The Best of Kass
Among his posts this past week, Kass discussed the eurozone's challenges, how the market's reaction to bad news on Tuesday indicated a short-term bottom and why he was taking a new long position in Yahoo!.
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Heavy Lifting Ahead for Eurozone
Originally published on Friday, July 27 at 2:18 p.m. EDT.
While Draghi's rhetoric has more volume than usual today and yesterday, there is a lot of heavy lifting ahead, especially within the context of the numerous challenges facing Italy and Spain in their quest for economic growth and in their much-needed debt financings.
Moreover, Draghi must convince the ECB council members, especially the Bundesbank, and it is unclear how quickly the EFSF can actually buy the sovereign debt of Italy and Spain.
It is my view that the swift rise in the indices since Wednesday has now more than discounted Draghi's comments and that a lot of the rise today is short covering. Don't lose sight of the fact that the fundamental problems facing Europe cannot be resolved by bond purchases alone.
At the time of publication, Kass had no positions in stocks mentioned.
Gauging the Reaction
Originally published on Wednesday, July 25 at 7:18 a.m. EDT.
From my perch, a short-term market bottom might be falling into place.