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Monday, December 5, 2011

Nice futures

Surprised the futures are acting this well. The only significant developments this weekend (outside of the better then expected showing from the Giants) were:

1. Increased geopolitical risk with Iran claiming to have shot down a drone.

2. Italy passes austerity.

3. HSBC China services PMI continued to show expansion.

The first is obviously negative, the second is nothing new and that leaves china.

The move might not have to do with any of this. Could just be the big boys embracing the stability thesis, and taking advantage of a relatively inexpensive market. Small minor hiccups be damned, when too many players are under invested in the context of a stable market.

Update: Here is the real reason:
http://www.telegraph.co.uk/finance/financialcrisis/8933914/Merkel-and-Sarkozy-to-unveil-eurozone-rescue-package.html

Whispers of a 1T euro package. Smells like a leak. (Still taking the SAS classes, and this post was all from the mobile blogger app. The app does not let me neatly insert the link. Hence the raw address.)

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