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Two Ways: Europe Still in Hot Water

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Strengthen your portfolio in good times and bad.

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Lingering European Recession

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!"
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

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