We’re trading on hope more than reality here this morning as global markets are ripping higher. Maybe the news services are just testing the plumbing for a euro breakup. It does seem though that Germany and France may be getting down to the nitty gritty on some big moves to save Europe. If you trust “Merkozy” then by all means please buy everything in site with reckless abandon.
We have been to the alter of hope so many times before and this could setting up to be our nineteenth nervous breakdown.I would love markets to rally and I would love to see Santa get his groove on over the next four weeks, but one day does not a trend change make, so be careful.
The euro gapped up at 5PM last night on news from Italian paper La Stampa that the IMF was ready to inject 900B into Italy. The small fly in the ointment is that they don’t have 900B, so let’s see how this evolves. The IMF has also denied the rumor.
Black Friday evidently went well, but nearly as well as advertised. I heard the iPad sales $AAPL were up 68% per hour over this holiday weekend and the $AMZN Kindle sales were up 4X over last year.
The market is itching for a reason, any reason to trade higher. Volume will be key here and follow through will be even more important so watch that.
If you are a buy and holder then you are happy about today. If you are a swing trader that got trapped, then here is your exit. Unless of course you are a true believer.
If there is substance to this “new move” by Europe, then Santa may indeed find a rocket in his pocket over the next few weeks.
In any event, good luck this week and don’t take any wooden euros.