Well, actually Greece isn’t saved any more than European politician would be at a Pentecostal revival, but you get my point. The markets acted last night like everything was okay. The Euro (AMEX:FXE) was up, bonds were down, the Aussie (AMEX:FXA) was rallying versus both the U.S. Dollar and the Yen and the Asian equity indices put on a minimum of 1.5%, breaking out from the tops of their consolidation ranges.
Then Europe opened and well, um, yeah. Actually the selling started about 90 minutes before the European open. And traders got religion enough to remember that Spanish bond yields were spiking, CDS spreads were at an all-time high and the Spanish/Bund spread was so high it was threatening to outmaneuver the Chinese space capsule to dock at the International Space Station ahead of it. “Sorry, chum, if I don’t the air’s thin up here and it’s a long way back down, if you catch my drift.”
The S&P 500 (AMEX:SPY) still followed through on the heels of Friday’s strong close if only barely, up 0.14% to 1344.78. But it registered another mildly upbeat day. Too bad all of the short-covering in the currency and bond market was just that, short-covering. Once that buying dried up, well, as I said, it’s a long way down from here.
I know you’ll be shocked to hear this but Gold (AMEX:GLD) didn’t go anywhere on the day either; attempting to break with fate and move beyond $1630 but that was seen as gauche and so, it didn’t.
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