Risk Off Trade: Euro Debt Crisis Ready to Flare!

The markets bounced nicely on Friday fueled in part by Thursday’s big selloff and largely by European leaders adding 200 billion euros overnight to their debt crisis fund.  So where does that leave us now?  Considering we’re still near our highs for the month, and considering a lot of Euro debt crisis issues are still unresolved and left up to the ECB, my thought is that the market is just looking for a reason to decline next week.  At some point early next week I’m expecting bad news (something like S&P has downgraded a variety of European countries because of the recent increase to the size of their bailout fund), and when that bad news comes (whatever it is) the bears will take control of the market and the short-sellers and put-buyers will profit handsomely.  It’s possible to be too early on a trade, so here is how I have positioned my portfolio for next week.  Click here to continue reading…