Two Ways: Europe Still in Hot Water
Strengthen your portfolio in good times and bad.
It turns out U.S. isn't the only country facing deflation and the risk of double digit unemployment; our friends across the pond are facing the same difficulties.
Early this morning Euro-zone, the currency union of the 16 European countries that have adopted the euro, reported that unemployment rose to 9.4% which is the highest level in 10 years.
According to euro-stat the CPI rate also fell 0.6%, showing its first decline in the union's 10-year history. Analysts were expecting a fall of 0.4%. The annual CPI rate remains below the targeted 2% set by the European Central bank.
These data points signal that the recession will be lingering in Europe for quite some time.
From the Bull Pen: Yesterday, Amazon.com (AMZN) was upgraded by UBS to a buy with a $105 price target. Since reporting earnings, the stock has pulled back from its high at the $94 level. Those bullish can initiate a position here with a stop loss at $82.50.
From the Bear Cave: In three weeks the S&P 500 is up 120 points. It's hard to short a market this strong but those bearish could consider buying the Ultra Short S&P 500 ETF (SDS), with a stop loss at $46, right below yesterday's low.
Quick Check Around the World
Asian trading closed with the Hang Seng 1.68%, India 1.83%, Shanghai 2.72%, Nikkei 1.89%, and Taiwan 0.72%.
Across the pond, we see the FTSE 0.02%, CAC 0.18%, DAX -0.14%
As of 8.00 AM EST, S&P Futures are trading 4.00 to 986/.00 and Nasdaq futures are 5.50 to 1612.25.
A Look at Commodities
Over in commodities, crude oil is trading -0.22 to 66.72 while gold is 2.20 at 939.50 this morning. Silver is -0.12 to 13.60 and copper 3.20 to 259.60.
The dollar/euro 1.4122 and yen/dollar 95.60.
Check out the trading radar for the full list of the day's events.
As my colleague Terry Woo would say, "Happy Fat Friday!"
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