Wednesday, April 18, 2012

Panic in Spain

The European scarecrows are at it again.  Spain IBEX stock index is getting clobbered already after yesterday's short squeeze.  They are scared stiff about Spain.  Tomorrow's Spain 2 year and 10 year bond auction is on the radar of traders.  Yesterday was a one day wonder.  The correction is more than half way through, but it needs a bit more time.  The nimble traders can play it short for today, but I wouldn't overstay the short side.

The bulls used up their ammo yesterday and Europeans covered their shorts after the Spain bill auction squeezed them.  I am still looking to buy dips, but after yesterday's rally, will likely wait for either the end of today or tomorrow. 

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