Something to Build On
Expectations for the European Union Summit were low and that set up the market for a big day when progress was made on a direct bailout of troubled banks. Market players were not well positioned for the good news and when the market didn't immediately fade after the gap up, there was a scramble to find long exposure and quick short covering. It didn't hurt that it's the end of the quarter, so there was window dressing as well.
The big issue now is whether the market can build on this news. The bears will tell us that we have seen this sort of celebration over European news before and ultimately nothing much was solved. That may be the case again, but in the near term we have removed a few obstacles and I'm not inclined to believe we are going to sink back into despair that fast....172 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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