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Will The 3rd Time Be The Charm For European Credit Bears?
What do European credit markets know that equities don't? For the 3rd day in a row, credit markets snapped higher at the open and have then sold off considerably - diverging bearishly from European equities. At the same time, European sovereigns (most notably the pivot securities of Italy and Spain) are now 20-25bps wider (in spread) from Friday's Greece 'deal' announcement. European financials are underperforming dramatically.
Charts: Bloomberg
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They know that Draghi mops up all the squid juice at the open so that UniCredit can limp along for another 23 hours.
Damn! I mean, are US equities not the kids in the sandbox with hockey helmets on playing with cat turds? This is RIDICULOUS!
SPY to 140 by May, then watch-out.
I know that when it comes to being right, the credit markets are generally ahead of equities but i couldn't help thinking along these lines, considering how bullish stocks have been .....
"What do equities know that the credit markets don't? lol
Equities dont know shit, just the most easily pumped crowd control device around. Inflation is crashing in, and equities are all almost at all-time highs. Full retard.
All I know is U.S. markets are FANTASTIC! Never been better apparently...jump on in the waters fine nevermind those enormous triangle fins.
Any money making pattern is subject to immediate reversal.
The bond market in Europe is broken. Well, so are the equity markets. However, equity markets yield the wealth effect, while bond markets yield nothing but subordination.
MIND THE GAP!
We're gonna need a bigger gap...
There are trillion of these bonds on someones book.....now we all know that in 5-10 years there value is going to be cut....maybe even eliminated...so one..why are people still buying them now?...and two why are the investors holding on to them....can´t they see that Spain in 1-3 years will be asking for a haircut...is the so called return that much more important than the capital used to buy it....??? I do not understand...I have been watching Bllomberg in South America....on the ticker they have local South American news...what is amazing is the CPIs of the countries....all up .5 to 1.7% per month....inflation is here bigtime...so buy that US 30 Year Treasury at 2.9%......you will lose in the first year...
Can anyone shed some light on the 'flash pop' in ES mini futures last night at 10:20pm EST?
Yes. Looking at the charts and the technical bollinger bands, my observation and conclusion is the ES futures went into positive territory.
Note: I am not a financial advisor, But i play one on TV
Thanks LD
You've given me one more reason to not watch TV. :)
The Gaming Industry is much more efficient. These are Casinos afterall, they just dont realize it yet. Hence the dramatic spikes in all directions. Comps have been declining as in WS bonuses which effects the WS Gaming Industry itself.
Notice how all the action happens BEFORE the market opens. Retail doesn't stand a chance during the day. The algo's are locking the SPY in a $.50 cent range and churning churning churning. It's masterfully done, but so sad when you realize what it all means.
How is it really 'masterfully done' when anyone with half a brain knows its all obviously just fake? Who is it supposed to fool, avg unemployed american sitting home drunk and depressed?
I'm just depressed, it's too early to be drunk.
/me passes espirit the bubbler
That all depends what time zone you're drinking is sync'ed to.
...average unemployed retail american trader sitting home drunk and depressed...
Fixed it for yah
Thou shall not trade while markets are open, only after hours.
This would partially explain the "low volume" Just more front running...creating their own swings because of low volume...?
Wrong. Equity buyers (those few who actually buy) know that monetary policy will continue its merry parth and artificially inflate prices. But companies ARE making money - by shedding every single unnecessary employee, trimming any fat, etc. It appears, though, that "profits by cutting" have come to an end. I'm expecting a huge melt-up as the latecomers get on board 3,000 points too late.
The Greece default sure has werecked the financial institutions here. Yep, by golly.
At this moment, not ONE major US Bank or investment bank is in the red. Every one on my Finance watch list is green, and FAS, of course, is up almost 4%. After fucking months of 'the sky is falling if Greece defaults'.
The squid's up 3%, JPM 1.8%, fucking BAC 1.8% =
champagne for every one!
(And fuck Greece...)