"We don't care about the truth! Bailouts are good!"
Creditcane™: You won't stop me. No matter how many times you short squeeze.
SPXBullish long day. Midpoint above EMA(10). Tested and held SMA(21). Holding above the 38.2% retrace (1296.82). No daily 3LB changes (reversal is 1332.42). Back above weekly 3LB mid. QE2infinity.
DXYBearish thrusting day. Midpoint above EMA(10). Failing the 0.0% retrace (83.11). Holding above SMA(21). No daily 3LB changes (reversal is 83.04).
VIXBearish short day. Midpoint below EMA(10). Tested and failed SMA(21). Holding above its 38.2% minor retrace (21.62). No daily 3LB changes (reversal is 21.03).
GOLDBullish short day. Midpoint above EMA(10). Tested and held its 61.8% retrace (1600.40). Tested and held SMA(21). No daily 3LB changes (reversal is 1559.40). Must have the precious.
EURUSDSpinning top day (also bullish thrusting). Midpoint below EMA(10). Failing all SMA's. Holding above its 0.0% retrace (1.2363). No daily 3LB changes (reversal is 1.2368).
JNKBullish long day (didn't take out previous high). Midpoint above EMA(10). Tested and held SMA(21). Tested and held its 50.0% retrace (38.24). No daily 3LB changes (reversal is 38.69).
10YR YIELDBullish long day (how? why?). Still failing all SMA's. Midpoint above EMA(10). Holding above its 0.0% retrace (14.67). No daily 3LB changes (reversal is 17.65).
WTIBullish thrusting day. Still failing all SMA's. Midpoint below EMA(10). Failing its 38.2% minor retrace (85.75). No dally 3LB changes (reversal is 87.82).
SILVERBullish short day. Tested and held SMA(21). Midpoint above EMA(10). Failing its 61.8% minor retrace (30.00). No daily 3LB changes (reversal is 27.20).
BKXBullish long day (didn't confirm bearish engulfing). Midpoint above EMA(10). Tested and held SMA(21). Failing its 50.0% retrace (43.76). No daily 3LB changes (reversal is 41.00).
HYG/LQDBullish long day. Tested and held SMA(21). Midpoint above EMA(10). Tested and held its 61.8% minor retrace (0.7643). New high on daily 3LB (reversal is 0.7388).
COPPERBullish short day. Midpoint below EMA(10). Failing all SMA's. Tested and failed its 50.0% minor retrace (3.352). No daily 3LB changes (reversal is 3.379).
AAPLBullish short day. Tested and held SMA(89). Midpoint above EMA(10). Tested and failed its 50.0% minor retrace (577.84). No daily 3LB changes (reversal is 560.99).
CRBBullish short day. Midpoint below EMA(10). Failing all SMA's. Still failing its 38.2% minor retrace (277.27). No daily 3LB changes (reversal is 279.74).
IT HAS BEGUN. YOU HAVE BEEN WARNED.
9 comments:
OMG do not give an opening to Westbrook.
Treasuries Rise as Data May Show Retail Sales Dropped
Treasuries rose, snapping a decline from yesterday, on speculation data today will show U.S. retail sales fell for the first time in a year, supporting the case for the Federal Reserve to expand stimulus measures.
Demand for the perceived safety of U.S. bonds was bolstered before Italy sells government notes this week and Greece holds general elections on June 17 amid concern Europe’s debt crisis is spreading. The U.S. is scheduled to sell $21 billion of 10- year securities today in the second of three note auctions this week totaling $66 billion.
Just because retail sales may drop is not a reason for the Fed to activate stimulus measures. When will the MSM stop using every bad data point as an excuse for more Fed stimulus?
12 June 2012, Daily Market Summary:
Indiscriminate bidding on risk assets amid "news" of rumours of (1) bailouts, (2) incremental round(s) of easing by global monetary authorities, and (3) assumption of bad sovereign debts by suddenly less-strong "core" European states.
More Gruel, More Gruel
quote:
"It is not that hard to figure out, this dis-jointed Europe, just watch what the Germans actually do and don’t pay too much attention to what they say; that is the trick of it. The whole thing is a double con game but the people with the money, as in the rest of life, are who is in control and not the beggars with outstretched hands hanging about on the corner. Spain has fallen, Italy is under siege and France wants to join the have-nots in the hope that Germany will pay for all of the promises made by Hollande to the French people during their election. As Italy falters France may be the next nation to come under closer inspection especially if Hollande proceeds to implement more government spending and the lowering of the retirement age along with his other Socialist programs. Again I remind you to pay little attention to the rhetoric but watch what Germany does and that will set the program for the future. They can vote all they want in Brussels and draw up all kinds of grand plans they desire but if Germany does not want to accept them then it is little more than semi-polite conversation over well-dressed cucumber sandwiches in various capital of Europe."
US 10yr getting smoked. It's back under 1.60%.
Egan Who Just Gave Spain The Triple Hooks
And so, the little rating agency that could, just gave Spain the triple hooks, downgrading the country from B to CCC+, negative outlook.
From EJ:
Synopsis: KINGDOM OF SPAIN EJR Sen Rating(Curr/Prj) CCC+/ CC Rating Analysis - 6/13/12 EJR CP Rating: C Debt: EUR805.9B EJR's 1 yr. Default Probability: 18.0% Spain continues to be weakened by high funding costs (6.75% for 10yr today), the gov. deficit of 9.6%, an estimated decline in GDP of 1.7% (per the Economy Ministry), the 24.4% unemployment, the IIF's recent estimate of additional bank loan losses up to EUR260B, and possible depositor withdrawals. Over the past four fiscal years, that is from 2008 to 2011, Spain's GDP declined from EUR1.09 trillion to EUR1.07 trillion. Meanwhile, its debt mushroomed from EUR519B to EUR806B. With the EUR100B infusion for Spain's banks, the debt to GDP will rise to 90% plus future additions for the government deficit, support for its regions and additional support for its banks. Social benefits are a major problem; while payments to the govt have been down EUR 3B (2008 to 2011), payments from the government have been up EUR 29B). As a result, Spain is short about EUR50B per year for social payments, EUR35+B per year for interest, and an additional EUR 30B for asset growth; hence the EUR110+B per annum increase in debt. As we expected, Spain requested support for its banking sector and will probably need cash for weaker provinces. Assets of Spain's largest two banks exceed its GDP. We are slipping our rating to " CCC+ " ; watch for more requests for support from the banks and money creation.
Weird day. The 10yr yld was artificially boosted TWICE today. First was the POMO and then Dimon's testimony (don't ask). Neither worked as the yield quickly retraced back to its lows. Tomorrow probably a little more levitation but Friday the market may have concrete boots.
And...it's gone: Spain Loses Final A Rating With Moodys Ddowngrade To Baa3, May Downgrade Further - Full Text
5% haircut across maturitites
We discussed Dimon on the way home from shopping for a bass boat...the consensus was that senators on the banking committee are dumber than a bag of rocks..my SIL thinks senile may be a requirement...
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