Well the EUrocrats actually did something big.. €750 billion; about a third of this is from the IMF; the EU kicked in €60 billion right away with the promise of another €440 billion if needed. The European Central Bank was also authorized to begin purchasing sovereign and bank debt, and began doing such today. The swap lines between the Fed and the ECB were also reopened. The markets went up nicely. But.. where is this other €440 billion coming from ?? They're a little hazy on this detail as I understand it. Still, ECB purchases of sovereign debt is a huge step for them, as is the swap line; I'm thinking it's a decent part of the reason why the Euro did'nt rally along with stocks. We'll see how the markets take to this bailout over time.. all of the previously announced bailouts brought the markets up for a few days before being hacked down again. If this one does'nt work, there are no more bailouts and the Dark Ages begin again on the Olde Continent.
As for me, I got caught flat footed here; I was short Copper from $3.1315 with a five cent stop loss; copper opened today at $3.24, so for me it was a loss of $2,712.. ouch. But the timing of this was meant to do this exact thing.. whack the pee pee's of speculators like me. Sarkozy is smiling broadly this afternoon. I honestly hope the news from Europe keeps him smiling. I'm going to "sell" three copper contracts at $3.18 and "buy" two copper at $3.26 (today's close was $3.22).. both of these again have five cent stop losses on them. My thinking here is that the markets will move big one way or the other in the next few days, taking copper with it. I will also "sell" one euro at $1.2450, this one with a three cent stop loss.
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