(As of 7:30 am pacific)
Talk may be cheap, but it can
be market moving and profitable. The
European Union is rolling out a cast of characters promoting the ability of
financial authorities to handle any European crisis that comes along. Just this weekend, in an effort to squash a
long streak of negative Mondays, another bureaucrat trumpeted European
resolve. While there has been little to
back it up, it is calming markets and driving down bond yields, particularly
for Italy and Spain. Whether this use of
smoke and mirrors can continue without action to push markets forward is
questionable. In the meantime we have
continued stability in the marketplace.
The dollar is mixed and most commodities are little changed. The shorter side of the yield curve is
increasing while longer rates are holding steady. The markets are slowly moving higher and if
this Monday can break the streak of negative starts to the week, it could be
very positive for the rest of the week.
