 | The market took another hit last Friday, the 13th. Some believe that Friday the 13th is a cursed or unlucky day. Perhaps the markets fell because of this odd day – right?
Wrong.
The market fell for multiple reasons: it’s overbought, the banking sector was hammered, and Europe is on edge again.
Of course, all of Europe is in recession and therefore having problems, but Spain is currently the biggest worry. Europe’s version of Quantitative Easing (QE) was called the Long-Term Refinancing Operation (LTRO), of which Spain was the biggest recipient of freshly printed Euros. It looks like Spain has already run through that LTRO financing. It seems to be circling the drain.
“Although some Spanish banks took advantage of the ECB’s generous provision of liquidity (via the LTRO), this has merely papered over the cratering being experienced on the asset side of their balance sheets,” said a strategists at FXPro to a MarketWatch reporter.
“The Bank of Spain has already proposed that banks in Spain increase their provisions by €50 billion. Given the rapidity of the decline in property prices, this will likely need to be raised significantly,” they said.
The weakness of Spanish banks, like the prior potential Greek contagion, drags down the US banking sector because no matter what the banksters say to the contrary, they are exposed to their problems too. There was a new wrinkle on Friday the 13th as well: Egan Jones downgraded JP Morgan.
The banking sector was slammed last Friday, which helped bring the weekly loss in the entire S&P500 to -2%; the worst of the year.
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
Trading Advantage
(888) 755-3846 |  Larry Levin's Trading Advantage is a leading investment education firm that empowers traders to achieve and surpass their financial goals. More than 50,000 students have used Larry Levin's proven techniques for powerful results. | ES 1375.50 / 1368.00
POC... 1371.75
YM 12858 / 12816
NQ 2717.50 / 2697.50
| IMPORTANT NOTICE: Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. Nothing in our website shall be deemed a solicitation or an offer to Buy/Sell futures and/or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on our site. Also, the past performance of any trading methodology is not necessarily indicative of future results. DAYTRADING involves high risks and YOU can LOSE a lot of money. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under- or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those talked about in our site. | |
| | | 
 |
This email was sent to ignoble.experiment@arconati.us by Trading Advantage
No comments:
Post a Comment
Keep a civil tongue.