First the meeting in Europe is off, then its back off. Like I wrote and have been writing, for 3,000 years Europeans have been finding reasons NOT to like one another.
What is so different about 2011?
In the end, its more about politics and perception rather than reality. The reality is that there is a huge debt problem which needs to be addressed. 20 people in a room is one thing. When only 2 of the 20 people have what the other 18 want, that’s another.
The euro zone wants what France and Germany have. Working economies where people work and save and are productive. England is left sitting on the sidelines hoping that Germany and France don’t betray them. How has that worked out if you look at history?
Ok enough of that… Who knows where this all ends? Not me.
Monday’s high and today’s high for Dow futures died at 11,882. The old August high at 11,900 was obviously on people’s mind.
If the Dow breaks, my downside target for shorts are 12,300 and then 11,100. If 11,000 doesn’t hold then 10,920 is the last support I like. Simple. But only time will tell.
Have a good night.