Even the most bullish of bulls have finally seen the light. From this weeks Stocktwits post.
A banking (currency) system is an act of faith: it survives only for as long as people believe it will” – Michael Lewis, Boomerang, 2011
Only 15 days ago, there were so many charts that looked ready to break out and participate in a year-end market rally. Fast forward two weeks of political inaction in the face of rising European sovereign debt yields and equity markets across the world look like Niagara Falls. A typical story of 2011 – the obvious rarely happens, the unexpected constantly occurs. Constant false breakouts and breakdowns that 2011 brought has gradually conditioned market participants to shrink their investing horizons. For better or for worse, we have all become traders.
There is an apparent crisis of confidence in capital markets. No one wants to own European bonds, which makes the cost of borrowing unattainable for countries like Italy and Spain. The lack of trust often le
