Perfectly Irrational Market Slides On News Spain Actually Not On Verge Of Default

Tyler Durden's picture

Within seconds of the non-news headline (via Bloomberg) hitting:


The S&P 500 is crumbling, Oil is plunging, and EUR is selling off


which just as we tweeted:


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onelight's picture

Actually, Merkel just said that they would have to get the Troika visit report before they make ANY decision on Greece, and the Hollande remarked that he hoped Greece would stay in the union. 

Maybe it was just the Spain news, or perhaps the markets got a dose of Merkel ice water and suddenly recalled the feeling they had forgotten about while on vacation lo these many weeks..

In any case, the Euro can go higher, but for the moment it is decently extended intraday on the 4hr chart, and since gasoline and copper have been rolling back, and the DX finding footing, not a bad place to trim some, for the position adjusters out there.

vast-dom's picture

makes perfect sense: less prob of QE....heh....flip a 2-headed coin biyatchez!

CClarity's picture

And the S&P is on the verge of dipping below 1400 for the 30th time since first reaching 1400 on the way up back in July 1999!!!

vast-dom's picture

yes but to say SP is crumbling when it is anything above 800 is silly. SP has a 600 pt QE FUCK YOU BUFFER built in. Please people let's keep it all in perspective. 

And oil below $120 is yet another perfect example of central planning. 

CClarity's picture

Couldn't agree more.  They're going to have a more difficult time controlling food prices.

CrashisOptimistic's picture

Actually the rationale would be that Rajoy is more a badass than anyone in Greece and will refuse any aid that has austerity requirements.

One must presume he knows his debt credit default swap profile is far more terrifying than Greece's ever was.  He can threaten default and knows they will flock to give him money, and will turn a blind eye to his refusal to adopt austerity.

Never, ever forget there are credit default swaps on all this shit.

In fact, if you're a peripheral country leech, you want your leadership to encourage swap creation to huge amounts, to enable you to play this terror card.

Itch's picture

oh, it all makes perfect sense, to market makers.

Element's picture

Just wondering, has the EU ever been right about such things?

Itch's picture

I dont even pay attention to it anymore mate, its an ongoing joke. Whether right or wrong, they are doing one hell of a job of frustrating the me a cynic, but thats got to be in the plans somewhere.

Offthebeach's picture

What market? They are the market. It is us, the stupid primitive "money clinging " muppets that are frustrating them. Pretty soon the BIS, The Fed, ECB and henchlings will of had enough of our herding and call in the 440v direct current prods.

Boilermaker's picture

Not REITS or the IYR. That shit is positive.  TA DA!

Cult_of_Reason's picture

There was another headline hitting at the same time.


*Romney: QE3 Wrong Way to Go - Fox Business

*Romney: Would Want to Have a New Fed Chairman - Fox Business

Haager's picture

So markets disagree with Romney? Do they call the funds back?

Cult_of_Reason's picture

Oil and copper have violently reversed down when this headline hit the wires -- without Helicopter Ben as a chairman the entire commodities complex is extremely overvalued.

Dr. Richard Head's picture

Increased volilitility due to increased credit creation at the hands of the Fed and all.

ParkAveFlasher's picture

Looks like the stern is finally breaking off the Titanic.

I know two commodities that survive the collapse of credit and consumption, and the rise in interest rates.


Cult_of_Reason's picture

Paul Ryan and John Taylor on QE2 and the Dual Mandate

Refocus The Fed On Price Stability Instead Of Bailing Out Fiscal Policy

What do you think John Taylor as FOMC chairman means for commodities ("owning stuff") bubble?

ParkAveFlasher's picture

The question is what do you think John Taylor as FOMC chairman means for interest rates for the credit ("owing stuff") bubble.


HelluvaEngineer's picture

If I didn't know that he is lying, that might convince me to vote for him.

Dr. Richard Head's picture

The high-fructose corn syrup population surely can't recal back to news of yesterday.  News cycles now chrun like HFT traded stocks.  Though putting some Prince Harry balls or Kim K-Cups in that news story and you may have a week's worth of sheep retention.

OldE_Ant's picture

Can I have cock and tits with my rewashed news story??

 I mean come on us slaves need something to wack off to to work our sugar highs off before we go back to our slavery.

I mean this shit is like an old used hooker that now does blowjobs for pocket change.  Not long enough, not good enough, and completely frustrating no matter how experienced she is.

End of Line

optimator's picture

"Fire the boss"  thats a good one!

John_Coltrane's picture

Now just before Nov and to guarantee a crash in equities and commodities, Romney should make it clear the Bernake will be replaced with Paul Volker.  You know the guy that got interest rates to an all time high in the early 1980s and is a well know fiscal hawk!

lolmao500's picture

Bullish... oh wait I'm confused.

Hype Alert's picture

What's a market without a money pump?


So Europe having run out of anything actionable, gets some media outfit to repackage old stuff in ALL CAPS and flash it as breaking stuff

Maybe somebody just headfaked the algo's.


onelight's picture

...especially if you are also the ones that WRITE the algos...

The worst trader's picture

Tell me sweet little lies..... Romney crash just warming up for take off?

Flaming Ferrari's picture

It's a dip! Gear up! Draghi's got your back.

Dr. Engali's picture


Boilermaker's picture

That's some psy-ops shit, right there!

malikai's picture

The whole thing makes perfect sense to me, as messed up as it is. All my models have been screaming this stuff the whole week.

Howdan's picture

Eh?? Nothing makes any sense anymore - the "market" (cough ,cough....FED) moves up on bad news in hope of QEx then drops on good news i.e Spain not requesting a bailout.

All correlations seem to have completely broken down, HFT's and Algo's are whipsawing the market around in bizarre directions and Central Banks are artificially maniplating bond prices, currencies, rates you name it.

It's actually sickening how dislocated markets are nowadays and how tough it is to trade properly or take a view

Hype Alert's picture

The only way this Frankenstein of a market keeps standing is with jolts of electricity from the CB's.  If they continue the jolts, it will die and if they stop, it will cease to wiggle about.

Father Lucifer's picture

Obviously we have passed through the looking glass.

NEOSERF's picture

Translation: Rajoy is not accepting the terms of the first $100b...hard to imagine the terms of the next $500b

falak pema's picture

this reminds me of the mIC syndrome blues when the CIA realised it had nobody to play hardball with, once the KGB and USSR had collapsed. 

"QUick find me a new enemy; anybody, everybody, rogue states! renegade saudi, any cockroach under the crack!" 

You can practically hear Draghi screaming over the phone : "I need a new crisis to pump to infinity. I need a sovereign saying or I die!"

Irrational but so true! 

Juan Wild's picture

we are the enemy. we always have been. when people ponder this it will all become so painfully clear. everything will finally make sense. that's the threshold moment, when you must choose between light (very painful) and dark (comfortably numb).But you know that already ;)

diogeneslaertius's picture

raw inputs

and ignore holograms or SPIN

Mcwop's picture

In Europe, you can always find bailout promise. In Soviet Russia, bailout promise finds YOU!

Juan Wild's picture

They make up news as they go along. Then wait for the dupes to place their bets...and then predatory algo time kiddies!!!
rinse, repeat. MM's gone WILD. Not just Knight,mind you. All of them. PREDATORY. No wonder buy and hold has gone extinct. Hello SEC, gonna do anything about it????? Don't you think we all know whats going on??? sheeeeeesh.

scatterbrains's picture

plunge?  maybe at 1100 /es which I think is on deck.


edit: my bad "crumbling"  for sure. The plunge is coming.

Dr. No's picture

Spain is even late to their own default!!

Abraxas's picture

Can we replace the colorful charts with pictures of run-ups to Miss Venezuela? Please?