Good morning. Happy Tuesday.
The Asian/Pacific markets closed mostly up. Hong Kong, India and Singapore each moved up more than 1%. Europe is currently mostly down. There are no standout winners or losers. Futures here in the States point towards a flat open for the cash market.
Yesterday and Friday combined for the second worst 2-day combo since Sept, and given the indexes are close to the lows of their ranges, there isn’t much room for error here. The next few days have the potential to be very telling. We’ll either get a clean breakdown, a breakdown that lures in the shorts and then a rally or a rally from the current level. I’d be a little surprised if the indexes remained range bound because of the surging volatility, expanding ranges and the great number of 1-sided days. We’ve also gotten breakdowns from many key stocks.
But who knows. As I’ve said a few times, if left alone, I think the market would break down (it probably would have already), but the market is not alone. The Fed is steadily pumping money into the system, and that money is finding its way into the stock market. I’m not complaining; it is what it is, and I’ve certainly made my share of profits the last six months riding the trend. But you have to wonder how long it can last. Eventually the weight of the market will be too big for the Fed to support. Do you trade based on what reasonably should happen, or do you trade in the direction the Fed wants the market to go? It’s not a comfortable question to answer because the Fed is a totally unknown entity. How do you trade off the unknown? More after the open.
headlines at Yahoo Finance
today’s upgrades/downgrades
this week’s Earnings Reports
this week’s Economic Numbers
0 thoughts on “Before the Open (Mar 8)”
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Of course everybody knows that the Fed is jump starting the
economy by pumping up the stock market. But even from the
Fed’s point of view they have to monitor their actions
wisely or else it could backfire on them . They could take
the booster cables off the battery for a bit and see if
the engine turns over by itself. HW
Will, just paying all the bond holders 3% interest would stimulate the hell out of things.
Ben says, NOT his way. He knows the banks are insolvent if they ever have to live on their investments (mortgages – lousy ones at that) or give up their investment income from Fed deposits. Is not all that slightly incestious? The inmates have the keys to the joint.
Investors Bus Daily has put the kabosh on equities: “Market in correction”. Last April this opinion preceded a rapid drop in equity prices. Who are they anyway?? The oil prices are up permanently since the hedges and ETFs have all bought in on the buy side and will hold prices up all by themselves, skip the demand by end users. It’s not a bubble – yet.
The EU sovernign debt and CDS are extended this morning, no one knows what that means: maybe not too much yet, Greece does not need to sell debt for a year or so, Just ignore it for now.
The bond gouls want more interest, while no one is concerned over dollar/euro. The tips are getting a lot of lovin recently, later the buyers will hate their facination with tips.
Jason is right, play what you see. Keeping more cash these days.
interesting to see the euro may have peaked and inversly the usd bottomed
why is terible tim in europe today to plead for their help–europe has a different agenda
and will not support the fed—well not always
did the metals take a belting today from their one way bets
usa is only a small cog in the wheel these days controled by germany which is controled by china and to a degree japan