PPT Active in Dollar Today

[Martinghoul]

Quote from ASusilovic:
What about these Italian / Bund, Spain / Bund spreads ? Time to short ?

You tell me, senor... I am not buying until I see the sh1theads that are supposed to be in charge in the EMU get their act together. They have to start showing that they collectively care about the fate of their ccy union. So far they don't seem to give a rat's arse...

Quote from ASusilovic:
Their currency reserves are raising exponentially...UBS currency desk is working overtime...

Yep, feels like money poured down a bottomless pit (of despair), doesn't it?

 

[Optional]

Quote from USAtrader:

I can't be the only one that believes the PPT, et al., is actively selling dollars here in an attempt to support equities.

Engineering.

errr, why wouldn't they just buy equities to support equities?

The negative correlation between falling USD and rising SP is long over now...

 

[USAtrader]

Why go the extra step when they already handle dollars (actual, swaps, and other related transactions), why not just do that.

The negative correlation between falling USD (at least as it relates to the EUR) and rising SP is NOT long over. I'm not normally active in currencies, so I can't speak to things prior to the month of May and June this year. So I'm just speaking regarding flash crash through today. During that period there has been an extremely close intraday relationship between the EUR.USD and US equities. If you watch the movement day to day and during the overnight sessions you can see programs every day that are just buying and selling spooz along with the movement in the EUR.USD.

Edit: I would just add that it seems that intraday a lot of this corelation seems to often have a slight advance move. I.e., one will sometimes lead the other then quickly play catch up.

Quote from Optional:

errr, why wouldn't they just buy equities to support equities?

The negative correlation between falling USD and rising SP is long over now...

 

[Ivanovich]

Quote from Martinghoul:

You tell me, senor... I am not buying until I see the sh1theads that are supposed to be in charge in the EMU get their act together. They have to start showing that they collectively care about the fate of their ccy union. So far they don't seem to give a rat's arse...

That's a far cry from where you were when this whole thing started in Greece a few months back.

 

[Ivanovich]

Quote from USAtrader:

Why go the extra step when they already handle dollars (actual, swaps, and other related transactions), why not just do that.

The negative correlation between falling USD (at least as it relates to the EUR) and rising SP is NOT long over. I'm not normally active in currencies, so I can't speak to things prior to the month of May and June this year. So I'm just speaking regarding flash crash through today. During that period there has been an extremely close intraday relationship between the EUR.USD and US equities. If you watch the movement day to day and during the overnight sessions you can see programs every day that are just buying and selling spooz along with the movement in the EUR.USD.

Edit: I would just add that it seems that intraday a lot of this corelation seems to often have a slight advance move. I.e., one will sometimes lead the other then quickly play catch up.

Why would it be over? The Algos are programmed that way, and they're not going to change that until it's no longer profitable.

 

[Martinghoul]

Quote from Ivanovich:
That's a far cry from where you were when this whole thing started in Greece a few months back.

Yep, that's right... That's what happens to grown men when they stop out and lose money: they start whining like little babies. They get bitter and pissed off with the world and start blaming "powers that be" for their own mistakes .

 

[USAtrader]

Quote from Ivanovich:

Why would it be over? The Algos are programmed that way, and they're not going to change that until it's no longer profitable.

I agree. I was replying to Optional's message:


"The negative correlation between falling USD and rising SP is long over now..."


Programs currently (as in flash crash - to date) seem to trade EUR.USD positively to equities. These programs seem to be on, and in full force both in day and eve seesions lately.

 

[ASusilovic]

Quote from Martinghoul:

You tell me, senor... I am not buying until I see the sh1theads that are supposed to be in charge in the EMU get their act together. They have to start showing that they collectively care about the fate of their ccy union. So far they don't seem to give a rat's arse...

Yep, feels like money poured down a bottomless pit (of despair), doesn't it?

That's the right answer to all the sh1theads EUR sceptics :

Banco Santander pays $2.5 billion for stake in Mexico unit

MADRID (MarketWatch) -- Spanish banking giant Banco Santander on Wednesday said it will pay $2.5 billion for the 24.9% stake in its Mexican branch, Grupo Financiero Santander, owned by Bank of America.

http://www.marketwatch.com/story/santander-pays-b-of-a-25-bln-for-mexico-stake-2010-06-09

When the EUR was at 1,60, I didn´t see much M&A from European banks because they sh.t their pants about the "credit crisis". Lousy beginners, especially Deutsche Bank pant sh...ttters...That´s why Warren B. is a hero. NO RISK, NO FUN !!