Google Analytics

Tuesday, October 23

22nd Oct - US Close: Ramp!

So, the stock market deciced to rally on the last minutes. I think it is safe to say now that the bottom of the daily range of the S&P 500 has been rejected, and a visit to the range's top is in progress.

Previously on MoreLiver’s:

Follow ‘MoreLiver’ on Twitter or Facebook

Roundups and Commentary
Markets – Between The Hedges
The Closer – alphaville / FT
Tomorrow’s Tape: 3M, Facebook Lead Earnings Parade – WSJ
US Summary:  Monster ramp sends stocks vertical in last hour – ZH

Debt crisis: live – The Telegraph
The Euro Crisis Blog – WSJ
Tracking Europe’s Debt Crisis – NYT
FX Options Analytics – Saxo Bank
European 10yr Yields and Spreads – MTS indices

Follow ‘MoreLiver’ on Twitter or Facebook 

Taking A Man At His WordFistful of Euros
Especially now the ECB has become the in-tray into which all the politically unpalatable and thus unresolvable issues ultimately get dumped. The most recent example of this is the suggestion that Spain applying for a precautionary credit line would be the ideal solution to the country’s current dilemma since no money would actually need to change hands, making the move easier to sell to the German parliament.

TARGET losses in case of a euro
Hans-Werner Sinn: As with the Eurozone crisis, the TARGET debate shows little sign of disappearing quietly. This column argues that the ECB has tolerated, if not created, huge TARGET imbalances that impose a particular risk on the northern countries should the euro break up. It calls for a fairer and more sustainable system – and suggests the US model may offer some guidance.

Europe’s summit that wasn’tMacroBusiness
It’s taken me the entire weekend to digest just how underwhelming the latest EU summit was. I spent much of Saturday searching for an important announcement that I must have missed, but alas I couldn’t find one.

Buba still unimpressed with ECBalphaville / FT
The Bundesbank used its latest monthly report to reiterate its criticism of ECB bond-buying activities, warning that it delays the necessary adjustment process in the euro region.

Spanish downgrade threat averted, but for how long?MacroScope / Reuters

Banking union will not end Europe’s crisisWolfgang Münchau / FT
I am now persuaded to accept that the eurozone’s political establishment is ready to build the necessary institutions for a monetary union. That was not the case one year ago. What is still missing is the political will to resolve the actual crisis…What a banking union will do is ensure that the monetary union becomes sustainable. But it has to survive first.

The financial transaction tax faithful march onBrussels blog / FT
It is largely a formality. But it means the 11 EU countries that want the levy will be one procedure closer to setting up their own Tobin tax. Such breakaway groups are considered a last resort under EU rules, so any enhanced cooperation must clear various legal hurdles, including proof that a pan-EU deal is impossible for now.

Greece Austerity Diet Risks 1930s-Style Depression: Euro CreditBB
Greece has done all that without achieving anything,” said Barbara Ridpath, chief executive of the International Centre for Financial Regulation in London, who headed Standard & Poor’s ratings activities in Europe until 2008. “That’s the sad thing.”

FOMC Preview – Calculated RiskCalculated Risk

S&P 500 and the Dollar: Weakening of the RoRo TradeMarc to Market
The S&P 500 has been a proxy for the risk-on trades. The strong correlation between some currencies and the S&P 500, or in the yen's case, the deep inverse correlation was widely understood as a sign of the importance of the risk-on/risk-off matrix that seem to drive asset markets. However, the snapshot of the rolling 60-day correlations presented here suggest some easing of the "RoRo" trade.

S&P 500 Sector WeightingsBespoke
Below is an updated look at S&P 500 sector weightings.  As shown, Technology remains as the largest sector of the S&P 500 at 19.27%

What Led the Late Turnaround?Bespoke
So what led the late-day charge higher?  Below we highlight how the 10 S&P 500 sectors performed through 3 PM as well as in the final hour of trading. 

Risk Appetite At Extreme Highs Signals Risk-Off To ComeZH

Stocks Eke Out GainsWSJ

What the South Sea Fight is Over; World Correlation Chart; China Wealth Concentration and Capital FlowsHistorySquared

Merkel tunnustautuu keynesiläiseksi – eikö kukaan suostu näkemään huoneessa olevaa norsua?tyhmyri

Suomi on PihallaJuhani Huopainen / US Puheenvuoro