Greek Noise

By Peter Boockvar - June 23rd, 2011, 3:50PM

So yes the market is rallying on only a headline and not a full story. Headline being “Greece agrees with IMF, EU on 5 yr austerity plan.” There is already an austerity plan that the Greek parliament is voting on next week so the only thing that could be different is if the terms have been changed to make it easier for the Greek government to pass. Again, its just a headline that doesn’t fully make sense since a plan is already being voted on next week.

UPDATE:

Well, it turns out the market rallied on a story that came out this morning. The supposed deal that reuters reported at around 3pm and caused the market spurt higher was actually out before lunch with the gist being the Greek government will lower the income threshold of those being taxed, amongst other spending cuts. For those who have Bloomberg, it hit the tape at around 10:50am.

PERMALINK
Category: MacroNotes.

Comments

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data, ability to repeat discredited memes, and lack of respect for scientific knowledge. Also, be sure to create straw men and argue against things I have neither said nor even implied. Any irrelevancies you can mention will also be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

2 Responses to “Greek Noise”

michael-D Says:
June 23rd, 2011 at 3:55 pm
can you think of a better way to drive the shorts to cover before SPX breaks the all-important 200-day …?

;-)
mathdock Says:
June 23rd, 2011 at 4:29 pm
It’s not the market at work this PM. It is a few predators abusing the market, reposting a story in the “right” places tricking a few algos, triggering a few short covers after the bears have used up their fresh food for a few days, making their money from 1555 Wednesday until 0935 Thursday (the ES500 5-min chart tells the overnight story). Now, to be sure, EARLY in the day, the smart buyers did a good job of staying with the market for the first hour, buying up all the fresh shorts from yesterday, putting the market in roughly neutral for five hours. That freed up the market for that reversal up.

I’m assuming now that Big Money will want to get their end-of-quarter numbers back up, so tomorrow’s news is not likely to matter, and we may resume some upward movement. Still lots of POMO dollars between now and the 8th of July.

I took a shot with a small SDS position this AM despite the chasm down, but could tell by noon it was out of play. I just didn’t believe there was any reason for anyone to put up an honest bid before Monday. Forgot about those bid stuffers….no big deal. Just annoying. Perhaps some more “bearing down” in the AM will make me less annoyed, but I won’t hold my breath. The only other hope I have is that the amplitudes of the movements, both up and down have grown larger and larger, and one of these smack downs may break the camel’s back.