Another EU Party

"On any other day, that might seem strange."
--Cameron Poe (Con Air)

Huge lift today in risk assets as the current EU shrimpfest revealed new plans about using the ESM facility to bail out banks sans 'austerity' measures and WITH Germany's support. Right now the plan remains a bureaucratic brief but it certainly fostered much market hope today.

The SPX was up 2.5% and closed at its highest level since early May. Commodities joined the party as well. Crude led the way--up 8%!

I took this opportunity to peel off some peripheral commodity exposure, some of it bought in the hole last week. Just tradin' 'em...

Right now, it's hard to discern whether this EU plan is for real, so it is difficult to discern how durable this rally could be. What I do know is that the solutions being discussed (borrowing, money printing, no deep spending cuts) have next to no chance of righting this situation.

Stated differently, I'm currently of the mind that this rally should be sold. And I plan to do just that if prices continue to march higher. Am particularly interested in shedding some more commodity exposure prior to the Next Time Down.

position in SPX, commodities