Sunday, May 9, 2010

EURO IS NOW OR NEVER...WOLVES Update III

An unfixable problem is going to be fixed. TONIGHT. Before the asia markets open. Seriously. That is what this is all about. Its ALL about global central bank manipulation. Hopefully they can kick this can down the road further, so that you have the illusion that our spend spend spend and debt debt debt can proceed infinitely.

May 9 (Bloomberg) -- European Union finance ministers pledged to stop a sovereign debt crisis from shattering confidence in the euro as they held an emergency summit to hammer out a lending mechanism for deficit-stricken nations.

Jolted into action by last week’s slide in the currency to a 14-month low and soaring bond yields in Portugal and Spain, leaders of the 16 euro nations agreed on the backstop yesterday and told ministers to get it ready before Asian markets open.

“We are going to defend the euro,” Spanish Economy Minister Elena Salgado told reporters as she arrived to chair today’s Brussels meeting. “We think we have a duty for more stability for our currency. We will do whatever is necessary.”

Europe’s failure to contain Greece’s fiscal crisis triggered a 4.3 percent drop in the euro last week, the biggest weekly decline since the aftermath of Lehman Brothers Holdings Inc.’s collapse. It prompted the U.S. and Asia to urge broader steps to prevent a debt crisis from pitching the world back into a recession.

“In the night, when the markets are opening, we cannot afford a disappointment,” said Finance Minister Anders Borg of Sweden, one of 11 EU nations not in the euro. “We now see herd behavior in the markets that are really pack behavior, wolfpack behavior

Update I May 9 (Bloomberg) -- European Union finance ministers pledged to stop a sovereign-debt crisis from shattering confidence in the euro as they held an emergency summit to hammer out a lending mechanism that may be worth around $645 billion.

Jolted into action by last week’s slide in the currency to a 14-month low and soaring bond yields in Portugal and Spain, leaders of the 16 euro nations agreed on the backstop yesterday and told ministers to get it ready before Asian markets open. The European facility may be worth around 500 billion euros, said an official familiar with the talks.

“We are going to defend the euro,” Spanish Economy Minister Elena Salgado told reporters as she arrived to chair today’s Brussels meeting. “We think we have a duty for more stability for our currency. We will do whatever is necessary.”

Europe’s failure to contain Greece’s fiscal crisis triggered a 4.3 percent drop in the euro last week, the biggest weekly decline since the aftermath of Lehman Brothers Holdings Inc.’s collapse. It prompted the U.S. and Asia to urge broader steps to prevent a debt crisis from pitching the world back into a recession.

President Barack Obama spoke by phone with German Chancellor Angela Merkel for the second time in three days, adding to the international pressure Europe has faced since a hurriedly arranged conference call of Group of Seven finance chiefs on May 7. Obama today emphasized “the importance of the members of the European Union taking resolute steps to build confidence in the markets,” White House spokesman Bill Burton told reporters in Hampton, Virginia.

‘Wolfpack Behavior’

“In the night, when the markets are opening, we cannot afford a disappointment,” said Finance Minister Anders Borg of Sweden, one of 11 EU nations not in the euro. “We now see herd behavior in the markets that are really pack behavior, wolfpack behavior.”

update II Its now up to 962BILLION....weeeeeeeeeeeeeeeeeee

http://www.bloomberg.com/apps/news?pid=20601087&sid=ap50DW8IqhBo&pos=1

update III... The real rape of us and the why you cannot be short here and live.

http://www.bloomberg.com/apps/news?pid=20601087&sid=adES6qP.P7AI&pos=4

25 comments:

  1. Doesn't desperately trying to come up with positive news before market open end up making them look even worse though?

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  2. Futures WAY up early:

    DOW + 122
    S&P + 16
    Nasdaq + 26

    Let's see if it holds.

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  3. Dow +154

    shorts are toast tomorrow

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  4. "This year will be a trader's market.".....hyenas unite.....hehehehehe

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  5. KLI, they are going to destroy shorts tomorrow morning.

    I remember last week you talked about swimming in the shark tank, you were spot on.

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  6. Dow Futures + 179 now

    BBQ shorts.

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  7. The attack of the hyenas....heheheheh....squeeeeeze

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  8. Itlll be a slaugter in am.......

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  9. Stagflation long plays still all poised since last week. The $928 billion EU package reflate this puppy towards another assault at the 200 week moving average.

    Gold's advance may slow down a bit as money is taken off the haven/short plays to the reflation and slaughter the Prechter Bears open season. Still believe P3 top will be a long drawn out dome rather than commodity spike.

    http://www.latimes.com/news/nationworld/world/la-fgw-eu-debt-package-20100510,0,5269393.story

    True none of this is real just a Kabuki Theatre but if you don't follow the script you will get it Greek style.

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  10. Nice of them to run everyone's stops first on Thursday, huh? I still say we see 1070 again before making any new highs.

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  11. The game is simple .....the short side on leveraged etfs is suicide at this juncture ...you have to be in a position that you can hold through the manipulations.. if they run this again to reclaim the 1225....then the leveraged shorts will be finished

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  12. A big component of leveraged ETFs in the VIX. Even if you are right in direction you will still lose if the volatility drops from where you established the position. The VIX did a commodity spike during the flash crash to 41 and the trend will be back to 21 before indecision starts to creep back in.

    http://finance.yahoo.com/q/ta?s=^VIX&t=3m&l=off&z=l&q=l&p=b,m20&a=r14,ss,m26-12-9&c=

    Morla you have to set aside your personal beliefs when playing at the rigged Ponzi Casino table. Most of the regulars here Kli, Joe, Analyze, and me are extremely Bearish as to where this will end but that is not here nor now, it has to go through all the reflation and government interventions first before Nature cleans out the house in a couple years.

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  13. Never underestimate the ability to manipulate this. This will be a mthfkr this year ....enjoy

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  14. All the retail perma-longs are going to be so happy tomorrow morning.

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  15. KLI: I didn't know the Fed was allowed to do this. We are shipping US dollars offshore now?

    WASHINGTON —

    The Federal Reserve late Sunday opened a program to ship U.S. dollars to Europe in a move to head off a broader financial crisis on the continent.

    Other central banks, including the Bank of Canada, the Bank of England, the European Central Bank and the Swiss National Bank, are also involved in the effort.

    The action reopens a program put in place during the 2008 global financial crisis under which dollars are shipped overseas through the foreign central banks. In turn, these central banks can lend the dollars out to banks in their home countries that are in need of dollar funding to prevent the European crisis from spreading further.

    The Fed said action is being taken "in response to the reemergence of strains in U.S. dollar short-term funding markets in Europe."

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  16. Central banks are calling the shots.....not the countries.....the central banks are under the direction of the "real money men"

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  17. OK one last parting shot before I go to bed.

    Cramer on Friday afternoon:

    http://www.cnbc.com/id/37020020

    Don’t Buy Till Dow 9,000

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  18. Jay:

    Ha, they have ALL the dollar lines open at this point. It's "coincidental" that the Fed announced a reaffirmation to this trusty ole currency line.

    Recognize the pattern? http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article3864287.ece

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  19. Oh, yeah I'm not calling for the end of the rally, I just think the market would have an easier time moving on from Thursday's mayhem if it traded down to 1070 more organically before heading up to 1225 or wherever. Y'know, massage out that air pocket and whatnot.

    I haven't made any position changes for months, other than swapping some AUY for SSRI after Thursday's fireworks. Too many unknowns, and this massive EU bailout just reinforces my desire not to try and predict the immediate future right now. I mean the stats on this oil slick get worse (sometimes by an order of magnitude) with each telling, the SEC is starting to act like it has a job.. Everything's going in unexpected directions.

    That said, it does look like another "mega monday" coming up, though do moves this big often come so early in the futures? 30 S&P points with 9 hours til open, pretty wild.

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  20. good swap. SSRI will perform better than gold miners for the next 5 months...during the facade of economic recovery.

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  21. Why are we so happy here that Europeans are getting bailouts? And will austerity measures be part of the deal for everyone? If not I can see some Greeks getting even angrier.

    Maybe our states are next in line to sit on IMF Santa's lap? They certainly haven't been naughtier than Europe this year, they may even get that BB gun they've always wanted.

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  22. The Silence of the Prechter Bears Saga Continues
    Act III

    Japan Central Bank Reaches Dollar-Swap Deal

    http://online.wsj.com/article/SB10001424052748703880304575235620858854664.html?mod=WSJ_latestheadlines

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