Let The Blood Flow

SPYDIA" src="http://wallstreetsectorselector.com/wp-content/uploads/2011/08/bloodinstreets2-300x195.jpg" alt="let the blood flow" width="195" height="127" />Gold, Oil, the Euro, and major indices spilled blood today on continued EU fears and lack of a Dr. Ben paycheck.

Let the blood flow: Chancellor Angela Merkel exacerbated the crisis by stating that she did not support a Euro bond and that there was no “easy fix” to the crisis.

Let the blood flow: The Italians saw a 6.47% rate price tag for for 390 billion Euro EWI auction earlier today, thank goodness the Italians have 5 years to pay it off (oh my).

Let the blood flow: The Euro dollar FXE has reached a record level of 1.30 vs. the US dollar UUP.

Let the blood flow: Gold ETFs GLD dropped more than 3.5% today with actual gold prices dropping nearly 5%.

Let the blood flow: Oil etfs USO crashed more than 5% today, with crude dropping below $95 per barrel.

Let the blood flow: Major indices ETFs including SPY and QQQ dropped more than 1% on average.

All in all, there is blood in the streets, and I will join you and the rest of investors today by asking where in the heck is Santa and his Rally?

The US Treasury department sold $13 billion worth of 30 year bonds TLT at a yield of less than 3% today, despite all of the market craziness.  I might have to check, but this seems like a record to me and signifies that despite all of our problems at home, we (the US) still hold the hose to put out the fire (and clean the streets).

I might also add that a Gold GLD sell-off at this point in the game with Europe was interesting because typically Gold rises when the “fiats” crumble. Seeing how the Euro is, well, crumbling, it would have made sense for the bull market in Gold to continue.  However, at least for now despite Dr. Ben's temporary freeze on the printing press, US dollars UUP are still good enough to save the world.

Bottom line: I have said it before and I will say it again.  The Western World simply has too much debt and lacks the economic power to support it.  Europe FXE further exacerbates the situation, as any “resolution” they come up with has not been able to hack it for investors.  And, with ten days left until Christmas, I sure do hope our Santa Rally will rally. 

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