Europe Is Still Not Saved

 | Oct 26, 2011 | 4:30 PM EDT
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Once again, the market celebrated the rescue of European banks.

Unfortunately, all that really came out of this much-anticipated summit was some general understandings. The actual details have yet to be worked out. It was just another agreement to agree, but some talk that China may invest in the bailout gave the move a little extra jig.

It is easy to be skeptical about positive news out of Europe because we have been seeing the same nonsense for so long. Nothing is ever really resolved, but there are constant assurances that progress is being made and that everything will be fine. If you don't have some doubts, you just aren't paying enough attention.

Despite the tiresome focus on European issues, I am maintaining an optimistic attitude about the market. We are holding last week's breakout from the trading range and seeing some consolidation, although we are still technically extended. Further downside would not be bad as far as creating interesting setups going into the end of the year.

The biggest challenge I see is finding good entry points. You are not going to find many textbook setups, and we are still so focused on macro matters that individual stock picking is frustrating. Perhaps Europe will go on the backburner for a little while, as the next meeting to agree on a potential agreement isn't for a while.

I am working on a shopping list, digging for ideas and looking for places to put more money to work soon. I don't expect it to be easy, but I like the way things are developing.

Have a good evening. I'll see you tomorrow.

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