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Monday, August 15, 2011

Italy


Last week's economic data had some good news and some bad news.  I would expect more of the latter in the weeks to come.  That bad economic data (if materialized) can move the markets, especially if Italy continues to be in the headlines.  This week the markets could be roiled by Italian protests organized by labor unions.
 
ROME (AP) -- The leader of Italy's largest union is threatening a general strike against an austerity package that Premier Silvio Berlusconi's government hastily pushed through to balance the budget by 2013 and avoid financial collapse.
 
The threat came amid mounting criticism Sunday of the euro45.5 billion ($64.8 billion) package passed Friday in response to demands by the European Central Bank.
 
Critics say the package -- a mix of spending cuts, job cuts and tax increases, including a "solidarity tax" for high-earners -- will strangle Italy's stagnant economy, which is now expected to grow by only about 1 percent this year.
 
..."We wouldn't have gotten here if we had had Eurobonds," Tremonti told reporters, calling for more "integration and consolidation of public finances in Europe."
 
Notice Tremonti didn’t say if it wasn’t for tax evasion and overspending by the government "We wouldn’t have gotten here..."  Uh huh, if only Italy had the ability to kick the can down the road via Eurobonds all would be well.  Pathetic.  The full article can be found here:
 
 
Will Italy become the next Greece and all the market upheaval that came with it?

  
 
Trade Date: 8/12/11

E-Mini S&P Trades*

(before fees and commissions):


1. No "Secret's" trades filled today.

2. Algorithm positions (8)

3. "Reading the Tape" positions (0) ...combined Secret's, Algo, & "Reading the Tape" total...+9.25 


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