Goldman's Humorous Summary Of Today's Market Action

From Goldman's Sales team:

Stocks off just shy of 1%, which erases most of yesterday’s gains, which erased most of Monday’s losses. After tomorrow, will you be able to say that Thursday’s gains erased most of Wednesday’s losses, which erased most of Tuesday’s gains, which had erased most of Monday’s losses? With apathy running high and conviction low, that sounds just as reasonable as anything else.

Retail sales this morning was disappointing, but most of the day was spent chopping around unchanged. It wasn’t until 2pm that the selloff began, so can’t point to data, or to Europe for that matter. Out flow actually skewed modestly better to buy, so no explanation there either. SPX ends down 9 at 1315 (-.70%). The DOW ends down 77 at 12496 (-.62%). The NASDAQ ends down 24 at 2819 (-.86%).

The EURUSD squeeze continues as the pair trades to a high of 1.2611. As always, there are reasons for the rally: more mutualization speculation, the FT reports that France is pushing for a more comprehensive stability package – with the ESM funding direct bank recaps as a first step, risk reduction ahead of Greece’s election, USD selling as the FOMC approaches. But none of this squares particularly well with the price action elsewhere. So it’s back to being a positioning driven event. Elsewhere, FX trading mostly as expected – dollar stronger as stocks selloff last in the day