To be honest my reaction is surprise, it’s time for a break. That’s capitulation in real-time, but with that thought in mind some words of wisdom from the late Barton Biggs. (Thanks Mr. Ritholtz)
The market can be irrational longer than I can remain solvable and the focus has switched back to the US.
Spanish Spreads are hitting record highs and today’s passage of Frances’ 75% wealth tax ou “contribution esceptionnelle” are being ignored. Both of those headline risks are being interpreted differently than I would have expected. Even the US employment numbers are being ignored, with hope for QE overtaking employment weaknesses which should negatively impact the market.
- EURUSD + 0.16%
- Gold (GC) + 1.15%
- Oil (CL) + 1.51%
- S&P Futures (ES) + 0.44%
- CAC40 + 0.77 % FTSE +0.49%
It looks like we’re going to open optimistic.
The CBOE Put/Call Ratios are updated, here. We’re at extremely low ratios. On the Index side a .89 print has only happened 9 other times since June 2011. OPEX is tomorrow.
That’s optimism, hence, danger.