SHOCK & AWE

Euro leaders agree to open bailout funds without austerity measures!

And, the Euro and equity futures shot through the roof!!!





Now we know what the "BIG" progress rumor from this afternoon was all about (see quote below).

Just a quick thought on EU Summit before I get into the final hour of trading...

I'd still trade with that in mind as a potential event risk. The more "everyone" is thinking that noting new is going to come out of it, the more I'm feeling uneasy about it. There's always a chance that they may try the "Spanish Prisoner" con again and announce something ambitious just to get the market going. The mark (investor) always falls for that.

And, sooner said than done.

Rumor mill spinning out of control throughout the day. Rumor out of Brussels has it that they're making "big" progress. That sent the Euro soaring along with the stock market. Seriously, they're all probably just watching Euro Soccer games. :=)

Just got a feeling that they might pull a stunt like that. That was fast and furious.

Edited by TechMan, 28 June 2012 - 10:12 PM.

European leaders have agreed to use the continent's permanent bailout fund to recapitalize struggling banks, and agreed to the idea of a tighter union in the long term. EU President Herman Van Rompuy called it a "breakthrough that banks can be recapitalized directly." As an aside, Angela Merkel left the summit without making any comment.

I don't really keep up with all that's going on over there, but is the bailout fund real money or is it just a printing press like the Fed has ? I opened a bull spread on close, looked like tomorrow would be higher.

Edited by CLK, 28 June 2012 - 11:05 PM.

I don't really keep up with all that's going on over there, but is the bailout fund real money or is
it just a printing press like the Fed has ?

I opened a bull spread on close, looked like tomorrow would be higher.

It's the same printing press.

As for tomorrow, the question is to short it or to ride it. Asia's rallying and European bourses are likely to open higher later. We should open higher too, but that may set up good entry point for short positions. Big spike like this begs for big mean reversion. Let's wait and see.

I'm still amazed at the "timely release" of the rumor in the afternoon and the subsequent press conference tonight. Everything makes sense when you connect the dots. Can't take these event risks too lightly.

Edited by TechMan, 28 June 2012 - 11:59 PM.

I don't really keep up with all that's going on over there, but is the bailout fund real money or is
it just a printing press like the Fed has ?

I opened a bull spread on close, looked like tomorrow would be higher.

It's the same printing press.

As for tomorrow, the question is to short it or to ride it. Asia's rallying and European bourses are likely to open higher later. We should open higher too, but that may set up good entry point for short positions. Big spike like this begs for big mean reversion. Let's wait and see.

I'm still amazed at the "timely release" of the rumor in the afternoon and the subsequent press conference tonight. Everything makes sense when you're able to connect the dots.

I'll probably take profits if up a lot, I won't short mid-day as I would only have hourly signals to go on, and no
way for me to tell if it will last long enough to make a profit.

I'll probably take profits if up a lot, I won't short mid-day as I would only have hourly signals to go on, and no
way for me to tell if it will last long enough to make a profit.

Good idea. It never hurts anyone to take profits.

Taking profits and cutting losses are the two most important disciplines that every trader should practice religiously. We can't control the market, but we can control our money.

Looks like ES is starting to form a bearish descending triangle at the top.

I don't really keep up with all that's going on over there, but is the bailout fund real money or is
it just a printing press like the Fed has ?

I opened a bull spread on close, looked like tomorrow would be higher.

It's the same printing press.

As for tomorrow, the question is to short it or to ride it. Asia's rallying and European bourses are likely to open higher later. We should open higher too, but that may set up good entry point for short positions. Big spike like this begs for big mean reversion. Let's wait and see.

I'm still amazed at the "timely release" of the rumor in the afternoon and the subsequent press conference tonight. Everything makes sense when you connect the dots. Can't take these event risks too lightly.

Thanks for the commentary. There were some signs of this rally, Techman. Yes, I too am in awe that in less than 24 hours /ES can move 40 pts bottom to top till now but rally signs were there during yesterday's sell off, without any significant news. We could see some consolidation but I guess it is buy the dips.

I am talking based on the readings right now, but if tomorrow's close is as good as now, power is to the upside.

Sleep time!

Coming up is that "tough nut to crack" support-resistance at 1.2690 that I had previously referenced for the Euro. I'll be looking for the right entry to short this surge - the larger the opening gap, the better. Good luck, boyz.

Edited by TechMan, 29 June 2012 - 07:59 AM.

Took profit and shorted here, should see half day of selling from here. I normally don't like intraday but the setup is there. Take another look on close.

Edited by CLK, 29 June 2012 - 08:39 AM.