Succinct summation of week’s events:

Positives:

1) EU summit that actually accomplishes something, that of codifying greater fiscal hand holding amongst its members

2) ECB cuts rates 25 bps, adds 3 yr lending facility, lowers its collateral standards, and cuts RRR to 1%

3) Eurozone banks take advantage of Fed swap line price cut with massive uptake from ECB to ease yr end $ funding stress

4) Monti gov’t in Italy announces 30b euro/3 yr budget reduction plan

5) UoM confidence best since June, almost 2 pts better than expected, now back in line with avg ytd

6) Initial Jobless Claims at 381k, lowest since Feb

7) MBA said refi’s rise 15.3% from lowest since July and purchases jump to most since April

8) CPI and PPI in China moderates, retail sales stronger than expected

9) RBA cuts interest rates

Negatives:

1) S&P threatens downgrades for all 17 Euro zone countries

2) Euro basis swap flat on week, remaining still very elevated notwithstanding swap line price cut

3) Shanghai index falls to lowest since Mar ’09, IP gains at slowest since Aug ’09 and HSBC PMI services falls to 3 month low

4) Australia jobs figure disappoints

5) US ISM services index falls to lowest since Jan ’10

6) TXN, ALTR, LSCC, and DD all preannounce negatively with still 3 weeks left in the year, collateral economic damage from European slowdown and more to come?

7) Brazil’s economic growth slows to 2.1% y/o/y, the slowest pace since a contraction in Q3 ’09

Category: Markets

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

16 Responses to “Succinct summation of week’s events (12/09/11)”

  1. streeteye says:

    I wouldn’t say the summit accomplished something, more like they said they would do some more stuff, and they really really mean it this time.

    If markets want to believe in Santa Claus for a while longer I can’t really blame them… the alternative is awful to contemplate. Denial is not just a river in Egypt.

    http://blogs.reuters.com/felix-salmon/2011/12/09/europes-disastrous-summit/
    http://www.ft.com/intl/cms/s/0/6cf8ce18-2042-11e1-9878-00144feabdc0.html

  2. Futuredome says:

    Yes, until they decide which way(break up or integrate) it means nothing.

  3. rktbrkr says:

    Looks like the 5th Euro salvation was the charm – but then again the first 4 looked good for a while. Crunch time comes when the ants are asked to pay for the grasshoppers

    Fiscal austerity in S Europe is one the the 3 great lies.

  4. gordo365 says:

    So – a year from now when Greece still has 55 retirement age, pay pensioners 13 times a year, and have 20 annual deficit – what happens? New stronger EU will do what? Launch a committee? Admonish them?

    What is the new haircut plan?

  5. Greg0658 says:

    gordo .. is this thing on – what we have … what is not being built ? what doesn’t exist that needs to exist ?
    oh ya a job that meets this economic model of price conscious productivity
    oh ya Food & Energy for Everyone

    what we all need is for old people to retire happily and give the kids the job .. the kids need to provide to the old people … if the kids can’t do it – they need to be trained to do it … and they will do it if they see thru example when they are old – they can breeze it into RIP too

    is this thing on ?

  6. Greg0658 says:

    forgot to define old > when there is not a job for you ie: the favored trickle down method

  7. Thx for your comments, Peter…FWIW, here is my take: http://strawberryblondesmarketsummary.blogspot.com/2011/12/1st-down3-to-go.html
    Enjoy your weekend!

  8. Futuredome says:

    gardo, they could raise retirement, who frankly cares. It doesn’t solve the monetary issues of the Europe.

  9. beaufou says:

    Mario Monti, an ex-adviser for Goldman Sachs, is now an unelected head of government leading Italy on the path of reason.
    Don’t take offense at my innuendo, but, isn’t he the kind of crooks that got us into trouble in the first place?
    I think this might be a negative in the long run.

  10. Greg0658 says:

    gordo .. that pingpong hard slam of mine – had a hard nites sleep ’cause of it .. your response is consistant with popular view hense: not out of line .. there just isn’t work for the workers out there – I’m frustrated as to a solution

  11. Bill Wilson says:

    I think a negative for the market is that the downtrend on the S&P that started May 1st is still in place.

    I thought about buying some puts on Friday afternoon with a plan to cut losses if the S&P crosses 1270. I’m too worried about a big gap up on Monday.

    I don’t think Santa is coming this year, but I’m not stubborn. If the S&P crosses 1270, I’ll go long and with a plan to cut losses at 1260.

  12. VennData says:

    This is the funniest “science” article I’ve ever read.

    The Deep-Sea Find That Changed Biology

    http://www.npr.org/2011/12/05/142678239/the-deep-sea-find-that-changed-biology

    “…The discovery was so unusual, it turned biology on its head… this worm had everyone scratching their heads….”

    …that sounds like advanced yoga.

    “…Today, the Smithsonian Institution houses that remarkable discovery: a pale and fleshy, 4-foot-long worm that floats in the kind of pickle jar you’d see in your neighborhood delicatessen…”

    …you just raised the Vegan population.

    “…As the Alvin began its descent, Corliss watched through the window as the world around him went from blue to black to blacker than black…”

    … your spectrophotometer reading is what should be getting people to be standing upon and scratching their heads

    “…The crew named the lush pocket of life “the Garden of Eden” and used the sub’s mechanical arm to delicately gather up a bouquet of worms, mussels, clams and anemones….”

    …they loved it so much, they killed them?

    “…Crane says the excitement was intense, and the scientific community’s biggest names came steam-rolling in. “There were cases where people were stealing samples, clams and taking them off to their institutions and hiding them…”

    … were these “mad” scientists steam-rolling in? angry ones? or just recent ex-inmates?

    “…Eventually, Crane left the field of vent science. Today she is a senior researcher at the National Oceanic and Atmospheric Administration, working mostly in the Arctic…”

    …so, they found these super hot vents and decided to research them on the coldest place on Earth?

    “…a new vent community of chemosynthetic life has begun to grow. Scientists have named the new site “Rosebud.”

    …name this “Garden of Eden” after the last word spoken by a dying man in a dying industry?

  13. heywally says:

    Buy the dips when the 20 period EMA is sloping up, sell the rallies when the 20 period EMA is sloping down.

  14. heywally says:

    That is, on a 60 minute chart for the ES or SPY …