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Risk Back On After Monti Says Can Form Government

Tyler Durden's picture


Isn't trading this market fun? As readers will recall, one of the two reasons for why the market plunged overnight was speculation that Monti may have trouble forming a cabinet. As is to be expected, stocks are now surging because according to recent information, at least the Italian government unknown may be taken off the checklist, even if nothing can be said about his ability to actually pass required austerity, to chance the country's medieval labor laws, which are controlled by the shadow government regardless, or the fact that Italy has over $300 billion in debt to roll in the next year. From Reuters, "Italian Prime Minister designate Mario Monti will meet Italy's President on Wednesday morning to inform him that he will be able to form the country's next government, a statement from the presidential palace said on Tuesday." Now, the other and far bigger reason for the plunge in futures, it bears reminding, is that the Spanish bond auction was a failure with just 3.2 EUR of the 3.5 EUR sought, was raised. If only Goldman could wave its magic wand and fix this far bigger problem which is endemic to all of Europe as it seeks to raise over $2 trillion in the next 2-3 years. That, and the fact that Belgium, Spain, France, Austria and virtually everyone else execept for Germany (for now) closed at what are new all time high spreads.


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Tue, 11/15/2011 - 14:14 | 1879661 Robot Traders M...
Robot Traders Mom Mom's picture

Monti will save us.

Tue, 11/15/2011 - 14:17 | 1879674 Robot Traders Mom
Robot Traders Mom's picture

I see I now have an imposter. Par for the course.

Tue, 11/15/2011 - 14:22 | 1879689 camaro68ss
camaro68ss's picture

yeaaaah, we are saved! Rambows and skittles for everyone! weeeeee! Goverments can fix everything!


Tue, 11/15/2011 - 14:36 | 1879749 knukles
knukles's picture

This being Italy (And I being part Italian, I am freely permitted this observation) it is akin to everybody agreeing that being Friday, Prince Spaghetti Day, that spaghetti is for dinner.  What has not been agreed to has been who is invited, who the invitees of whom nobody has a fucking clue will likewise be bringing to the dinner, what courses in addition to the spaghetti will be serve, even what brand, kind and shape of pasta to be consumed, wherher aldente or mushy (Old Don El Prickolo who liked to drown people he didn't like in boiling pasta water like it mushy because of he's toothless, remember.) what gravy will be placed upon said non-agreed to pasta, will it or will it not be a meatless meal, what wine will be served if there is indeed wine served or shall it be a non-alcoholic feast in memory of Saint Stupor, Patron Saint of Cirrhosis, when the meal shall be served or even the fucking location of said nothings been fucking agreed to meal, not to mention who gets to cook, clean and do the shopping and pay for it all.  Oh, sorry, guess the Germans will pay for it, so not all bad....

And it's time for Risk-On?
Give me a fucking break....

Tue, 11/15/2011 - 14:41 | 1879759 camaro68ss
camaro68ss's picture

with that kind of clear plan im going all in on margin and buying netflix and BofA.

O god i just jizzed myself this is so bullish. Maybe Robo can help me pick some good ones

Tue, 11/15/2011 - 15:03 | 1879829 knukles
knukles's picture

Jesus man, I didn't want to give it away, but I jizzed myself writing it, too. 
Where do I buy more?

Tue, 11/15/2011 - 14:27 | 1879712 Global Hunter
Global Hunter's picture

Looks like his/her avatar is Bubbles the smrt 1 on Trailer Park Boys, could be a Canadian form of flattery

Tue, 11/15/2011 - 14:37 | 1879755 NotApplicable
NotApplicable's picture

You shouldn't talk that way about yer momma.

Tue, 11/15/2011 - 14:52 | 1879794 fuu
fuu's picture

I still love you the best baby.

Tue, 11/15/2011 - 14:29 | 1879717 SheepDog-One
SheepDog-One's picture

Hey Bubbles!

Tue, 11/15/2011 - 14:15 | 1879662 YesWeKahn
YesWeKahn's picture

Welcome to the new way of investing: daily switch between risk on and risk off.

Tue, 11/15/2011 - 14:28 | 1879715 GenX Investor
GenX Investor's picture

Uh yes Daniel-san, that's it, risk-on, risk-off.

Tue, 11/15/2011 - 14:54 | 1879802 knukles
knukles's picture

Money Idea!

Create a ZeroHedge Risk-On Risk-Off Clapper.

Like the thinglieamabob Not Sold Anywhere But On Television except in the Martha Stewart Collection at Target where the old people clap their hands (then bitch and scream about how it hurts the arthritic hands which leads me to an accompanying product, more later) to turn their lights on and off.  Rememeber?

Well, this one when you clap makes the markets in a very schitziod manner swing like manic depressive bi-polar anxious serial killers, between everything being hunkie dorie and fuck me the world's coming to an end.  Sorta.

Give demos to Ben and Timmah, so when people see pictures of them on their desks, well, it's all clear.  
Just think of all the fucking fun you colud have screwing things up, if thst's even possible anymore. 

Tue, 11/15/2011 - 14:15 | 1879663 transaccountin
transaccountin's picture

casino market, wwweeeeeeeeeeeeee up 25 es since 7am

Tue, 11/15/2011 - 14:16 | 1879667 Robot Traders Mom
Robot Traders Mom's picture

This is getting boderline fucking annoying.


I don't blame the central banks, governments, etc. After all, they are the runs running the ponzi. It is the people that are beyond ignorant and need to wake up. Lie after lie after lie, yet nobody seems to understand that they are playing a fucking game and we are the pawns.

Tue, 11/15/2011 - 14:25 | 1879701 SeverinSlade
SeverinSlade's picture

Don't blame the HFT algos.  After all, they are simply doing what they were programmed to do. 

Blame those up top that are making the rules for the game.

Tue, 11/15/2011 - 14:16 | 1879669 midgetrannyporn
midgetrannyporn's picture
Il calamaro governa il mondo.
Tue, 11/15/2011 - 14:56 | 1879805 knukles
knukles's picture

The calmari will govern on Monday?

Tue, 11/15/2011 - 16:10 | 1880033 NotApplicable
NotApplicable's picture

Why not?

Tue, 11/15/2011 - 14:16 | 1879671 sabra1
sabra1's picture

see! we don't need QE anything! just recycle headlines after the european markets close!

Tue, 11/15/2011 - 14:19 | 1879681 LawsofPhysics
LawsofPhysics's picture

Vapor ramping.

Tue, 11/15/2011 - 14:24 | 1879696 SheepDog-One
SheepDog-One's picture

Exactly right Sabra, who the fuck needs money printing now that even the most vague meaningless rumor of a rumor about anything can send ES up +10 in 2 minutes?

Tue, 11/15/2011 - 14:43 | 1879771 John Law Lives
John Law Lives's picture

I wonder what would happen if the cronies released several significant rumors at the same time.  Maybe the vacuum tubes would explode while chasing the rally higher.

Tue, 11/15/2011 - 14:16 | 1879672 sheeple2012
sheeple2012's picture

Looks like it's time for a Bilderberg coup in Spain

Tue, 11/15/2011 - 14:24 | 1879675 ebworthen
ebworthen's picture

It is French Roulette and European insolvency contagion gambling fever: "I'll put a Trillion Euro's on double 00's please."

Tue, 11/15/2011 - 14:17 | 1879676 max2205
max2205's picture

ie.: Ben says he will fuck you up the ass Penn St style minus the shower if you want to hold shorts.....awesome dude

Tue, 11/15/2011 - 14:50 | 1879793 Waterfallsparkles
Waterfallsparkles's picture

Bennie Boy loves Short Squeezes.  Just look at 2008 to Summer of 2011. 

Market went strait up 100% without so much as a breather or pull back.

Tue, 11/15/2011 - 14:19 | 1879678 LawsofPhysics
LawsofPhysics's picture

All is well, damn the fundamentals, full speed ahead.  Hedge accordingly.

Can anyone in Europe comment on whether or not more capital controls are being implemented and not receiving media attention?  thanks.

Tue, 11/15/2011 - 14:19 | 1879680 kito
kito's picture

im exhausted from running in and out of my fully stocked and well defended underground safe room............................

Tue, 11/15/2011 - 14:20 | 1879682 Hansel
Hansel's picture

How noble of unelected technocrat Monti Fuckstick to grace the people with his hand selected government.  Hooray.

Tue, 11/15/2011 - 14:58 | 1879809 knukles
knukles's picture

Fuckstick.  That's a good word, Fuckstick.
Kunkie Likes It!


Tue, 11/15/2011 - 14:20 | 1879683 Tsar Pointless
Tsar Pointless's picture

In rialzo!

Tue, 11/15/2011 - 14:20 | 1879685 YesWeKahn
YesWeKahn's picture

can != will.

Tue, 11/15/2011 - 14:22 | 1879688 TheGameIsRigged
TheGameIsRigged's picture

Could I please have Goldman's "magic wand"  ??????  I want to shove it somewhere........come here, Goldy....bend over....

Tue, 11/15/2011 - 14:22 | 1879690 SheepDog-One
SheepDog-One's picture

Oh hooray, we now have more politicians, surely THAT will fix all the economic problems!!

Tue, 11/15/2011 - 15:00 | 1879815 knukles
knukles's picture

Just dawned on me....
The problem...

We now have more politicians than promises.
(Think quantity theory of money, inflation, value of promises, etc.)

Tue, 11/15/2011 - 16:01 | 1880000 viahj
viahj's picture

aren't politicians elected and not appointed?

Tue, 11/15/2011 - 14:22 | 1879691 morrison_s54
morrison_s54's picture

this is fucking joke.

Being able to form a government causes such a rally.

Tue, 11/15/2011 - 14:29 | 1879720 adr
adr's picture

Has there actually been any news of anything truly constructive that has caused the market to rally? Hell no, politicians farting the alphabet is easier to ramp the market than actually doing something constructive.

I'm still waiting on those green shoots everyone kept talking about in March 2009. Remember the summer of recovery 2010? Remember the summer of recovery just hit a soft patch and 2011 is the real recovery year, scratch that 2012 is going to be gangbusters.

Real data terrible, can't make record bonuses on real data. Fake data nobody calls you out on, fucking golden man.

Tue, 11/15/2011 - 14:38 | 1879756 SheepDog-One
SheepDog-One's picture

Good cop, bad cop markets....let a little 'bad news' get out ES goes down -10, then a few hours later announce a gubment might form after all, ES goes up +20....'free markets' you know...

Tue, 11/15/2011 - 15:47 | 1879960 valley chick
valley chick's picture

he just "informed" him.  Just like a plan of a plan...

Tue, 11/15/2011 - 14:22 | 1879692 alien-IQ
alien-IQ's picture

i guess the only question that remains is exactly how many former or current GS, JPM and ECB staff members will comprise this "new government"...

what a fuckin sham.

Tue, 11/15/2011 - 14:24 | 1879698 Mattress Money
Mattress Money's picture

Why does ZH post so much? I can barely keep up =( I am still trying to understand the whole picture. Quick question why am I so hesitant to buy gold? I just woul like humble opinions

Tue, 11/15/2011 - 14:27 | 1879707 devo
devo's picture

Because you've been conditioned to believe in paper.

Also, because it's gone up, and you don't want to be "stupid money".

It depends why you're buying it. If you're buying as an investment you could lose, but if you are buying because you think your paper will be worthless then that is a brilliant trade at any price.

Tue, 11/15/2011 - 14:33 | 1879733 nugjuice
nugjuice's picture

What he said.


I would also like to add in taking on "market manipulation risk." It's almost like credit risk, or interest rate risk, only you're not compensated for it, and they don't teach about it in any textbooks.

Tue, 11/15/2011 - 14:30 | 1879721 ebworthen
ebworthen's picture

Posting the on-again off-again rally rumor merry-go-round helps to empahsize it's manic and bi-polar nature.

Europe is insolvent, therefore, rumors and hyperbole are the only things maintaining the illusion.  An illusionist must keep the attention of the audience on the ruse, not the trick.

Some muckety-muck sold his gold position recently, but don't let traders confuse you.

If your time horizon is more than six months buy gold and precious metals stocks; the money printing by world governments and central banks has just begun. 

Tue, 11/15/2011 - 16:18 | 1880056 NotApplicable
NotApplicable's picture

I'd guess your hesitation about buying gold is related to looking at the charts?

I just found this presentation by Alf Field on JSMineset that might help the short term buyers remorse.

Regardless of one's opinion of higher powers, or Elliot Wave theory, it is an excellent read simply due to discussion of the Moses Principle and how it relates to views on currency and gold.

Tue, 11/15/2011 - 14:24 | 1879699 Mattress Money
Mattress Money's picture

Why does ZH post so much? I can barely keep up =( I am still trying to understand the whole picture. Quick question why am I so hesitant to buy gold? I just woul like humble opinions

Tue, 11/15/2011 - 14:33 | 1879731 camaro68ss
camaro68ss's picture

because you must be retarted and trust your goverment like the good little sheeple you are. lol

My humble opinion

Tue, 11/15/2011 - 14:24 | 1879700 adr
adr's picture

Cedar Point should just program a roller coaster to follow the moves of the market. Sure it will kill every rider, but hey that's life in the market today.


You can invest on Monday and lose half your money and then watch the rest go away on Tuesday morning. You decide to go to the bar and drink away your sorrows. You come back after lunch and now you've made back half of what you lost. By Friday you are up 50% only to drop again the following Monday.

If you invested in September you could have made money but if you invested in July you are still out a ton. There is absolutely no point in investing for the long term. That is like buying a lotto ticket every week playing the same number expecting to strike it rich one of these days.

I'm beginning to think the stock market now works on the Japanese philosophy that if you construct the perfect plan you are guaranteed victory even if you never actually implement the plan.

Tue, 11/15/2011 - 14:25 | 1879702 firstdivision
firstdivision's picture

Good to see Spain is back in the spotlight.

Tue, 11/15/2011 - 14:26 | 1879704 HD
HD's picture

Risk is never off - just delayed briefly until another rumor or hopium news nugget magically appears when needed. One has to wonder what will happen when the market is forced into reality and the shorts has already been squeezed.

Tue, 11/15/2011 - 14:28 | 1879709 Sudden Debt
Sudden Debt's picture

Let's blame the evil speculators again....
Fucking retards!
Years in advance they knew this shitstorm was comming! Years!!!!
And what did they do about it? NOTHING!!!!!!
Fuck shit!

Tue, 11/15/2011 - 16:21 | 1880063 NotApplicable
NotApplicable's picture

Oh now, that's simply not true. They've been busy placing traps in all the exits in order to acquire wealth without having to create it. ;-)

Tue, 11/15/2011 - 14:27 | 1879711 Cult_of_Reason
Cult_of_Reason's picture

Was it a coincidence that this so called "good news" was reported exactly when EUR was braking down below $1.35 and Goldman’s stops were in danger of being activated?

Tue, 11/15/2011 - 14:30 | 1879723 Sudden Debt
Sudden Debt's picture

Any news will briefly make the markets rise for a few minutes/hours.
But as nothing changes on the situation, it will go down again untill q4 numers comme out so the next few months will be shit
And q4 will be shit to so....

Tue, 11/15/2011 - 14:32 | 1879728 SheepDog-One
SheepDog-One's picture

GOOD NEWS everyone!

It looks like its possible a bunch of unelected people are going to form an Italian government! Never have we been so optimistic since the days of Mousolini!! HOORAY!

Tue, 11/15/2011 - 14:36 | 1879739 Sudden Debt
Sudden Debt's picture

Let's all wave a party membership cards!!!

I mean our bank passes....

My presidents will be ING, KEYTRADE, B.V BREDA and Citybank!

I wonder what our national anthem will be....

Tue, 11/15/2011 - 14:36 | 1879750 camaro68ss
camaro68ss's picture

meet the new government, there diffenrent then the old, see, they have a different name.

Tue, 11/15/2011 - 14:31 | 1879718 Mae Kadoodie
Mae Kadoodie's picture

What time is it over there in Europe?  Do these deuchebag unnamed sources stay up all hours of the night monitoring our equity market for the pumping out these lame asss quotes?

Tue, 11/15/2011 - 14:30 | 1879725 Father Lucifer
Father Lucifer's picture

 "Italian Prime Minister designate Mario Monti Hall will meet Italy's President on Wednesday morning to inform him that he will be able to form the country's next government from behind door #3."

Tue, 11/15/2011 - 14:30 | 1879726 pmcgoohan
pmcgoohan's picture

Dont worry shorts. Everthing you're losing now you'll get back in premarket tomorrow. With interest

Tue, 11/15/2011 - 14:31 | 1879727 jcaz
jcaz's picture

Yeah, a new staff will make ALL the difference.....

Tue, 11/15/2011 - 14:34 | 1879740 hambone
hambone's picture

Some quick math for context -

Italy has to roll $300B next at 7% means $21B in interest instead of $11.5B at 3.5%.  Italy has enough revenue to handle the additional $11B in interest payments.  However, in year two it doubles again as longer term debt rolls over until all $2T in debt is at 7% instead of 3.5% (or whatever rates have gone to) is an additional $35B annually in interest (or 3.5% of tax revenues).  Even at 10% Italy could still seem to handle the interest??? 

Italian tax revenue $1T and expenditure about the trade deficit.  So, is Italy really the most dangerous???  I get there is no growth in Italy but not sure all this quite adds up in my head (and I'm one fucking bearish dude).  So why the focus on Italy???

Same research would seem to say Spain or US or UK are the true danger nations?

Tue, 11/15/2011 - 14:39 | 1879757 crawldaddy
crawldaddy's picture

snowball rolling down a hill isnt much of a threat in the first 10 or even 20 ft either, 

Tue, 11/15/2011 - 14:46 | 1879776 hambone
hambone's picture

Funny thing is, I can easily see how Italy could fix it's situation whereas I can see no solution for Spain, US, UK w/out massive printing, massive austerity, or some combination of those!!!!

It's almost like a false flag has been raised to take the focus away from the really truly insolvable problems...

Tue, 11/15/2011 - 15:18 | 1879876 reload
reload's picture

The UK government is in the fortunate position that it can print, is printing,is not ashamed of printing and cares not about the living standards of its citizens.

It also has a much more modest short term need to roll debt issues and has been making use of its record low funding costs to issue long term paper.

And we have the marvelous Mervin King at the helm of the BOE. The man who has been proclaiming for 37 months straight that his massively overshot inflation target will soon be met. Todays massaged figures showed the rate of inflation slowing from 5.2 to 5.0%. Still double his target.

He could not raise rates even if he wanted to, because the housing market would implode, taking home owners banks and the government with it.

No point gunning for the Uk - better targets out there who dont have a print button to retaliate with.

Tue, 11/15/2011 - 14:34 | 1879743 crawldaddy
crawldaddy's picture

everyone knows the titanic sank because of the deck chair arrangement.

Tue, 11/15/2011 - 14:37 | 1879753 jesus_quintana
jesus_quintana's picture

US equities rallying on Italy news; Italian 10yr 7.05%.

I know which reflects reality, and I'm patient. Fuck it, all in.

Tue, 11/15/2011 - 14:41 | 1879763 NotApplicable
NotApplicable's picture

"Italy has over $300 billion in debt to roll in the next year."

Is that all? Timmah does that much in his sleep.

So, is Mario Monti Hall gonna play Let's Make a Deal?

Tue, 11/15/2011 - 14:47 | 1879782 Sudden Debt
Sudden Debt's picture

That's the problem with Europe....
They are still convinced that they don't have to fuck things up like Geithner did...

Tue, 11/15/2011 - 16:11 | 1880034 NotApplicable
NotApplicable's picture


Tue, 11/15/2011 - 14:44 | 1879772 sabra1
sabra1's picture

Risk Back On After Monti Says Can Form Government Containing Family Members. From Grampa Guido, To Little Nephew Gessepe!

Tue, 11/15/2011 - 14:46 | 1879780 Waterfallsparkles
Waterfallsparkles's picture

Seems like they are trying to hold the Dow over 12,000.

In my opinion from the stocks I trade the Market has been going sideways for the last 2 weeks. 

Almost like the Stocks have flat lined with the exception of a little fluctuation in the morning and the afternoon.

Tue, 11/15/2011 - 14:46 | 1879781 alien-IQ
alien-IQ's picture

Mario "Three Card" Monti about to address the press.

Don't be surprised if the market goes fully parabolic because as we all know...Bullshit has wings.

Tue, 11/15/2011 - 14:49 | 1879790 Bansters-in-my-...
Bansters-in-my- feces's picture

"Prime Mimister DESIGNATE"

That about sums up todays democracy.


Tue, 11/15/2011 - 14:53 | 1879798 devo
devo's picture

These rallies are hollow.

It's like heroin addicts looking for a quick fix. Very sick market, and a cleansing is likely.

Tue, 11/15/2011 - 14:53 | 1879799 Bansters-in-my-...
Bansters-in-my- feces's picture

Ps ....

If those girls in that ads I am seeing at my left margin are single.....

There is a reason why.

I am sure there is a trail of shattered hearts.

Tue, 11/15/2011 - 15:17 | 1879824 Bansters-in-my-...
Bansters-in-my- feces's picture

Wanna hear how retarded Kitco.coms latest "gold news" headline is...?

Here goes any ways.

"Comex Gold Pushes Obove Uchanged On Bargain Hunting".

Brilliant I say.


Jon can't even remeber there is a"h" in John.

Fucking Nadler the nerd.

Tue, 11/15/2011 - 15:02 | 1879825 e-man
e-man's picture

Wait, you mean it isn't because of a new "China will bail out Europe" rumor? That must be tomorrow's rumor then.  I keep getting the timing mixed up on these.    

Tue, 11/15/2011 - 15:22 | 1879836 Bansters-in-my-...
Bansters-in-my- feces's picture

Definately they are holding the dow over 12,000 as mentioned in above post by WaterFallSparkle,

And gold under  $1800 at all cost and silver under $35.00

Fucking PPT at their best.


Tue, 11/15/2011 - 15:19 | 1879879 Grand Supercycle
Grand Supercycle's picture

NASDAQ megaphone pattern on daily chart indicates a big move lies ahead.

SP500 monthly chart remains bearish and USDX weekly remains bullish, so it’s only a matter of time until the market makes its move.

Tue, 11/15/2011 - 15:48 | 1879965 Waterfallsparkles
Waterfallsparkles's picture

Only way they can keep the Market levitated is with Other Peoples Money.  Shorts.

Tue, 11/15/2011 - 15:50 | 1879969 Tao 4 the Show
Tao 4 the Show's picture

So the Emporer has a full Monti and the market parties on without noticing. Where are the clear-eyed kids when you need them? The veil of illusion is so thin at this point it's embarrassing how many remain willfully blind to the spectacle.

Tue, 11/15/2011 - 15:55 | 1879982 NEOSERF
NEOSERF's picture

So the bond auction was a partial failure and they did raise 92% of what they wanted to so can we not play this game for a few years where maybe they don't get it all but get some and pay most of their bills...seems like now that we don't fear "failed" auctions for bonds we can kick this can for a couple years...

Tue, 11/15/2011 - 15:58 | 1879991 GrinandBearit
GrinandBearit's picture

Risk on/ Risk off, Green shoots, Climbing a wall of worry, etc...    

Did you ever wonder who the fuck makes up these ridiculous investment terms and catch phrases?


Tue, 11/15/2011 - 16:35 | 1880095 ebworthen
ebworthen's picture

I would venture a guess but I have to go water my mustard seeds with contrarian market mover maven Mary who is also giving me a lexicon of verbiage for assigning meaning to meaningless events.

She said to tell you to sell your gold and that equities are undervalued; especially at these "historical valuations" (I think was the term she used, or was it EP something?).

Tue, 11/15/2011 - 17:28 | 1880298 TheAkashicRecord
TheAkashicRecord's picture


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