Home > Economics, Finance, Trading > um yes that really did just happen…

um yes that really did just happen…

Wow…you might not believe it, but yeah that did just happen.  Here’s the chart, below it are some thoughts/observations.

I mean seriously?  This is not real.  Stuff like that cannot/should not/does not happen in a real world.  In a world dominated by robots and inundated with fear, the story reality is a little different.  I am tempted to post the Proctor and Gamble (PG) chart but when a stock that is far from volatile plunged from $60 to $40 it’s hard to get a succinct visual depiction of what really transpired.  Pardon the rambling nature of this post, but my stomach is tumbling, my arm hairs are standing tall and my heart rate is through the roof.

There was no intraday/unique catalyst for this move.  We all know that Greece is in trouble, we all know that the Euro is particularly vulnerable at this time, but don’t we also know that the U.S. recovery is far more robust than anyone anticipated?  Well clearly fear is back in play in U.S. markets.  I said just the other day that a down move of that magnitude (Tuesday”s) generally gets follow-through.  Never in my wildest dreams did I expect this (and sure enough, I lost more money than I would’ve liked trying to buy this market too early…).

Tuesday was a rough day, today was a bloodbath.  Greece needs to leave the euro and get this over with now.  There is no other endgame that works.  Staying on the Euro and deflating is not an option.  It won’t work.  The euro may or may not survive this panic, but one thing is clear: the risks of monetary union in tough times are far greater than the rewards in good times.  After today, what people feared is now confirmed as the truth.

I will be back later on with some more thoughts, but I just wanted to put this out there for now.


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