Europe reached an agreement at 4:30 in the morning. The markets are significantly higher and the buyers are currently on autopilot. The Euro is getting squeezed higher and the greenback is falling hard. All sectors are strong and the financials are up almost 4% in pre-market trading.
Our EPV position is trading blow our stop in pre market and I will watch this closely at the open. As you know I always wait about 45 minutes to an hour before over reacting when a position goes against me.
Right now this is a massive knee jerk reaction which is completely normal. This could carry forward for a few day or weeks and it’s not a time to fight the tape, however the devil will be in the details on this Euro deal in the days ahead, but that doesn’t matter right now.
U.S. index futures are up about 2.5% and European exchanges are up about 4.5%.
We have 3 shorts and 1 long going into today and I will be on the job today trying to get us repositioned. This surprise catalyst could be the trigger to get this market going higher through year end as many bearish models will most likely turn bullish.
It isn’t smart to chase longs at the open, but waiting for pullbacks is the way to go.
I will see you on the chat room soon.