5.30.2012

Bond yields don't tell much of a picture.

All the equity markets traded above their 5.22.2012 swing high so no failure swing there.

One interesting thing.  If you believe in the power of three and look back at the last month of trading on, for example, the cable.  As the move started we had an up day on Monday, then Sunday and Monday, then Friday, Sunday and Monday.  All days (with the possible exception of the Friday which may have been profit taking) where the banks were accumulating for the impending move down the rest of the week.

This week we have had a down Sunday, Monday and now Tuesday.  Monday doesn't count too much because it was a holiday.  Are the banks accumulating longs for a reversal?  Reversal profiles usually happen late New York or right before London close.  Couldn't you just see the banks reversing price tomorrow and all the talking heads will say it is because of something Draghi says?

I can just see the headlines "Draghi announces his shoe size.  Euro climbs 100 pips!".