Each morning I read 2 German financial papers and 5 newspapers. Today there are a lot of articles on the EU meeting starting tomorrow. Frau Merkel is against Euro bonds and the unlimited printing of money by the European central bank. She wants changes in the European constitution to enable a European fiscal union. That is very good and would solve problems in future. However, it will take time and does nothing for the present crisis. Some countries have to hold a referendum and the outcome is uncertain.
UK’s Cameron said today that he is against this proposal because it would hurt the free-wheeling financial “City” that raises 60 Billion Pounds in taxes. Hence, a 27-country solution is already out and the fallback position is to carry on with the 17 Euro nation. It will split the EU zone and this might not go down well with the market on Monday.
One day before the meeting there is no consensus. Van Rompuy has an alternative proposal and so has Barroso. Rather discussing a joint proposal, countries will discuss a number of alternatives and in the end there will be no consensus newspapers say. The best solution under these circumstances would the money-printing by the ECB. It is said that the meeting may extend to Saturday and Sunday showing already uncertainty. If it fails to produce a real solution or the market does not believe in the agreed solution (e.g., it is too vague or too weak) then the market will dive on Monday. The Wall Street actors will have a field day scaring the retail investors. Clearly, coal is not anymore bought in Europe since they cannot afford it. Who wants to buy coal elsewhere when the world is about to collapse?
The papers interviewed numerous officials that will participate tomorrow in the meeting and all were pessimistic. If that forecasts the meeting outcome then there will be an overreaction on Monday and I think there will be a good opportunity to buy BTU since a knee-jerk reaction is often of short duration.
Yes it is horrible. I have been considering tripling down but it is performing so poorly I dont know what to do. I still dont understand how people say buy at 65 but when it gets to 38 they downgrade it.
BTU is still a good stock. Future demand is going to increase both at home and globally. All just a matter of time. The touchy part rest on europe and china in order for the big money 65.00/85.00 sp to be made. Still hoping for the santa rally. GLTA......Tomorrows' news regarding europe will tell the tale.
No the big news of the day is The Union will screw this company up just like the automotive and yrcw. When there are no companys left because of unions being bigger then the companies they unionize against and the worker realizes that two hours of dues supported the uneducated, crooked leaders of the union, making them richer than the ceo's they buddy up with during neogotiactions, then maybe then job creation and business can work hand in hand.