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Low Volume Meltup As EUR Jumps Most Since MAR09
In a splendid show of market wonderment, EURUSD managed a 350pip rally off Sunday night lows to pull off its biggest percentage gain since MAR09 at over 3.5 standard deviations. Correlations forced ES higher (breaking above its 50DMA intraday for the first time since late July) as every risk asset rode the FX carry train on 'new hope' that more debt will once again fix everything that is wrong with our debt-laden, risk-loving world. With TSYs closed and volumes 40% below average it seemed evident that the risk assets were beating to the same drum almost tick-for-tick as Oil broke $85, copper almost $340, and Gold $1670. European markets were relatively subdued until the US day session opened and then we were off to the races in equity and credit as Energy and Financials led the way (both up over 4% on the day).
EUR daily change (close to close) is 2.37%, the largest since 3/18/09 (just outpacing the JUL10 move).
European credit and equity markets were treading water until the US opened and then all was well in the world.
But it seems that (rather surprisingly given the huge uncertainty) correlations were driving everything as ES pulled right back up to where CONTEXT (calibrated from Friday) would suggest is fair. Of course the biggest driver of this was EURJPY but the convergence is remarkable given that human beings are supposedly trading?
Charts: Bloomberg
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It's a breakout.. Buy whille you still can!
Invest in dollars, because....because...everyone else will eventually! Come on team, we are all investing in dollars! All together now! Kiiiiiing Dollar!
I can't understand why libertarians still don't get it. The Euro and equity futures are rallying because we are starting to see a pattern of bank nationalization throughout the EU. This is extremely bullish, as it represents a shift of the control of resources from the market to top economic advisors in governments throught Europe. These economists have spent their lives developing the best mathematical models for resource allocation, enabling them to allocate resources as objectively and efficiently as possible. This means that Europeans can look forward to a proportionate increase in wealth, freedom and liberty.
Naw. Juice.
MDB,
sorry but your mask has fallen off and the pain of accepting what is through humor seems a challenge even for you today.
There! Fixed it for you! No thanks are necessary!
+1... It needs more fixing but you pinpointed and excellent starting correction...
"bullish, as it represents a shift of the control of resources from the market to top economic advisors in governments "
Gotta' love it.. if you have the stones to do industrial stength cognitive reframing, the pain and the insanity can be downright humorous and pleasurable.
Of course, it's no effort at all if you are a born masochist.
They will have to print a lot of Euros to nationalize these banks and keep them sufficiently capitalized. Did tarp or either QEs provide American's with an increase in wealth, freedom, and liberty? No, we got high inflation and stagnant wages, the opposite. Why would it be any different in Europe? Hint, it won't be.
MDB,
Excellent! What we need desperately are more hyper-Keynesians to help shore up the system (and perhaps some additional high grade statisticians to prevent the odd once-in-a-one-hundred thousand years event); group think is highly under-rated I would say. The Libertarians also don't seem to understand that if they are right (trying not to laugh at that one) then they will be living in a hovel on some mountain, or seaching for scraps of road-kill..... all this so that they can say 'well, i told you so'. Nuts.
So much for the end of the financial world due to Europe. It will be centuries before a collapse because Big Ben has alot of play room.
Total insanity controls it for now, until Slovakia throws a wrench into the turbine fan blades tonite.
Bernanke is about to target UNEMPLOYMENT with monetary policy. You want to talk about insanity? Let us stroll through the Keynesian psych ward..........
That would be sweet SD1, I can finally test my new popcorn machine(and girlfriend)!!
All FOREX is managed by central banks. They will keep the EUR within whatever range they want.
But the Dollar Index plummeted today. Bad news for the QE junkies. Can't have your printed cake and eat it dark lords.
Bernanke has said on numerous occasions that he cares very little about the exchange value of the dollar versus other currencies. Plus, Obama said he intends to 'double' our exports by the end of his tenure in office no way at all that will happen without more QE and much lower dollar
It's official: global markets have gone full retard.
Um. ITYM Americans...
and silver barely moves. SOMETHING FISHY
DXY chart of the day. Where the selling came from nobody knows.
If the fascist USA didn't open everyday, or exist at all, the world would be a much better place.
All governments are now fascist. If we ended the fascist system, then the world would be a better place.
To end fascism... Corporate owned governance... you would have to eliminate the perpetual corporation...
Every Corporation is a Profit Maximizing Firm
For every corporation will corrupt government to install a monopoly/oligopoly market to maximize profits...
Thus fascism will always re-emerge in the crony capitalist/ anti free market/ Wall Street puppet government system...
Rob Newman
Buy until December 2012! Yeah, buy it all up. Bull Market Rally!!!!
buying high is where its at (puts on helmet)
Can I get a hit of what you're smoking, I'm not high enough yet
It's been a while since we had one of those storming 'meltup' monday; beware the 'holiday reversal' setup though where we could start heading back down, as soon as the overnight session later on
long
standard deviations ...
Soma ,Baby in a Brave New World all you need is Soma or some more coca leaves lol
credit and stocks have reached "context." isn't that cute: equities are now fairly valued.
...I love Milliondollarbonus...now that I understand the trim of his sails
I know the Robots are in charge on low volume melt up days because the Dow jumps 250 - 300 pts and then levitates there all day varying less that a few points for hours on end.
Geez. Soon time to turn shorts back on.
+1... it's ridiculous to see the Dow trading in such a tight range
This is what the market has done since Fed intervention beginning March 09....... The Bernack is up to his old tricks but hiding them again so gold and silver do not fly upwards as well.
I think humans are the problem here.
If algos have a buy-bias, then it's our fault we're not at DOW 36000 today. Two possible solutions are: (1) ban humans from selling/shorting stocks, or (2) eliminate humanity.
Humanity: we just get in the way.
Totem,
you may find resistance as humans are likely biased against your proposal to downsize humanity...you may have better luck pitching this to the computers?
Good luck
It's not a matter of resistance.
See, the market has no meaning to computers... to them, it's just software playing with numbers and trying to amass the highest total.
Humanity is necessary to give meaning to the market! What does it mean to have the highest total if we are not here?
We've turned economics (which buy us food, clothing and shelter) over to computers, who have no concept of what they're actually doing.
This is an indescribably EPIC FAIL!
Major dilemma.Should i play at a casino or short the eur/inr?
Makes sense to me......More debt to pay off more debt to pay off more debt to pay off more debt to pay off more debt to pay off more debt..................Sick bunch of fkers..........
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