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Market Snapshot: Flip Flop.... Update - And Plunge On Bond Purchases, IMF, Lehman Comments
Update 2: Draghi just killed IMF lending proposal - "lending money to IMF to buy Euro bonds is not compatible with the treaty" - EURUSD now in free fall.
Update: two additional comments, i) that the ECB is not the IMF, and that lending to the IMF would be very complex legally, and ii) that the liquidity situation is comparable to post Lehman have sent everything plunging to overnight lows. Lastly, Draghi just kicked the ball in Europe's court. This is about to get very ugly fast.
ES now well below pre-call levels and CONTEXT tracking lower too - risk-off, disappointment-on.
It was all going so well until Draghi dropped the coded 'less' bond purchases 'no bazooka' bomb-shell at which EURUSD, BTPs, European bank stocks, and ES all stalled instantly and started to revert to pre-Dragozel levels. BTPs are holding up the best for now, though almost entirely retraced, but a 1% up and down roundtrip in ES was enough for many to see the schizophrenic market at its best.
EURUSD 120pips off mid-speech highs.
European bank stocks surged (but remained well off yesterday's best levels) before reverting on Draghi's dose of reality.
BTPs almost entirely retraced but are doing the best so far as ES is now lower the pre-call levels. Sovereign spreads are at their wides of the day now as we note BTP spreads have risen 34bps from intrday tights.
Chart: Bloomberg
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I prefer "Merkodrag".
ot: could someone point me where in a broker's disclosures or client's signed agreement one might find the language that permits them to re-hypothicate etc ? Should we assume this is standard practice with all brokers ? Any Murial Siebert clients here know if they practice this ponzi technique ?
I have been out of the business for over a decade but I will say that 20 to 30 years ago, brokerage customers had a choice of a ''Cash" or a "Margin" account. Supposedly, if you had a cash account your securities were not available for lending etc. Your choice and type of account was checked on the required account card which a broker was required to keep in his book.
Later, after money market features were added to most brokerage accounts, for money market sweep, it became more of a standard to treat all accounts margin accounts. By the late 1990's if a client wanted a truly segregated account they opened a DVP or delivery versus payment account in which the securities were delivered to an Independent Trust Bank to be held by the investor who had opened that account with the trust and held separately at their own expense. I had very few of those.
I am not sure of the status of those types of account today. That is the way it was.
Sarkodragollum.
Smerkodragz(y)
SImilarly, Teh Fed bailing out banks is not compatible with The Constitution, not to mention groslly exceeds the legal limitations of Teh Fed. The difference now is that Drag-man is leveraging for massive Eurozone QE.
we'll find out soon enough...It could also be GD II "asset strippin' time"...
How fortuitous to have "The Drag-ster™" (Goldmanite) in the pole position in this mess...
We are at Lehman
Lehman States of Europe
Maybe the banks will bail out the citizens this time
Interesting. The Romney/Gingrich markets.
Haha!
with this half QE measures (unlimited loans for unliited time lets be realistic) which is supposed to save banks, if i were the nation who is supposed to signover my sovereignity, i'd show the middle finger.
ECB just lost credibility by backdoor QE-ing... game of chicken all the way... they'll never sign treaties, no way. would you sign if you knew ECB was still backstoping you?
It's so hard for a drunk to get sober when someone keeps buying more shots of Jagermeister and Curvoisier -- Opa!
Ouzo as well - although apparently that gives one a nasty hangover...
The Market is once again trading on solid data and not rumours
Gold and silver charts are exact copies....big middle fingers.
And the Central Banksters continue to hold paper gold back. More naked shorting. Wash. Rinse. Repeat Adnauseam!
Shake it Baby! As in "week hands, get out"!
BAZINGA!
This market has mood swings that are almost as bad as my wife!
You are a very luck man to have such a sweet lady for your bride.
Mine learnt Jihad about 2 minutes after the I do's.
...and J. Cramer is infuriated because the rule of law has been upheld in Europe. Gives you a true glimpse into the Banana Republic Tree dreams of the criminal syndicate known as Wall Street.
Yep. I'm not sure about rule of law, but the formidable opponent has emerged...
Guys like Jim Cramer and so many others on CNBC when this all fails are going to be held accountable for their part in the financial scam/show on the American people.
I believe America is lurching towards your conclusion...however reluctant criminal syndicate Wall Street bankers are concerning the rule of law.
Cue the Corzine hearings.
Yep, gold trading in exact lockstep with ES.
PM bulls better hope the SPY turns around, otherwise there is going to be an avalanche of selling at the COMEX.
All this brings the day when the COMEX is out of physical metal.
In the last two months, the CRIMEX has delivered 59 tons of gold and yet, the dealer inventory hasn't changed. There has been little to no deposits or withdrawls from the dealers.
For someone to believe the Crimex is just sad. The only thing you can believe in is what your own eyes see and what your own hands hold.All the rest is smoke and mirrors.
Shouldn't you be loading up with LULU?
Or financial like BAC? Oh, thats down -3% today too. Looks like Robo will have to rely on bragging about things like Home Depot for today.
Indeed...I think. I cannot call the gold trade. Failed many times in that areana. However, I have to believe the downside on a barrel of WTI crude is at least $5 per barrel. And Americans everywhere will rejoice at this deflation.
I was afraid of a bad outcome in EZ.
Anytime RoboTard goes all hyperactive posting a lot like he has this week is usually a good indicator of a top in the Markets. You are the canary in the coal mine robo.
Robo still seething with anger that he sold his gold at $900 calling the firm top is in.
I'm horny.
Me Too!
Die SPY die!
This Kabuki theatre followed by watching Corzine squirm is just too good, time to make some popcorn.
No shit, "I don't know", WTF.
Man, I could use a Guinness about now.
No printing.......we are at the end
James Turk must be puking.
Gold down $35 from its highs in mere seconds.
Like James Turk doesn't know a paper dump when he sees it?
You don't know an all you can eat buffet from vomit in the back alley, Robo. Probably because they are the same thing to you.
Robo puking....still cant get over his 'top is in' call on gold at $900.
Or his call to get all in long big time at DOW 12,700.
The shoe is dropping even for the CNBC anchors.
Hmmmmm, which European currencies’ do we resurrect to backdrop peasantry panic? LOL
Draghi doing exactly what Peter Schiff recommended.
Nothing.
And gold folded like a cheap suit.
Bye bye Euro Pacific Capital.........
You could be correct on the other hand what will the value of gold be when the whole banking system grinds to a halt and the masses realize their state pensions no longer exist? Schiff on one side of the ideological debate you on the other.
edit: I referred to it as an ideological debate because nobody knows what is going to happen when the ATMs stop working, my theory the first few days cash will be king but then after that all bets are off.
fuck you
Down all of 1.5%. How's that NFLX treating your pretend portfolio?
Robo gave up $900/oz on gold when he sold....seething with rage about it still today...called the top a little premature huh?
Just get over it Robo and face facts....you suck.
How do you say 'price (in)stability' ?
Whaddaya mean, "it didn't put the lotion in the basket"?!
Every fiat paper currency is being destroyed so why are tangible assets like gold/silver being sold by the paper monkeys ?
It's just being repriced with currency fluctuations. No biggie.
They got to cover margin calls and bond losses somehow.
Gold will come back....its will be here in the next three years...the Euro won´t..and possibly the US Dollar too...China and Russia are licking their lips.....Japan is committing Hari Kari...this gets interesting now.....but we got Bernanke..he will loan the IMF money....get er done...a BANKER can never lose money...that is the golden rule...
The IMF will not get money from the US without Congressional approval. That doesn't mean Bernanke won't use the back door though. He is on a slippery slope politically though and he knows it.
Goldman's writhing, sweaty wet dream
Fiscal
Union of the
Continent of
Kafka
United
...is, not, gonna, happen people!
Playing this market is like looking up the elevator shaft from the basement as the cables fray to the last strand.
note to reporters. Dont ask Mario two questions in a row.
1% reserves and money for nothing- that's the way you do it.
Stick save in 3-2-1 then more rumors.
The vacuum tubes need to tweak the settings on the fine tuning knob. Less schizophrenia would be welcomed...
But, Cramer said it was all better. I just do not understand.
Selling begets more selling. All very predictable.
Burned again! I only shorted from 1.3412.
QE3 in January?
EUROZONE DEBT REDEMPTIONS WILL FORCE THE EMU TO ACT IN Q1 2012
http://pragcap.com/eurozone-debt-redempt...
Right, more insolvency will force more debt....OK and then what?
I knew I'd seen Merkel before:
http://wallpapers.yah.in/photos/images/augustus_gloop_1429.gif
Stay away from the Beligian chocolates Angela!!!
In addition to the market updates, which are very educational and I am very thankful for the majority of days they are posted, can we get a paragraph by a political scientist and a psychologist? Can the psychologist please be trained in many forms of abnormal psychology including manic/depressive disorder?
It may provide more insight into this market beyond the insight which the excellent analysis of what lies beneath ES and bond market moves these updates provide. And my request was only half in jest.
This is just the latest round in a high stakes game of chicken.
The Euros and Tiny Timmy all know the Øbama will throw the $ and the US taxpayer under the bus to get reerected.
So, to prevent the Euro contagion from spreading to the U$ markets and ruin Øbama's reerection plans, the US (via the FED => IMF Global), will team up with the Euros to kick the can down the road past Nov/2012.
"reerected" Hmm yes I think that works... we are going to reerected it Obama gets re-elected. Briliant!
I have to say, the little red circles/ovals on the charts are kinda unnecessary today, dontcha think?
Good.
I got short friday.
Bring it bitchez.
Time to collapse the fucker
( although more than likely I will just lose money again)
Looks like we won't be hearing from Robot Trader today. Maybe he'll chat with us tomorrow.
Major Malfunction, it was all actually hopium...does not compute. does not compute...000100111000101100000001
Whoops. Never mind. He's here and he's pissed.
Ready, Set, Fall Bitchez
Market's sagging like an old woman's tits
"lending money to IMF to buy Euro bonds is not compatible with the treaty" the bitch who is screaming for another fix is the IMF and she is not getting scratch because there is a Proctoscope very far up where the sun does not shine in her dealer. Sorry baby no juice this week. Sweet dreams.
a full nelson(headlock)
looks like the throw down has happened.
Oh yeah... watch 0:14 - 0:17
http://www.youtube.com/watch?v=HoLuO4De0fc
BAC down 2.38% ...
what's that, like, 2¢?
LOL! So that would mean my opinions are now worth more than BAC?
Right now it's down nearly 4% at 5.66.
Depression sets in in the Eurozone as the Magic Bullet fantasy begins to explode.
ECB Does Quantitative Easing, Eurozone Bonds Drop, Franco/German Proposal In Jeopardy
http://confoundedinterest.wordpress.com
Never mind
BAC down nearly 4% today