Business

All the gains post-Draghi's bazooka-est efforts in March have gone as bank credit risk is spiking...Today was the biggest jump in EU bank credit risk in 2 months...

And the last 4 weeks have seen the biggest collapse in European banking stocks since April 2012.

Having blown his wad in March and been front-run by every Tom, Dick, and Harry trader, "whatever it takes" appears to be failing hard and with nothing left up his sleeves, Mario may not be so super anymore.

The GAAP PE of the market may be nearly 24, meaning on a non-adjusted basis stocks have, with perhaps the exception of the dot com bubble, never been higher and S&P 500 earnings are now expected to plunge plunge 9.6% - the biggest quarterly collapse since Q1 2009 - but for the mainstream media this is great news. Reuters "explains."

Reuters "explains":

Moments ago, ECB governing council member and Bank of Italy governor Ignazio Visco had some very troubling comments.

He said that while helicopter money is not currently part of the discussion in the Governing Council that "no policy tool within our mandate can or should be dismissed a priori." The reason for this startling admission is "the importance of expectations of low inflation in determining wage outcomes, and thus giving rise to second- round effects, may be increasing.”

Once again, US equities have given up the 'great' jobs report gains and are plunging fast with The Dow sufferung its worst day in 6 weeks. FX markets are turmoiling (USDJPY <108) and bond yields are collapsing to on-month lows. European and US banks are tumbling as despite Dimon's bottom and the coordinated ease-fest of the world's central banks, investors prefer to sell a multi-trillion dollar opaque hole of derivatives debacle-ness than buy it.

By Richard Breslow, a former FX trader and fund manager who writes for Bloomberg

Mood swings have been fluctuating so quickly they resemble rapid-eye-movement rather than the expected ebb and flow of a normal market, such as it is in a QE world.

On Monday S&P 500 futures made a year-to-date high. On Tuesday we were told the market was in full “risk-off” mode. You guessed it, they surged Wednesday. This makes it, perhaps, worth taking a moment to try for some perspective from a technical point of view.