Thin, Volitile Markets

Careful of the chop in the middle. Wait for the extremes. Or better yet, take a break. Thin volume makes for volatility and easy fleecing.

The one thing of note to me this morning is the action in Spain: it's down over 3% today [Correction: yesterday]. It just had to delay an $18 billion state-guaranteed bond program due to stress in the bond market. And its sovereign bond spread versus Germany is at a record after the Irish bailout request. While Portugal is seen by many to be the next problem, it is Spain that causes the deepest worry. Spain is the largest of the PIIGS. The ramifications for the EU and the Euro should Spain require a bailout of restructuring should not be underestimated, nor should its impact on the markets.