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Markets React To Reality
Following three-in-a-row weak macro prints, the market broadly speaking is not happy. The S&P is 10 points off its pre-Case-Shiller highs, EURUSD is dropping rapidly back towards 1.31, Treasury yields are falling 3-5bps across the curve, and Commodities are giving back their spike gains from pre-US day session open. FX carry seems like a major driver for now with AUDJPY and EURJPY most notable while the drop in the curve and levels of the Treasury complex are adding to downward pressure on stocks. Credit and equity markets are dropping in lockstep for now (with HYG more volatile than its peers). The rally in European sovereigns has stalled here as longer-dated spreads are now widening off their intraday tights (10Y BTP back up to 6% yield) while PGBs give back some of their ECB-enthused rally (~20bps off tights now). US equities and CONTEXT (the broad risk proxy) are in line as they drop here.
Quite a turnaround in commodities this morning
Risk assets (CONTEXT) and ES (the e-mini S&P 500 futures contract) have been highly correlated overnight and remain so as we lose altitude here.
Chart: Bloomberg and Capital Context
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if the markets reacted to reality, there would be a bank holiday today.......
& tomorrow... & the next...
ooooohh ... what a pity
one month straight up rally ... and one down day can really get the bear going, or at least make them temporarily happy... really?
I confess.. Made me look. Made me look... Whew, Its still there.
Reality is their Illusion.
Their Fiction is the Reality.
Take the Blue Pill..
ignore the news and buy buy buy. Trust your debt masters
It's not 2:30 yet.
Not even bothering to look at it until then.
What? 'Markets unhappy'? Throw another virgin into the volcano! STAT!
Fresh out of Virgins. Have to wait til the next Comic Con...
I wondered why silver got bitch slapped when it weny over $40 dollars.
Now I see it was because good news.
Ps....
Fuck you Ben and Tim.
Market got a good whiff of Poo Poo today. Somebody needs to tell Ben we need more toilet paper here.
Puffed up Q4 prints being trued up.
Reality has no business in this fraud stricken market. Just ask the clients of MF Global.
clients...or victims?
Will TSHTF before or after I pad 3? I gots to know
looks like the robots have been programed to buy the /ES at 1308...with a Vengeance. I've been waiting for a clean break below that for what seems like an eternity now. Will it happen today? (not holding my breath)
Robo is Trading Hard Today!
There is a small glitch! they will fix it, but they need Qeasy!
Plunge on baltic dry continues... down to 702.
Now approaching the 2008 lows.
Dont worry though, its all the surplus ships. New ones are being launched every day (or something).
Try 680.
http://www.dryships.com/pages/report.asp
It's a bad hair day in the financial markets! It's about time for a wake-up call!
News is irrelevant! Data is irrelevant! History is irrelevant! Reality is irrelevant!
We have printed prosperity now!
Like clockwork: Europe closes, Dollars starts dropping, /ES starts rising.
I am Jack's total lack of surprise.
If reality means never go down then yes you're right
Time to call the manatees to pick some winners from the rumor tank!