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Monday, July 11, 2011

quick thought... bond-boys

All markets are in the hands of the 'bond-boys' (or at least that is what I am calling them) manhandling the EU right now. The bond-boys are just picking away at Europe, forcing the countries to get their act together. If not, the Euro experiment goes. The new target is Italy. (The spike in yield and CDS says it all.)  But this go around, the EU leaders are not sitting on their hands. They are acting fairly quickly to discuss the issue

Ironically, the ease at which the EU is being manhandled is creating a nice demand for treasuries, despite the Fed no longer purchasing them.

Hopefully, a solid plan is being worked out, a plan that would make the EU far less vulnerable to a small group of traders. We need stability, especially in a region of the world whose combined GDP is larger than the United States of America.


  1. ECHO-

    Wondering if you are seeing a H/S in SPX (looks like it to me on weekly). Sets-up the 200SMA as a price target?

    Your insight is more than appreciated!!

  2. Its no different then the 1340 resistance via the daily, but the weekly is a more pronounced head and shoulder. But I don't get hung up on one technical set up, and lingo :).

    There are a series of supports prior to then: Weekly 28 and 32SMA, and the Daily 14, 28 and 32 (which I think will act as low-end support).

    IMO, the SP500 is not re-testing its 200SMA unless the financial systemic risk presents itself.