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Wednesday, October 26, 2011

How did the stock behave after last European summit ?

If you remember the last European Summit was on July 22nd, 2011 which was 13th in 15 month time. DJI rallied same way upside 785 points then on July 22nd stock opened at 12724 and closed at 12681. On August 8th stock was at 10809. A decline of 1915 point in two week time.

While during the same period GLD jumped from $ 144 to $ 174. As alerted last week, GLD has jumped from $157 to $165 and its likely to rise.

So what to expect from this deals ? There are few political gridlock today. First today Angela Merkel has to get approval from German government to increase the firepower of EFSF. Prime Minister of Italy, Silvio Berlusconi's government has risk of downfall at the same time he has to submit plan for budget cut.


Market will focus on Bank recapitalization and rescue about Greece and Italy debt.

The outcome of the summit is likely to come at 1 pm EST. So keep cash in hand to take advantage of it. A small position in VXX or GLD will be safe bet.




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