After yesterday's gangbuster stock rally players were left wondering that maybe the bond markets should have more holidays.

Bond traders, ever skeptical, came in after the long weekend and faded the rally taking spreads off of the high (tight) prints as stocks closed flat.

Spreads are still closing tighter, however, with the "fear of the rally" ever present.

The short-base in both equities and in credit is at a multi-year high and so any hint of a coordinated intervention tends to send players scrambling to cover their short positions.

With trading volumes light and liquidity relatively thin, these short-covering rallies tend to be that much more spectacular.

Slovakia was in the news for the first time since the peaceful dissolution of Czechoslovakia.

This time Slovakia made headlines for failing to approve an overhaul to the EFSF (European Financial Stability Facility) bailout fund, in the process potentially toppling the Slovak government.

That a country the size of Slovakia could stall a process with strategic consequences for Europe's financial arteries drives home the underlying political nature of Europe's woes.

With Alcoa kicking off earnings, players will shift some focus from Europe to how U.S. corporations are faring with a particular emphasis on the outlook for 2012.

China chatter continues to pick up although with Europe hogging the headlines, the market may continue to ignore rumblings coming from the Middle Kingdom.

The "Wall Street protests" moved uptown on a "Billionaire's March" stopping by the listed homes of names such as Rupert Murdoch and David Koch.

Notably absent from the "Billionaire's March" itinerary are some well-known billionaires with close ties to the Democratic Party.

That the "Wall Street protests" are being politicized should not surprise anyone.

Voters are likely to remember, however; that it was a Democratic administration that bailed out Wall Street.

For the remainder of the week, most eyes will be on Europe and earnings in the U.S.