by John Nyaradi
Markets continued their three week surge on the hope that Europe will come to an agreement over Greece and Eurozone debt next week.
My only question: is the rally a true indicator of Eurozone stabilization or is it a bubble of hope that will likely burst with the Eurozone’s potential collapse?
Regardless of a potential euro bubble or not, the markets are sure drinking the sugar with Europe, as Friday marked the third straight week of surging prices. The Dow added 267 points Friday to close out on top, while the NASDAQ increased 38.84 points and the S&P 500 increased 22.86 points.
As members of the EU negotiate a potential crisis aversion for the ailing continent, one wonders if it is really possible that Europe can be fixed, and if indeed a second summit between its leaders can get the job done.
Is the market rally a bubble of hope or a symbol of real confidence in the continent?
Markets also likely surged due to further Fed talk regarding more easing. QE3 or any type of asset buying do not seem to be on the table, but it appears that the Fed is watching the economy ever so closely…
Lastly, I was pleased to hear that the President will pull all US troops out of Iraq by this year’s end. After nine years of struggle, our troops are finally coming home.
Global Stock Market Summary:
Dow Jones Industrials (NYSE: DIA) +2.71, +2.35%
S&P 500 (NYSE: SPY) +2.31, +1.9%
NASDAQ (Nasdaq: QQQ) +0.71, +1.25%
Russell 2000 (NYSE: IWM) +1.51, +2.17%
Disclosure: Wall Street Sector Selector actively trades a wide range of exchange traded funds and positions can change at any time.