In my Sunday post i had mentioned there maybe a rally coming to wall street but I didnt expect this massive gap up, crushed all my shorts to break even to a little up. And I think there were powerful events that occurred last week and over the weekend, where the ECB took the reigns from Germany, they are now dug in deep and fighting for survival, there is way too much at stake not only for them, but for the US as well.
So the feeling is that we are in "risk on mode", and the ECB is going to hyperinflate their way out of this mess, thats why you saw oil, silver and gold as well as other commodities jump yesterday on excellent volume, obviously there was a lot of short covering but there is real buying. Click the link below, excellent article, talks about what happened and where we are going from here. It is by Dr. Paul Craig Roberts is the father of Reaganomics and the former head of policy at the Department of Treasury. He is a columnist and was previously an editor for the Wall Street Journal.
Oh and by the way after the bell, Fitch reiterated the US AAA credit rating but changed the outlook from stable to negative and this has done nothing to upset the markets, so we know this rally has legs!
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