Silvio Killed the Rally!

Silvio killed the rally! Allow me to explain. The rally we had this morning was based on news from the elections in Italy. Now it turns out that Silvio Berlusconi’s party may have carried the Italian Senate. The returns are still coming but investors are clearly uncomfortable with that news.

Check out the massive swing in the Italian ETF ($EWI):


The market also seemed to be pleased that Japan’s Prime Minister was going to appoint a central bank head who’s all in favor of gunning the money.

The big concern, however, is the sequester. If nothing happens by March 1st, automatic spending cuts will go into effect.

I also want to highlight an interest stock story today. Shares of Affymax ($AFFY) are down 85% after its antianemia drug was recalled. That’s gotta hurt.

Posted by on February 25th, 2013 at 11:48 am

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