Yesterday/Today

It seems yesterday's rally as described by me in a 8 letter expletive starting with B and ending with T was maybe not so articulate, but right on.

Euro pain out of yesterdays bullish ascending triangle head fake continues this morning with a move below $1.30 (currently $1.2950).

My favorite European destination, Hungary, not only has seen their IMF deal go up n flames (as posted 2 weeks ago), but their currency, the Forint has hit an all time new low.

The barometer of the ECB's LTRO program is showing it as failing even worse as overnight deposits have sent the deposit facility usage to new all time highs, even with safe haven German Paper up for auction today. The new record from an additional $7 billon overnight is now $453 billion-as mentioned, an all time high as EU banks engage in the anti-carry trade (yielding the banks a .25% loss on deposits from LTRO cash).

Our overall barometer of Europe continues to be the hard to manipulate French debt, OATS, which overnight has soared to November 2011 levels as the spread between the formerly in sync OAT/German Bund is now 145 basis points wider and tomorrow is France's big moment in the spotlight with their own auction.

Lastly for the moment, those of you who took yesterday's BAC trade should be feeling good this morning as BAC breaks below yesterday's lows and looks to add some more downside. I've been using these hit and run options trades, this is the 4th in about a 5 trading days and the 4th winner thus far at least.