Thursday’s trade started out weak. The market was selling off with the latest (very) bad news out of Europe but then left the weak European markets in the dust. Another MIRACLE hit the tape and the US market took off like a rocket: the US housing market was getting yet another bailout. As it turns out this was BS; but since when has a false rumor mattered after the market priced it in? Never. If you check the currency market before the open like I do, you were stunned to see the Euro was hammered Thursday morning. A partial reason why is here... http://finance.yahoo.com/news/dow-average-marks-first-tiny-215017640.html
Trading in UniCredit, a large Italian bank, was halted after the stock lost a quarter of its value. The bank said Wednesday that it would need to offer huge discounts to investors to raise money.
And a financial crisis deepened in Hungary, which had to pay a staggeringly high interest rate of 10 percent on its 12-month debt. That is far above the 7 percent level that forced Greece and Portugal to seek bailouts.
Taken together, the news raised fears on Wall Street that Europe's debt crisis would spread from small countries such as Greece and infect much larger ones such as Italy that are too big to be bailed out.
"The positives that are coming out of our economy are less significant than the fear that is coming out of Europe," said Ralph Fogel, an investment strategist and partner at Fogel Neale Partners in New York.
Stocks fell more than 2 percent in Italy, Greece and Spain. Markets in the bigger, more stable economies of Britain and Germany fell slightly. The CAC-40 in France fell 1.5 percent.
Never fear though folks! When the going gets tough; the tough get going politicians and banksters get to lying. There were some rumors that the banking cartel received Friday’s monthly jobs number early, but I think it was the “umpteenth” housing market bailout talk.
The “proof” of it is twofold; Hopium trumps reality, and US banking stocks skyrocketed. After all, if there was a TAXPAYER bailout of the housing market (never mind that the hundreds upon hundreds of $billions of prior schemes didn’t do a thing), Fraud Street sees this as a win-win for the banksters. And none would be helped more than the purveyor of housing deceptions than Bank of America. It was up a staggering 8.61% today, which doesn’t happen without a reason.
The article cited Jaret Seiberg of the Washington Research Group, who expects the President to appoint a "housing advocate" to the Federal Housing Finance Agency, the regulator and conservator of Fannie Mae and Freddie Mac, in much the same way he appointedRichard Cordray to the Consumer Financial Protection Bureau- by making the appointment during recess.Seiberg believes that Obama will announce a mass refinancing program for agency-backed mortgages that goes well beyond the HARP program once he makes the appointment.According to the article, the Obama administration could announce a program modeled on one that was originally devised by Columbia University economists Glenn Hubbard and Christopher Mayer. Under that plan, all homeowners with a Fannie or Freddie-backed mortgage can refinance with a new mortgage at a fixed rate of 4.2% or less if they have been current on their payments for at least three months. And the clincher is that the plan imposes no other qualification - no appraisal or income verification.As it often (read: always) turns out, the White House denied the rumor. It was bogus, false, counterfeit, fake, phony, a scam…etc. But why would that matter?
Trade well and follow the trend, not the so-called “experts.”
Behold the age of infinite moral hazard! On April 2nd, 2009 CONgress forced FASB to suspend rule 157 in favor of deceitful accounting for the TBTF banksters.
larrylevin@tradingadvantage.com
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Trading Signals from the Electronic (ES) mini-SP 500
- Pivot sell @ 10:55am at 1270.00 = +0.50 (1 lot)
- Algorithm positions (4)
- “Reading the Tape” positions (2) …combined Secret’s, Algo, & “Reading the Tape” total… +5.25
Click here to read our detailed results | ES 1276.00 / 1263.00
POC... 1276.00
YM 12354 / 12250
NQ 2345.00 / 2321.50
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