What Downgrade? The Disconnect Continues

France was downgraded on Friday, EFSF was downgraded yesterday and talk of an imminent Greece default is all the rage. Markets care nary a wit and they are moving higher. Even the euro is up. The euro will go lower, but it will go higher again first, not much higher, but planet earth is short, so it wont take much to bump it here.

The disconnect between Europe and the market has started. Who knows how long this will last? I thought this may happen a couple of weeks ago, and for now I’m enjoying the ride. We have all seen this movie before and we know the punch bowel can be taken away on a moments notice.

Buying red and selling some green is usually a good plan, so I will be scaling out of some longs this week. Not running for the door, but “scaling” out.

$C had a dismal quarter (futures didn’t care) and $WFC was in line. $XLF is right at its 200 day moving average and all eyes now turn to $GS and their earnings report this week. $MS is the red headed step child that reports last.

Have a great week. To sign up for this site as a Premium Member or to request performance, email: [email protected]

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