Thursday, December 2, 2010
Bad News from ECB
The ECB has not extended the bond purchase program. This almost surely means the market will test the bulls to see what they are made of. We will likely get further euro selling and sovereign debt selling. Eventually Trichet will give in and extend the bond purchase program but only after we get closer to a crisis. Need to see more pain in Spain before we get going on the bailout.
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2 comments:
When you look at the market from the standpoint that seasonality is positive and we were oversold, than todays move makes a little more sense. The short term is less about fundamentals.
Looks like a short squeeze in Europe and no one wants to be short ahead of nonfarm payrolls. I am looking for heavy selling next week.
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