101. The new Battle of Thermopylae is on the way.

Rumors of French nuclear accident has European markets reeling.

 

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Mon, 09/12/2011 - 09:36 | 1659280 Belarus
Belarus's picture

man o man the HFT's hit are hitting the bids hard this morning.....

Mon, 09/12/2011 - 09:38 | 1659284 HelluvaEngineer
HelluvaEngineer's picture

You can pretty much count on a gap fill IMO.  The Momo monkeys pretty much have their marching orders this morning.  I can't believe how decoupled we have become from the European meltdown.  Will reality ever set in?

Mon, 09/12/2011 - 09:44 | 1659294 SheepDog-One
SheepDog-One's picture

8 days till D-Day...with Bernank's only apparent concern being refilling the gap downs, it will be a VERY interesting next week speech from the FOMC!

Mon, 09/12/2011 - 09:58 | 1659344 Ancona
Ancona's picture

Hahahaha!

Molon Labe Bitchez!

Mon, 09/12/2011 - 10:04 | 1659373 snowball777
snowball777's picture

Take what? The "collateral"?

Mon, 09/12/2011 - 09:45 | 1659297 barkingbill
barkingbill's picture

maybe, but i don't think just yet. 

Mon, 09/12/2011 - 09:57 | 1659335 Transitory Disi...
Transitory Disinflation's picture

 

 

 

 

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Mon, 09/12/2011 - 10:47 | 1659530 DosZap
DosZap's picture

Transitory,

Very well done, really!................

The way I feel every day I have to hear,see,read anything these traitors are doing.

Here's the only answer to our problems, and you ain't gonna like it.(I do not,but I see no choice if we are ever to get back o track )

http://www.marketwatch.com/story/massive-default-is-best-way-to-fix-the-economy-2011-09-12?pagenumber=2

Mon, 09/12/2011 - 09:39 | 1659287 LongBalls
LongBalls's picture

I'm not even going to try to trade this paper hurricane. Sometimes the best trade is not placing one at all. So I will just keep stackin'.

Mon, 09/12/2011 - 09:40 | 1659288 GeneMarchbanks
GeneMarchbanks's picture

'Key support levels are 1140, 1132, 1120 and ultimately 1101.'

See you @ 900 or so.

Mon, 09/12/2011 - 10:06 | 1659377 catladdy
catladdy's picture

Goin ta need lots of margin to hang in on that one. my opinion 1200, then 1225 before 900, IF, 900 prints. We may be bldg compression  with a 125 spy pt trading range for a few weeks.

Not ultra bearish or bullish

Mon, 09/12/2011 - 09:45 | 1659296 Cdad
Cdad's picture

Art says 1140...and ES reports there immediately.  Funny how that works.

It indicates a level of complete oblivion where valuing things is concerned.  The Street has no idea.  All they have left are their super computers and their collective lemming-like behavior.  How is that for an investment thesis?

Too bad the US government saved all these criminal bankers in 2008.  In the end, it does not matter, as the purple in the veins is now traveling away from the festering wound.

Thank you, Hank Paulson.

 

Mon, 09/12/2011 - 09:46 | 1659300 SheepDog-One
SheepDog-One's picture

1140ES present SIR!

Mon, 09/12/2011 - 10:12 | 1659405 Cdad
Cdad's picture

Puke bucket ETFs up...puking of individual, marked up equities begins.

Roach Motel [SPY] RSI hits infinity...goes for infinity x 2.

Mon, 09/12/2011 - 09:52 | 1659298 SheepDog-One
SheepDog-One's picture

LOL, DOW green after only 10 minutes open 'trading' from being down -250...'completely unhinged', anyone?

Who bought that pump, only to have it erased?

Mon, 09/12/2011 - 10:01 | 1659332 fuu
fuu's picture

Well NASDAQ went green.

EDIT: There went S&P.

 

JPM just had a .50 turn around.

Mon, 09/12/2011 - 09:47 | 1659299 LoneStarHog
LoneStarHog's picture
  1. And here comes the F**KING juvenile PPT, as if everyone and his mother don't know about their antics. Well, everyone except the PUMP MONKEYS on CNBS.
Mon, 09/12/2011 - 09:47 | 1659301 SheepDog-One
SheepDog-One's picture

Really makes ya wonder about Sept 21 huh? Why would the FED be doing all-out in yer face pumping drops?

Mon, 09/12/2011 - 10:03 | 1659363 snowball777
snowball777's picture

Drops...or (currency) swaps?

Mon, 09/12/2011 - 09:48 | 1659303 TradingJoe
TradingJoe's picture

My oh My, Algos are really sweating this morning, too bad for them it won't help, AT ALL! Once panic sets in ....well you know! We are pretty much THERE, a few days, give or take! No need to roll them options into Oct Exp :)))! When I look at the QQQ I start laughing LOUD! When taht one goes it will be with a BANG,  A BIG BANG that is! Very sad to see this much desperation within Wall Street, we were once envied now we are cursed!

SHORT Y'ALL!

Mon, 09/12/2011 - 09:49 | 1659310 SheepDog-One
SheepDog-One's picture

Bens last few days till next weeks FOMC faceplant! Hellhounds on Bens trail.

Mon, 09/12/2011 - 09:50 | 1659304 Yardfarmer
Yardfarmer's picture

They would become the new Bear Stearns and Lehman. That’s why the rescue effort quickly shifted from simply bailing out Greece and the others to buying the sovereign debt to put a floor under those bonds.

 

ever tried to walk on a floor made of paper? 

 

Mon, 09/12/2011 - 10:10 | 1659395 AnAnonymous
AnAnonymous's picture

ever tried to walk on a floor made of paper?

::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::

A piece of cake for an advanced student of Sinanju.

Mon, 09/12/2011 - 10:31 | 1659479 Blackfriday
Blackfriday's picture

Is that you, Remo?

Mon, 09/12/2011 - 09:52 | 1659315 Belarus
Belarus's picture

stocks outperforming Gold and Silver today: yeah, sure, there isn't foul play. 

Mon, 09/12/2011 - 09:52 | 1659316 adr
adr's picture

It is amazing how well the US markets have held up. It is so great to have a source of near unlimited free money and assurances that the government will backstop your bad bids.

It is like being given an American Express  Black card and being told that you can keep all your winnings at the blackjack tableand the losses will go on the card and you'll never have to worry about paying.

US stocks have already halved the losses  within 20 minutes. How people can doubt the PPT is beyond me.  No rational human being would purchase a stock to hold long rght now.

Mon, 09/12/2011 - 09:58 | 1659339 Mitzibitzi
Mitzibitzi's picture

Funny you should say that. American Express just dropped 2%. ;-)

Mon, 09/12/2011 - 10:10 | 1659392 Mitzibitzi
Mitzibitzi's picture

A lot of what's apparently being bought by 'actual buyers' seems to be in automotive parts (mainly big trucks), satcomms and power electronics. Wonder who wants all that stuff?

Mon, 09/12/2011 - 09:57 | 1659318 falak pema
falak pema's picture

A Nuclear Berezina and Sarkozy's clout loses its bite in upcoming election year. Imagine campaigning in 2012 defending the return to the french franc! That would be clownishly hilarious for a man who is now wearing Tony Blair's shoes, as the US Oligarch's main supporter in EU. "i am a true globaliser. Witness my actions in MENA and Afgh, but I must now go back to being Asterisk and ask my friend Obelisk Merkel to hold the northern fort on her own." Pax romana will now be compared to Euro dictatorship imposed by bunga bunga bankruptcy, lol, we have come a full crazy circle. 

Who wants to buy my old car in french francs? Going cheap I'll sell it ONe franc to the Euro. That is a bargain... in devalued Euros. As we all know, once the Euro goes the french franc can only go up!

I am now totally greek in my thinking as my convoluted logic is like the drachma, a virtual reality, or conversely, the euro a real virtuality.

But something tells me that Frau Merkel has not said her last word, whatever the Club Med countries will end up becoming.

Mon, 09/12/2011 - 10:11 | 1659388 Léonard
Léonard's picture

What the hell are you talking about ?

Since when will Greece's default mean the end of the Euro ?

The Euro value is based on industries, infrastructures and can be backed by the European gold reserves any time.

Greece's default will not end the Euro. It will make it stronger and challenge the dollar as the reserve currency.

Mon, 09/12/2011 - 10:25 | 1659430 falak pema
falak pema's picture

You didn't read the last line in my comment...Tsst, the devil lies in the detail...amigo!

And...Asterisk is NOT Obelisk...to push the banker's comedy to logical conclusion. This is not a sovereign debt crisis its a private eurobank crisis. France may lose it uber alles triple A rating. 

To push it even further, Frau Merkel may move the Euro zone to two tier. If its possible, its the best long term structural and financially competitive solution for all. Flexibility indeed the key word...

Mon, 09/12/2011 - 11:15 | 1659679 JOYFUL
JOYFUL's picture

Well Leo, since you insist on doubling up on your comments today(at least in theme if not EXACT verbiage, I shall feel free to do the same....

You're jokin us right, just like that million$bonus dude!?!?...

real industries...>wtf>....couple of pieces of tangible goods I acquired in the last year....{made}by respected German names...subsequent discovery of the small print on same shows that said items are "designed/and or quality inspected in" Germany....product of PRC....

about that gold thing....exactly where did you say that gold is held at this moment?!?!?

you must be jokin us....right!?!?

I see this time around you dropped the word 'real' from in front of 'industries': maybe you are coming around after all; but you still have not disclosed to us where all those "European gold reserves" are all parked at this moment - plus ça change, plus c’est la même chose,  n'est pas?

 

hahaha OK?

Mon, 09/12/2011 - 09:54 | 1659321 MFL8240
MFL8240's picture

Gold down $28 US confetti, anyone understand this bullshit anymore because I am lost.

Mon, 09/12/2011 - 09:58 | 1659340 LongBalls
LongBalls's picture

It's down in terms of USD. The USD is gaining strength. Today is a buy in gold. IMHO.

 

Mon, 09/12/2011 - 09:55 | 1659322 Gandalf6900
Gandalf6900's picture

excuse me, are US stox seriously turning green???

Mon, 09/12/2011 - 09:59 | 1659349 fuu
fuu's picture

It certainly looks that way.

Mon, 09/12/2011 - 09:55 | 1659323 Lord Welligton
Lord Welligton's picture

Oh dear.

Greek 1 Year now at 122%.

Who's writing this script?

 

 

 

 

Mon, 09/12/2011 - 09:55 | 1659324 Belarus
Belarus's picture

NASDAQ green. Soon too, S + P and Dow. 

Mon, 09/12/2011 - 09:56 | 1659326 SheepDog-One
SheepDog-One's picture

'Rule 48' invoked, futures down well over 1% only to be presented with a miracle...all recovered and then some! I guess 'investors' BTFD! Yea sure.

Mon, 09/12/2011 - 09:58 | 1659343 Cdad
Cdad's picture

It will be sold...the pink unicorn poop pop.  Just look at the VIX.  ES miracle met by the VIX with...meh.

Mon, 09/12/2011 - 09:57 | 1659333 Johnny Lawrence
Johnny Lawrence's picture

All of Europe down 2%+, and the NASDAQ is green and the S&P is down 0.7%.  Go figure.

Mon, 09/12/2011 - 09:57 | 1659334 SheepDog-One
SheepDog-One's picture

8 days Ben TIC TOC TIC TOC what are you gonna do now ass hat? 

You wont even let the markets open down, but youll present your case for $2 trillion free gift for stocks as LIESman was just chirping about?

I dont think so. THIS is QE3 youre seeing it right now!

Mon, 09/12/2011 - 09:58 | 1659337 Belarus
Belarus's picture

This market wants you to just go long. When a 1% drop sets off national emerency bells and everything and anything must be done--whether covertly and illegal or overtly and illegal--to prop up the market at any cost....why not just put chips in the fucking ponzi on oil stocks, etc. 

I think it is clear, between the robots and the money players, LSAP is getting priced in. 

Mon, 09/12/2011 - 09:58 | 1659338 Robslob
Robslob's picture

lol....too funny...the markets are clearly more important than the people...

Mon, 09/12/2011 - 09:58 | 1659342 Gandalf6900
Gandalf6900's picture

just a side note for us nimwits but whats PPT, is it some kind of HFT?

be getle!

Mon, 09/12/2011 - 10:00 | 1659351 Ancona
Ancona's picture

Polish Poker Trick. It's like an ace up your sleeve, until it isn't.

Mon, 09/12/2011 - 10:01 | 1659355 Gandalf6900
Gandalf6900's picture

thanks, very nice of you

Mon, 09/12/2011 - 10:04 | 1659372 Everybodys All ...
Everybodys All American's picture

Plunge Protection Team

Mon, 09/12/2011 - 10:13 | 1659407 Ancona
Ancona's picture

Sorry Gandalf, i couldn't resist. Sarcasm is like a disease sometimes, there's just nothing you can do to stop it. That's OK though, someone with more mercy in their heart stepped up to the plate.

Mon, 09/12/2011 - 10:12 | 1659402 FreeNewEnergy
FreeNewEnergy's picture

Come on. Give the newbie a break. Everybody has to start somewhere. Bing Plunge Protection Team (PPT) - and also Bing Working Group on Financial Markets

 

I don't Google any more. I Bing. Waaaaaaaayyy better.

Mon, 09/12/2011 - 09:58 | 1659345 catladdy
catladdy's picture

My condolences to those who shorted ES near todays's lows and haven't covered yet.

Been there before.

Uh oh , last nights high is out

Mon, 09/12/2011 - 09:58 | 1659346 Flakmeister
Flakmeister's picture

Thermopylae, my ass...

This is more like Dien Bien Phu....

Mon, 09/12/2011 - 09:59 | 1659347 Everybodys All ...
Everybodys All American's picture

seen it so often and yet I'm still amazed when it happens again and again.

Mon, 09/12/2011 - 10:01 | 1659354 TradingJoe
TradingJoe's picture

Nice set up! Shorting More! No News! No Nothing! Just Algos! This will end badly today! On the other hand, If I were THEM why wouldn't I try to short from up higer eh?!?!

Mon, 09/12/2011 - 10:02 | 1659362 Gandalf6900
Gandalf6900's picture

this is madness, europe nearly imploded today...whait...it actually did, champagne in 3...2...1....

Mon, 09/12/2011 - 10:06 | 1659379 Everybodys All ...
Everybodys All American's picture

All or nothing trades are setting up ...

Mon, 09/12/2011 - 10:08 | 1659384 Careless Whisper
Careless Whisper's picture
"The New Battle Of Thermopylae Is On The Way"

Hey, that would make a good theme for CNBC squak. Dress appropriately.

http://compare.ebay.com/like/400224936895?var=lv&ltyp=AllFixedPriceItemT...

 

Mon, 09/12/2011 - 10:38 | 1659506 Withdrawn Sanction
Withdrawn Sanction's picture

Yes, Bob Pisani in a Toga ("...does this outfit make my pom-poms look big?")

Mon, 09/12/2011 - 10:15 | 1659409 monopoly
monopoly's picture

It will be a sad day when he retires. Over 40 years now on Wall Street. Honest and tries so hard to communicate the truth.

Mon, 09/12/2011 - 10:20 | 1659429 New American Re...
New American Revolution's picture

Don't forget Ben and Tim ice cream makers sending their new flavor, 'Greenbacks', to their friends in Europe in a brown paper bag so no one notices.

Mon, 09/12/2011 - 10:44 | 1659528 Ursa Major
Ursa Major's picture

Hmmm. According to one source, the market is now pricing in a slightly Greek default probability of slightly higher than 100%...I wonder whether I want to take the "under" on that trade. 

 

Mon, 09/12/2011 - 10:47 | 1659534 krypplephite
krypplephite's picture

This is SPARTAAAAAAA!

Mon, 09/12/2011 - 11:18 | 1659691 NotApplicable
NotApplicable's picture

Funny, I'm reading a book on ancient Greece right now, and just a few days ago was noting the parallels between now and then, with the various factions amongst the polis, their alliances, and the enemies at the gates looking to overrun and loot the place.

All the world is but a stage.

Tue, 09/13/2011 - 22:00 | 1665988 moxia19
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