This page has been archived and commenting is disabled.
European Financials Hit Six Month Lows; 12 Down Days In A Row
European financials dropped for the 12th day in a row today on heavy volume with its biggest 5-day drop in six months and plunging back to their worst levels in over five months (just 5% off last November's swing lows which would take us back to March 2009 lows). European equity and credit markets are all negative now YTD having given up all their gains and heading back to pre-LTRO levels. Sovereigns continue to bleed wider - especially Spain and Italy, with the former getting closer to the 450bps LCH Margin Hike level by the day. Spanish bond spreads are 165bps wider year-to-date - well done Draghi - and while Italy and Portugal are still tighter on the year, they have decompressed significantly in the last few weeks as we also note the all-saving EFSF is also a dramatic 14bps wider on the year. Europe's VIX jumped even higher near 35% - remaining very high relative to US VIX.
European equity and credit markets red YTD...
And European financials are in freefall...
as are European sovereigns...
and VIX has exploded...
Charts: Bloomberg
»
- 4709 reads
- Printer-friendly version
- Send to friend
- advertisements -
Who cares? Don't we have the Groupon IPO coming soon? Everyone says its going to be way over subscribed, and the price is going straight up!
What kind of fools would invest in the CAC 40 X7 Short GR anyway?
Goupon IPOed several months ago. I believe you mean FACEBOOK, which IPOs tomorrow.
So it did...from $26 to $12.50, today.
Remind me, please, what everyone was saying about GRPN in the days right before its IPO? Something about it's going to be way over subscribed, and the price is going straight up!
not EVERYONE was saying that ... heck, I even remember Cramer bashing it for WEEKS leading up to the IPO.
I just recieved the same type of coupon email from amazon. Groupon will be 2.50 in 6 months. Amazon is going to eat thier breakfast, lunch and dinner. The player who is the chip leader can bully his way around the poker table.
...and Groupon is down something like -70% from its initial offering...hey whatta stock
Personally I prefer my Lyxor IBEX35 Inverso.
You're up 1.11%, and I'm up 8.4%, today, but to each his own...
http://www.zerohedge.com/news/irony-101-or-how-fed-blew-jpmorgans-hedge-22-tweets#comment-2425763
...I prefer 3 oz of Lillet with a 1/4 oz of St. Germaine, shaken, no garnish.
I call it The Parisian Fog. A votre sante!
13 is a lucky number.
Let's go for it.
some in the fibonacci crowd count days down or up like that, to guess at turn probability ... can't see how they don't make the rebound day that is so much needed for the FB IPO, too - all these important considerations (/sarc)
cue dick bove [/generational buy]
"Europe's VIX jumped even higher near 35% - remaining very high relative to US VIX."
The US has the Bernank and HFT to control the markets and depress gold and silver. That will work well until gold jumps $100 in a day.
Besides, our banks are so much better at hedging risk.
"European financials dropped for the 12th day in a row."
Well of course they did. They are worth less than Dick Bove.
Bidderman's recommendation was, right on, to buy the EU banking short ETF as I remember.
Gold up and the 11:30 ramp failed. The market is losing its patterns and becoming a real market. Going down. God I hope the FB put turns into the FB call or KO or takes the market to the downside by suprise.
It's going to be really interesting to see what happens at Friday's close, both in the US and in Europe. Crazy things can happen on a Sunday night in this kind of environment.
2 things....
Options expiration as well...should be volatile the next 27 hours...
And Dick Bove is still worth less than European Financials...
How is it possible that the European Union allows the weak states to enter the international money market and borrow the money they need without help – based on their own potentials? How is it possible that the “chain” of interests of euro can let its weak “links” exposed to outside pressures? How is it possible for a “herd” with common interests to let each “ship” defend itself against the wolves, without help, and its general security threatened? How is it possible for Greece, which represents a minor 3% of the Eurozone’s economy, to be allowed to threaten the other 97% of that economy, due to the latter’s weakness?
The European Union should be the one borrowing from the national banking system – thus dealing with profiteers itself based on its overall potential – not its weak “links” alone. The latter should be under the EU’s protection and constant monitoring. They should borrow from it at a subsequent time and if they became victims of profiteering, the problem should be kept in the bosom of the euro. Domestic profiteering should bring profits to Europe’s influentials, therefore bring profits in the euro area, and not threaten it.
From the Wall Street Crash of 1929 to the Global Financial Crisis of 2007
www.eamb-ydrohoos.blogspot.com/2010/02/ten-plagues-of-pharaoh.html
Authored by Panagiotis Traianou
All good questions, if rhetorical, Panagiotis. No good answers from me.
In one sense, Germany benefits from a two-tiered currency internal euro regime.
Weaker states in the sunny climes with weaker fundies help keep euro weak,
which helps German exports, terms of trade. Until they blow it all up, that is.
Common sense is unevenly distributed (I could a little more, at times).
US Vix to re-couple with EU Vix when Bernanke tries to ease by lending to ECB/IMF and congress tries to block it.
Hellooo! Robottrader, are you out there?
As of this moment EUFN is at -4.90% YTD vs. S&P500 at +4.68%. If European financials are going to be the highest performing sector of 2012 as you predicted, they will have some catching up to do in the second half.