It was an interesting day in many ways. The euro zone is "fixed" rally was impressive that's for sure despite the lack of details, and as the FT noted, things weren't nailed down yet. But the buy programs hit the tape and away we went. The most worrisome thing is how overbought we are just on a short-term basis. The trusty NYMO rarely gets above 100 but I've seen it there a few times. The other thing that stares you in the face is how highly correlated all these markets are away from bonds and perhaps currencies. It seems when the "risk on" trade is present you only need to buy one security with the highest beta (volatility measure) and not bother with doing anything more thoughtful. This is the result of easy money policies globally and how integrated the world has become.
Friday we get more earnings and economic data led by Personal Income and Outlays, the Employment Cost Index and Consumer Sentiment. The latter doesn't seem that reliable.
Let's see what happens.
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