Sunday, May 6, 2012

Election Correction or Crash Coming from Europe? $$

Election Commentary
5/6/2012 9:40p ET

U.S. stock futures have weakened as favored agents of the banking cabal in Europe - Sarkozy of France and members of the Greek ruling parties aligned with the Troika - were defeated (as was the case with Sarkozy), and neither ruling party in Greece able to win a majority to form a new government.

The overall meme is that Euro austerity government policies are falling due to an unhappy electorate. The outcome of these elections are seen, as of today, as an indicator of future elections in Europe that could be a signal of the end to the European Union, which in turn would slow global economic growth if the European system collapses.

Is this the real deal setting us up for a stock market crash?

REVISION as of 2300 ET... Not likely a crash, but it appears as if there will be a swoon at the open. QE bargain hunters will determine of early losses stick. At least, it will be an interesting day in the market. Watch gold for across the board liquidation, OR (very important) a flight to quality move. As usual treasury yields are sinking in a safe haven like move.

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