…we’ve alleviated a heavily oversold condition in all the risk markets and put things in better balance.
Now we can sit back and wait for the inevitable “tape bomb” from Europe to send us lower again.
I guess the risk to that trade is that they finally get their act together on recapitalizing European banks, but that process will likely prove long and drawn-out, as all European processes are.
Next week, look for the return of the two-way market. Great for scalpers, tougher for trend traders…