Business Magazine

Thursday Follies – Europe “Fixed” Again

Posted on the 03 May 2012 by Phil's Stock World @philstockworld

They are bouncing Europe with them despite a pretty poor round of trading in Asia (flat).  Why?  Because Spain's 3 & 5-year note sales "only" went for 100 more basis points than last time with the 3-years coming in at 4.04%, up 54% from last year's auction at 2.62% and the 5-year notes fetched 4.75%, up only 28% from the last 5-year note sale so YAY – Spain is fixed!!!

A whole $3.3Bn worth of bonds were sold or about 1/3 of 1% of what has been allocated through bailout programs to buy this junk but this autction is moving $80Tn worth of global equities up 1% ($800B) – talk about getting bang for your bailout buck!

I'm not going to get into how silly this is getting – we went through this all in '07 and '08 and the markets can be amazingly silly when they are in denial so we'll just go with the flow and pick up some nice upside momentum plays – as long as we can stay over 3 of 5 of our Big Chart's 2.5% lines and, if the pre-market move up holds – they should have no problem taking back 3,075 on the Nasdaq, 820 on the Russell and 8,200 on the NYSE.  We're already over 1,400 on the S&P on yesterday's stick-save close and the poor Dow has 800 whole points to go before they catch up at 14,000 so it looks like the Dow will be the logical bullish bet if the other 3 indexes join the S&P over the line.

Thursday Follies – Europe “Fixed” Again

So IF the Dow is over 13,300 AND the other indexes are over our mark – how much money can we make playing for the Dow to catch up and make it to 14,000.  700 points is a lot, so there should be many ways to play this to our advantage.  DIA $133 calls are $1 and have a delta of .44 so you capture 44% of a move up, which means a 100-point rise in the Dow will get you a 44% gain – it's a good trade to enter with tight stops below 13,300 as the Dow has 2 weeks and two days left to make those 800 points and that should be a cake-walk as they're already up 400 points in the last 7 sessions and, as we know from our friends at CNBC –



You Might Also Like :

Back to Featured Articles on Logo Paperblog

These articles might interest you :

  • Thrill-Ride Thursday – Here We Go Again

    Thrill-Ride Thursday Here Again

    We are just loving these crazy-assed market moves. Every morning we have a pump job to short into and every afternoon there is a BS stick-save to re-establish... Read more

    By  Phil's Stock World
    BUSINESS, ECONOMICS
  • Friday Follies – Come and See the Show!

    Friday Follies Come Show!

    Welcome back my friends to the show that never ends We're so glad you could attend Come inside! Come inside! There behind a glass is a real blade of grass Be... Read more

    By  Phil's Stock World
    BUSINESS, ECONOMICS
  • Thursday – Will a $3Tn “Redemption Pact” Be Enough to Fix Europe?

    Thursday Will $3Tn “Redemption Pact” Enough Europe?

    That's the latest number being floated around again (it was being discussed in November) that has been drawn up by Germany's own Council of Economic Experts... Read more

    By  Phil's Stock World
    BUSINESS, ECONOMICS
  • Friday Follies – What Percentage of 12M Will Be Hired?

    Friday Follies What Percentage Will Hired?

    I'm listnening to the talking heads in the MSM discuss whether wel added 75,000 jobs (the low estimate) or 150,000 jobs (the high, espoused by GS to rally us... Read more

    By  Phil's Stock World
    BUSINESS, ECONOMICS
  • Thursday Thrust – Deja Vu All Over Again

    Thursday Thrust Deja Over Again

    On the right is our Big Chart from July 26th of last year, when we also made a very impressive run-up over a month despite mixed earnings, worries in Europe... Read more

    By  Phil's Stock World
    BUSINESS, ECONOMICS
  • Humor Thursday

    Humor Thursday

    Noise to Signal Cartoon This is a great cartoon from Rob Cottingham. Click on it to read his commentary. His main point? We can worry about what the Internet,... Read more

    By  Pjfaur
    BUSINESS, SELF EXPRESSION
  • Yoga Thursday

    Yoga Thursday

    That's a silly title. I can't think of anything else. I was thinking yogic Thursday and a Thursday yogi but those don't really make sense, so we'll just go... Read more

    By  Wendiw80
    FITNESS, HEALTHY LIVING

Magazines