Friday, December 2, 2011

D-Day for Europe

Supposedly December 9 is decision day for Europe as they meet in a summit (ooh, it must be important - will they serve beer?) that could determine if they can rescue themselves. Woudn't it be cool if they met in Normandy?

Buy the rumor, sell the news. We had the "buy" part this week. Next week, unless they come up with something brilliant and totally expected we may see "selling the news."

I have more questions than answers:
Why did Treasuries rally a lot Friday?  I thought this was "risk on" week.
Why did the dollar reverse to the upside?
Why did gasoline rally so much Friday?
Why are pizza stocks flying? Don't say because people stopped going out fancier. These stocks were hot in October as the market was saying "I'm baaaack."
Did anyone notice the Chinese market is sucking wind and has given back most of the gains it made the day when they changed reserve requirements?
Who saw a one-day dip in LIBOR (it was back up Friday)?

A lot of these are not good signs for the stock market so if QE-Europe fails or stalls or looks like it will not happen, well, D-Day here we come.

4 comments:

patrick neid said...
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patrick neid said...

How many Dec 9's have we had now? I suppose sooner or later there will be a day that counts but I'm again assuming this won't be it. The contrarian in me has never seen a crisis/day actually take place that was prophesied for a couple of years in advance by every pundit on the planet--the demise of the Euro comes to mind. But, sooner or later....

Quick Takes Pro said...

The wall is fast approaching

VN69 said...

Given the time difference maybe someone will blab something during Fridays trading. Other than that what could effect things to the upside this week? Looks it would have to be up there with zero new unemployment claims.