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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Robot Traders Mom's picture

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

camaro68ss's picture

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


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....

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

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?

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

NotApplicable's picture

You shouldn't talk that way about yer momma.

fuu's picture

I still love you the best baby.

YesWeKahn's picture

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

GenX Investor's picture

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

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. 

transaccountin's picture

casino market, wwweeeeeeeeeeeeee up 25 es since 7am

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.

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.

midgetrannyporn's picture
Il calamaro governa il mondo.
sabra1's picture

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

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?

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.

sheeple2012's picture

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

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."

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

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.

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.

kito's picture

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

Hansel's picture

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

knukles's picture

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


TheGameIsRigged's picture

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

SheepDog-One's picture

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

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.)

viahj's picture

aren't politicians elected and not appointed?

morrison_s54's picture

this is fucking joke.

Being able to form a government causes such a rally.

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.

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...

valley chick's picture

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

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.

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

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.

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.

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. 

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.

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

camaro68ss's picture

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

My humble opinion

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.