I was emailing back and forth with my friend Warren, and he mentioned to me that most do not realize that a main reason the US Markets have rallied last week is the situation has changed in the Eurozone. Now that the ECB is buying the government securities of the various Eurozone nations, i.e. Ireland again today, they are in effect acting like a central government in some regards and as they have ” Written the Check” this eradicates a lot of the risk at this time for defaults in the Eurozone. Warren saw this starting to occur some weeks ago. and thus if you read on this blog, called for a good rally coming in the markets, which so far has been 100% accurate. Warren also went on CNBC with the Euro at 1.185 and called for a good rally in the Euro, which then rallied to 1.27 after that call.
I want to also note something important is that my other good friend Fred also was looking for a solid rally at the same time, and when these two concur, its safe bet to heed their advice and go for it. So thank you both!