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Rumor Time: Stocks, EUR Surge On Renewed LTRO 3 Speculation
Now that we have entered the summer phase of 2012 it is time to recall how the summer of 2011 ran: in a nutshell - unsubstantiated rumor emerges usually one involving central banks being "generous", sending stocks higher, rumor is then denied a few hours later, but the ramp persists. Sure enough, it has begun anew (because 2012 is 2011). Minutes ago we got the first such instance, where a European "think tank" came up with the brilliant conclusion that any minute now the ECB will be dragged back into the fray, announcing either LTRO 3 (because it will be different this time), or after 9 weeks of inactivity, the ECB's SMP program will resume buying plunging peripheral bonds. Any factual basis to this? Of course not. But once the algos pick up the headline and create buying momentum for the sake of buying momentum, it is all uphill from there. So just as the market was on the verge of turning red for the day, the "think tank" appeared. Prepare for many more such short covering instances, because there really is nothing else left in the status quo arsenal.
What follows next? Why summits of course... And lots and lots of hope that the Eurocrats are in control of a sinking ship. As a reminder from David Einhorn:
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Europe is about ready for some sugar daddy dating.
I've been saving used condoms for LTRO 3!
and this makes the euro go up why??
Because even a more diluted Euro is better than a blown up Euro.
LTRO, ESM...much money for europe stocks
Comparison between European stock exchangeshttp://tinyurl.com/dxftpu6
a roller coaster is a device used to make money and give you a thrill like it was the real thing; Disney sells that very well as it brings the child out in all of us; what works for Disney must work for WS!
breaking news there is something amiss in the paper pm market.
Persistent selling in leadership groups...retail and big cap tech...in size. I'm sure it is bullish...or not.
So the prospect of a further dramatic increase in the narrower bands of money supply of Euros causes the price of Euro increase.
Makes sense I suppose.....
"any minute now the ECB will be dragged back into the fray"
dragging central bankers around is not a bad idea
There is nothing quite like the glorious relief high when the strung out fiat crack addict finally scores.
Was it as good for you as it was for me?
Indeed. Once again, the retards at the control switches for the HFT terminators have thwarted the market's logical near term market bottoming process. Great...as now all you have is sellers selling into chop.
One of these days, someone is going to tap Duncan Niederauer on the shoulder and explain to him that his computer room is killing his own business. Wise up Duncan! But hey...who cares? It's only the most important capital market in the entire world. Go ahead and pervert it, day after day, for a "quick trade." Brilliant!
In the dog eat dog (what can I kill and eat today) world of Wall Street, the thinking is simple. I cannot stop dancing when everyone else still rocks on. This is why they all eventually go over the cliff. To stop for even a minute is seen as weakness and you are set upon by the rest of the pack.
Pack mentality feeds the herd mentality.
Agreed. Just another reason JP Morgan and the like should be set upon with hammers and wrenches until it is gone, and a fire hose should be turned on the floor of the NYSE until that layer of grime is gone.
Just disgusting...the plague that is modern America's financial services industry. More pink slips for bankers, please.
This is all the western economic model got left.
SURPRISE!!!
....where did I put my shocked face again?
Found it for you
That's the one.
Running on fumes, boy is this shit gonna blow!
Preparation for greek exit?
Greece exits, then LTRO3 is officially announced to boost EUR/USD
When oh when are people going to learn not to bet against the house. There will always be one more can to kick.
The stress should be on "tank".
"Bailout QE Rescue Pakage ECB FED LTRO Deficit Increase Greece" ought to be good for DOW 14,000.
If you say that really fast three times in a row, You might get Dow 14,500.
Air drops of cash. That's still in the arsenal.
http://www.fofoa.blogspot.com/2012/05/inflation-or-hyperinflation.html
this is good
Thanks for the share Davey
In honor of last year, just about at this same time, I bring back my previous post:
You spin me right round, baby
right round like a record, baby
Right round round round
You spin me right round, baby
Right round like a record, baby
Right round round round
Make it all end, PLEASE.
let me finesh the new version for you
All i know is that to me
you look like a lot of fun
open up your loving "purse"
Watch out here is come
The follies will continue until the carnival leaves town.
Home Depot must be sore and walking funny. Today, some horseshit headlines about GE are being used to pump(no pun intended) the DOW.
When the market has become so sensitive to the smallest, most unimportant rumour you can't help but think that anyone with even the slightest access to a Rueters reporter and an e-trade account is able to place a trade and then place a call. The capital markets are so broken.
They better pump some more positive rumors for the algos because the IBEX is still red!!
Well, it can't get gobsmacked every day can it? Anyway, it's just the rock geting rolled back up the hill so it can freefall again probably sooner rather than later. Besides, not every dog can ride on the fire truck, just like not every short has strong hands.
http://vegasxau.blogspot.com
If it weren't for rumor-mungering ZH would have no material. What do you call posting a few pictures of people at ATMs and calling it a "bank run"?
Is that the Waaaaaaaaaaaaambulance I hear?
yes, tell us the truth - just how healthy is everything
a few pictures of people at ATMs and calling it a "bank run"?
actually i thought it was a line up for schwarma's
I'm glad that markets are so efficient. Aren't you?
That is the only thing they have left is for anyone who bet right and was short to casuse a short squeeze and force them to buy them out at the top.
Seems like they are doing random short squeezes in some of the Nasdaq stocks. Yesterday it was amzn. Today it is Goog and sina.
If they can keep Nasdaq up it pulls the whole market up with it.
It seems like short squeezes have picked up a reputation equivalent to an upperclassman giving a freshman a wedgie, what about a long squeeze?
Check out the latest from the Capital Research Institute (CRI)
The Greek Dilemma
KeynesianSpammer