Direxion Daily Technology Bear (TECS)

[A320CA]

We're set to advance - France and Greece voted to end the austerity(by kicking out the pro-Euro guys). Don't think that bodes too well for the EU. Love some of the spin out there on our jobs numbers, "unemployment is falling", "things are getting better". If you kept the same number of people looking for work from June 2009 - unemployment is at 11%. People have stopped looking for work and are filing for long term disability. More than 5 million people have signed up for Long Term Dis since the beginning of the Obama admin.....gonna be a real tough summer. The focus will be on the EU - now Spain and France.

The thing that I have only seen addressed once is when the EU started tightning the financial system, did the LTRO and restricted lending. The largest clients for the European banks are the emerging markets. These markets were all former colonies of France, Germany, England, Spain. I know it was a long time ago, but there are still ties there and they feed financial support to businesses there. The emerging markets will begin to suffer also.
Could be a pretty bad circle of contraction for the next 6-9 or 1 year. This is Europe's 2008 financial crisis we had.

RLB