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Wait a minute! What day was Friday?

Jun 302012
 
 June 30, 2012  Posted by at 2:52 pm Finance


Wait a minute. Last Friday, June 29th, was the last trading day of the month. It was also the last trading day of the 2nd quarter. AND it was the last trading day of the first half of 2012.

Plus, in the days leading up to Friday, markets were suffereing quite badly, so the smart bet must have SEEMED to be, to be – or stay – short the market.

So how many people were short exactly, and how many had to scramble to cover their bets at the first snippet of what looked like good news? And what part of that was responsible for the market surge, Dow 2.2%, S&P 2.49%?

Look, when the DAX is up 4.33%, the CAC 40 4.75%, and Spain and Italy 5.66% and 6.59% respectively, everyone should take one step back, scratch their heads and realize those are not normal numbers, not even in a major bull market.

Ergo: everyone and their pet hamsters were covering their shorts. Sort of like the opposite of casual Friday.

Next week will be interesting to watch. Be careful out there.

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  • June 30, 2012 at 2:52 pm #8485
    Raúl Ilargi Meijer
    Keymaster

    Wait a minute. Last Friday, June 29th, was the last trading day of the month. It was also the last trading day of the 2nd quarter. AND it was the last
    [See the full post at: Wait a minute! What day was Friday?]

    June 30, 2012 at 8:38 pm #4371
    jal
    Participant

    Aren’t you glad that you are only looking through the window?
    The party must go on.

    July 1, 2012 at 12:06 am #4375
    davefairtex
    Participant

    I concur, short covering – but the real short covering action was in oil & copper, not as much in the broad market.

    Do we remember when the sanctions will hit Iran? Sunday July 1st. Oil’s $7 bounce on huge volume (an unnatural move if I’ve ever seen it, in the absence of outright invasion) made a lot of somebodies a lot of money. Oil had done nothing but go down for 2 straight months. Thursday it had made a new low and rebounded modestly. Coiled like a spring, waiting for … pretty much any trigger to cause a snap back.

    Isn’t it interesting how oil fell right up to the start of sanctions? Who would have predicted that?

    Often these violent short covering rallies don’t lead to any real trend change, but the Iran sanctions (and accompanying newsflow) might change that.

    One oddity: the $IBEX is actually looking pretty strong, steadily moving off the lows of June 1, refusing to go down in spite of all the horrid news in Spain. I can’t explain it, but there it is. When prices move in opposition to the newsflow, its probably a good idea to at least take notice.

    July 1, 2012 at 2:44 am #4378
    agelbert
    Member

    Speaking of what day was friday, in one of those amazing coincidences that may point to some sort of synchronicity or historical rhymining rather than repeating, you’ll never guess what day June 29, 2007 fell on.

    https://www.evi.com/q/what_day_of_the_week_was_june_29,2007

    Yep, after the last day in February this year, our days have matched 2007 as to day of the week per numerical date. Now you all remember 2007, don’t you? You remember that the fed was doing everything in its power to hide the fact that the “wealth effect” of the housing boom was a lie and the carnage in the housing sector was rapidly eroding banking balance sheets, pension funds hither and yon and any municipality anywhere in the western world that had been stupid enough to fall for the derivative tranching scam courtesy of Wall Street. The non-stop lies on CNBC and the rest of the media about how stress on the economy were contained are now, in 2012, far more IN-YOUR-FACE but still they continue. After 5 years and several trillion dollars of debt added to we-the-people, I can only conclude that things are far worse than they were in 2007, but the pattern of false belief in stock market salvation continues in the media.
    This is the way the stock market looked in June 29,2007 (a large termite mound prior to a flood):

    https://www.youtube.com/watch?v=8yKj5XIDvEo

    Shortly thereafter all kinds of “unexpected” lack of profits from corporations (the early days of july 2007) started the reality checks coming.

    Maybe 2012 is not a repeat of 2007 on steroids complete with the numerical calender days falling on the same day of the week but it sure looks ugly.

    July 1, 2012 at 7:09 am #4381
    agelbert
    Member

    As long as we have billionaires, things will only get worse.

    https://able2know.org/topic/162717-1

    July 1, 2012 at 8:47 pm #4393
    Golden Oxen
    Participant

    Don’t forget Gold, Silver, and of course Oil.
    Gold up 3.03%
    Silver up 4.45%
    Oil up 8.57 %
    It was a most unusual day.

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