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Art Cashin On "Voting And Volatility" And A "Zany Day"

Tyler Durden's picture




 

As usual, nothing but pure concentrated essence from the Fermentation Supercommittee Chairman

Voting And Volatility - The markets continued to be roiled by the possibility that Greece may hold a referendum on staying in the Euro-zone. That referendum could delay or disrupt the bailout proposal that had sent markets soaring last Thursday. The confusion surrounding the vote produced whipsaw action in negative territory and more than a few nailbiting moments.

Stocks opened with a sharp gap down induced by heavy selling in Europe. At the time we opened in New York, Italy was down nearly 900 Dow points and looked like it might crack wide open.

The S&P opened around 1220 and traded anxiously and intensely at that level for the first ten minutes or so.

When they held 1220, a few nervous buyers showed up and a mild rally evolved. They managed to get back to a nudge above 1230 by mid-morning. Then they began to roll over as rumors swirled about.

By noon, they had drifted back to the support band at 1214/1217. They pressed against the band about six times over the next ninety minutes but never broke below 1215.

About 1:30, a headline hit, quoting an unidentified “Socialist minister” in Athens, saying the referendum idea was dead. The Dow shot up 120 points in a matter of minutes. The S&P shot back up to the morning highs (circa 1232).

Then for 90 minutes, they churned nervously sideways unable to break out of the range. The background for all this were more rumors and headlines on who was meeting with whom and when and where.

In the final hour, a spokesman for Papandreou said the referendum would go ahead. Stocks returned to the days lows and closed right there.

As a backdrop to all this was the failure of MF Global. They apparently held very leveraged positions in European sovereign debt. This high profile bankruptcy further animated the discussions and concerns about world-wide contagion from the Euro-zone.

And as for the...

Consensus - This sets up to be a potentially zany day. Lots of rumors and meetings. Remain alert and stay very, very nimble

 

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Wed, 11/02/2011 - 10:41 | 1836622 GeneMarchbanks
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'As a backdrop to all this was the failure of MF Global. They apparently held very leveraged positions in European sovereign debt. This high profile bankruptcy further animated the discussions and concerns about world-wide contagion from the Euro-zone.'

I'm listening... who else?

A recap of yesterday by Art, not his usual stuff...

Wed, 11/02/2011 - 10:45 | 1836649 Alea Iactaest
Alea Iactaest's picture

Where's the history lesson? Where's the trivia/math question? Nope, not his usual stuff...

Wed, 11/02/2011 - 10:41 | 1836628 SheepDog-One
SheepDog-One's picture

Stay very nimble? Nah I'll just stay out...degenerate gamblers, have your fun.

Wed, 11/02/2011 - 10:50 | 1836679 xcehn
xcehn's picture

Let the jerkoffs play with themselves, agreed.

Wed, 11/02/2011 - 10:56 | 1836720 Cdad
Cdad's picture

Blatant bid lifting in the Roach Motel [SPY].  If buyers for equities refuse to emerge, then create the synthetic bid via the ETFs.  What a great job, managing an ETF, being the permanent whipping boy of the criminal syndicate Wall Street bankers.  So do those guys walk around in chains and dog collars, or what?

 

Wed, 11/02/2011 - 11:02 | 1836756 SheepDog-One
SheepDog-One's picture

DOW up +200 for any reason at all? Probably the pre-release of the next rumor, to be denied after close no doubt. Any amount of human destruction is totaly justifiable to save the few lunatics at the top.

Wed, 11/02/2011 - 11:11 | 1836817 CPL
CPL's picture

I know awesome eh?

 

Chart looks exactly like 2009 before the market shit the bed in March.

Wed, 11/02/2011 - 11:07 | 1836794 Cdad
Cdad's picture

This just in....MORE MASSIVE PUT BUYING IN THE XRT.  And consumer discretionary stocks are...UP!  

Brilliant!

Wed, 11/02/2011 - 10:57 | 1836729 newstreet
newstreet's picture

........until 2:30

Wed, 11/02/2011 - 10:58 | 1836735 pandabear01
pandabear01's picture

Anyone out there have any idea of how all of this crap in Europe will affect the price of gold in US dollars?

 

Wed, 11/02/2011 - 11:14 | 1836832 Cdad
Cdad's picture

Can't say...but the distribution going on in burritos has us all in jeopardy.  If burritos be against us, who could be for us?

We are all dead men walking until such time as burritos march higher.  I'd sell everything.

Wed, 11/02/2011 - 11:24 | 1836892 gmrpeabody
gmrpeabody's picture

Looks like he didn't care much for your answer, Cdad.

Wed, 11/02/2011 - 11:57 | 1837118 Cdad
Cdad's picture

Must be because he is long gold...but also knows about the burrito correlation.  It cannot be denied.  As go burritos, so goes the Union.

Wed, 11/02/2011 - 10:58 | 1836738 pandabear01
pandabear01's picture

Anyone out there have any idea of how all of this crap in Europe will affect the price of gold in US dollars?

 

Wed, 11/02/2011 - 11:09 | 1836803 KidHorn
KidHorn's picture

The money deposited into european banks was lent to countries who cannot pay it back. The only solution is to print more euros to replace the lost money. So I would guess it will ultimately be gold positive.

Wed, 11/02/2011 - 11:09 | 1836804 KidHorn
KidHorn's picture

The money deposited into european banks was lent to countries who cannot pay it back. The only solution is to print more euros to replace the lost money. So I would guess it will ultimately be gold positive.

Wed, 11/02/2011 - 11:09 | 1836806 CPL
CPL's picture

You would have to first stop pricing it in USD.

 

Gold and Silver trade as a currency pair against, not with FIAT.  Only way to get any numbers from those PM's right now.  Make sure you don't make that mistake or you'll be attempting to translate a tangible asset with value against an IOU on a bit of paper/cotton/ink.

 

So instead of thinking of the value in terms of paper, think of stuff with value like a car or a house, or rent.  (This is where gold/silver becomes very annoying).  For the moment though, you might want to read up on barter systems to figure out how gold works into the equation as a currency.

Wed, 11/02/2011 - 11:52 | 1837084 Toolshed
Toolshed's picture

The price of gold is clearly being manipulated. At this juncture in time a wise investor would be very bullish on physical fire arms and ammunition.

Wed, 11/02/2011 - 11:02 | 1836753 CPL
CPL's picture

Indeed.

 

Art is playing with fire if he's got anything in there.

Wed, 11/02/2011 - 10:43 | 1836641 Coldfire
Coldfire's picture

Hats off to Mr. Cashin.

Wed, 11/02/2011 - 10:46 | 1836654 HelluvaEngineer
HelluvaEngineer's picture

So how exactly can you remain as nimble as a computer?

Wed, 11/02/2011 - 10:55 | 1836715 junkyardjack
junkyardjack's picture

They were created by man, they can be solved by man

Wed, 11/02/2011 - 10:58 | 1836730 redpill
redpill's picture

It's all fun and games until they are liquifying the dead and feeding them intravenously to the living.

Wed, 11/02/2011 - 11:54 | 1837093 CPL
CPL's picture

Grandma Smoothie.

 

Delicious and smooth.

Wed, 11/02/2011 - 10:47 | 1836660 banksterhater
banksterhater's picture

RETIRE, PLEASE! Idiot.

Wed, 11/02/2011 - 10:47 | 1836663 rubearish10
rubearish10's picture

We're all crazy for being involved.

Wed, 11/02/2011 - 10:52 | 1836692 disabledvet
disabledvet's picture

And then the SEC came and arrested "the whistleblowers....sssssss"

Wed, 11/02/2011 - 10:52 | 1836695 melanie
melanie's picture

Admit it Bulliot, somewhere in your head there is a braincell telling you to be extremely bearish

Wed, 11/02/2011 - 10:54 | 1836707 NEOSERF
NEOSERF's picture

The noose tightens every day, regardless of headlines and hope

Wed, 11/02/2011 - 10:55 | 1836710 HelluvaEngineer
HelluvaEngineer's picture

Bet someone just floated another rumor

Wed, 11/02/2011 - 10:58 | 1836736 Eireann go Brach
Eireann go Brach's picture

Is that English wanker Simon Hobbs on CNBC over 5 feet tall? He even makes a Leprechaun look like a giant!

Wed, 11/02/2011 - 11:04 | 1836764 RobotTrader
RobotTrader's picture

Bears screwed again.

When will they figure it out?

That multi-year periods of zero interest rates eventually spark huge rallies in equities.

And if stocks are shucking off all kinds of financial implosions and the worst economy in 75 years, what happens when things actually get better?

If XRT is $3 away from 3-year highs, how is that interpreted as a "bear market"???

Wed, 11/02/2011 - 11:10 | 1836812 somethingisrotten
somethingisrotten's picture

How's that NFLX doing for ya asshat?

Wed, 11/02/2011 - 11:21 | 1836872 slewie the pi-rat
slewie the pi-rat's picture

so, you think we're getting a little whiff of "fisk on" eh, RT?

just smells like a PPT fart to me, where:

a fart = a turd looking for a place to land

Wed, 11/02/2011 - 11:05 | 1836773 pandabear01
pandabear01's picture

Wanted!!!   Smart person who knows how the mess in Europe will affect the price of gold in the US.

Wed, 11/02/2011 - 11:27 | 1836903 fellatio is not...
fellatio is not fattening's picture

Gold has a gap to 1730 that needs to be filled b4 there is the potential to sell-off, however I expect that after filling the gap it may drop back to ~1700 and rally from there, all margin increases have been absorbed, and going into the last 6-8 weeks of the year gold will be a much better place to be than any equities, BTW, I also expect Silver to rally even more, actually up to $39.20 by year-end, same reasons as gold (gap to $39.20) and a safer place to be with $40 being a true target by year-end.  Hope this helps, and BTW, physical or paper doesn't matter in this case, I am buying SLV and GLD and selling some SLV Puts up to $38/Dec

Wed, 11/02/2011 - 11:31 | 1836952 gmrpeabody
gmrpeabody's picture

"I am buying SLV and GLD"

And just when I thought you were smart?

Wed, 11/02/2011 - 11:37 | 1836989 fellatio is not...
fellatio is not fattening's picture

What's your point?  You asked a question, I answered with an explination and you say what? You agree, don't agree, knew this, what?  and as was said as well, you could always do it yourself

Wed, 11/02/2011 - 12:29 | 1837253 junkyardjack
junkyardjack's picture

Most people on the site believe the world will end so having paper gold and silver is a sham investment.  Unless you have the actual gold and silver and never sell it you will be ruined.  Although if you have physical gold and silver you'll likely just be shot and have it all stolen anyway so you're better off investing in a farm somewhere and hoping no one comes driving down the dirt road.

Wed, 11/02/2011 - 11:28 | 1836926 gmrpeabody
gmrpeabody's picture

Why don't you do a little research and digging on your own, instead of relying on others to work for you?

Wed, 11/02/2011 - 11:05 | 1836775 pandabear01
pandabear01's picture

Wanted!!!   Smart person who knows how the mess in Europe will affect the price of gold in the US.

Wed, 11/02/2011 - 11:33 | 1836961 pods
pods's picture

Smart people don't care about how gold is valued in FRNs.

pods

Wed, 11/02/2011 - 11:15 | 1836839 Cluelesscitizen
Cluelesscitizen's picture

Maybe it's like a hamster in pre-death agony. There is a moment when organ system is failing yet hamster is chipper out and about eating and going about its normal functions and then..

Wed, 11/02/2011 - 11:22 | 1836873 crzyhun
crzyhun's picture

The reason the market tanked during the last hour was not wholely the Greece spot. It was the word that the Dem Senate was talking again about a transaction  tax...@ 15:47 specifically. Bozos!

Wed, 11/02/2011 - 11:41 | 1837007 theprofromdover
theprofromdover's picture

What I expect from an old grizzly like Art Cashin is an honest appraisal of what is really happening on the floor, not 'markets bounced on news of the the Florida OJ report which showed spring frost was at a minimum and the citrus harvest is likely to be unaffected'. I expect him to say -bad smell at 3pm, when someone big and heavy intervened to ensure a closing recovery-, and explain what really is being manipulated.

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