Submitted by Tyler Durden on 05/16/2012 09:29 -0400
Art Cashin
You saw it all unfold here blow by blow yesterday. Now Art Cashin gives the post-mortem.
Source: UBS Financial Markets
Greek ATM Lines And Expiration Bluffing Send Stocks South – Tuesday's trading turned strange even before the market had opened in New York.
An oversold condition and decent data at 8:30 had U.S. futures bubbling on the upside early on.
Suddenly, around 9:00 EDT, lightening seemed to strike. Futures tanked and European markets went into a freefall.
"What just happened" was the cry that echoed across the floor.
The trigger was the announcement that the Greek President was disbanding the last effort to form a coalition government.
Media pundits wondered what was the surprise. Wasn't this expected?
The answer was – yes it was expected but now it was a fact. The power to resolve had shifted from a roomful of professionals to the streets of Athens. Compromise was no longer a possibility.
The sense of hopelessness was underscored by rather vicious selling in the Greek bank stocks.
U.S. stocks tried to resist and opened mixed but wary.
For the balance of the morning, the bulls tried to mount a rally off the oversold condition, produced by days of selling.
After Europe closed at 11:30, U.S. stocks mounted a bit of an ostrich rally. (If I can't see it any more, it can't hurt me.)
The ostrich rally took them to what would be the day's highs,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
http://www.zerohedge.com/news/art-cashin-ostrich-rallies-atm-lines-and-moc-bluffs
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
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