A 5.5% drop in pending new home sales didn't help. Neither did Italy and Spain's rising bond yields or rumors the ECB rejected Spain's Bankia recapitalization plan. The thing that surprises me still is how slow the European authorities are responding to this. It's not a piece of cake but damn, they could @ least manage expectations. It's so easy for rumors to move the market because there's barely an official voice addressing the concerns. There are people talking but they usually don't have the power to do anything they're saying should be done. Add me to that list because Mario Draghi should have made an emergency rate cut by now. The way asset prices are dropping, especially in Europe can do irreversible damage to confidence. money that leaves may take a super long time to come back if ever. After the Italian debt auction went badly Draghi was supposed to call a press conference and announce a rate cut. the pressure of the situation is adding to the difficulty of coming up with solutions.
Take a look @ this dollar index daily chart:
Running out of time but I'm still looking for a pop this week. Even with ADP numbers tomorrow and gov. jobs #'s Friday. the technicals give hints to the fundamentals most times. The fact that we're not diving more than we are says something. The fact that the $spx ain't @ 1200 somewhere says something traders. I'm still trading small just in case I'm wrong and I'd advise any trader to do the same short or long keep it manageable. I've been trading like shit this whole month but I've kept my trades small and have lost a lot less than I did last May. That progress! Be careful out here traders and good luck! Until next time happy hunting!