Euro Interest Rates Are Climbing and the Super Committee Is In Gridlock. Stay Short


Last week, stocks rallied on the notion that new leaders in Italy and Greece would ease credit concerns. Both Prime Ministers promised to step down after specific actions were taken. Stocks moved higher but they weren’t able to punch through overhead resistance at SPY 127.45 (200-day moving average). Asset Managers have little to show for their efforts in 2011 and they are hoping for a year-end rally. Earnings have been good, interest rates are low, the Fed is accommodative and economic conditions in the US are stable. Stocks are attractively valued at a forward P/E of 13 and money has been …

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