Even if Darth Bernanke announced yesterday that the Empire hasn t finished the Death Star QE3 yet, he didn t ruled out that they re gonna build it. Nevertheless Equity Markets felt in disappointment while further spurred by S&P's comments about a possible US dg, ongoing concerns about Europe's debt crisis and politicians disability to handle it and avoiding contagion. A plausible reaction as there are plenty of possible fat tails ahead for the weekend:
- release of "stress" test results
- Obama s deadline of debt celeing
- austerity vote in Italy
Especially the later cld proof to be a black swan as Berlusconi linked the vote to his political future which may present a too sweet to withstand temptation to stab Julius C... Sorry, Silvio Berlusconi
My overall impression is that most people are on 'stand by' expecting neither the US nor the Italians / Europeans to fail on their voting tasks as there s simply no room for failure....
Expect the unexpected and stay long gamma