FAZapalooza coming soon?
11:31 am (Hawaii) Am I prepared to back up my conviction with action? FAZ goes to 100 I keep thinking out loud. It could dip back to 55 or 50 first. Today, financials rallied with the exception of SocGen, but even those sneaky French banksters saw their stock rally from lows of the day. FAZ, which fell to 60+ yesterday, dipped to 55.86 not long before the close. Currently back to 58 in afterhours trading.
Price has dipped below the recent pennant pattern and remains in the lower trading range of my little megaphone view. Is the Euro sovereign debt crisis baked in at this point? Most likely. Can it get worse? Most likely. For now, Sarkozy and Merkel are publicly saying they support Greece and that just delays reality a little while longer.
Meanwhile, AAPL and BIDU moved up today. Dow Jones up more than 140 points. Soft, weaker volume. Machines are moving the market. When the default in Greece and other Euro countries hits, what's left of retail accounts will cash out.
More and more, it seems unlikely that French banks can squirm out of a death grip forever. That's an uglier scenario than Greek default long term. The Greeks aren't denying anything, just being pillaged by banksters. With Euro banks tainted by US toxic assets, they're all diseased, no denying that.
Update 1:09 pm Opened a very small position in FAZ at 58.00 after hours. No assumptions about direction here. I'm willing to give it room to swing as low as 55 or 54.
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