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From #Spailout To #Spanic

Tyler Durden's picture





 

When US equity futures, Treasury futures, and FX markets opened yesterday to a 'risk-on / reality-off' scenario, we made it clear that we suspected things would look very different by the European close. Sure enough, the markets in Europe (and US) have seen a dramatic shift in sentiment as the realization of the end-game here grows louder. It is evident that any strength, any rip, is to be sold. EURUSD rallied 1.2% at its best near the open last night but is ending 0.2% lower from Friday's close. Europe's broad equity market is closing modestly red after being up almost 2% at the open. Europe's financial credits led the equity market once again as senior spreads swung from a 20bps rally to a 10bps sell-off by the close. Italy was crushed after opened up over 4% to close down over 2.75% as Italian banks were halted all the way down. Spanish banks gave back all their gains (SAN was up almost 6% at the open and closed red). Investment grade credit notably underperformed and high-beta XOver swung from a 35bps tightening to close modestly wider. European sovereign bond spreads all opened notably tighter but were crushed by the close with Spain and Italy underperforming (+60bps and +50bps from their intraday low spreads respectively). Quite simply, Europe has swung from Spanish bailout fantasy to Europe's contagious panic reasserting - and that was after a weekend when Spain (and Spanish banks and every bullish trader out there) got everything they wanted. It would appear that the investing public has become better-educated at what is really going on in Europe and how these interim 'solutions' are all to be faded as Franco-German relations remain tense and Germany stoic. In liquidity/safety land, Swiss 2Y rates plunged 7bps to a new record -35.3bps.

European equities (dark blue) fell led by financials credit (blue and red) - this was your tell...

European Sovereigns were dumped en masse, back near record high yields and CDS levels...

As Spanish equities fell from up nearly 6% to down almost 1%...

as even the 'saved' Spanish banks gave it all back (and were downgraded) as SAN dropped from up almost 10% to down 0.8%...

and overall, Europe ended in a sea of red with DAX managing to hold very modest gains...

and Swiss 2Y rates plunged to new record lows at -35.3bps...

Charts: Bloomberg

Finally, we can only hope we are joking, but Zero Hedge has dibs on #SpankruptcyTM

 


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Mon, 06/11/2012 - 11:54 | Link to Comment VonManstein
VonManstein's picture

the metals are acting strange (as in stranger than usual)

Mon, 06/11/2012 - 11:55 | Link to Comment junkyardjack
junkyardjack's picture

Yea gold is going up, the invisible hand will fix that...

Mon, 06/11/2012 - 12:15 | Link to Comment Chris Jusset
Chris Jusset's picture

This Spanic is quickly turning into Spandemonium as Spandora's box has been opened, and things are getting Spugly

Mon, 06/11/2012 - 12:17 | Link to Comment r00t61
r00t61's picture

Spantastic.

Mon, 06/11/2012 - 12:32 | Link to Comment Lucky Guesst
Lucky Guesst's picture

Not really... this could get very spainful.

Mon, 06/11/2012 - 12:59 | Link to Comment The Monkey
The Monkey's picture

Don't get suckered! Plan B, C and D are all waiting in the wings.

Mon, 06/11/2012 - 14:21 | Link to Comment hansg
hansg's picture

They are all variations of "give more money to the banks", right?

Mon, 06/11/2012 - 11:57 | Link to Comment YuropeanImbecille
YuropeanImbecille's picture

This is bad. I was hoping that the cardhouse would stay operational until at least September !

I need to make 3 large purchases of Silver between now and then.. so please JPM do some of your magic!

Mon, 06/11/2012 - 12:00 | Link to Comment VonManstein
VonManstein's picture

i think they gonna let the paper run up a bit before next smack down. they have to keep paper players interested if they want to weild any power over the price, if everyone stops playing they lose.

plus i think the are losing their grip, deminishing returns on these dumps.

forming another higher low by looks of it..

buy buy buy

Mon, 06/11/2012 - 13:51 | Link to Comment brooklynlou
brooklynlou's picture

They'll be lucky to make it to the end of the Euro 2012 tornament ...

Mon, 06/11/2012 - 12:07 | Link to Comment stocktivity
stocktivity's picture

The Greek election uncertainty coming up  Sunday will put a ceiling on the markets this week.

Mon, 06/11/2012 - 12:17 | Link to Comment financial apoca...
financial apocalyptic contagion's picture

Next time you wanna explain "exponential curves" to some Obama-infatuated socialist or Romney-is-our-savior conservative, explain the half-life of these bailouts.
Ireland- 9-10 months Portugal: 8-9 Greece- 2-3 Spain 2 days!!! Cyprus (ZH rumors rarely wrong): A minutes of CNBC hooplah Italy: Market says fuck you and tanks

Mon, 06/11/2012 - 11:55 | Link to Comment junkyardjack
junkyardjack's picture

Those damn shorts just won't cover....

Mon, 06/11/2012 - 12:58 | Link to Comment slaughterer
slaughterer's picture

We shorts will not cover because we are correct in our assessment of the situation.  EU = FUBAR

Mon, 06/11/2012 - 11:58 | Link to Comment Whoa Dammit
Whoa Dammit's picture

Music to accompany these charts-Elvis Costello Waiting For The End of The World.

http://www.youtube.com/watch?v=CsbN-ploZsI

Mon, 06/11/2012 - 12:34 | Link to Comment ebworthen
ebworthen's picture

Excellent.

Additionally: 

Elvis Costello and the Imposters - "American Gangster Time", from "Momofuku"

"...

Next week there'll be some fashionable new sin
For each harlot and each Puritan
Pull off their wings stick them on a pin
And just watch the money roll in

It's a drag
Saluting that starry rag
I’d rather go blind
For speaking my mind
Or use it just like a gag
So raise it in anger
Just let it hang
American Gangster Time

..."

http://www.youtube.com/watch?v=2VcXdeQlaQs

Mon, 06/11/2012 - 14:02 | Link to Comment brooklynlou
brooklynlou's picture

Prefer Pink Floyds 'Great Gig in the Sky" with video of asteroid hit ...

http://www.youtube.com/watch?v=-zvCUmeoHpw

(Its in HD Bitchez ...)

Mon, 06/11/2012 - 12:00 | Link to Comment Spitzer
Spitzer's picture

Gold stocks performing worse then the dow fuck

Mon, 06/11/2012 - 12:03 | Link to Comment VonManstein
VonManstein's picture

not by the close.. reversal coming up

Mon, 06/11/2012 - 12:28 | Link to Comment geminiRX
geminiRX's picture

Historically, I have never seen gold stocks behave in such a manner (with gold at such a high price). It is like algo's have been programmed to crush them. Putting back on my tin foil hat now:). I am thinking of buying a couple hundred shares of Newmount mining in the next couple days. 

Mon, 06/11/2012 - 12:57 | Link to Comment Spitzer
Spitzer's picture

Im too far in. I cant keep buying gold stocks. Only physical for me from now on.

Mon, 06/11/2012 - 14:34 | Link to Comment walküre
walküre's picture

Only physical is key.

Mon, 06/11/2012 - 12:01 | Link to Comment Stackers
Stackers's picture

Seal all hatches, and DIVE DIVE DIVE. Make your depth 1 trillion feet

Mon, 06/11/2012 - 12:02 | Link to Comment HaroldWang
HaroldWang's picture

Yes market is off the Spain hopium high but remember we just had the best week of the year last week. In reality, AAPL is a much bigger deal today. When it sells off, as it always does on the keynote, the market will really tank.

Mon, 06/11/2012 - 12:04 | Link to Comment gojam
gojam's picture

Swiss Francs look good.

That peg isn't going to hold forever.

Mon, 06/11/2012 - 12:12 | Link to Comment Ghordius
Ghordius's picture

nothing holds forever. though that floor is cast in concrete, at the moment

Mon, 06/11/2012 - 13:32 | Link to Comment gojam
gojam's picture

"at the moment"

If Greece exits, the Euro will rise and Switzerland might take that opportunity to decouple.

But the the Euro will fall again once the contagion risk has been properly considered.

Obviously, that's just a personal view.

 I think you're right for now but how long will 'now' last ?

Mon, 06/11/2012 - 12:05 | Link to Comment slewie the pi-rat
slewie the pi-rat's picture

santander couldn't hold its 10% gains?  Hahahaha! 

put the google on that puppy between scratchin yer curlies,  beer runs, and boisterous bongstering, BiCheZ! 

who do they think they are?  BAC?  L0L!!!

ihow many billion euros will the EU and germany pretend they will cover to extend the half-life of these crooks? 

stay tooned...

Mon, 06/11/2012 - 12:09 | Link to Comment l1b3rty
l1b3rty's picture

So Goldman Sachs wanted a piece of Spain now!

http://silvervigilante.com

Mon, 06/11/2012 - 12:12 | Link to Comment LeisureSmith
LeisureSmith's picture

Dont worry, our dear leaders got dis under control.Just apply generous amounts of lube and its all good.

http://www.guardian.co.uk/commentisfree/cartoon/2012/jun/06/angela-merke...

Mon, 06/11/2012 - 12:12 | Link to Comment Jason T
Jason T's picture

Laroche may finally end up being right.  Transatlantic monetary system blowout.

Mon, 06/11/2012 - 12:14 | Link to Comment carbonmutant
carbonmutant's picture

When is a Spainsh Deal not a deal?

Mon, 06/11/2012 - 12:20 | Link to Comment Mark123
Mark123's picture

I'll take door #3.

Mon, 06/11/2012 - 12:16 | Link to Comment fuu
fuu's picture

#SPAMic

Mon, 06/11/2012 - 12:16 | Link to Comment Mark123
Mark123's picture

The market cap of Amzn equals the Spanish "bailout".  Think about it.

 

The entire world is sitting on the most epic overvalued pile of confidence-assets ever created on this crazy planet of ours.  And it is all managed by the most corrupt bunch of thieves ever assembled by organized crime.

 

How long can it last before the remaining real wealth (that is not part of the ponzi) leaves the table?

Mon, 06/11/2012 - 14:37 | Link to Comment walküre
walküre's picture

stealth exit has commenced and is picking up speed

that is the why this market "bounce" won't last and why the rally tanked within hours of the US open

SELLING is key and all this propaganda and pumping over the weekend was supposed to lure in buyers.

NOTHING is working. It's hillarious how they're squirming and frantically trying to offload their paper. I'm amused.

Mon, 06/11/2012 - 12:16 | Link to Comment Cupid Stunt
Cupid Stunt's picture

100 billion. Half-Life of what, 4 hours or so LOL.

Mon, 06/11/2012 - 12:18 | Link to Comment stant
stant's picture

spailout to spanic to spamic, spam out of your email and back on your plate

Mon, 06/11/2012 - 12:20 | Link to Comment YHC-FTSE
YHC-FTSE's picture

dumb euphoria then dumb horror: Spanistic. 

Mon, 06/11/2012 - 12:27 | Link to Comment ebworthen
ebworthen's picture

Ever shortening half-life of rainbows and unicorns.

Mon, 06/11/2012 - 12:50 | Link to Comment JackT
JackT's picture

No much left of the unicorns.  They've already carved off their horns, hooves, mane, tails, tongues, eyes, and ears. 

 

 

Mon, 06/11/2012 - 12:44 | Link to Comment Snakeeyes
Snakeeyes's picture

Ibex tanks, CDS rises, 10 yr sovs up 30bps. Time for a fandango!

http://confoundedinterest.wordpress.com/2012/06/11/spains-bank-bailout-fizzles-italy-now-in-the-bailout-cross-hairs/

Or funeral for the Eurozone.

Mon, 06/11/2012 - 13:00 | Link to Comment bnbdnb
bnbdnb's picture

FTSE fell off a cliff. Anyone have ideas why?

Mon, 06/11/2012 - 13:13 | Link to Comment Cupid Stunt
Cupid Stunt's picture

 People in the know  suspect there's something big coming down the pipe and it ain't good.

Mon, 06/11/2012 - 13:04 | Link to Comment SheepleLOVEched...
SheepleLOVEcheddarbaybiscuits's picture

#Spexit?

Mon, 06/11/2012 - 13:26 | Link to Comment Grand Supercycle
Grand Supercycle's picture

Rally Warning from last week:

'Daily chart now gives bullish warning and significant
SPX rally & USDX retracement should commence in a week or so'

http://www.zerohedge.com/news/2012-12-24/market-analysis

Mon, 06/11/2012 - 15:01 | Link to Comment Bam_Man
Bam_Man's picture

"You're gonna need a bigger bail-out".

Mon, 06/11/2012 - 15:36 | Link to Comment devo
devo's picture

What "investing public"?

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