Gooooold! Market futures pull back as EMU bailout hype fades, Gold hits 6 month high $122…
WSJ reports on the fade the market is experiencing, (Dow futures down 80, 2 mins ahead of opening bell) as traders realize it is all downhill from here, the EU states now have to get the bailout ratified…and they have no mechanism for deciding what state gets what, when in exchange for what austerity.
…The nearly $1 trillion rescue package from the European Union and International Monetary Fund “addresses the short-term needs of funding costs, [but] it doesn’t actually do anything to address the underlying problems,” said Michael Hewson of CMC Markets in London. “It’s just sticking a band aid on a gaping wound.”…
…Credit-default swaps on Greece, Spain, Portugal and Ireland tightened for a second day. The market “is still digesting the impact of yesterday’s bailout. It has bought time…but there are still doubts on whether the peripheral countries can deliver on austerity,” said Gavan Nolan, vice president of credit research at Markit….
It is like TARP all over again but they do not have Hank, Tim and Ben free to do as they will. Perhaps a blessing in disguise, lol….
Goooooold! You know what that means…
Greek Parliament ratifies austerity measures, EURO tanks, USDollar rises, GOLD soars up $24 to $1199, DOW plummets +200
Duncan Niederauer, NYSE Euronext CEO discusses whether error really caused the market plunge today
Vodpod videos no longer available.8:09pm EST: NYSE cancels all trades made between 2:40pm and 3:00pm that were more than 60% off.
Word is after the first really low maybe -off- trade, the computers ran wild with it, Since NYSE has a sort of stopbreaker where they wait maybe 60 seconds to put a trade through if it looks really ‘off’, the trade just moves to the next electronic exchange for a price, the other exchanges do not have the stopbreak so the trades go through, wrong and all. Then the quant models, the buy and sell limits all start kicking in automatically and we get what happened today.
Several respected traders came out this afternoon and said the market is broken, it is too fast. We need the NYSE stopbreak model applied to all electronic exchangs or it will happen again. Duncan Niederhauer cam eon with Maria Bartiromo and explained it well, I will post the video.
SEC and CFTC say they are examing today’s events.
Duncan said tomorrow will probably be ‘ugly’.
3:58pm EST: So a bad trade on PG off by a digit is rumoured to be responsible for the drop from -400 to -998 and back to -400ish. But the Euro plunge, the USDollar rocket, the GOLD surge and the 400ish drop are all fer realsies.
DOW closing down 354 to 10514, those sell programs that ‘kicked in’ saved lots of bacon. But having humans on the floor making the trades would likely have prevented the entire bad order issue in the first place.
3:07pm EST: The 998 drop is an intraday record, now DOW is down 366. I went ahead and pulled the trigger on the LYV buy I have been eyeing. Since I cant beat Ticketmaster I may as well join ;em, the frakkers!!!
2:51PM est: I think the plunge protection team stepped in, suddenly back up to down 650-where are the trading curbs??
2:49 HOLY SHXT, DOW DOWN 956, US DOLLAR SURGING against EURO, FORGET Obamas export plan, PFFT!
2:48om EST: Holy shxt DOW now down 778 and not stopping, this is fear the US will go the way of Greece, we need to STOP SPENDING
2:44pm EST: Above the post update-DOW now down 503 to 10364, GOLD crossed 1200…hang on sloopy!
gold baby
you know what that means….
2:20pm EST: the crowd is pushing closer and closer to the police line outside Parliament in Athens
…DOW now down 270
2:24pm EST Crowd dispersed into small groups outside Parliament and are now moving into commercial center…
Market Update: Averages make a run on upbeat Fed forecast….
DOW up over 200 on FOMC forecast. D-E-N-I-A-L.
Intel reported kickass earnings (Intel gets 85% of their profit from overseas)..the banks earnings (outside Golden Slacks, which do not reflect the TOXIC ASSETS we heard oh so much about) are not worth the paper they are written on…
The FED (FOMC) meeting minutes were released along with their new economic outlook which has a higher call for GDP and a call for higher unemployment than previously forecast. MiM thinks they are off on both, even the inventory build everyone is expecting to push us to a positive GDP for the 3Q 09, is for MiM anyway in doubt..
Were I the manufacturer, producer, retail chain store inventory manager I would NOT build an inventory right now..ahead of the CONSTANT, ENDLESS ASSAULT on capital from, well the Capitol…
They are now proposing a WATER SURCHARGE on businesses that use a lot of water, to rebuild infrastructure…
Take your profits and bury them in the yard, sheeeet, maybe we will get a chance to spend those dilly dollars before the inevitable inflation bites us in the axx….assuming the Man doesn’t come take it first for the GREATER GOOD…frakkers..
I cannot think of a worse time to propose an individual mandate than when people are cutting back on FOOD out of necessity, NOW is not the time to tell them they MUST pay for insurance….
DOW up over 200 right now, on a serious tear people….Have I mentioned that TOTUS felt the need to make an appearance on tv to support the House Health Care bill (the one that is counter to everything he said in the primaries) just as Hill’s first big speech was starting, he sucked the air out of the room for her like he sucks the animal spirits out of the marketplace...have to go to MSNBC, ugh to get highlights of her speech which even they the He Man Woman Haters Club says was great, too bad none of us got to see it cause the publicity HOG was on …AGAIN…people are writing FREE HILLARY! pieces already….
We got ONE SENTENCE on Hillary’s speech from Reuters:
“Success in Afghanistan also requires close cooperation from neighboring Pakistan, which I will visit this fall,” she said in a speech at the Council of Foreign Relations think tank.
U.S. Secretary of State Hillary Clinton, who visits India later this week, said on Wednesday she will go to Pakistan in the fall.
GOLD back up over 940 BTW…
and PS TOTUS now considering BUYING peoples homes and letting them RENT them back, so Uncle Sam would own the house. But he wouldn’t do HOLC when it would have helped and attacked Hill for suggesting it (she proposed HOLC this in September 2008). some day’s the hypocrisy bothers me more than others…..
Market Update: Rally into the close DOW up 97….
DOW up 96.53 to 8500.33
NAS up 22.54 to 1774.33
S & P up 12.32 to 919.15
This rally is just…The Heat of the Moment…
Hit it Dean!!!
Created by HeroPetrelli
GOLD still on a tear up 17.6 to 979.1
Oil too, up 1.31 to 66.39
10 yr pulled all the way back to 3.45% , based on talk out of PIMCO, the Fed isnt riding to our rescue anytime soon, anyone waiting for a 3% 30 yr may want to get their refi apps in now and get happy with any rate under 5%…that Making Home Affordable program for refis ends in June of 2010 I believe, way ahead of the modification program…I will get a post up on that next week…
in the interim go to MakingHomeAffordable.gov for details….
Market Mover Friday: GDP drops 5.7%….
They are celebrating like it’s over. I say it aint over…Roubini expects a double bottom, seems likely the way they are throwing money around, if you add enough liquidity there will be a temporary boost in GDP, but it isnt organic GROWTH, not real JOBS, therefore unsustainable, especially if it is a false bump based on money printing antics, then the second bottom will hurt all the more..
Why the hexx cant they just let recessions happen and not frak with them? It is part of the economic cycle, we have safety nets to help people get through it after all, that is what the safety nets are for!!
Gross domestic product, which measures total goods and services output within U.S. borders, dropped at a 5.7 percent annual rate, the department said, less than the 6.1 percent estimated by the government last month.The revisions were below market expectations for a 5.5 percent contraction for the January-March quarter.
Output has declined for three straight quarters for the first time since 1974-1975.
The Commerce Department’s preliminary report also showed corporate profits after taxes increased 1.1 percent in the first quarter, the first increase in a year, after plummeting 10.7 percent in the fourth quarter. Analysts polled by Reuters had forecast profits dropping 7 percent.
Economic activity in the first quarter was dragged down by cutbacks in business, federal government, residential and nonresidential investment as well as a drop in exports.
Gold is on fire BTW as Oil also continues to rise on the weak US dollar…now at 79- level not seen since December..
GOLD up 14.70 to 976.20 now…my GOLD is still on its run
Oil up 1.15 to 66.23
Market Update: New Home Sales Kickin It Higher….
Oh yeah baby! DOW climbing higher off the news, now up 175 to 7835 S& P up 16 to 822, NAS up 31 to 1548…
As prices fall the ole free market is correcting bringing in buyers…
Sales of newly built U.S. single-family homes unexpectedly rose at their fastest pace in 10 months in February, while prices fell by a record margin from a year ago, a government report showed on Wednesday.
The Commerce Department said sales rose 4.7 percent to a 337,000 annual pace, the fastest increase since April last year, from an upwardly revised 322,000 in January.
Despite the increase, February sales were the second lowest ever after the drop in January to the slowest pace in records going back to 1963, the department said.
Moderate in the Middle 