Nothing But Air

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.





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