Downward dog pose for Euroland


Its confirmed – the Euro/USD has broken the 139.88 resistance level and has confirmed a downward trend with initial resistance at 129.60 with ultimately bottoming at 115. French bank stocks are the new whipping boy and omg have they taken out to the wood shed. European policy makers have been frantically attempting to ring fence their banks but a little too late as most have dropped 50-70% of their value in the last 60 days.The fear is building and its about to get real ugly. I read a report today that while EFSF may be able to buy back sovereign debt, the mandate is not entirely clear unlike the TARP which was very clear. The contagion risk is well above average as evidenced by the Euro bank melt down…

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