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US Stock Futures plummeting on news that jobless claims exceeded estimates and “European Central Bank President Jean-Claude Trichet said the debt crisis threatens to infect banks.”
Looks like I picked the wrong week to quit sniffing glue cover shorts. We’re still about 39% cash.
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.
"Dollar depreciation leads to higher inflation and ultimately forces foreign creditors to question their rationale and indeed their sanity for continuing purchases of U.S. Treasuries." -Bill Gross
Signs continue that European markets are getting tired. The Spanish and Italian stock markets, big beneficiaries of the sharp decline in their bond yields over the past few months are falling to the lowest since Feb 1. The European bank index is at a 1 1/2 week low after earnings reports from Commerzbank and Credit Ag (RBS bouncing although reporting weaker than expected earnings) were disappointing. This market action is in spite of the German IFO business confidence figure which rose to a 7 month high coming in a touch above expectations and Italian consumer confidence which bounced more than...
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June 23rd, 2011 at 9:49 am
As Rothschild said when asked how he got so rich…..
Although I’m dabbling in bonds instead of stocks, I thought the same as yourself. Expected a bigger bounce. It appears that “the markets” are getting a little more skeptical of the kicking the can down the road scheme.
June 23rd, 2011 at 9:51 am
The self-correcting mechanism now appears to be cheaper oil.
We are in a sort of standoff: we can’t grow the economy without running up the price of oil and we can’t function when the price of oil is high.
June 23rd, 2011 at 9:53 am
“European Central Bank President Jean-Claude Trichet said the debt crisis threatens to infect banks.”
There’s a classic of understatement for you!
June 23rd, 2011 at 9:58 am
WOT:
and, just, because..
Transor Z Says: April 13th, 2009 at 3:10 pm
Goldman Sachs is a Mystery Cat: he’s called the Hidden Paw–
For he’s the master criminal who can defy the Law.
He’s the bafflement of Scotland Yard, the Flying Squad’s despair:
For when they reach the scene of crime–Goldman Sachs is not there!
He’s outwardly respectable. (They say he cheats at cards.)
And his footprints are not found in any file of Scotland Yard’s.
And when the larder’s looted, or the jewel-case is rifled,
Or when the milk is missing, or another Peke’s been stifled,
Or the greenhouse glass is broken, and the trellis past repair–
Ay, there’s the wonder of the thing! Goldman Sachs is not there!
And when the Foreign Office finds a Treaty’s gone astray,
Or the Admiralty lose some plans and drawings by the way,
There may be a scap of paper in the hall or on the stair–
But it’s useless of investigate–Goldman Sachs is not there!
And when the loss has been disclosed, the Secret Service say:
“It must have been Goldman Sachs!”–but he’s a mile away.
You’ll be sure to find him resting, or a-licking of his thumbs,
Or engaged in doing complicated long division sums.
Goldman Sachs, Goldman Sachs, there’s no one like Goldman Sachs,
There never was a Bank of such deceitfulness and suavity.
He always has an alibi, or one or two to spare:
And whatever time the deed took place–GOLDMAN SACHS WASN’T THERE!
And they say that all the Banks whose wicked deeds are widely known
(I might mention Kenny Lewis, I might mention Pandit-bone)
Are nothing more than agents for the Bank who all the time
Just controls their operations: the Napoleon of Crime!
http://www.ritholtz.com/blog/2009/04/taxpayer-funded-gs-profits/#comment-161908
June 23rd, 2011 at 10:15 am
Oil down almost $5. Hope its the popping of the bubble. Maybe I’ll get my inexpensive trip to Europe this fall after all. After the last collapse we got a nonstop BA flight from Houston to London for less than $450 each. Same flights are now going for $900+.
June 23rd, 2011 at 10:16 am
BR – You’re my #1 financial read because you: 1) are funny in the right way (e.g. this post), 2) provide enough transparency to show you have integrity and we can believe in what you write, 3) And I can count on you (when I saw the market open, the first place I went to was your site looking for a look out mail to catch your latest thoughts).
Keep it up and don’t sell out by holding too much back (i.e. putting your positions and thoughts in pay for play “newsletters”). Thanks for helping out the common man.
June 23rd, 2011 at 10:31 am
I know I promised to give you all a long break from me….BUT I just wanted to come back and say..
I TOLD YOU SO.
June 23rd, 2011 at 10:34 am
Well let me add my name to the list of “I told you so’s”.
From Monday:
http://efficientish.blogspot.com/2011/06/not-done-yet.html
June 23rd, 2011 at 10:35 am
“European Central Bank President Jean-Claude Trichet said the debt crisis threatens to infect banks.”
The debt crisis has infected banks. The effort now, by the corrupt politicians and the banking cartel is an attempt to inoculate them at the expense of everybody else.
June 23rd, 2011 at 10:37 am
Order Flow Momentum in the S&P futures markets turned decidedly red (selling) yesterday at 2:30p.m.
Which you can see here. http://algofutures.com/wow-indices/wow-index-sp-500/swing-trading-chart/
The markets will follow order flow…every time.
As fundamental analysis new events cycle times regarding Greece, budget talks, interest rates, etc makes my head spin….I can only follow what the the market tells.
June 23rd, 2011 at 10:54 am
Lack of leadership in all areas (not merely financial) leading to our degradation if not demise:
http://www.shtfplan.com/headline-news/fed-chairman-on-the-economy-we-dont-have-a-precise-read_06222011
http://www.stateoftheocean.org/
June 23rd, 2011 at 11:03 am
You looked like a genius on Tuesday. I still haven’t covered my February short postion (http://www.ritholtz.com/blog/2011/05/open-thread-market-comeback/), yay, but unfortunately, I’m still overweight oil. Where do we go from here? Where’s the bottom?
June 23rd, 2011 at 11:19 am
Just maxed out(fully loaded) my gold positions and am loading the barrels in case the VIX goes over $30 in the next week or so
June 23rd, 2011 at 11:23 am
Barry, I did the same thing w/SDS when the market got to these levels last week or so. It may not have been my best move, but it was better than being loaded up long from 1350 S & P. If the 200d cracks, it might be worth another re-load. I sense we may be getting to point where some real losses might be coming…
June 23rd, 2011 at 11:27 am
zenospinoza et al…..the bottom will come when the Forbes 400
no longer has Ackman, Einhorn, Soros, Paulson and the other hedgies
as the wealthiest Americans.
do we in the USA have people who make something other than
gambling (oops…investing) other people’s money? are these people
our heroes?
does anyone in the USA build something which will outlast their
lifetimes?
we need more Steve Jobs, Sergei, Larry, Gates, Hewlett and Packards
and fewer brokers of all sorts, shapes and sizes.
June 23rd, 2011 at 11:28 am
Transitory. Anybody remember Ben Shalom’s assertion that high oil prices were transitory and wouldn’t derail the recovery.It ranks right up there with his assertion that subprime was “well contained”.
The most dangerous man in the world, rewards the reckless while he pontificates about “moral hazard” ,”systemic risk”, quantitative easing and a whole bunch of other gobbledegook.
June 23rd, 2011 at 11:33 am
not sniffin glue amigo
was askin sh.. he might be right????????
but being out i cant possibly get back in now as QE2 goes away the next two weeks
unless the Fed plays some regular intervention buy bonds anyway substitute game
wont see that data immediately?
June 23rd, 2011 at 11:52 am
“do we in the USA have people who make something other than
gambling (oops…investing) other people’s money”
mom and pop and Joe Blow gamble in markets all the time
David Einhorn…..among others
No, they are not gambling
give me a break, hedge funds are hardly “the problem”
June 23rd, 2011 at 12:29 pm
It indeed looked like a shallow bounce. I allocated 30% to long position last Friday and sold some calls yesterday as a hedge. In a hindsight, closing my long position yesterday would’ve been smarter. The dollar index already looked suspiciously bullish to me last Friday, which would give a headwind to commodities and equities.
If SPX 1250 level is breached, I’d go short.