In gold we trust? Or at least in the reversal of gold we trust. My, how I would like to believe that gold knows something and that we are having a rebound based on the "knowledge" that the price of gold gives us.
But one thing we know for certain is that Europe still appears to be a "no way out" situation. I think that means a bounce only in the recession names, and the accidental high-yielders like Eaton (ETN) or International Paper (IP), and the phone companies.
The big drag here, the drag that remains, is the need to go home flat because of Europe. Now it is true that anything can bounce. Anything. Including Europe. But I am stuck on reason, and other than the fact that the European banks are just down far too much for words, I don't want to mess with it. Just too vicious and too unpredictable, until we are so oversold that Europe can't wreck us.
We have good news: ISM, reiterations by Eaton and United Technologies (UTX), and, yes, the price of gold. But the first two haven't meant a lot vs. euro-banking, and gold can reverse on a dime.