So markets rallied yesterday with "growing optimism" over a Europackage great enough to bail out Greece, and convince markets that Spain and Italy will also be manageable.
The dow rallied to 11300, the FTSE to 5249, with talks over the potential package and news of Geithner's added weight on the issue, emphasising the importance of Europe to reach a decision quickly and raising hopes for a TARP like eurozone program.
Markets sold off later today however, as the hopefuls become impatient.
Dow 11030
FTSE 5161
Gold 1600 (down with equities, from 1650 earlier today)
Silver 2980
eur/usd 13543
gbp/usd 15576
German unemployment out tomorrow Morning. And US GDP at 12:30. I will be looking to buy in at some point bwetween 11,000-11090. Stop 50 points, to target a potential 250 point rally if GDP beats estimates of 1.2%, which I think is very strongly possible! Given how market decliens tend to affect estimates, I would not be surprised if it has created an overly pessimistic bias, and would also be expecting earnings season coming up to have good odds of being above consensus.
Picture says it all..Getting ready to long dow, short dollar in the coming weeks..Same old trade, same old traders...Let's go.
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