On November 11, I commented on Whack-a-Mole Euphoria and 6-Sigma Events

Hooray! The Borg Technocrats have saved us already, even though they have yet to lift a metallic finger.

The Borg took a huge whack not at a mole actually, but an Italian Elephant. This event instantaneously brought upon mass-euphoria.

The market has more-or-less been in a continual state of euphoria recently having been saved (by something), for the 83’rd time in the last 63 days.

Today’s euphoria is about falling yields on Italian government debt. The yield on 10-Year Italian bonds is down 44 basis points to 6.45%. The yield on 2-year government bonds is down a whopping 70 basis points to 5.70%.


S&P; 500 Futures 10-Minute Chart

I expect that gap to fill sooner rather than later as whack-a-mole euphoria wears off.

Gap Fills

It took five trading days, but today the gap filled and the S&P; sits at 1212.

Noty to worry, more euphoric moments are sure to be on the way.

Mike “Mish” Shedlock
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