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A Fast And Furious Return To Reality: Spanish Stock Market Plummets By 12% In Two Days

Tyler Durden's picture




 

A few hours ago, the IBEX hit a level of 5905, the lowest since April 2003. The irony is that as recently as weeks ago, various momentum chasing self-professed stock "experts" saw some technical formation or another, making them believe that the bottom is finally in for the IBEX, which is "fixed." Turns out it wasn't; it also turns out the market was completely wrong and the result is a 12% slide in the Spanish stock market in two days as reality's return is fast and furious. If this happened in the US, it would be the equivalent of 1500 DJIA point collapse in 48 hours, and unleash mass panic and civil disobedience as people realized their 201(k) is really a +/- 001(k).

 

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Mon, 07/23/2012 - 09:12 | 2642144 HelluvaEngineer
HelluvaEngineer's picture

Thank God we are insulated to the effects of this by our completely self-contained economy.

Mon, 07/23/2012 - 09:17 | 2642165 TrainWreck1
TrainWreck1's picture

And a Harvard genius for our leader!

Mon, 07/23/2012 - 09:52 | 2642280 Buckaroo Banzai
Buckaroo Banzai's picture

Speaking of Fast and Furious, when will that dirty whore traitor Holder get brought to justice? Just wondering.

 

Mon, 07/23/2012 - 10:32 | 2642446 i-dog
i-dog's picture

I haven't seen any flying piigs, yet. But I'm still keeping a lookout....

BTW, the AGW loons say that hell ain't freezing over anytime soon, either....

Mon, 07/23/2012 - 09:18 | 2642171 gatorengineer
gatorengineer's picture

Decoupled Bitches <sarc off>  McD's earnings were a preview of things to come..... Lets ban short sales here as its against the common good......

Mon, 07/23/2012 - 09:20 | 2642177 Temporalist
Temporalist's picture

Krugman is short; can we ban that little mogwai that turns into a gremlin when he eats the middle class and poor after midnight?

Mon, 07/23/2012 - 09:26 | 2642208 TrainWreck1
TrainWreck1's picture

Krugman is 5'7"  http://blog.thisyoungeconomist.com/2009/07/five-things-i-read-today-725.html

Reflecting on this, I think Randy Newman was right. http://www.youtube.com/watch?v=1NvgLkuEtkA

"They got little hands
Little eyes
They walk around
Tellin' great big lies..."

Mon, 07/23/2012 - 09:23 | 2642188 DeadFred
DeadFred's picture

S&P is a little over a week from the death cross. Not much can stop it now. Somewhere about 1340 is trend line support. Knowing our Bizarro market it may bounce but if it doesn't we will be looking at June lows. Exciting times.

Mon, 07/23/2012 - 09:32 | 2642225 battle axe
battle axe's picture

No way Citicorp/B of A/Chase will be effected by the coming Euro blow up. BWHAAAA HAAAA HAAAAAA....

Mon, 07/23/2012 - 09:44 | 2642258 Sudden Debt
Sudden Debt's picture

WE ARE ALL EVIL SPECULATORS NOW!!!!
SHORT THE CRAP OUT,OF THIS MARKET AND BUY MORE SILVER AND GOLD WITH THE PROCEEDS!!!

Mon, 07/23/2012 - 11:16 | 2642315 DeadFred
DeadFred's picture

I pegged SPY supports for today at 134.3, 133.6 and 132.5. The first is gone and is acting as resistance. Don't get too rambuncious until you see them all in the rear view mirror. (And don't bet the farm on my choice of numbers)

Edit in hind sight. This looks like a bounce. Not too surprising since the 133.6 trend line is also the 50dma. Mr. Fibonacci would suggest a target of 134.86 or 135.50 as the target.

Mon, 07/23/2012 - 10:53 | 2642544 RSloane
RSloane's picture

"In a further recessionary sign  , Edwards said aggregate monthly analyst optimism data had slid below 2011 and 2010 lows to under 40 percent. “These data are entirely consistent with a U.S. already in recession,” he said."

http://www.cnbc.com/id/48196972/S_P_500_Nears_Ultimate_Death_Cross_SocGen

Mon, 07/23/2012 - 09:13 | 2642148 Precious
Precious's picture

Called it here.

The waterslide is open for business.

Mon, 07/23/2012 - 09:18 | 2642172 DoChenRollingBearing
DoChenRollingBearing's picture

AMF, bitchez!

Mon, 07/23/2012 - 09:21 | 2642182 JonNadler
JonNadler's picture

esta gente tiene que aprender a manipular el mercado como los norteamericanos no?

PS: No se puede comer oro!

 

No es asi Dochen?

Mon, 07/23/2012 - 09:32 | 2642227 DoChenRollingBearing
DoChenRollingBearing's picture

Asi es, JuanNadlero!

Verdad, no se puede comer el oro, PUTAZ!

Mon, 07/23/2012 - 09:53 | 2642283 Buckaroo Banzai
Buckaroo Banzai's picture

Y no se puede comer el papel tambien!

Mon, 07/23/2012 - 09:56 | 2642292 Temporalist
Temporalist's picture

Si se puede!

(oh I thought this was the other thread about "fast and furious")

Mon, 07/23/2012 - 10:37 | 2642476 avidtango
avidtango's picture

For once, all Spanish markets are in sync.  Bonds, credit and stocks all crashing despite the lack of short selling.  I guess folks decided to return to the tried and true method of simply unloading worthless assets.  And yet, some of these "banks" hovering around a dollar are probably great buys if not on a bounce. 

Mon, 07/23/2012 - 10:54 | 2642547 ElvisDog
ElvisDog's picture

Banning short selling is stupid because it removes liquidity from the market and makes an uncontrolled (bidless) crash more likely.

Mon, 07/23/2012 - 09:13 | 2642151 Cursive
Cursive's picture

 

If this happened in the US, it would be the equivalent of 1500 DJIA point collapse in 48 hours, and unleash mass panic and civil disobedience as people realized their 201(k) is really a +/- 001(k).

 

This would never happen in the US.  American Exceptionalism and all.  /sarc

Mon, 07/23/2012 - 09:18 | 2642170 Spastica Rex
Spastica Rex's picture

Believe in your dreams, come what may...

http://www.youtube.com/watch?v=CUgMaL89Lqc

Mon, 07/23/2012 - 09:24 | 2642195 Stock Tips Inve...
Stock Tips Investment's picture

The situation in Spain is clearly critical. However, I think that is so dramatic, what is happening in Europe. The economic situation in Europe is very bad and will continue on this road for a while more. These circumstances will have a global impact and therefore the stock market will be seriously affected. Our primary responsibility is to look after ourselves and our families. Large variations in markets (no matter how bullish or bearish) generate large revenue opportunities. Aprovechemoslas, because no one else will come out to our aid.

Mon, 07/23/2012 - 09:14 | 2642152 TahoeBilly2012
TahoeBilly2012's picture

End of All Markets coming!!

Mon, 07/23/2012 - 10:12 | 2642359 Sofa King Confused
Sofa King Confused's picture

Will somebody please start World War III

Mon, 07/23/2012 - 09:17 | 2642156 buzzsaw99
buzzsaw99's picture

the bernank will never allow the usa stock market to drop. it is the only thing he cares about, his lone takeaway after years of asiduous study of the great depression. if japan only had the bernank they would be eating rainbow stew with a silver spoon by now.

Mon, 07/23/2012 - 09:19 | 2642176 gatorengineer
gatorengineer's picture

fucking shame they are outta unicorn meat....

Mon, 07/23/2012 - 09:30 | 2642220 NotAMathWhiz
NotAMathWhiz's picture

And Skittles...  And rainbows...

Mon, 07/23/2012 - 09:28 | 2642212 DeadFred
DeadFred's picture

His revolver is empty and the Chinese have him in a painfully grasp. The put is dead but people just don't know it yet.

Mon, 07/23/2012 - 11:22 | 2642685 RSloane
RSloane's picture

Never underestimate how Teh Bernank's future delusional ponderings will impact the market. His bullets are lovingly made from unicorn droppings and faded pictures of Keynes.

Mon, 07/23/2012 - 09:42 | 2642255 eclectic syncretist
eclectic syncretist's picture

During most major collapses throughout history there is a sharp crash (think 2008), followed by an almost complete recovery (think now), that is in turn followed by a slower relentless grind down to the ultimate lows where the government and bank sponsored bubbles are finally eradicated (on a deeper level what's really eradicated is the general populace's confidence in their government and banks, which were the entities blowing and propping up the bubbles all along in order to screw the populace).  That's not to say that this is what's going to happen this time, but it is statistically speaking, the best bet.

Mon, 07/23/2012 - 09:15 | 2642158 Negro Primero
Negro Primero's picture
...no hay problema. España prohíbe operar a la baja
Mon, 07/23/2012 - 09:18 | 2642169 centerline
centerline's picture

+/-001K .  That one made me laugh.  Seems list just yesterday that the 201K joke was the new tragic comedy that no one saw coming.

Unfortunately, +/-001K is already the truth.  Just a matter of recognition.  

Mon, 07/23/2012 - 09:18 | 2642174 slackrabbit
slackrabbit's picture

Some Central Bankers just want to watch the world burn...

Mon, 07/23/2012 - 09:19 | 2642175 timbo_em
timbo_em's picture

Are these the oportunities Whitney Tilson talked about in his latest letter? Plenty of low hanging fruits in Spain. Banks and construction companies are a good bargain.

Mon, 07/23/2012 - 09:21 | 2642180 orangedrinkandchips
orangedrinkandchips's picture

RELEASE THE CRACKEN!! (aka the NYFED non-stop bid via HFT on a machine called The Cracken!)

Mon, 07/23/2012 - 09:21 | 2642183 Snakeeyes
Snakeeyes's picture

But IBEX began to rebound a bit. But with the Euro down, GDP falling, it is terrible in Spain.

http://confoundedinterest.wordpress.com/2012/07/23/monday-morning-blues-spain-gdp-falls-again-euro-plunges/

Mon, 07/23/2012 - 09:23 | 2642187 phat ho
phat ho's picture

The agony of defeat comes to mind for any of you old enough to remember the opening clip to "wide world of sports" where the guy on the ski jump totally wipes out to the side. :-)

Mon, 07/23/2012 - 10:38 | 2642477 ZeroAvatar
ZeroAvatar's picture

'The agony of d'feet'=  Tony Robbins' fire-walkers, lol!  (They lost 'faith' after the first couple of moans of agony).

 

Sank into the depths of Moardor.  Just like the Ibex.

Mon, 07/23/2012 - 09:23 | 2642191 TideFighter
TideFighter's picture

Remember the AMC Matador? I think it depreciated at this rate. On a trade-in, you had to pay the dealership a disposal fee. Same thing here.

Mon, 07/23/2012 - 09:24 | 2642198 The Swedish Chef
The Swedish Chef's picture

Weren´t Greek bonds a "no brainer" trade a year ago? I think I remember someone stating that, can´t recall the name. His screen name is probably RoboTrader but actual... Nope. But I do remeber reading the quote.

Mon, 07/23/2012 - 09:25 | 2642202 BurningFuld
BurningFuld's picture

It's definition time:

Banker: (noun) A crook you have entrusted with your money.

Mon, 07/23/2012 - 09:26 | 2642209 i_call_you_my_base
i_call_you_my_base's picture

Is It Time to Long Spanish Bonds?

http://www.cnbc.com/id/48280287

 

Mon, 07/23/2012 - 09:33 | 2642229 DeadFred
DeadFred's picture

Now that's a deal I want to get in on!!

Mon, 07/23/2012 - 09:54 | 2642287 i_call_you_my_base
i_call_you_my_base's picture

I laughed out loud when I read that.

Mon, 07/23/2012 - 10:30 | 2642444 avidtango
avidtango's picture

Maybe it's time to go long Spanish bonds for a short time or short the shorts for a short time.  Remember, the idea of long-range investment and planning is for idiots.

Mon, 07/23/2012 - 09:28 | 2642213 jjsilver
jjsilver's picture

Homebuilders are looking very attractive

Mon, 07/23/2012 - 09:29 | 2642214 monopoly
monopoly's picture

I really hate to say it but holding confetti, and physical really feels good. The one eyed blind man leading the blind. And remember, it does not start here until the printing press is taken away from the inmates. 

Just the beginning all, just the beginning.

Mon, 07/23/2012 - 09:29 | 2642215 Son of Loki
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"201(k)"....I like that...soon 101(k) then as you say....001(k).

Mon, 07/23/2012 - 09:31 | 2642222 i_call_you_my_base
i_call_you_my_base's picture

That's in real terms, in nominal terms it will be $401MM.

Mon, 07/23/2012 - 10:47 | 2642499 ZeroAvatar
ZeroAvatar's picture

I always thought it should have been, the '200.5' (k).  You know, exactly cut in half.  (401 / 2= 200.5). 

 

That would then become the 100.25, etc. (50 1/8th, 25 1/16th, ad nauseum).

 

There's an infinity between 0 and 1.

Mon, 07/23/2012 - 09:30 | 2642219 monopoly
monopoly's picture

Well, excuse me, holding physical is great, just the confetti part feels like crap.

Mon, 07/23/2012 - 09:32 | 2642223 graneros
graneros's picture

Seriously confused here.  Should I que up at the bank now, get what cash I can and go straight over to the precious metals dealer?  Is today the bottom for gold?  Surely it can't be far off can it?  I obviously don't know Jack as I figured gold would be soaring through the heavens by now.  Should I just give up on logic?  Who is John Galt?

Mon, 07/23/2012 - 09:32 | 2642224 Meesohaawnee
Meesohaawnee's picture

come on rule 48 .. i know you can do it

Mon, 07/23/2012 - 09:32 | 2642226 Monedas
Monedas's picture

At what point do we expunge "free market" and Capitalism from the dictionary .... they haven't been spoken in years !

Mon, 07/23/2012 - 09:37 | 2642240 pasttense
pasttense's picture

Clearly it is time for another European summit. The European leaders simply have to announce that they have fixed everything!!!

Mon, 07/23/2012 - 09:38 | 2642242 tawse57
tawse57's picture

So how low will the DOW / NASDAQ go? Is this the start of the big one?

Mon, 07/23/2012 - 09:44 | 2642250 mark7
mark7's picture

IBEX approaching fall of 2002 lows around 6000, it could be a buying opportunity. Especially with lower euro boosting exports, maybe even past the recent monthly record (March). The peak of IBEX was almost 16000 during October 2007. It has lost over 60 percent since then. Dow Jones lost about 52 percent from late 2007 to early 2009.

Mon, 07/23/2012 - 09:54 | 2642286 Rip van Wrinkle
Rip van Wrinkle's picture

Exports to who? Obama says he'll make sure US exports double in the next 5 years. Cameron says the UK can only get out of trouble via exporting. China can only survive by exporting. Germany can only survive by exporting.

 

Problem is, who's gonna buy all these exports?

Mon, 07/23/2012 - 11:25 | 2642702 RSloane
RSloane's picture

Well-intentioned unicorns, they're all the rage!

Mon, 07/23/2012 - 10:49 | 2642526 ZeroAvatar
ZeroAvatar's picture

The Nikkei was probably a 'buying opportunity', too, once.  Still is, 20 years later.

Mon, 07/23/2012 - 09:43 | 2642257 Blkhat117
Blkhat117's picture

I think September is going to be really ugly.

Mon, 07/23/2012 - 09:57 | 2642293 yogibear
yogibear's picture

Wake me up when Spanish bond yields are 20%.

There are a whole list of countries that can join in this debt death march.

Let the march begin.

 

Mon, 07/23/2012 - 11:11 | 2642623 spine001
spine001's picture

Everything is WELL, I have no clue why everybody is complaining. 0.1% of the people in the USA rightfully take 99% of all the income generated. What is the problem with that? Without Jamie Dimon leading JPM, imagine having one of the sheeple leading it? Barclays would be eating us alive (us meaning Sheeple, me included). We are too nice, too innocent breast feeding babies to deal with Lloyds, Deutsche Bank, USBC, UBS, etc. etc.

The $SPY is going up with the S&P500, everything is well, it'll be back at 142 in no time, and when uncle Ben starts the electronic printing press (he only needs to press but one button :) ), the S&P500 will go to 1600 in no time at all. You will see. Strategy to make money, tons of money with NO EFFORT:

Borrow a lot of money, put it in a brokerage, and then sell PUTS on the SPY for 2013 at 100 -SPY130622P100 cash in the money, and then when you are asked to return your cash deposited in your brokerage, you won't have any problem since it will be worthless. Thanks to uncle Ben, oh, and the inflation adjustor will be extremely low.

While I wrote this you could have already made a lot of money!

Until next time,

Engineer

Mon, 07/23/2012 - 16:48 | 2643698 blunderdog
blunderdog's picture

I'm with ya, man. 

Most folks just never realize that the entire point in an economy in the first place is to gradually move all the wealth to the rich-folk.

Mon, 07/23/2012 - 12:47 | 2643026 Grand Supercycle
Grand Supercycle's picture

SPX bearish weekly chart strengthens: an important development.

As mentioned on Friday, SPX downleg continues.

Useful SPX weekly chart at my blog.

http://www.zerohedge.com/news/2012-12-24/market-analysis

Do NOT follow this link or you will be banned from the site!