Germany's Merkel and France's Sarkozy held an emergency meeting, one in which the "market" which I cll dumb money, was pricing in solid, concrete action from Germany and France; they didn't get it.
Key highlights from the conference included:
"Maybe Eurobonds may be imaginable one day"
"Not enough integration for EU bonds now"
The bottom line, nothing for now, which is not what the "market" priced in. However, look at these charts...
FXE (EURO) showing distribution into the move higher in FXE
The same seen here on the 5 min FXE chart.
The Dollar being accumulated while it was down.
And the DIA showing distribution while it climbs, (short to mid term 3C, long term still bullish).
The point being, while the market may have had bullish expectations, obviously smart money knew more then anyone and was acting on it during the rise. This is why we watch the underlying acton.
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