Keep on Working

I must admit I was a bit in the red
But if you've never had the pleasure then you could be dead
--Pete Townshend

I found this critique of the 'fluid' Spanish bank bailout plan insightful. Likely helps explain today's market action. After US futes were up more that 1.5% last nite, they began coming in as market participants appeared to be looking under the hood of this bailout proposal.

The more they looked, the more they didn't like what they saw. Markets sold most of the day. At the close, US stock indexes were off about 1.5%. The Euro gave back all of its overnight gains. And Spanish sovereign debt got crushed (on the realization the sovereign bond holders would be suboridinated to the bailout plan's creditors).

In retrospect, the 'tell' here was gold, which never bit on the news here--even on quotes from a BOE guy that central banks should step up their buying of private assets.

All in all an ugly day, which certainly sets up the question: What happens tomorrow?

Wish I knew cookie, but today's action suggests the bailout plan charade may not keep on working.

position in SPX, gold