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Monday, October 10, 2011 - Short Term Update

Off today, I do not like trading in thin markets. Full update tomorrow.
Some observations though...

Friday Recap:

The indexes looked fractured at the close, especially the $BKX banking sector. October should have a positive bias, but Monday should continue Friday's weakness.

Monday:
Obviously we didn't see any continuation from Friday's weak close.
That said, the good news that France and Germany aren't going to let Greece totally implode, is being met with the not so great news that Dexia, a bank that passed the stress test with flying colors, needs to be nationalized. Furthermore, Erste, a large Austrian bank is using the slow day to leak the news that it has a large, bleeding, and previously undisclosed CDS portfolio. Sub-prime will be contained 2007 anyone?

Had the bond market been open today (which is much larger than the equity market), one wonders how what the true reaction today would look like.

Full update of indicators tomorrow.
Have a good Columbus day!
-Bill L.