Monday Madness : Stocks, gold rally…because maybe Italy may get an IMF bailout

The risk trade is back on early Monday with gold trading up US$20. There is no good news, but that never stops the mainstream media…with Bloomberg giving the reason for this early strength as being a potential IMF loan (read bailout) for Italy. Well given the Italians can’t sell their bonds in the open market an IMF bailout may please some, but in our view all it means is that Italy is in dire straits and becasue the ECB don’t have the cash or mandate (yet) to bail them out, news or maybe just rumour of the IMF coming in is enough to give the markets their early morning hopium fix.

Should be good for a bounce on the SET to 975 or so, maybe 980 if lucky.

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