Quote:
Originally Posted by mact3333
Sold all TNA, TYH, SPY calls...holding AGQ small position only now...gotta see what mkt wants to do at this point....should see a reaction now from 1250-60 from profit taking...we saw large selling on strength friday and I bet we see large selling on strength again today.
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Wednesda wil be the deciding factor for the next trend. If summit talks end up agreeing on current plans of Eurobanks raising capitalization money first from the private sector, then that news should calm the markets. But the Eurobanks will have huge difficult securing such funding since credit debt swaps so high now. If the Eurobanks cannot gather private investor money for recapitalization, they will turn to selling off government assets. They will indeed trigger a fire sale across Europe as investors protect their own asset values and sell off alongside Eurobanks.
Greek write downs nearing 60% in some discussions, this will hitFrance hard and will undoubtedly get them another downgrade. Contagion is still very much possible. I'm a bit brave and holding on some FAS atm, but will be watching the markets like a hawk and prepared to pull out ASAP. I still have a good cushion so I will see how things ride.
Hope everyone is investing accordingly!