With Greece and the end of QE2 under its belts, it was 'risk on' for Wall Street as the VIX plummeted and the safe havens of gold, bonds, and the dollar were shunned by funds eager to squeeze the shorts in the equity markets.
What next? Today was very light volumes with Canada Day and the July 4th holiday weekend, and next week will likely also be light trading, with many North Americans away on holiday.
Let the market come to us. The short term trend reversals look overdone, but they may not be over because they suit the FED and the government quite well.
This *could* be a kind of stealth QE3 - market interventions through third parties and jawboning.
And yet at the same time there has been a 'stunning plunge' in commercial gold shorts.
