The S&P uninspirational continues its dance between 1050 and its 200 day moving average around the 1102 mark. And this one isn't the tango - its a simple, stagnant, somewhat routine fox trot of sorts with plodded predictable moves. Add to the mix that the economic calendar is relatively quiet this week and the Euro front continues to appear calm after the trillion dollar backstop that was introduced by governments weeks ago - and you have a real chance for a low volume rally. Also, don't discount the effect that the World Cup games will be having on trader activity in the afternoons. Sounds silly and probably underappreciated in America, but its the worlds most popular game and its the pinnacle of the sport that occurs every 4 years - so with that on the line, trading will be diminished as attention is diverted.
As an aside, corporate earnings season is back in style with pre-earnings releases and whispers beginning. While strong earnings were expected as the last burst of economic stimulus works its way into corporate hands and the recovery encourages consumer spending, whispers are starting to grow of slight downgrades due to consumer cautiousness in spending and european impacts from the past 3 months. What was originally thought to take us out of and above the 1100 band might just push us firmly into the sea-sawing wave.
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