This page has been archived and commenting is disabled.
Futures Red As Reality Returns: Bailout Half-Life Now Laughable
After opening and surging to up 18 pts last night (to within a tick of its 200DMA), S&P 500 e-mini futures (ES) have faded the entire gain (just as we said last night) with ES now red. European financial credit is wider on the day. EURUSD has given most of its gains back and Italian and Spanish sovereign bond yields/spreads are considerably wider on the day. US major financials have turned red after opening significantly higher. Swiss 2Y rates are at new record lows at -34bps as the USD has strengthened from 0.8% lower to only 0.15% lower now - which is having an incremental impact on Gold, Silver, and Oil - all plunging at the US day session open. So apart from all that, what did the EUR100bn of #Spailout do for all of us?
ES notably given it all up and now red...
Led by major US financials...
European financial credit now wider (lower on chart)...
and broad risk assets are selling off notably more than stocks for now (as correlation picks up systemically)...
and PMs and Oil are suffering as risk assets plunge and USD rises...
Charts: Bloomberg and Capital Context
»
- 8698 reads
- Printer-friendly version
- Send to friend
- advertisements -
The law of diminishing returns maybe?
Time to quadruple the Viagra dose. Hell, just chug the bottle.
That's the direction it historically goes until governments lock up, break and it turns into Peru as a current example to point to regarding hyperinflation.
What a mess.
Things will get really nasty when Spain begs for its 2d bailout (in a week or two).
As I have been mentioning the "sucker rally" has ended! Get ready for a blood red finish today!
As history illustrates, what Spain needs is a good navy.
HA!
For some reason Black Adder the Second Series pops to mind
The last time Spain had a decent navy was right before they tried to invade England.
But note that the Context model correlation will actually have to fall to close the divergence -- ES is chasing the model value down, but the gap persists. Somebody can't sell fast enough, huh? Guess the PPT is out of practice using the "OMFG LIQUIDATE EVERYTHING!" button.
Buy on the rumour, sell sell sell on the news.
In fact run like hell.
Spain (IBEX) now down over 5% from its intraday peak.
The bailout half-life is now measured in fractions of an hour.
"Time to quadruple the Viagra dose. Hell, just chug the bottle."
What'd ya say? Who's there? Huh? Why can't I see?
Meanwhile in la la land, the BBC runs "Markets welcome Spanish banks rescue deal" story . . . . . oh my sides!
What in the hell did they think lousy 100 billion would do when they need trillions?
Through the magic of leverage no doubt.
Risk? What's that?
It's almost like they want things to fail.
/sarc
Laughable!
Half-life is a bitch!
Europe and America have been half-dead since 2008..
4 years on central bank drip-feeds, the new normal is nobody can find a pulse (or recovery) because nothing is normal anymore, we're faking an economy on fake wealth
First item thrown overboard? Gold and Silver
Discounts before currency re-evaluation.
Make sure you aren't holding USD or anything paper on the other side.
in the boating accident...
Oh look it's our resident Netflix expert.
How have you been?
3/08
where was GE, BAC, C, CSCO, INTC, MSFT for example?
where was gold?
where are they respectively now?
where do mom and pop wish they had been?
you're an idiot..........
Yes, there have been quite a large number of boating accidents where personally-held PMs have been swept overboard. Damn shame, really.
You can bet there are many countries, where the government is not run by a central bank, that would love to see a dip in the price of gold. The game the central banks play is fast becoming all too obvious to them, and they want the insular stability gold offers.
Perhaps the US will begin overestimating it's gold holdings in order to maintain reserve currency status.
Yup.
Can't have Gold showing strength in the face of the latest Ponzi insanity.
The system is breaking down. Soon enough they will either lose control of the Gold market or they will clamp down and try to suspend Gold trading. Desperate men always do desperate things. Always.
"First item thrown overboard?"
Well it won't be your LULU, that's for sure!
<snort>
Hopefully Robo still isn't holding. I understood the value of buy and hold until dot.com, now the only sensible place to be is be completely disloyal to brands and ticker names
Robo I made a 33% return last year in PM's. I will keep my PM's thank you.
Ya can't bail out a boat that is in dry dock.
And stickin' feathers in your ass doesn't make you a chicken.
It does make you a Bird Fanboi Furry though. (Furry: Adults that dress up as animals for personal reasons)
the question is how long can they keep these zombie banks (and Govts) half-dead?
Japan managed 20 years of this economic death on squeeky wheels, bless them!
Shit! I thought BTFD was Fool Proof?
I think the politicians are slowly waking to the reality that the pigmen have truly fucked everyone in sight. Everyone else knows and won't buy it any more.
Politco's are too late in resolving it. Now it's question of time and will power on how fast they all lose their jobs.
This is an outrage, an outrage!!!!!!
Time I woke up this morning there wasn't any place left to go long, so I stuck with my shorts. It can go either way: the horse is almost dead but they've doped him so much he can't stop running!
With some trepadation, I stayed short over the weekend, hoping reality would intrude.
I'll be damned, looks like reality finally DID intrude, just as I was all primed to go long this morning. I held off just long enough, for once. I might actually make some fucking money today, for a change.
We're fast approaching the point where they can throw all the money they like at it and it won't do a goddamn thing for the economy, except jack up the price of stuff we really need. Funny, today I keep having these mental images of fuses being lit.
We're actually past that certain point you describe.
We crossed the Rubicon a while ago...
Now, everyone is paying attention. Whatever they do is getting scrutinized and people are asking questions. Everyone is interested.
You can't continue to run a scam and expect a return of confidence when everyone learns how it's done and that they're being conned.
You got a point there, people are indeed paying attention now. The difference with just a couple of years ago is immense. Makes life a lot harder for the status quo. The other day as people over here (Holland) were watching the European Championship game against Denmark the Spanish bailout happened and it filtered right through the non-excitement about the game. Many people don't give a toss anymore whether we win or lose the EC, they're worried.
Party over, or is there more?
Come on, let's just print and lend the 2.5 trillion Euros already and call it a day.
We know 100 billion is chump change now and we all know the TPTB want to tie that debt to every nation's real assets and collect when the naitons deafult. Can we just get to the last chapter of this story already???
This is all filler.
From here on out (until we get under 666), most rallies will be led by short covering.
"Bailout Half-Life Now Laughable"
chuckle :)...comensurate with the clowns/comedians running this banking/Govt circus
What did the Spailout do? Gave us better levels to get into our Risk Off/Reality On trades. ;) Ka Ching:)
Oil did a nice roundtrip overnight. How much oil did the Asian markets buy at $86 tonight?
Buy this dip. No doubt they'll juice this way higher into the close today. Same story different day.
A nostalgic impersonation, but the real HarryWanger would've ascribed it to a recovery in progress.
The real HarryWanger would have told us to buy FB at $25.95 and make millions.
I see Bankster Gulfstreams full of cash fueling up to head to Greece. Vote buying booths on every street corner. If Syriza wins.... it all comes apart at the seams.
Wow.
I think Robo meant the first thing to get dumped overboard is GLD and SLV.
No, he was talking about himself. He's just become so tired of having his ill-conceived thoughts.
"I used ta do a little but a little wouldn't do
so the little got more and more
i just keep trying ta get a little better
said a little better than before
I used ta do a little but a little wouldn't do
so the little got more and more
i just keep trying ta get a little better
said a little better than before
We've been dancin
with Mr. Brownstone
he's been knockin
he won't leave me alone"
I have never used drugs but I would imagine that the more you use Mr. Brownstone the more you need to keep that high going.
Market movers and players are increasingly reading ZH. Keep up the good work, TD ! You rock !
really you cant bail out a boat that had no proper frame work
Support Ron Paul He has not given up as they would like you to think.
Oil was up over $2.50 this morning - now it's down $0.50 so far.
Elliot wave save more downside in oil is coming.
http://bullandbearmash.com/index/oil/daily/
miniscule price movements
as rorms are re-approached from the last phantom melt-up
if this turns into risk0ff i may pee myself!
Rally Warning from last week:
'Daily chart now gives bullish warning and significant
SPX rally & USDX retracement should commence in a week or so'
http://www.zerohedge.com/news/2012-12-24/market-analysis
Wait...each loan has to be bigger than the one before it so as to achieve the same effect? Sort of like...drugs?
Nah.
When you do bailouts back to back the market gains no traction its like flooring the gas on your car when your slipping on ice, your bound to crash.
Has it become too easy to predict the market Tyler??
Try your hand at Euro 2012 bro
mad respect for calling this S&P fail
Silver getting pounded more than everything else, as always.
And as always, the stupid investors are getting out of a bubble (EU bonds) to another bubble (US bonds)... stupidity runs the markets...