Well, the market had another low volume melt-up day. We lost some momentum going into the close, so the Dow closed up just 17.18 to 12096.16. S&P up 6.03 to 1257.81.
Italian 10-year bond yields topped 7% again. The market rallied on news that Monti is assembling his cabinet to reveal to President Napolitano tomorrow. Let's just hope this cabinet is not Pandora's Box.
The EC is cracking down on ratings agencies, Moody's, S&P, and Fitch. France's AAA rating is looking vulnerable (already trading like AA+), so I'm sure the EC wants to do what it can to gain influence over these agencies as well, for perception reasons.
The EUR/USD dropped to 1.3532, so euro confidence weakening. VIX is at 31.22, so fear is still relatively high.
Feels like we're bracing for everyone to wake up one day and realize the truth that, "There is no spoon," or there is no short-term solution to the Eurozone problems. These debt problems took a long time to build, and will take a long time to resolve. In the meantime, there will be a lot of pain. Implementing austerity measures is just the start, if the new Greece and Italy governments can actually execute.
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