There is a huge relief rally underway in global equities this morning. Part of yesterday’s sell off was uncertainty about China’s willingness to own/buy European debt. Overnight they said they are going to remain long. This same conversation has been going on for months regarding our own debt. Where else would they go? The market needed some reassuring news, but at the end of the day it doesn’t change the failing underpinnings on the other side of the pond.
Frankly, I thought we would have a very soft to down market the next two days as we approach a long weekend shrouded with global uncertainty. Markets are closed Monday. Optically, this is nifty, and will help the market, but Europe’s problems still seem to get worse by the day. It’s great drama and it really does evolve on a daily basis.
Geithner is over in Europe with a bag full of band aids this morning, so sound bites should be telegraphed all day. It should be a wild end of week to say the least. Will the rally wear off as the bulls become tentative going in to the long weekend or will they now feel empowered and squeeze the shorts? Stay tuned, the beat goes on.
It was another very positive day on the Premium Site yesterday, with zero losers from both the long and short side. Trading has been hectic ,but fun, as the bullets keep flying. Have a great day.