It always interesting, if not outright scary when sovereign nations find themselves in the ninth inning of negotiations and the topic is “how much should we leverage shit?” . So far the rhetoric has been of the headline variety with no real fangs.
We use leverage in our margin accounts because we either want more exposure , or just don’t have enough money. It’s rarely a good idea for beginners. Leverage can telegraph a lack of funds and I think both are the case with Europe as they are beginners and they just don’t have the money to fix it right the first time.
I hope the candy coated rhinestone rabbit that gets pulled out of Europe’s ass on Wednesday does the job.
The financials $XLF have been leading the charge and have run into resistance at the 13.45 level. The sector is up 22% in three weeks.
I am long and enjoying the fun, but have side view mirrors duct taped to my shoulders.
Careful out there.
$SPY