Morning Markets Commentary and Charts 04/27/12 #SPX $ES

This is just so stupid. Well, everything is truly stupid these days. The extend and pretend game, the implicit belief CB's have to power to solve any problem, the faith that governments serve our best interests and will always be there for us, the belief that piling unmanageable piles of debt on top of already unmanageable amounts will  solve something; it is all pure insanity.

At least we have the Printer in Chief running the show over here spinning growth and stabilization keeping the illusion alive. In the EU they are fractured, disorganized, unbalanced and can not attain the coordination to keep their union alive.

The stress is really beginning to show after the LTRO2 farce bailout pump did not even stabilize things for a month. "Now, two months later, even the members of the European Parliament are openly questioning their belief in the sociopath ECB chief. After laying out the apparent reasons for the LTRO scheme (at a recent European Parliament hearing) to keep banks well-funded, Godfrey Bloom (MEP) describes the implicit reason - or so-called reach-around (sic.) Sarkozy-carry trade to fund governments circumventing Maastricht and article 104 of the ECB's Treaty" Memo To Draghi: We, The People, "Don't Trust You One Inch" | ZeroHedge

Afternoon Delight 04/17/12 - BTFD Rulz!

BTFD bitchez! What a day. A little Spanish bond success and some earnings beats and BAM! Must have been the makings of a secret sauce that launches the /ES from a 1359 overnight low to a high of 1388 (a 29 point surge - in one day remember). Wow is all I can muster at this point. Just when you think the bears have them cornered and the markets are sitting on support overlooking the cliff of doom, in come the bots to do their bidding. I guess we have come to expect these moves and they are really not all that surprising anymore. Heck, I don't even get angry and throw things like I used to.

Don't get used to this and get caught in the bull trap. Things are not well at all. They may be able to maintain or extend and pretend a bit longer, but they are not solving anything. As this post remarks, "It did not take long for the honeymoon following LTRO2 to end and despite today's exuberance, Italian and Spanish equity markets (as well as financial credits) have collapsed as Spain's sovereign risk has skyrocketed. While Spanish bank holdings of Spanish govvies, ECB lending to Spanish banks, and Spanish credit risk are surging so is one other much more worrisome fundamental trend - that of corporate non-performing loans." LTROver | ZeroHedge