Yesterday Mr, Market appeared tired, maybe ready for a little nap for a week or two. But wait…. at around 3:30 PM, a news release hit the wires that the Greek Conservative leader would deliver a letter (by today) blessing Greece’s recent austerity measures. Not big news, the tape gets painted with releases all the time, but the S&P rallied roughly nine handles in thirty minutes, closing the S&P on the highs. But Europe doesn’t matter anymore right?
Futures are higher this morning, primarily because China has said they will continue to hold and buy Euro debt. The headlines read “China To the Rescue” (for the fifth time?). Really? We first head this three months ago. Europe is China’s largest export partner. Besides hording more copper, what was China going to do? They own it whether they like it or not. Not new news. White knight my ass. Paint that tape. Europe doesn’t matter. Really?
It’s all good clean fun until someone gets a stick in the eye. Our market needs Europe to keep their headlines happy in here. Even if the news is regurgitated or stale. I would hate to think of what would happen if they didn’t. At this rate, if Angela Merkel announces a switch to Chanel No.5, we could rally twenty handles.
Long $LULU, $NOV, ACHN, $N.. Shorted Nazzy $QQQ and $SPY yesterday.