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Buy The Rumor, Sell The News
Via Peter Tchir of TF Market Advisors
Europe is playing havoc with this old trading strategy. By only having rumors and never having news they keep the markets in permanent buy the rumor mode.
The china story is at best old news. Italy's austerity credibility is sorely lacking, but the best news is the Merkozy wants to meet the bankers. It feels like aliens landing on a planet and saying take me to your leaders. Do they think the IIF is the government for banks? That they represent banks and can tell banks what to do? I have to admit I had never heard much about the IIF until this summer. Which bank CEO's will be at this meeting?
Still no confirmation that the bigger and leveraged EFSF is AAA - because if they follow their own standard guidelines, it isn't.
Is it just me or is the EFSF going to lend to banks now too? Is that to improve the diversity score or to run out of money faster?
June 2012 seems a long way off in terms of raising bank capital. Bear to Lehman was only 6 months. Wasn't it earlier this year people were complaining about additional Basel capital requirements in 2015?
Seems like we are long past short covering and this is people getting long on rumors and plans. Everything I read tells me they are trying but that there are no solutions that are sure to work and some will ruin the entire system if they are tried and fail.
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But wait! They did release that 3 pager. Isn't that news? :-)
Oh, now I understand.
Reuters
Stocks rose Wednesday as the slow progress from European leaders in resolving their debt crisis was enough to satisfy investors, even if the first reports from an EU summit were short on details.
Yeah. See my post just above.
BTW, I always read your posts in Family Guy's voice in my head. Very weird. I'm gonna find me a Dale Gribble av.
If nothing else makes one LOL.
From the Telegraph:
At least for today it seems that the rule is: "Buy the rumor. Buy the news. In fact, buy anything that isn't nailed down!".
But the rules can change at any time. (Just ask the CFTC.)
So when do the people finally decide to go after the Rothschilds?
Why is it that I have this feeling something really bad is about to unravel? Like shit is going to hit the fan and the misery is about to get real serious and real fast too? It's almost as if the policy makers and bankers all know already that we're going to be hit by the equivalent to a financial asteroid and all civilization could possibly become extinct, life as we know it would cease to exist.
Anyone else have that feeling?
Draghi's promise to continue ECB bond purchases should prevent an immediate crisis. But ECB money printing is something that Germany has steadfastly opposed. Germany has lost control of its central bank!
So the big question is: what will Germany do about this? And when?
this music seemed perfect for Angela
I had to cut it in to EU Summit footage
http://www.youtube.com/watch?v=gMkjD_VrhkA
kind of works...
So until these so called "News" arrive is everything going to go vertical?
Because I'm starting to "think" that these as*holes are doing it on purpose, drip-feeding "hope" to the algos until we hit the stratosphere around 2012.
Is hope the new QE ?
The Algo-American™ establishment wants $1.50 EURO as part of USD brute force devaluation.
Merkel and Sarkosy are trying desperately to look like idiots so as to devalue the EUR and it's not working.
Of course, this relief rally will become overly bullish in the days ahead and turn harder to the downside in the continuation of the current larger bear trend. Equities are likely headed higher in the days ahead. The USD continues to look bearish in the short term, which should push the ES and SPX higher. The AUDUSD has room to run higher while the USDCAD seems to be headed lower. The USD remains bearish. http://bit.ly/tVwwgw