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It's Official: The Market Crash Is All Europe's Fault
In keeping with the tradition of always blaming something for everything that doesn't do quite as expected, be it the rain, the heat, the cold, the snow, (henceforth known as "the climate"), the earthquakes, the tsunamis, the nuclear power plant explosions (henceforth known as "the life"), or simple things (no pun intended) such as former presidents (henceforth known as the "Bush"), even when the current one is campaigning hard for this second term, we now have identified the one and only culprit for the market collapse: Europe. As the following chart from John Lohman demonstrates, just like back in 2009/2010 the entire market move higher was due to POMO days and the "first Monday" phenomenon (between these two events alone, they accounted for about 120% of the entire market move higher) in the past two years, so now we have the inverse situation, whereby almost the entire drop in stock can be blamed on Europe. Specifically, well over twice the market decline since the beginning of July can be traced to market hours in which Europe is open, while the drop in hours when Europe sleeps is completely unremarkable. For the arb-minded, this means that selling the Europe close to Europe open and buying the Europe open to Europe close boundaries will result in outsided returns. Then again, this has been known for a while: as we tweeted today at 11:30 am Eastern when Europe close, we expected the melt up to proceed. Sure enough, 150 DJIA points later, this was the only catalyst that was required. However, a caveat: these simplistic trades usually work amazingly well, until they don't and someone ends up getting badly hurt.
The chart that speaks a thousand words:
h/t John Lohman
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The US is so innocent ...
Bennie Smells like Roses.
Efficient market hypothesis my tasty asshole!
Europe bitchez
Thank You for acknowledging the Blame Europe's Disaster. Not that is not worthy of a news line, it is.
But, How soon we forgot about the "0" jobs number, the hurricane's damage to the economy.
And McConnels wish to destroy America under Bambi's watch, mission accomplished.
Last but least, Consumer sentiment is a recession or less level.
The best thing about the European crisis is the catagion effect that all the banksters deny. Now that's the real story.
0bomber is doing a fine job destroying America without anyone's help
It was pronounced dead before he was elected Undertaker-in-Chief....
http://www.youtube.com/watch?v=L-cIEcBqgaA
Heck, let us just...
Blame Canada
www.youtube.com/watch?v=0SDrqa-eTXU&feature=fvst
We need a euro open ETF and a euro closed ETF. Why not there's an ETF for everything else
I blame society.
Long francs!
Oh yeah, I forgot
Fuck those Frogs!
Europeans are financial terrorists!!!
Maybe this will help
Mental illness affects 38 percent of Europeans
http://www.cbsnews.com/8301-504763_162-20102085-10391704.html
Your avatar looks like the boobs are dirty.
Refer to Pladizow for supple boobies plz.
Cash is on fire
I'm sure over 50% are sociopaths.
What, "dirty" boobs? Is it the left or right one?
Mmm, tanlines! :>D
allow me to lick them clean....... again and again and again
I'll call your 38% and raise you 50%
Half of U.S. population will experience mental illness
http://www.examiner.com/law-enforcement-in-national/half-of-u-s-population-will-experience-mental-illness-experts?CID=examiner_alerts_article
'Mental illness affects 38 percent of Europeans'
...That may be so but more than half (42%) are mentally fit.
Support mental health, or I'll kill you!
boobs!
It's funny, but if you look at the Gold charts you see precisely the opposite picture.
US open = Gold down. US closed = Gold up. Maybe someone should look into why this should be.
Thank god, someone new to rake over the coals.
blames for god and small children. revenge well thats another story, soon to be headlines i would reckon
Now zero hedge tweets?
Blame Canada!
It's 'Canadia', noob.
I concur. Before dismantling constitutions, issuing Eurobonds and infinite bailouts, a Paneuropean PPT (funded by the Bennie Bank of course) should be installed.
Timber...
On the back of CHF shenenigan, i am expecting JPY to move in lockstep, too. Tyler?
Blame it on Rio.............or the Bossa Nova......or.............
They were fucking up during the relative "quiet" time of the markets...the summer....what's gonna happen when sept, oct, nov fund managers Gotta dump beaten up non performers?
Buy the miners....bitchez...
funny how its actually the other way around, wallstreet intoxicated europe (be it rather willingly), but now tries to remain the last man standing by exploiting its trade currency status to the max.
A similar trade is to buy gold at the Comex close and sell it at the LBMA open and vice versa. Explained here: http://www.zerohedge.com/article/guest-post-gold-market-not-“fixed”-it’s-rigged
bad link, señor ferguson. here's the article.
I think tmosley won that bet with Johnny Bravo
And if the market goes up, the slug will take credit
So from huge bubble top 1350 to less bubbly 1170, ...and its Europes fault, not the algo stock churning robots pumping wild 200 point gains on terrible days. Yea Whatever.
When in doubt, always blame the French...
It is, afterall, the American way.
BTW: My fuck, has anyone noticed the price of Roquefort of late??
try out chinese Roquefort.
Is that the plastic stuff, or the red, lead-painted stuff?
What is amazing is that the Riverboaters keep buying the same crap day in, day out. Like PLCN, AZO, AAPL, CMG, LULU.
Seems like every meltdown in Europe is yet another excuse to buy a U.S. based specialty retail stock.
Hardly any of these stocks have cracked more than 10% off world record highs.
And don't even get me going on the REIT stocks, which are even more insane.
Yeah, and Brent crude futures....
BTW: My goldminers were up today, IAG, AUQ and KGC
Shazzamm, that's brilliant!
You know how we like to assign blame.
And what's up with the utility stocks? Old widow and orphan names like ConEd near 3-year highs? Bernanke must be determined to beat Japan and Germany in driving 10-yr. yields to world record lows.
Savers are getting screwed.
Depends on what they are saving!
The swiss move is a declaration of WAR by Eu on USD zone. Its no holds barred, as the race to bottom now hottens up...Ben Bernanke cannot maintain S&P levitation as the USD will be pressured UP...If inflatiion sets in the interest rates will also rise....we are seeing the volatility hit another level. Those swap lines better stay open to ensure bank liquidity as the crunch now goes from zone orange to red.
The Euro/USD now south of 140.
World's biggest blue chip company with an AAA rating like XOM getting sold down, now its PE ratio is about 13.
Yet "investors" continue to dryhump stocks like CRM which are barely making money and has a PE ratio of 578.
Man, the infatuation with tech stocks is amazing. Come hell or high water, no matter how many countries in Europe default, these guys keep buying more and more expensive cult stocks in the cloud/social media/gimcrack space.
It's called a bear market dickhead or dickmouth, whichever you prefer
CRM is going to sound like an M-80 in a swimming pool and when the 'playas' look back, there's gonna be major damage. Salesforce has 'darling' status for now, like Ciena in 1998-2000..
The Bush is in Europe living the life inspite of the hot in his room when he wanted the cold.
Ponzi schemes have no country of origin :)
it is Europe's fault...for colonizing North America in the first place...
The enabler will aways blame the codependant. Psychology defines embedded behavior. In today's technology world, hypocrisy changes the enabler's role.
Why is Chuckie 'shit for brains' Schumer not calling for sanctions against the Currency Manipulating Swiss?
Damn you Europe!
Damn you Waddel and Reed!
Damn you Snow!
How could you do this to us....we were such good consumers !! Oh god why is this happening to us?
Funny to see that mainstream-intreventionist-oligipolistic media in Europe uses to blame the anglo-saxons.
What can you expect, socialism (right & left) is all about the negation of reponsability
Mommy, mommy It´s not my fault!!!!
A little example El Pais Spain´s biggest newspaper today
Wall Street arrastra a las Bolsas europeas y hunde al Ibex al mínimo en dos añosWall Street drags European markets & sinks the IBEX (Spanish Index) to a two year´s low
Ye shall no bottom see until ye see a bidless month of fortnights.
We must be a couple days away from a massive afternoon meltdown since almost everyone knows stocks go up in the afternoon. What Hav stocks done between 3 and 4 pm this year?
They might as well crown Tony "Standard Poodle" Blair as king of the Euro and get it over with. Rupert will cover the demise. Tony will have Jesus as co-King and pretend to get advice from him. When Tony starts talking "peace in our times" head for your favorite last few days of fun kind of hideaway or underground shelter.
The biggest doomsday trade in the world is US markets
I understand the premise of the article but I don't understand the measurement of the green line over the time horizon. Could someone enlighten me as to why the large despairty? Does it mean if the European stock markets were closed over the aggregate course of the time horizon that's all the drop the S&P would have experienced? Thanks in advance.
This scenario looks mighty familiar:
1. A major bank is allowed to fail (in Europe)
2. Stock markets will take a nosedive as the drama unfolds
3. A major bailout package will be presented
4. The Federal Reserve will make gobs of capital available in clandestine fashion
5. The stock markets will get a big bounce
6. Food and energy prices will surge as the Fed lies through its teeth re. the cause of this surge
7. The Middle Class will be completely wiped out
John Exter’s inverted pyramid of assets. The idea is that things high on the pyramid are derivatives of asset classes further down the pyramid. See how do your assets compare.
http://lonerangersilver.wordpress.com/2011/04/17/john-exter%E2%80%99s-in...
George Carlin - They don't give a fu@k about you. His words ring truer today that 4 years ago.
http://lonerangersilver.wordpress.com/2011/08/02/george-carlin-they-dont...