baloonEuropean banks, the cause of yesterday’s collapse, all rallied today. CDS spreads in Europe narrowed across the board, French and Italian sovereign debt rallied, and Gold sold off 41 dollars (down 2.3%). Earnings continue to meet low expectation (Kohl’s, Cisco). The BOVESPA rallied sharply, and the VIX declined all day.

After an exhausting first 4-days of the week we have: 2-2 (in terms of terrifying market collapses vs euphoric booms). Again, this is just this week. If you need some water to mix with your alcohol IV, you aren’t alone.  Rubber match on Friday.



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  1. Bigges on August 11, 2011 at 4:40 pm

    Sems like the US markets are content trading like those of a Banana Republic, 5% daily swings!

  2. crackerjack on August 11, 2011 at 5:24 pm

    Hi Bigges – indeed volatility is unprecedented. Usually large melt-ups like today get the VIX (volatility index) to fall sharply. Today we only fell to 39 despite a powerful rally. This is an indication that we aren’t out of the woods and/or anywhere near calm waters. Expect another large move (up or down) tomorrow as we go 5-for-5 on the week.

  3. Sherise Woodflorski on August 11, 2011 at 7:35 pm

    Our markets are a joke. Stability will return within 6 months. I’m holding out until the VIX lowers and the double dip is completely debunked. No need to rush in.

  4. crackerjack on August 12, 2011 at 11:21 am

    Sherise, some interesting points. The one thing i will point out – it is the fears of a “double dip” that got the markets trading from 1,300 (S&P 500) down to 1,100. That was over a 15% move down to the lows. Once things are cleared up (assuming they are and we don’t “double dip”) you won’t be getting long at these prices – probably much higher. The VIX has moved from 39 to below 36 today.

  5. Samuel Nelson on August 12, 2011 at 3:05 pm

    I agree with Sherise, will allow this to play out a bit. This week’s action not indicative of stability.

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