Addendum

What I wanted to mention in the last post was an idea I first mentioned yesterday, I alluded to it today. Yesterday I said with the ECB event coming and the EU events are always headline driven then the holes in the plans come out and the moves from EU headline events are faded, it happens almost every time.

In any case, the left out part was my feeling yesterday there would be a buy the rumor (ECB leak from Bloomberg yesterday) and sell the news. If you look at the NASDAQ Futures chart, you can see that happened overnight, in fact right in to the European open as the earlier charts with more history will show the positive divergence around the European open, we have the price move an all indications that it is being sold.

This is as old as Wall Street, but it is particularly relevant with EU "Grand Plans" like the leveraging of the EFSF, the Greek Bailout, the Greek elections, the Spanish Banking Bailout Bazooka of $100bn Euro was a great example and that was faded as bond traders realized all their holdings would be junior to the Spanish banking bailout from the ESM.