Spot The Odd One Out

Tyler Durden's picture


Europe just can't make its mind up this morning. Some chatter of a Fed adviser's report of more investigation into QE3 spurred USD weakness and implicit EUR strength which stands in the face of a weakening European credit and equity market today...

EURUSD vs European sovereign spreads (inverted)...

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Wed, 08/22/2012 - 11:23 | 2727434 lolmao500
lolmao500's picture

Do QE3 already and collapse this whole market. I'm sick of waiting. DO IT.

Wed, 08/22/2012 - 11:26 | 2727444 John Law Lives
John Law Lives's picture

Amazing how this is playing out... Wall Street pumps the equity markets in anticipation of QE3 while making it harder for Chairsatan to justify QE3 in the face of an obviously bloated equity market.  I smell another flash crash coming.

Wed, 08/22/2012 - 11:31 | 2727466 resurger
resurger's picture

Verbal QE actually works, so why do the real thing?

Wed, 08/22/2012 - 11:36 | 2727479 vmromk
vmromk's picture

The Bernank will have no choice but to actually announce QE3 once the deflationary spiral outstrips his finger on the Print button.

Make no mistake, QE3 is currently ongoing, forget that bullshit that banks are frontrunning the Fed in hopes of QE3.

The QE3 announcement will just for the official announcement to the public.

Wed, 08/22/2012 - 11:39 | 2727507 SheepDog-One
SheepDog-One's picture

Then its far worse than anyone can even imagine, if theyre talking QE3 but are in fact already on QE12.

Wed, 08/22/2012 - 11:57 | 2727586 Cow
Wed, 08/22/2012 - 12:49 | 2727789 Thamesford
Thamesford's picture





Wed, 08/22/2012 - 12:24 | 2727688 Rip van Wrinkle
Rip van Wrinkle's picture

It might 'work' the stock market and commodities. It does sod all for the economy. But then would the real thing??

Wed, 08/22/2012 - 11:31 | 2727470 TruthInSunshine
TruthInSunshine's picture

It's "like, totally unsubstantiated" rumor time again, to the degree they need big relative currency moves over a short time frame.

mmmmmm, I love the smell of absolute bullshit (aka "Bernank'd"; aka "broken"; aka "FUBAR") markets in the morning!


08-22 10:24: Market talk of a dovish US think tank report on the Fed - Unconfirmed

News Headline Summary (Market Analysis) Market talk of a dovish US think tank report on the Fed - Unconfirmed

‘Market talk’ – Signifies information that has not been formally tested through traditional journalistic channels and therefore is to be treated as unsubstantiated. Any interpretation of the talk is taken at the readers own risk and is a representation of the rumours within the market place and never generated by ourselves.

Reaction details:

- As this talk was in the market, we have observed USD weakness over the last 10 minutes.

Wed, 08/22/2012 - 11:25 | 2727445 jcpicks
jcpicks's picture

Yep....just prolonging the inevitable.

Wed, 08/22/2012 - 11:27 | 2727451 malikai
malikai's picture

That's the goal.

Wed, 08/22/2012 - 11:38 | 2727500 Jason T
Wed, 08/22/2012 - 12:57 | 2727814 smlbizman
smlbizman's picture

qe3 is already happening....when benny boy is buying 70% of the treasuries what would you call that?

Wed, 08/22/2012 - 11:27 | 2727452 Hype Alert
Hype Alert's picture

More QE rumors.  The carrot and the jackass.  Seems to work every time.

Wed, 08/22/2012 - 11:40 | 2727511 SheepDog-One
SheepDog-One's picture

For a few hours anyway.

Wed, 08/22/2012 - 11:28 | 2727453 vmromk
vmromk's picture

Anyone want to wager that the Bernank winds up in prison after the final QE is announced (QE 99) ?

Wed, 08/22/2012 - 11:33 | 2727473 Nothing To See Here
Nothing To See Here's picture

Who goes to prison these days, except for whistleblowers, pot smokers and tax protesters like Schiff Sr.?

Wed, 08/22/2012 - 11:53 | 2727490 Dead Canary
Dead Canary's picture

Marines that don't like Obama?

Wed, 08/22/2012 - 12:14 | 2727660 Conax
Conax's picture

There is a silver lining to that story.  The military at large won't appreciate this treatment of a veteran. The gov't owes this man an apology, not a straight jacket.

Opened eyes have to be a good thing.

Wed, 08/22/2012 - 11:29 | 2727458 chancee
chancee's picture

If you want to see a fake stock market, just look at the ES being propped up so it won't break through the day's lows.  Pathetic.  Little tiny buy orders keep jumping over the ask and trading every time it comes close.

Wed, 08/22/2012 - 11:29 | 2727459 chancee
chancee's picture

If you want to see a fake stock market, just look at the ES being propped up so it won't break through the day's lows.  Pathetic.  Little tiny buy orders keep jumping over the ask and trading every time it comes close.

Wed, 08/22/2012 - 11:31 | 2727471 Manthong
Manthong's picture

Certainly that is spontaneous market reaction to fundamental strength somewhere that only the smart money knows about..

No evidence of massive coordinated intervention and manipulation here.

Wed, 08/22/2012 - 11:34 | 2727476 bnbdnb
bnbdnb's picture

Algo reverse.

Wed, 08/22/2012 - 11:39 | 2727503 Peter K
Peter K's picture

Just came across RTRS that Samaras gives personal guarentee that Greece will repay German aid. :)

W inning T he F uture.

So if he is so wealthy, why doesn't he just bail out Greece?

BTW, the EUR/USD pops 5 pips on this crapbomb. :)

Wed, 08/22/2012 - 11:50 | 2727553 Itch
Itch's picture

Probably trying to scare the offers away from around 1.25... if they can keep it up there until the FOMC release the market might be thin enough for a pop through. The chatter earlier was that there is upwards of 1.5 billion in offers up there, how they figured that one out is anyones guess.

Wed, 08/22/2012 - 12:10 | 2727642 Alea Iactaest
Alea Iactaest's picture

USD weakness necessary to blunt commodities, at least for a day.

Wed, 08/22/2012 - 11:54 | 2727576 daz
daz's picture

forget about QE3.. startin thinking about how to price in QE4


Wed, 08/22/2012 - 12:11 | 2727645 Alea Iactaest
Alea Iactaest's picture

QE4 was so 2011. Please keep up :)

Wed, 08/22/2012 - 12:05 | 2727627 SmoothCoolSmoke
SmoothCoolSmoke's picture

I don't understand why WS, to get QE, does not just go short and then crash the market....which would of course spur QE, which they could front run with inside info, being long when it was announced. Seems simple, no? 

Wed, 08/22/2012 - 12:29 | 2727710 ChaosEquilibrium
ChaosEquilibrium's picture

The Central Banks of the World-FED,BOJ,SNB,ECB have been intervening for the past 6 days to 'bail out the SNB and allow Swiss to 'reload' for next round of Zurich ringfencing.


The USD/CHF and EURO/USD have a perfect(99.9) temporal %delta.....BOJ seems to be a little slow on the button but not far behind.  The "fix is in" on U.S markets, Italian and Spanish bonds are being bid by the FED(Geithner goes to Europe, Rajoy and Monti praise Draghi for doing absolutely NOTHING, previous day both were in 'PANIC")....rates go down and continue.  ALL World indexes are tuned into September 12.....Netanyahu is a 'wild card', but it IS maximizng strategy to attack Iran in next two weeks!

The market indicators have reduced to rubble.....the US 10 year being SOLD hard to remove the fear trade perception and now the VIX being sold.

The END IS most here know....and have known.  The Western Free Market Capitalist Model(Risk/Return) was murdered in 2008.....the momentum and imbalances are irreversible.

Long time reader, follower of ZH.....first time poster! Now is when Risk, Fear, Human Nature, Economic paradigms, and mass normalcy bias gets interesting! HOLD ON TIGHT!

Wed, 08/22/2012 - 12:30 | 2727714 strongband
strongband's picture

interesting, Oanda quote was as high as 1.24876 @ 11amNY, higher than shown in your BB graph

Wed, 08/22/2012 - 14:32 | 2728202 Bear
Bear's picture

Now at 1.2525

Wed, 08/22/2012 - 12:35 | 2727739 pan
pan's picture

QE3 is a given and old news.  When's QE4?

Wed, 08/22/2012 - 12:43 | 2727765 Thought criminal
Thought criminal's picture

Getting hot here, think I'll buy some new euro shorts...

Wed, 08/22/2012 - 16:16 | 2728595 Greenie
Greenie's picture

I can't exactly  explain the EUR BGN spike  but I bet it has something to do with Bulgarian hookers

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