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First Responses To Draghi's "Deliberately Ambiguous" Remarks Trickle In

Tyler Durden's picture





 

The kneejerk short covering reaction to Draghi's remark that he will do "anything to preserve the euro" (this must be news because yesterday the ECB would not do anything to preserve the euro supposedly) is over. Now the analysis begins of what was actually said. The realization is... nothing. From Bloomberg:

  •  ‘Nothing Structural’ in Post-Draghi Bond Spread Moves: Credit Agricole
  • While selloff in bunds may extend further, it appears to be just “correction” of what is risk- averse bull rally, Credit Agricole fixed income strategist Peter Chatwell says in interview.
  • The inverse is still case for periphery; says “we’re still in a regime of elevated peripheral yields” and difficulty in those markets
  • Draghi remarks on ECB readiness to act “deliberately ambiguous,” clearly in response to market volatility and distress
  • In being so ambiguous, comments are “slightly threatening” for investors short the periphery; could be hinting at further easing, rate cuts, or something “much more bold”

And now the countdown to the halflife begins. Typically cases such as this where the ECB leaves an open door without any actual hints of what it will do, have a several hour kneejerk lifetime. If and when Germany comes out and denies everything Draghi said, whatever it may have actually been, it will be minutes.

 


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Thu, 07/26/2012 - 07:36 | Link to Comment Cdad
Cdad's picture

First responses to Draghi's comments on Twitter range from laughter to laughter from people rolling on the floor.

Thu, 07/26/2012 - 07:39 | Link to Comment Satan
Satan's picture

Indeed. My ass has fallen off from laughter.

Thu, 07/26/2012 - 07:53 | Link to Comment Ethics Gradient
Ethics Gradient's picture

It's beyond laughter.

The only reason that markets reacted positively is because markets have reacted positively in the past; Pavlovian style. They all know is rubbish, but there's a buck to be made.

"Quick, Monti's talking; buy! Offload everything in an hour - we need to be first out this time."

Thu, 07/26/2012 - 07:41 | Link to Comment battle axe
battle axe's picture

All Draghi is doing is setting the stage to kick Greece out of the Euro, so they can concentrate on the real problems, Spain and Italy.

Thu, 07/26/2012 - 07:46 | Link to Comment The Final Countdown
The Final Countdown's picture

Draghi will have a lot of 'concentrating on Spain and Italy' to do after Greece is kicked out of the Euro, that's for sure.

Thu, 07/26/2012 - 07:48 | Link to Comment HelluvaEngineer
HelluvaEngineer's picture

It's important to remember that this stupid rumor is most likely not the cause of the move, but the cover for the move.

Thu, 07/26/2012 - 07:51 | Link to Comment ArkansasAngie
ArkansasAngie's picture

And they say ... words can never harm you.

Horse manure!

May the bird of paradise fly up his nose.

 

Thu, 07/26/2012 - 08:49 | Link to Comment Overleveraged_a...
Overleveraged_and_Impatient's picture

AMEN wish i could upvote 100x more

Thu, 07/26/2012 - 08:16 | Link to Comment Stock Tips Inve...
Stock Tips Investment's picture

It seems to me that statements Draghi is part of a desperate strategy to show "some" action in favor of the Euro. The economic crisis in Europe is too severe. The reactions are too slow. And the consequences can be devastating too.

Thu, 07/26/2012 - 07:37 | Link to Comment vmromk
vmromk's picture

Draghi is another criminal SCUMBAG who should be wearing an orange jumpsuit.

Thu, 07/26/2012 - 07:36 | Link to Comment ThunderingTurd
ThunderingTurd's picture

Great...now that the Euro region is saved, we can now begin to focus on how great earnings/revenue have been. (/sarc)

 

Thu, 07/26/2012 - 07:37 | Link to Comment Dr. Engali
Dr. Engali's picture

The jawboning is wearing off. Now it's time to shit or get off the pot.

Thu, 07/26/2012 - 07:48 | Link to Comment Winston Churchill
Winston Churchill's picture

Draghi can't.

He uses his arsehole to speak.

Thu, 07/26/2012 - 07:52 | Link to Comment fonzannoon
fonzannoon's picture

I was about to give you a little shit Dr. Engali about this just proving that it's just more shorts to the slaughter but earnings are coming in and as much as they want everyone to ignore them, they are just awful. Let's see if you are right.

Thu, 07/26/2012 - 07:58 | Link to Comment Dr. Engali
Dr. Engali's picture

I'd like to see some info on the amount of shorts in the market. I still think they are too timid to jump on. The fed is making it too painful, and unless they are a really strong handed short the fed will make sure they don't make any money to the downside. Having said that I think we are pretty close to the edge and the fed may wish some shorts were on board to help the buying when he tries catching a falling knife.

Thu, 07/26/2012 - 08:05 | Link to Comment fonzannoon
fonzannoon's picture

I think the shorts were piled in the european markets and this was about ripping their balls off today. The GDP and NFP report will sucker the next round of shorts here and QE3 will rip their balls off next.

Thu, 07/26/2012 - 07:37 | Link to Comment Quinvarius
Quinvarius's picture

I hope he realizes that gold at 10k counters the sovereign debt problem with an actual asset and makes the debtors creditworthy again.

Thu, 07/26/2012 - 07:37 | Link to Comment Jahbulon
Jahbulon's picture

This game is exhausting to watch............its like watching someone die a slow death in a baking oven, and every once in a while we open the door and throw a little water on them to cool them off for a few minutes..........

Thu, 07/26/2012 - 07:41 | Link to Comment Quinvarius
Quinvarius's picture

The Iron Chef of finance tells us how to propery cook PIIGS.

Thu, 07/26/2012 - 07:54 | Link to Comment ArkansasAngie
ArkansasAngie's picture

I've got an imu (pit) already in my back yard.  Say the word and I'll start the coals

Thu, 07/26/2012 - 07:39 | Link to Comment Tsar Pointless
Tsar Pointless's picture

If you remain involved in this criminal casino we still have to call "markets" at this point, you DESERVE to lose your money.

Thu, 07/26/2012 - 07:55 | Link to Comment ArkansasAngie
ArkansasAngie's picture

There is a lesson in there for Timmy.

"there wasn't anything I could do"

 

Thu, 07/26/2012 - 07:39 | Link to Comment marz929
marz929's picture

WHERE IS JON CORZINE?

Thu, 07/26/2012 - 07:43 | Link to Comment Dr. Engali
Dr. Engali's picture

I think he has a round of golf with Obummer today, followed by a congressional blow job , then he is off to another fund raiser. Some where along the course of his day he will spit on a child or two. Probably kick a kitten and stomp on a puppy.

Thu, 07/26/2012 - 07:39 | Link to Comment ak_khanna
ak_khanna's picture

Countries around the world are taking on more debt without any fruitful attempts to curb their expenditures. This has resulted in a much more fragile and artificially held up financial system which is on a much shaky ground than it was in 2008. In 2008 companies failed due to excessive leverage and debt and now countries are likely to default because they took on the same bad debt on themselves. The borrowing costs or bond yields for these countries are again at record highs for the year due to their deteriorating financial condition.

A single currency for an economy as strong as Germany on one hand and relatively weaker economies like Greece or Ireland on the other is not sustainable in the long run. The idea of the stronger countries in the Euro zone to keep on bailing out the weaker ones repeatedly will be a difficult one to sell to the citizens of the economically stronger countries. Their is no practical way to save the Euro, the only thing that the politicians can do is to lavishly spend tax payers money towards bailouts which creates a much bigger crises a few months down the line but does not solve anything.

http://www.marketoracle.co.uk/Article35345.html

Thu, 07/26/2012 - 07:40 | Link to Comment cebri88
cebri88's picture

Nein, nein, nein 

Thu, 07/26/2012 - 08:06 | Link to Comment Anglo Hondo
Anglo Hondo's picture

"Emergency (in the eurozone). Which service do you require?"

"How about sending something with a (monetary) firehose?"

 

Thu, 07/26/2012 - 07:42 | Link to Comment overmedicatedun...
overmedicatedundersexed's picture

joy lasts until the open then the run for the exit, big boys selling to the sheep today. CNBC will hype this has become the signal to unload longs too funny to watch, the Funds will buy per executive order #### ..or face jail.

Thu, 07/26/2012 - 07:42 | Link to Comment RobotTrader
RobotTrader's picture

Hilarious.  I warned you guys of a "Surprise Announcement"...

 

LOL...

Thu, 07/26/2012 - 07:45 | Link to Comment Dr. Engali
Dr. Engali's picture

Surprise announcement ? Where? When? It's not like we haven't seen this play book a thousand times before. If they want to surprise anybody they might actually do something.

Thu, 07/26/2012 - 08:00 | Link to Comment Hedgetard55
Hedgetard55's picture

Exactly. Draghi made the same statement yesterday about the Euro being "irreversible" and nothing happened. It is mere cover for their pump and dump.

Thu, 07/26/2012 - 07:52 | Link to Comment AGoldhamster
AGoldhamster's picture

Was well noted ... I also think that this was the first intervention, and that a floor of 1.19-1.20 will be vigorously defended

Thu, 07/26/2012 - 08:34 | Link to Comment SheepDog-One
SheepDog-One's picture

'Surprise Announcement'....LMFBO :D what the same old Draghi spew is now a surprise? How so 'Tarder?

Thu, 07/26/2012 - 07:42 | Link to Comment awakening
awakening's picture

Nevermind the motor running on the smell of an oily rag, the markets running on the sound of worthless chatter (I know not up there with the greatest of ZH comments but; here we are, bitchez =P ).

Thu, 07/26/2012 - 07:44 | Link to Comment Meesohaawnee
Meesohaawnee's picture

remember that posst last night about how we have a sell signal? Wonder if that guys light went on about how TA, Earnings, data dont matter..This morning is the poster child

Thu, 07/26/2012 - 07:47 | Link to Comment Meesohaawnee
Meesohaawnee's picture

i like the blowhorn "draghi sends strong signal ECB will react"..well.. lift the short ban. send me a signal baby

Thu, 07/26/2012 - 07:48 | Link to Comment Yen Cross
Yen Cross's picture

 I wouldn't be surprised to see a full retrace by tomorrow market close! Spanish yields are still over 7%. Bunds moved 3 basis points and US T10'a a couple of basis points!

Thu, 07/26/2012 - 07:54 | Link to Comment fonzannoon
fonzannoon's picture

Agreed Yen The 10yr is at 1.43% again. I don't know about you but I am selling everything and locking in this yield.

Thu, 07/26/2012 - 07:48 | Link to Comment Kreditanstalt
Kreditanstalt's picture

Gold still holding $1620...obviously when ridiculous and bombastic statements appear TOO often, even the mainstream investoriat and fundees begin to suspect there MIGHT be more trouble than originally thought...

Thu, 07/26/2012 - 07:55 | Link to Comment eddiebe
eddiebe's picture

I don't know, Kredit, things are so fucked up gold is now a risk on asset.

Thu, 07/26/2012 - 07:49 | Link to Comment falak pema
falak pema's picture

the euro olympics are ! Draghi in the red corner and Mutti Merkel in the blue.

No holds barred; its two feminine round ones against two masculine (I think) billiard balls. May the best man-woman win! 

Awesome, as Soros would say; you have exactly ONE MONTH to sort this out! 

After that the shit will hit the fan BUT we don't know where! 

As Japan is now coming back into the race to bottom! 

wooooohooooo, how deep is the deep end in this swimming pool?

Calling London, calling London...A pike and a swallow dive...who wins the gold?

Thu, 07/26/2012 - 07:50 | Link to Comment ThunderingTurd
ThunderingTurd's picture

We will finish red today.

Thu, 07/26/2012 - 07:54 | Link to Comment dvsteenk
dvsteenk's picture

me thinks so too, IMHO

Thu, 07/26/2012 - 07:50 | Link to Comment RobotTrader
RobotTrader's picture

Everybody and their brother was screaming "Crash!" the last few days:

 

Bob Janjuah

Charles Biderman

Kyle Bass

Richard Russell

And a plethora of "Acclaimed Experts" on King World News

And of course everyone was talking about the "Death Cross"

Supposed "breakdowns" almost always morph into a Boner Jam during secular bull markets.

Thu, 07/26/2012 - 07:52 | Link to Comment disabledvet
disabledvet's picture

what's a Boner Jam?

Thu, 07/26/2012 - 08:20 | Link to Comment Dr. Engali
Dr. Engali's picture

That's what happens when Robo gets his pecker stuck in his blow up doll.

Thu, 07/26/2012 - 09:01 | Link to Comment GCT
GCT's picture

ROFLMAO at least we have not lost our sense of humor!  Thanks for the laugh doc!

Thu, 07/26/2012 - 08:28 | Link to Comment SheepDog-One
SheepDog-One's picture

'Boner Jam' = Avg Friday nite for RoboTarder at the Blue Swallow bar.

Thu, 07/26/2012 - 07:55 | Link to Comment AGoldhamster
AGoldhamster's picture

Add Mchugh ... 3 Hindenburg Omens

On the other hand increasing volatility never has been a sign for good things to come.

Thu, 07/26/2012 - 08:23 | Link to Comment Everybodys All ...
Everybodys All American's picture

Trading is down year over year nearly 20%. Fewer and fewer people are trading these markets. Which means buying this thinly traded market is inherently more risky. Don't be the last guy holding the match.

Thu, 07/26/2012 - 07:50 | Link to Comment devo
devo's picture

Propaganda fatigue.

Back to bed.

Thu, 07/26/2012 - 07:51 | Link to Comment disabledvet
disabledvet's picture

PRINT! PRINT! PRINT! PRINT! PRINT!

Thu, 07/26/2012 - 07:51 | Link to Comment tuttisaluti
tuttisaluti's picture

You guys should be more alert about the shit coming from the US and GB. They go to hell before the EU

Thu, 07/26/2012 - 07:51 | Link to Comment eddiebe
eddiebe's picture

Things have gotten so crazy that when there is a rumor of printing Euros, it gets stronger. Will economic realities ever trump financial slight of hand again? The madness is lasting a whole lot longer than I ever thought it could.

Thu, 07/26/2012 - 07:52 | Link to Comment not fat not stupid
not fat not stupid's picture

Why does this useless cheerleading shit have any effect at this point?

Thu, 07/26/2012 - 07:54 | Link to Comment sudzee
sudzee's picture

PIIGS got gold hoards? ????

Thu, 07/26/2012 - 07:57 | Link to Comment crawl
crawl's picture

Who says talk is cheap? The bankers know talk is good enough to slaughter some of the shorts. But really Draghi, action speaks louder than words. Show me the proof of what you say.

Thu, 07/26/2012 - 08:25 | Link to Comment Racer
Racer's picture

And if you slaughter the shorts, as with a short ban, the eventual fall will be all the faster, because any forced 'buyers' will be long gone and only sellers remain

Thu, 07/26/2012 - 08:05 | Link to Comment Solarman
Solarman's picture

We ar now etting the phantom signals pointing down for SPY.  Back to 134 area.  Ususally hits those in 24 hours

Thu, 07/26/2012 - 08:09 | Link to Comment Anne Ominous
Anne Ominous's picture

The Fool Monti

Thu, 07/26/2012 - 08:22 | Link to Comment Silverhog
Silverhog's picture

Be interesting to hear what Draghi has to say a year from now when vigilanti groups are searching for him.

Thu, 07/26/2012 - 08:31 | Link to Comment SheepDog-One
SheepDog-One's picture

Draghi youre gonna do whatever it takes to save the Euro huh? I bet that doesnt go as far as you selling your Villa and donating the proceeds to the 'Save the Euro' campaign! Really Draghi, what are YOU willing to do to save the Euro? Donate YOUR billions to 'the fund'? Nah.

Thu, 07/26/2012 - 09:00 | Link to Comment hedgehog9999
hedgehog9999's picture

Thank you Drag, you really behave as your name.....Drag-ing the indices higher definitely makes for a better short entry......

Glad I went to cash at the close Yesterday!!!

Thu, 07/26/2012 - 09:42 | Link to Comment Father Lucifer
Father Lucifer's picture

Closed the gap from Monday, we can really go down now. Thanks Draghi the sooner this was closed the better.

Thu, 07/26/2012 - 09:45 | Link to Comment Snakeeyes
Snakeeyes's picture

What can the ECB do? NOTHING. Just like The Fed. No velocity!!!!!!!!!!!!!!!!!!!!!!!111

http://confoundedinterest.wordpress.com/2012/07/26/rudderless-economy-durable-goods-ex-air-fall-1-1-jobless-claims-volatile/

Thu, 07/26/2012 - 10:51 | Link to Comment covert
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