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zh<>Attempt To Topkill Stock-EUR Correlation Suffers Massive Failure, Resulting Sewage Floods Permabullish Pundits

Submitted by Tyler Durden on 05/28/2010 15:25 -0500

* Bob Pisani
* Michelle Caruso-Cabrera



The attached chart demonstrates conclusively (and hilariously) just how impotent stocks are, especially on days when even the Liberty 33 crew is in Long Island, in every attempt to break the magnetic EUR correlation. The attempted decoupling that started around 2 hours prior to the close, in which stocks were praying that the EUR correlation desks would follow into the close and just melt up following Atari's cavalry charge into the weekend, broke with 5 minutes to go, as stocks ended exactly where the EURUSD said they would, and very much the opposite of where Michelle Caruso-Cabrera and Bob Pisani were hoping they would (which would be relevant if the pair actually had any credibility still left to be torn down).

Also, on the chart below, note how every time there would be an uptick in the EURJPY, stocks would exagerate the move by a factor of 5. It appears the HFTs are now flatly losing the game. Last but not least, 5 minutes before the close, Goldman's Joseph Cohenites released a hike in their S&P EPS estimates for both 2010 and 2011, from 76 to 78 for the first, and from 90 to 93 for the second. Again - failure.

http://www.zerohedge.com/article/attempt-topkill-stock-eur-correlation-suffers-massive-failure-resulting-sewage-floods-permab