That Was Fast: Spain Back Over "Critical" 7%, Punk'd By Draghi

Tyler Durden's picture


While absolute yields are back over 7% for 10Y Spain (and over 6% for Italy), the spread has retraced over 60% of the gains post 'believe' speech.




Your rating: None

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Thu, 08/02/2012 - 10:02 | 2672014 Slope of Hope
Slope of Hope's picture

Off topic, but just got a morning email from Morningstar rating Knight a 5 star stock - you can't make this stuff up!

Thu, 08/02/2012 - 10:03 | 2672023 Biosci
Biosci's picture

Why not?  They did.  :)

Thu, 08/02/2012 - 10:13 | 2672071 Pladizow
Pladizow's picture

Hopium is now being cut with baking soda!

Thu, 08/02/2012 - 10:17 | 2672086 malikai
malikai's picture


Thu, 08/02/2012 - 10:02 | 2672020 Biosci
Biosci's picture

I don't think Spain believes.

Thu, 08/02/2012 - 10:12 | 2672065 saturn
saturn's picture


"In case of doubts, read our previous anoucement from our previous meeting, it's all there!"

"By the way, the eekonomiks is very zlow."

"But € is irreverzibl!"

"You no short € bad boy!"

"Because ECB may do action."

"I like my statements."

Thu, 08/02/2012 - 10:02 | 2672021 gjp
gjp's picture

So the effect on peripheral bonds and the Euro has evaporated, but the effect on the Nasdaq and American bubble / consumer stocks endures.  Makes a ton of sense.  No question where the heart of the denial and delusion is in our world, and it isn't in Europe.

Thu, 08/02/2012 - 10:11 | 2672059 ThunderingTurd
ThunderingTurd's picture


Thu, 08/02/2012 - 10:16 | 2672081 slyhill
slyhill's picture

They appear to be creating "events" to sell the ramp.

Thu, 08/02/2012 - 10:28 | 2672135 DeadFred
DeadFred's picture

S&P is only 1% above it's hopium trend support. What drivel will the send our way to get it to bounce this time?

Thu, 08/02/2012 - 10:03 | 2672024 Marcuz Aurelius
Thu, 08/02/2012 - 10:03 | 2672027 Hype Alert
Hype Alert's picture

Yet the S&P has retraced only a fraction of the gain.

Thu, 08/02/2012 - 10:06 | 2672035 swissaustrian
swissaustrian's picture

Jackson Hole is going to be the next big thing as far as speeches are concerned.

Thu, 08/02/2012 - 10:17 | 2672077 ebworthen
ebworthen's picture


I can hear it now:

"blah, blah, blah, 'FED stands ready' blah, blabber, blah 'intervention' blah 'measures' 'easing', blah, '2015', 'MBS's'..."

Empty words and hollow promises of more debt to create another bubble to solve the extant debt bubble crisis.

I can't believe it takes a PhD to engineer failure, but apparently...

Thu, 08/02/2012 - 10:06 | 2672043 Gandalf6900
Gandalf6900's picture


Thu, 08/02/2012 - 10:09 | 2672053 Gandalf6900
Gandalf6900's picture

They are using the wrong tools to fix the wrong things...I can't think of a worse case scenario...oh wait, like solving a debt crisis with more debt!!!

Thu, 08/02/2012 - 10:09 | 2672054 ebworthen
ebworthen's picture

That damn reality thing intervening again.

Thu, 08/02/2012 - 10:10 | 2672055 Hype Alert
Hype Alert's picture

Factory orders -.5% on expectations of .6% increase, add 20 points to the SPX.

Thu, 08/02/2012 - 10:27 | 2672130 LULZBank
LULZBank's picture

This is what you call perpetual prosperity.

Thu, 08/02/2012 - 10:11 | 2672058 Dr. Engali
Dr. Engali's picture

Time to outlaw selling of any kind.

Thu, 08/02/2012 - 10:30 | 2672139 Everybodys All ...
Everybodys All American's picture

it's coming soon enough.

Thu, 08/02/2012 - 10:31 | 2672147 Hype Alert
Hype Alert's picture

Why, the NASDAQ is up and the others are close behind.  Comical really.

Thu, 08/02/2012 - 10:58 | 2672264 kito
kito's picture

Doc, where have you been hiding????

Thu, 08/02/2012 - 10:11 | 2672060 asteroids
asteroids's picture

The Bears have the opportunity of the year to severely punish Ben and Mario for all the excessive jawboning. I wish they would shut the fuck up.

Thu, 08/02/2012 - 10:38 | 2672183 adr
adr's picture

The bears are driving Shermans while the central banks are all driving algo Panzers.

As much as you want to fight, your trades will just bounce off the predetermined algo settings.

Thu, 08/02/2012 - 10:12 | 2672064 EasterBunny
EasterBunny's picture


Cos the yields aint listening to him either


Thu, 08/02/2012 - 10:28 | 2672134 Hedgetard55
Hedgetard55's picture

Hitler said the same thing about the Russkies being in the Berlin suburbs.

Thu, 08/02/2012 - 10:12 | 2672066 ThunderingTurd
ThunderingTurd's picture

THis is the most fictional market action of the year in my opinion.  Especially after the factory orders. 

Thu, 08/02/2012 - 10:16 | 2672082 gjp
gjp's picture

Bulls are high on denial.  With every no-show from bears it just gets them higher.

Thu, 08/02/2012 - 10:22 | 2672108 ThunderingTurd
ThunderingTurd's picture

I think you are spot on.  The bears are not showing up to the dance.

Thu, 08/02/2012 - 10:34 | 2672168 LawsofPhysics
LawsofPhysics's picture

Bears can hibernate for quite a while.  Wonder what will be on the menu when they finally awaken?  The spice must flow and that which cannot be sustained, won't be.  Same as it ever was.

Thu, 08/02/2012 - 10:36 | 2672174 DeadFred
DeadFred's picture

No carbon based attendees are at the dance. Almost all bears are carbon based.

Thu, 08/02/2012 - 10:14 | 2672067 scatterbrains
scatterbrains's picture

I wonder how much Draghi made for his boys on that head fake? If they know the world is a giant toilet bowl with a stuck handle why not whip the markets around and make as much money as you can before the drain flushes open ?

Thu, 08/02/2012 - 10:25 | 2672119 i_call_you_my_base
i_call_you_my_base's picture

He probably figures he must money-up his kin because his name will be mud in 6 months.

Thu, 08/02/2012 - 10:34 | 2672068 firstdivision
firstdivision's picture

What a shocker.  So GS recommends buying Italian and Spanish debt, words from an Ex-GS now ECB President, cause yields in those to collapse, and a week later suddenly GS profits are up, while all those clients lose money. 

Thu, 08/02/2012 - 10:13 | 2672069 Silver Surfer 1985
Silver Surfer 1985's picture

Its all bullish as usual right? <end sarc>

Thu, 08/02/2012 - 10:18 | 2672089 Everybodys All ...
Everybodys All American's picture

The PPT has showed up this morning!

Thu, 08/02/2012 - 10:33 | 2672159 Snakeeyes
Snakeeyes's picture

Yup, Spain is back over the edge of the cliff.

Thu, 08/02/2012 - 10:36 | 2672173 Hype Alert
Hype Alert's picture

Kellogg sees FY gross margin drop over 100 bps and they are up 4%

ANF seeps profit below forecast

Factory orders miss with a -.5 print on expectations of +.6

Just means we should hit new highs on the market today!  Control is a wonderful thing.

Thu, 08/02/2012 - 10:36 | 2672175 Roger Knights
Roger Knights's picture

Here's the latest dose of hopium--it may explain why the Dow hasn't fallen much:

Thu, 08/02/2012 - 10:41 | 2672195 adr
adr's picture

Oil already made back over $1 of its drop. Probably will close higher once again. The algos have been set to $90 and nothing will stop them from hitting the target.

Thu, 08/02/2012 - 10:52 | 2672237 TrulyBelieving
TrulyBelieving's picture

If your mind is fully convinced this market is a farce designed to steal thru manipulation and lies, then you simply will not buy into this crap. You will also know there will be no fixing things until a true free market is instituted and until then there will be no good thing from tptb. This hope-on hope-off wont't snare you and there will be no surprises. Only surprise is how many people still 'believe'. When one isn't grounded in truth, then one will fall for anything.

Thu, 08/02/2012 - 10:56 | 2672256 mktfizx
mktfizx's picture

Vix is still down.  Most voliitlity we've seen in months.

Do NOT follow this link or you will be banned from the site!