Thursday, December 1, 2011

Fed, ECB, Canada, Japan, England, Swiss in Joint Action

The  sp500 futures are rallying 3% on the back of co-ordinated action to keep the commercial banks in play - right now sovereigns have been destroying financial market confidence and raising borrowing costs to unsustainable levels. 

This move is a prelude to both the global policy tools that are available, but there is no way that this move could've been priced in (not many precendents) - this predicates a large upside bias, we are going to take weeks to adjust to the reality that the Bernanke put that exists for U.S equities, also exists on the global scale.

The bottom is most definitely in - but I'm fairly certain we'll see a huge upswing into the year end.  What's going to happen in the 2nd qtr of next year is anyone's guess, but for the time being, there's only way way to trade - and that's with the upside bias.