BOUNCE ON ENDLESS HOPE AND PEPPER SPRAY!

Europe is front and center this morning again as we once again have another plan to plan to have a plan. Combine that with retail sales this weekend that were especially strong among groups of people that use pepper spray and you have futures up sharply. In reality a bounce of size was coming considering we've been down 7 days in a row and closed last week on the low tick of the week; 900 points down in 7 days means we open up. The question is what happens after we get through the open and whether they start to lean into this rally.

MLPS held up pretty well last week when compared with the rest of the market which fell apart. Straddling support we will of course head higher on the open this morning and here too we will see if they lean into this after the open is worked through.

No corporate news this morning and no upgrades or downgrades this morning. With all the risk on trades working this morning everything is up including yields which are up 10 basis points on the ten year to 2.07%. European yields were higher overnight in Italy and Spain but are now a little lower. In the end inspite of all the day to day noise absolutely nothing has changed. Europe remains in the edge of the abyss, the US is on the edge of a recession, and no solutions are in sight. Again watch the rally and see what happens later today.