A 4th straight down day since noted here, ‘funding stress, poor Spanish auction, rift between Germany/ France, Merkel’ ruling out ECB to solve crisis’. Today, you can say nothing has changed as these same crisis symptoms were echoed…very weak Spanish note, ECB funding demands up big, Merkel disagreeing with everything……
The fact that nothing has emerged from potential catalysts so far this week,(ie. FOMC dashed immediate QE hope today), it’s probably better to be sidelined for the holidays and avoid European drags. What’s the incentive to be around? It’s unlikely a ‘bazooka’ outcome will surface unless a big bank mishap happens first and/or until Dec 8/9, (ECB meet-up, Eurozone leader Summit). A bazooka will not come via a mid-day announcement like IMF’s today, so it’s doubtful you’ll miss anything, except a ‘mishap’
Again, we saw how investor tolerance is fading, a real solution is wanted and not another gap -filler as today’s IMF credit line proved to be by the markets ho-hum attitude to it.
It’s good to see some stabilization at SP1183 since yesterday, but believing now any move into ~1215 will be sold into (unless it comes with something very material to Europe).