Real test of Euro this week. Profit Taking in #Goog, #IBM, #CMG, #NKE, #DIA, #SPY, #ERX

Euro was able to survive last week, inspite of EU summit failure. EU leader are hoping that market will give them time till March 2012 to come up with something concrete. Based on the charts Dow is likely to fall 500-700 points soon. Shanghai composite Index is now at Feb 2009 lows at 2300. There is a last hope that China will buy Euope debt, but why will any country invest their tax payer money when there is huge risk and no guarantee of returns. Europe crisis is a long term issue and it can't be solved with another 17 EU summit. Look at MF Global, they bought the debt and now its bankrupt. With Global economy slowdown, it's even going to get worse for Europe. 

Tomorrow at 2 EST, the Treasury Department will release its latest budget figures, with market consensus forecasting a $138.0 billion deficit compared with a $98.5 billion shortfall in October. French inflation figures are due for release. 

French inflation rates are expected to come in around 0.3% for November compared with 0.2% in October.

The Federal Reserve will hold its monthly monetary policy meeting Tuesday at 2 EST, where policymakers will address benchmark interest rates.

While financial markets are expecting the Federal Reserve to hold interest rates at a very low 0.25%, language associated with this week's decision suggesting economic recovery continues sluggish could keep the greenback weaker and against the world's major economic currencies.

In Europe, the German Zentrum für Europäische Wirtschaftsforschung (ZEW) Economic Sentiment Index will publish on Tuesday.

The index, which gauges the  sentiment in Europe's economic engine, should come in at -55.8 compared to a previous -55.2 reading.

Any surprises for the worse could spell trouble for the euro. 

I would still not recommend investing at current level if your long term investor. A profit taking is due in the following stocks, and you can buy some puts 

1. Goog, 2. IBM, 3. CMG, 4. NKE 5. DIA, 6. SPY 7. ERX

At current level, TZA, ERY, TYP, and VXX are safe to buy.

Stocks likely to open high are SVNT, ARNA
Stocks likely to open low are PACB, WFT
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