It would appear, given today's remarkable moves across every risk-asset in Europe and the US, that all that is required to fix Europe's broken transmission channels and undercapitalized banks and to "remediate" the US fiscal cliff is that the US equity market be open... It seems our earlier tweet was spot on!
Apparently the fact that the stock market has opened is bullish— zerohedge (@zerohedge) November 13, 2012
And of course this one before it...
Dear @federalreserve, please unsticky the BUY button. Thanks, Everyone— zerohedge (@zerohedge) November 13, 2012
Whether is it is EURUSD, Spanish bond spreads, US equities, Commodities, or Treasury yields; the US equity open apparently is all that is needed to bring back insanity... (notice the FX and Treasury markets are not as enthusiastic as stocks and spanish bonds)
The machine-like stop-runs across each of these markets hints at the unsustainability... but it is stocks that have (once again) gone that extra mile of incredulity relative to the rest of risk...
Charts: Bloomberg and Capital Context