I know market data is unpredictable and does not follow logical pattern based on factual events.

But the recent gains all sectors have seen equities, bonds, futures is crazy. This has got to be the week that the market wakes up realises that change of policy/market manipulation cannot be made to fix this. they have to take the hit on the chin.

Banks will start seriously bumping capital, Balance sheets will decrease, market will contract the BEARS will be revealed.

So the weekend of the 9th should reveal the final truth... But expect to see some interesting revelations as exposures are not visible at the moment. Bank run imminent. Italy


Recession and crude at $100... while China slow boils.

thoughts?

judging on the stats, most Europe countries have only 2-3 months. This is not the Euro-Zone Crisis but a Euro-zone Armageddon.

Is QE3 imminent? That’s a quaint notion, considering we just saw QE3, 4, and 5 happen all at once!

In a swift move, China, the United States and Europe are making moves to add liquidity to the markets.

China announced that it’s lowering reserve requirements for banks, meaning that they are loosening lending after a year of tightening.

The U.S., meanwhile, is looking to purchase more mortgage-backed securities. The Fed, in coordination with five other central banks, also nearly cut in half the rate at which foreign central banks pay to borrow U.S. dollars from 1.08 percent to 0.58 percent through Feb. 1, 2013. (That’s cheaper than American banks pay, which is 0.75 percent.)

That and talk of an IMF bailout for Italy sent U.S. stock markets soaring, with the Dow up nearly 500 points the other day, its seventh largest daily point increase ever.

While it buoyed stock markets, these actions, some of which were meant to demonstrate that there won’t be a liquidity crisis like 2008 as the European debt crisis comes to a head, will in fact be very inflationary.
Inflation means every dollar you have buys less than before. If you buy stocks;undervalued AA+ companies with long history of paying dividends with 3%+ yields. Gold & Short the dollar. Remember Gold and dollar usually go opposite the Market.

7th Wednesday is the Greece Budget vote
8th Thursday is the European Central Bank (ECB) Meeting
9th Friday is the EU Summit
I see disappointment and markets decline.