European Closing Thoughts 21/09/12

Welcome December12 futures contract.

With September witches buried, December ones are coming to life.

Markets are cheering today, minutes before European cash closing auction the Stoxx50 rose 0.89% to 2,575.83, German Dax gained 0.95% to 7,459.29, Southern European markets are leading the gainers with Italian Ftsemib up 0.95% and Spanish Ibex 1.86% higher to 8,171.00.

The report that: Spain was considering freezing pensions and was speeding up a planned rise in the retirement age to meet conditions of an expected international sovereign aid package, has been denied by the country's deputy prime minister.

And we are back to the Spanish Dilemma: To ask for a full bailout or not to ask!

But European markets were able to hold onto early gains. The S&P500 rose 0.23 percent to 1,463.610.The Dow Jones Industrial Average gained 0.14 percent, to 13,616.10. Trading in S&P 500 companies was 168 percent above the 30-day average at this time of day.

The euro fell to $1.3000 in recent action, from $1.3050 in European MidSession trade, after the Spain news has been denied.

Gold futures rose 0.32% to 1775.6$ an ounce.  Eyes are all on the golden cross (a technical signal that happens when the 50-day moving average crosses above the 200-day moving average) formed by the precious metal.

Crude for November delivery added $1.02, or 1.1%, to $93.44 a barrel on the New York Mercantile Exchange. The gain pared oil's weekly loss to nearly 6%.

The real big news today came from Greece,  investors forgot about it recently, Greek 10-year bonds advanced, pushing the yield on the securities below 20 percent for the first time since March 29. The yield dropped as much as 55 basis points, or 0.55 percentage points, to 19.99 percent, and was at 20.03 percent. It looks like someone is betting that Greece is on the right path to overcome its political and financial crisis.

Thanks God it's Friday, and my 44th triple witching day just elapsed.  From Monday there will be no “pins” to bridle the market therefore be prepared.

I wish you all a very pleasant weekend.

Originally posted at www.77sigmatrading.com