In 2002 a film entered movie theatres across the country and quickly became successful for its comedic value and charm: My Big Fat Greek Wedding. Whats playing out on Fraud Street and in every political chamber of the world is not a comedy, but a tragedy.
If this tragedy had a name it would certainly be changed from time to time along with the odd circumstances and never-ending bailouts. Now, however, it might be called The Big, Fat, Greek Relief Rally.
Last week the market was told that the baddies would win the weekend election, but all would be well as the Global Central Planning Nannies would be there to take care of us by rigging the markets to do their bidding. But the baddies didnt win; the good guys won. That is to say, those that will NOT upset the apple cart won. When told to jump, they will respond with How high sir?
The market initially gave back its gains from Friday, but realized the Fed will give it QE3, 4, & 5 so why worry. The ES clawed back to unchanged and then traded in a miserably narrow range into the close with a final surge to close up on the day.
And why not, right? Whats different in the economic world end game today? Absolutely nothing! As mentioned above, the New Democracy's narrow victory Sunday means that Greece will continue playing by Germanys rules as the ECB tries to prop up the rest of Europe.
Plus, weve moved on to todays drama - the Large, Chubby, Spanish Debt Dilemma. Things in Spain are worsening fast as the countries bond yields head to uncharted territory (aka they arent really worth anything) with yields on the 10-year notes reaching over 7%.
The only marriage that matters is the one between Ben Bernanke and the Central Banks and their vow to solve the worlds problems by trying to print more money. Yes, here in the US were eternally wedded to all of Europes debt and theres no prospect for a divorce.
The market no longer reacts one way for very long to the minor macro-economic or political events, because weve all wizened up to whats coming The Gigantic, Morbidly Obese US Liquidity Injectioncoming to a theatre near you soon, with trailers of The Gigantic Italian Liability Monster.
Trade well and follow the trend, not the so-called experts.
___________
Larry Levin
President & Founder - TradingAdvantage
If this tragedy had a name it would certainly be changed from time to time along with the odd circumstances and never-ending bailouts. Now, however, it might be called The Big, Fat, Greek Relief Rally.
Last week the market was told that the baddies would win the weekend election, but all would be well as the Global Central Planning Nannies would be there to take care of us by rigging the markets to do their bidding. But the baddies didnt win; the good guys won. That is to say, those that will NOT upset the apple cart won. When told to jump, they will respond with How high sir?
The market initially gave back its gains from Friday, but realized the Fed will give it QE3, 4, & 5 so why worry. The ES clawed back to unchanged and then traded in a miserably narrow range into the close with a final surge to close up on the day.
And why not, right? Whats different in the economic world end game today? Absolutely nothing! As mentioned above, the New Democracy's narrow victory Sunday means that Greece will continue playing by Germanys rules as the ECB tries to prop up the rest of Europe.
Plus, weve moved on to todays drama - the Large, Chubby, Spanish Debt Dilemma. Things in Spain are worsening fast as the countries bond yields head to uncharted territory (aka they arent really worth anything) with yields on the 10-year notes reaching over 7%.
The only marriage that matters is the one between Ben Bernanke and the Central Banks and their vow to solve the worlds problems by trying to print more money. Yes, here in the US were eternally wedded to all of Europes debt and theres no prospect for a divorce.
The market no longer reacts one way for very long to the minor macro-economic or political events, because weve all wizened up to whats coming The Gigantic, Morbidly Obese US Liquidity Injectioncoming to a theatre near you soon, with trailers of The Gigantic Italian Liability Monster.
Trade well and follow the trend, not the so-called experts.
___________
Larry Levin
President & Founder - TradingAdvantage