Greg Guenthner

Chaos descended on Cyprus early this morning.

In a bizarre twist, the regularly-scheduled bank run transformed into a financial media throwdown as journalists from across the globe mobbed the dozen or so patrons lined up in front of the banks in downtown Nicosia.

Via Bloomberg:

“We expected much more people,” said Argyros Eraclides, manager of a Bank of Cyprus branch in the Stavrou area of Nicosia. “Fortunately there are only some people who needed cash for the day, but customers reacted fantastically. We expected some people to be more aggravated.”

Hang on… this isn’t what everyone was predicting. Instead of Cypriots trampling each other to grab their allotted cash allowance, we get reporters trampling each other to catch a glimpse of the small groups that actually showed up to the banks…

How many times do I have to say it?

You can’t trade the news…

With this whole Cyprus bank run, we have another classic case of expectations vs. reality. The media hypes the hell out of these “events” instead of focusing on big-picture outcomes. And you try to time your buying and selling off of what could happen as opposed to what is happening right in front of your face.

For the past two days, the market has melted higher. Yesterday, the S&P flirted with all-time highs. Today might be the day it finally breaks through.

Hang on tight. Stick with stocks. The world’s not ending just yet…

Greg Guenthner
for The Daily Reckoning

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Once the public furor and shrill media coverage have died down, it will become clear that events in Cyprus did not mark the death of democracy or the end of the euro, but potentially the beginning of the end of deposit “insurance.” If so, then three cheers to that. It may herald a return to […]

Greg Guenthner

Greg Guenthner, CMT, is the managing editor of The Rude Awakening. Greg is a member of the Market Technicians Association and holds the Chartered Market Technician designation.