One of two things need to occur in order to make me more bullish. From a fundamental perspective I would like to see Italy make reforms. If Italy were to agree to reforms than I believe the EU would come to its aid. Right now we are witnessing a high stakes game of chicken where Italy refuses reform as Italian bond yields climb. If Italy were to agree to reforms I would become very bullish.
The seconds thing that would make me more bullish is if the market declined a bit next week and shook off some of the excess optimism we have seen build up recently. I want to get more bullish as this is generally a very good time of the year for the market. But the combination of excess optimism and a standstill in Europe are stopping me. Have a great weekend.