Does EU Geopolitical Mess Trump Economic Data?
TraderRob submits:Last week was a ROUT. There's no other way to put it. While we suspect this week will start off with some trading traction, it may not end looking much better. What is certain is that geopolitical uncertainties in Europe look to be trumping economic data in a slow week for US macro indicators. This week's Weekly Spectrum is then more focused on the geopolitical risks surrounding the EU TARP style debt purchase program nearly $1 Trillion large; power transitions in the UK and Germany; and a few economic reports due out later in the week in the US.The big boys from NYSE and the NADSAQ all had a meeting with the SEC over cascade selling effects, because the one scapegoat that's always good for a few rib punches is the computer. "Uhh I dunno why the market fell 10% in 5 days ... oh wait never mind, it was the computers!" This week we should initially see a firming of liquid assets like stocks and commodities, as the EU's sovereign default backstop fund ("TARP 2.0: Birth of the European CDS Monster"), which happens to boast nearly $1 trillion USD worth of euros, is discounted by market movers. Conveniently enough, leadership in Europe is changing by the day and creating an absolutely muddled picture, despite the default backstop pledged this past weekend. Friday we'll get some US economic data that may turn heads, when Sentiment, Retail Sales, and Industrial Production all report, but trader's shouldn't expect much else other than Europe to keep the focus throughout the first half of the week.Complete Story »