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Market Snapshot: Flip Flop.... Update - And Plunge On Bond Purchases, IMF, Lehman Comments

Tyler Durden's picture





 

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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Thu, 12/08/2011 - 10:04 | Link to Comment midgetrannyporn
midgetrannyporn's picture

I prefer "Merkodrag".

Thu, 12/08/2011 - 10:12 | Link to Comment scatterbrains
scatterbrains's picture

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 ?

Thu, 12/08/2011 - 10:24 | Link to Comment rufusbird
rufusbird's picture

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.

Thu, 12/08/2011 - 10:13 | Link to Comment GMadScientist
GMadScientist's picture

Sarkodragollum.

Thu, 12/08/2011 - 10:37 | Link to Comment CreativeDestructor
CreativeDestructor's picture

Smerkodragz(y)

Thu, 12/08/2011 - 11:01 | Link to Comment vast-dom
vast-dom's picture

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.

Thu, 12/08/2011 - 12:44 | Link to Comment Bananamerican
Bananamerican's picture

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...

Thu, 12/08/2011 - 10:05 | Link to Comment Irish66
Irish66's picture

We are at Lehman

Thu, 12/08/2011 - 10:11 | Link to Comment Spooky Polish
Spooky Polish's picture

Lehman States of Europe

Thu, 12/08/2011 - 10:32 | Link to Comment junkyardjack
junkyardjack's picture

Maybe the banks will bail out the citizens this time

Thu, 12/08/2011 - 10:05 | Link to Comment Temporalist
Temporalist's picture

Interesting.  The Romney/Gingrich markets.

Thu, 12/08/2011 - 10:10 | Link to Comment Martial
Martial's picture

Haha!

Thu, 12/08/2011 - 10:06 | Link to Comment CreativeDestructor
CreativeDestructor's picture

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?

Thu, 12/08/2011 - 10:29 | Link to Comment StychoKiller
StychoKiller's picture

It's so hard for a drunk to get sober when someone keeps buying more shots of Jagermeister and Curvoisier -- Opa!

Thu, 12/08/2011 - 10:34 | Link to Comment ucsbcanuck
ucsbcanuck's picture

Ouzo as well - although apparently that gives one a nasty hangover...

Thu, 12/08/2011 - 10:06 | Link to Comment Maiden Lane
Maiden Lane's picture

The Market is once again trading on solid data and not rumours

Thu, 12/08/2011 - 10:07 | Link to Comment Temporalist
Temporalist's picture

Gold and silver charts are exact copies....big middle fingers.

Thu, 12/08/2011 - 10:09 | Link to Comment death_to_fed_tyranny
death_to_fed_tyranny's picture

And the Central Banksters continue to hold paper gold back. More naked shorting. Wash. Rinse. Repeat Adnauseam!

Thu, 12/08/2011 - 10:07 | Link to Comment TradingJoe
TradingJoe's picture

Shake it Baby! As in "week hands, get out"!

 

BAZINGA!

 

 

Thu, 12/08/2011 - 10:07 | Link to Comment HedgeFun
HedgeFun's picture

This market has mood swings that are almost as bad as my wife!

Thu, 12/08/2011 - 10:12 | Link to Comment knukles
knukles's picture

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.

Thu, 12/08/2011 - 10:07 | Link to Comment Cdad
Cdad's picture

...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.

Thu, 12/08/2011 - 10:38 | Link to Comment GeneMarchbanks
GeneMarchbanks's picture

Yep. I'm not sure about rule of law, but the formidable opponent has emerged...

Thu, 12/08/2011 - 10:16 | Link to Comment Everybodys All ...
Everybodys All American's picture

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.

Thu, 12/08/2011 - 10:24 | Link to Comment Cdad
Cdad's picture

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.

Thu, 12/08/2011 - 10:09 | Link to Comment RobotTrader
RobotTrader's picture

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.

Thu, 12/08/2011 - 10:11 | Link to Comment PaperBear
PaperBear's picture

All this brings the day when the COMEX is out of physical metal.

Thu, 12/08/2011 - 10:39 | Link to Comment Sean7k
Sean7k's picture

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.

Thu, 12/08/2011 - 10:15 | Link to Comment firstdivision
firstdivision's picture

Shouldn't you be loading up with LULU?

Thu, 12/08/2011 - 12:17 | Link to Comment SheepDog-One
SheepDog-One's picture

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.

Thu, 12/08/2011 - 10:15 | Link to Comment Cdad
Cdad's picture

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.

Thu, 12/08/2011 - 10:22 | Link to Comment Stax Edwards
Stax Edwards's picture

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.

Thu, 12/08/2011 - 12:07 | Link to Comment SheepDog-One
SheepDog-One's picture

Robo still seething with anger that he sold his gold at $900 calling the firm top is in.

Thu, 12/08/2011 - 10:09 | Link to Comment Tsar Pointless
Tsar Pointless's picture

I'm horny.

Thu, 12/08/2011 - 10:16 | Link to Comment Shleprock
Shleprock's picture

Me Too!

Thu, 12/08/2011 - 10:09 | Link to Comment Saxxon
Saxxon's picture

Die SPY die!

Thu, 12/08/2011 - 10:09 | Link to Comment Barry Freed
Barry Freed's picture

This Kabuki theatre followed by watching Corzine squirm is just too good, time to make some popcorn.

Thu, 12/08/2011 - 10:18 | Link to Comment BandGap
BandGap's picture

No shit, "I don't know", WTF.

Man, I could use a Guinness about now.

Thu, 12/08/2011 - 10:10 | Link to Comment Irish66
Irish66's picture

No printing.......we are at the end

Thu, 12/08/2011 - 10:10 | Link to Comment RobotTrader
RobotTrader's picture

James Turk must be puking.

 

Gold down $35 from its highs in mere seconds.

Thu, 12/08/2011 - 10:14 | Link to Comment Sean7k
Sean7k's picture

Like James Turk doesn't know a paper dump when he sees it? 

Thu, 12/08/2011 - 10:47 | Link to Comment tmosley
tmosley's picture

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.

Thu, 12/08/2011 - 12:15 | Link to Comment SheepDog-One
SheepDog-One's picture

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.

Thu, 12/08/2011 - 10:10 | Link to Comment Global Hunter
Global Hunter's picture

The shoe is dropping even for the CNBC anchors.  

Thu, 12/08/2011 - 10:11 | Link to Comment Atomizer
Atomizer's picture

Hmmmmm, which European currencies’ do we resurrect to backdrop peasantry panic? LOL

Thu, 12/08/2011 - 10:12 | Link to Comment RobotTrader
RobotTrader's picture

Draghi doing exactly what Peter Schiff recommended.

Nothing.

 

And gold folded like a cheap suit.

Bye bye Euro Pacific Capital.........

Thu, 12/08/2011 - 10:22 | Link to Comment Global Hunter
Global Hunter's picture

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.

Thu, 12/08/2011 - 10:19 | Link to Comment Fred C Dobbs
Fred C Dobbs's picture

fuck you

Thu, 12/08/2011 - 10:48 | Link to Comment tmosley
tmosley's picture

Down all of 1.5%.  How's that NFLX treating your pretend portfolio?

Thu, 12/08/2011 - 12:14 | Link to Comment SheepDog-One
SheepDog-One's picture

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.

Thu, 12/08/2011 - 10:13 | Link to Comment PaperBear
PaperBear's picture

How do you say 'price (in)stability' ?

Thu, 12/08/2011 - 10:13 | Link to Comment GMadScientist
GMadScientist's picture

Whaddaya mean, "it didn't put the lotion in the basket"?!

Thu, 12/08/2011 - 10:15 | Link to Comment PaperBear
PaperBear's picture

Every fiat paper currency is being destroyed so why are tangible assets like gold/silver being sold by the paper monkeys ?

Thu, 12/08/2011 - 10:18 | Link to Comment Jim in MN
Jim in MN's picture

It's just being repriced with currency fluctuations.  No biggie.

Thu, 12/08/2011 - 12:11 | Link to Comment SheepDog-One
SheepDog-One's picture

They got to cover margin calls and bond losses somehow.

Thu, 12/08/2011 - 10:16 | Link to Comment youngman
youngman's picture

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...

Thu, 12/08/2011 - 10:21 | Link to Comment Everybodys All ...
Everybodys All American's picture

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.

Thu, 12/08/2011 - 10:16 | Link to Comment Jim in MN
Jim in MN's picture

 

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.

Thu, 12/08/2011 - 10:16 | Link to Comment Lotus
Lotus's picture

note to reporters.    Dont ask Mario two questions in a row.

Thu, 12/08/2011 - 10:17 | Link to Comment Sean7k
Sean7k's picture

1% reserves and money for nothing- that's the way you do it. 

Thu, 12/08/2011 - 10:17 | Link to Comment 1fortheroad
1fortheroad's picture

Stick save in 3-2-1 then more rumors.

Thu, 12/08/2011 - 10:18 | Link to Comment John Law Lives
John Law Lives's picture

The vacuum tubes need to tweak the settings on the fine tuning knob.  Less schizophrenia would be welcomed...

Thu, 12/08/2011 - 10:18 | Link to Comment monopoly
monopoly's picture

But, Cramer said it was all better. I just do not understand.

Thu, 12/08/2011 - 10:18 | Link to Comment Everybodys All ...
Everybodys All American's picture

Selling begets more selling. All very predictable.

Thu, 12/08/2011 - 10:23 | Link to Comment ISEEIT
ISEEIT's picture

Burned again! I only shorted from 1.3412. 

Thu, 12/08/2011 - 10:25 | Link to Comment PulauHantu29
PulauHantu29's picture

QE3 in January?

EUROZONE DEBT REDEMPTIONS WILL FORCE THE EMU TO ACT IN Q1 2012

http://pragcap.com/eurozone-debt-redempt...

Thu, 12/08/2011 - 12:12 | Link to Comment SheepDog-One
SheepDog-One's picture

Right, more insolvency will force more debt....OK and then what?

Thu, 12/08/2011 - 10:26 | Link to Comment Temporalist
Temporalist's picture

I knew I'd seen Merkel before:

http://wallpapers.yah.in/photos/images/augustus_gloop_1429.gif

Stay away from the Beligian chocolates Angela!!!

Thu, 12/08/2011 - 10:27 | Link to Comment homer8043
homer8043's picture

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.

Thu, 12/08/2011 - 10:27 | Link to Comment darteaus
darteaus's picture

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.

Thu, 12/08/2011 - 11:01 | Link to Comment RobD
RobD's picture

"reerected" Hmm yes I think that works... we are going to reerected it Obama gets re-elected. Briliant!

Thu, 12/08/2011 - 10:28 | Link to Comment Jim in MN
Jim in MN's picture

I have to say, the little red circles/ovals on the charts are kinda unnecessary today, dontcha think?

Thu, 12/08/2011 - 10:31 | Link to Comment topcallingtroll
topcallingtroll's picture

Good.

I got short friday.

Bring it bitchez.

Time to collapse the fucker
( although more than likely I will just lose money again)

Thu, 12/08/2011 - 10:36 | Link to Comment Dr. Gonzo
Dr. Gonzo's picture

Looks like we won't be hearing from Robot Trader today. Maybe he'll chat with us tomorrow.

Thu, 12/08/2011 - 10:38 | Link to Comment Odin
Odin's picture

Major Malfunction, it was all actually hopium...does not compute. does not compute...000100111000101100000001

Thu, 12/08/2011 - 10:43 | Link to Comment Dr. Gonzo
Dr. Gonzo's picture

Whoops. Never mind. He's here and he's pissed.

Thu, 12/08/2011 - 10:36 | Link to Comment Odin
Odin's picture

Ready, Set, Fall Bitchez

Thu, 12/08/2011 - 10:48 | Link to Comment ucsbcanuck
ucsbcanuck's picture

Market's sagging like an old woman's tits

Thu, 12/08/2011 - 10:51 | Link to Comment IamMarla
IamMarla's picture

"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.

Thu, 12/08/2011 - 11:12 | Link to Comment ucsbcanuck
ucsbcanuck's picture

Oh yeah... watch 0:14 - 0:17

http://www.youtube.com/watch?v=HoLuO4De0fc

Thu, 12/08/2011 - 11:13 | Link to Comment ucsbcanuck
ucsbcanuck's picture

BAC down 2.38% ...

Thu, 12/08/2011 - 13:01 | Link to Comment Bananamerican
Bananamerican's picture

what's that, like, 2¢?

Thu, 12/08/2011 - 14:20 | Link to Comment ucsbcanuck
ucsbcanuck's picture

LOL! So that would mean my opinions are now worth more than BAC?

Right now it's down nearly 4% at 5.66.

Thu, 12/08/2011 - 13:05 | Link to Comment Snakeeyes
Snakeeyes's picture

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

Thu, 12/08/2011 - 14:32 | Link to Comment Hard1
Hard1's picture

Never mind

Thu, 12/08/2011 - 14:18 | Link to Comment ucsbcanuck
ucsbcanuck's picture

BAC down nearly 4% today

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