As usual and not unlike any other week, we could be in for an extremely volatile shortened week session on Wall Street.
Two major events are lining up that will cause either bullish or bearish reactions.
First we have the ongoing Eurozone debt crisis and how that will shape up this coming week. The German Bund is also under close scrutiny and if that bond shows fatigue or fissures that will have significant impact on the world economy as Germany is an economic leader.
Second, the super committee is supposed to have their debt cutting deal on the table by Wednesday night. Its not even worth commenting on this mess. Clearly the Tea Party wants to wipe out all social spending programs and as we know has lumped SSI in with welfare as if it were the same thing. Hopefully the obscenely radical right can implode under its own hubris.
In addition there will be light trading due to the shortened holiday Thanksgiving week. Whenever trading is light, volatility is increased.
If points one and two somehow align positively then a rally is almost a sure thing. However the odds of this happening seem low.
Reuters: A rally could happen in week ahead but some big "ifs"
Now, there could be a new worry in German Bunds.
Next week's economic data includes existing home sales for October on Monday and third-quarter preliminary GDP report on Tuesday. On Wednesday, durable goods orders, personal income and outlays and weekly jobless claims are due. The markets will be closed on Thursday for Thanksgiving.
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