The rescue saga will continue.  At some point all the PIIGS will default just like Argentina and other countries have done in the past.  The focus here is to protect the banks and allow them to hide their losses.  I think the dollar has been weak because there is some recognition that some form of Q3 that also helps Europe has to occure.  In the meantime China will be buying US stocks instead of Treasuries.  Of all the "games" the Fed has played the "juicing" of stocks in 2009 worked best - so we can see a repeat of this as we run up to the next election.  I trade short term but we may have the start of a multi month bull market in stocks so as a rule I will tend to trade from the long side but with stops.  At some point the music will stop and this financial system will implode but I do not think we are there yet. TYH hasn't been a good purchase so far but I am still on board.

Leave a Reply.