May 10, 2010

Market Update:

U.S. stock futures surged Monday in what could be the best one-day gain of the year in reaction to a European Union plan designed to stave off a run on the euro.

S&P 500 futures rose 51.7 points to 1,158.60 and Nasdaq 100 futures jumped 84.75 points to 1,933.20. Futures on the Dow Jones Industrial Average soared 394 points.

“This truly is overwhelming force, and should be more than sufficient to stabilize markets in the near term, prevent panic and contain the risk of contagion,” said Marco Annunziata, chief economist at UniCredit.

Not only is the headline number stunning, but the ECB’s decision to intervene in the secondary market should offset concerns about the time it will take to deploy the stabilization funds, and the reinstatement of the FX swap lines gives a signal of the global support backing euro-zone policy makers — as the euro zone’s potential sovereign-debt crisis had suddenly emerged as the single biggest threat to global financial stability

Gold futures dropped $19.50 to $1,190.90 an ounce.

Monster Update:

We thought this morning deserved an update rather then waiting for normal Friday weekly roundup we do.  The European bailout has left no doubt- in our minds – that this crisis in Europe is over and we may now move forward with trading.  Technicals and Fundamentals were completly thrown out the window over the last 14 days, which has made it very tough to trade.  We pulled in the reigns over the last two weeks with trades but now will look to capture returns and take advantage of this move.  Be prepared and ready for new trades – our time is now to shine!