I'm uncomfortably out of the bearish (European-centric) trade.
Technically & sentiment-wise (when everyone gets it?) I feel a bounce is probable.
But more accurately I don't like the risk-reward right here/right now.
Yesterday's SPX weakness made for a tough day, but ironically the 'reason de jour' - the 'failed' Bund auction - may provide the catalyst for a little hopepium.
I'm not sure the auction represented anything other than investors recoiling @ sub-2% yields (six of the last eight 10 year auctions have technically failed) but it was probably poor enough to spook the fiscally conservative horses.
In the coming days I suspect we'll see more Bild-like stories supposedly 'softening' the German resistance to the EuroBond solution.
This is a long-term aspiration, but hope is all the markets have.
Enough to re-test the recent neckline breaks in European equities?
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