Global markets are charging higher Thursday after European leaders agreed to a wide ranging deal to lessen Greece’s debt burden, recapitalize troubled Euro banks, and increase the firepower of the EFSF. S&P futures are 25 handles higher, taking the index to 4th quarter highs. The deal is not perfect, but there is a sense that European officials achieved a great sense of unity and got the deal right in a big way.

This rally felt different the entire way, as investors seemed to put their trust in Europe to make a comprehensive deal. The market retested only shallow retracement levels and dips were aggressively bought. Tuesday’s 2% decline gave investors some pause, but then yesterday’s bounce restored confidence that the market would finish the year strong.

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Private investors will take a 50% haircut on Greek bonds, significantly lessening the debt burden on the troubled nation. News of bank recapitalization in Europe has sent bank shares soaring, especially in Europe. Societe Generale and Deutsche Bank are both 15% higher in today’s trading. The Euro also rallied about 1% against the dollar after the deal, which will increase the firepower of the EFSF to around 1.4 trillion Euros.

Back at home investors will be waiting on jobless claims, but Europe continues to drive the action. The interesting thing to watch today is whether the market can add to overnight gains, or whether bulls use this massive gap as a profit-taking opportunity. The level traders will be watching is Monday’s high of 1256 in the S&P. If the market holds above that level for the first hour, next resistance we will likely visit is 1270-1275.

Scott Redler
Scott Redler is the Chief Strategic Officer of T3 Live. He develops all trading strategies for the service and acts as the face of T3 Live. Mr. Redler focuses on thorough preparation and discipline as a trader. Scott Redler has been trading equities for more than 10 years and has more recently received widespread recognition from the financial community for his insightful, pragmatic approach. He began his career as a broker and venture capitalist where he was able to facilitate relationships that led him into trading. Beginning his trading career at Broadway Trading in 1999, Scott moved on with Marc Sperling to Sperling Enterprises, LLC after establishing himself as one of the best young traders in the firm. As a manager at Sperling Enterprises, he maintained his status as a top trader in the industry while working closely with all traders in the firm to dramatically increase performance. Scott has participated in more than 30 triathlons and one IronMan triathlon, exhibiting a work ethic that also defines his trading. His vast knowledge and meticulous attention to detail has led to regular appearances on CNBC, Fox Business and Bloomberg, and he has been quoted in the Wall Street Journal and Investor’s Business Daily among other publications. Scott produces much of the media and content available to subscribers and followers. T3LIVE.com is an online financial media network and education platform that provides active traders and investors with market analysis, real-time access to strategies, and in-depth training from real traders, real-time.

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