Spain was up 4% yesterday. But I just heard they had a not so great bond auction today. Likely the strong gain was a relief rally built on perceptions of Trichet's previous comments, but the reality is that bond investors today are demanding more interest to hold Spain's debt.
Trichet was just now speaking in Germany and evidently did not say enough about bond purchases by the ECB. The Euro is getting smashed. S&P futures have come off their highs but still look like the trend is up. I'm adding more SDS here premarket and will add higher too if needed. The hedge is working great: up over 80% on the calls with SDS down only 1%. Any correction from these levels will really ring the cash register.
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