The Thinnest Support ~ The Risk Averse Alert

Tuesday, December 20, 2011

The Thinnest Support

Since Joe Terranova is not impressed by today's short squeeze bringing the hopelessly bankrupt to lead the market higher, then let's talk the bear business. Chances are a well-hedged short equities/futures interest is ready to pounce all over a levitation sustained by the thinnest of underlying support...

NYSE McClellan

You really couldn't ask for circumstance more technically vulnerable. Go figure at a time when leveraged finance must be suffering quite a fright on the whipsaw ride that is the market for European sovereign debt. Yesterday's ECB stick, today's carrot, brings tomorrow's hyperinflationary promise of some 4-letter fantasy program anticipating hopelessly insolvent banks will borrow "cheap" from the ECB to buy debt securities of sovereigns whose credit ratings are on the verge of being downgraded part and parcel with the downward spiral of their economies.

In other words, the ECB pig won't fly and it's a good bet a well-hedged short equities/futures interest knows it.

Fast Money
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