Week end at the beach?    by Jean Jacques Chenier 

June 8, 2012

A bailout of Spanish banks is expected by some hedge fund managers to happen over the week end. In preparation they cover their short positions. Also expected are week numbers form China. Maybe weaker than expected.

If nothing happen in Spain, and with bad Chinese numbers expect a sharply down Monday for equities , and commodities with bonds higher.

If Spanish banks are rescued the "risk on" trade will be back but the rally should be seen as an opportunity to short. Indeed the fundamentals will not be changed and growth in Europe will remain sluggish.