My apologies, but I sent this to my distribution list at 3:34 but couldn't figure out how to get it on to seeking alpha in a timely manner. Anyways, here is an update to my earlier trade comments.
Day played out well. Some early strength followed by big sell off. I got scared out of my last short when QE3 and supersized EFSF story hit. Feels like we are due for a concentrated dose of government propaganda. ECB and FED and EU will try to talk the market up with some vague promises. Obama might try but I think even he knows his credibility is low and he should stay off the radar screen. This morning followed a pleasant script and seems to have flushed out some longs and maybe got the bears overly excited.
I don't see these ploys working and the data could stop the market support attempts in their tracks but at although I remain bearish I'm positioned for a rally. Europe seems to love a good government intervention story even more than we do so I would expect more bounce overnight.
A trillion euro EFSF will be interesting to analyze and think about. Where will 10 year EFSF bonds trade? Who will be the first dealer to quote EFSF CDS?