Mr Market is all excited this morning, with news out of Europe that the 3 year and 7 year debt issued by Portugal was better received than expected. The thought is that the Euro has dodged another bullet. As of this writing, the Dow is up 75, and the SPX is up 8.05. All the major indexes are on the plus side, with the financial leading at plus 1.40%. Commodity complex is generally higher, with Oil making another run at 92, trading at 91.89. Gold is down 3.70 at 1380.6 while its shinny brother Silver is up a couple of ticks at 29.65. The Euro is up at 1.304 and the Dollar is down at 80.48. The debt market is soft, with the Note down amost 1/2 point, at 3.40 and the long Bond is down 3/4 point at 4.54%
Earnings season is on, with no big disappointments yet to halt the euphoria. Somehow the market is unfazed by news that Housing prices have fallen 26% since the highs in 2006, more than the 25.6% decline experienced in the 1930's. Meredith Whitney has renewed her cautionary outlook regarding Muni debt problems, and the danger of defaults. But not to worry, the State of Illinois has just demonstrated how a to avoid a default.. the State House and Senate has just approved a 75% income tax boost that will allow the State to catch up on some back-bills and meet a Pension contribution.
Our Proprietary Momentum Change Indicators that offered a Buy signal for the SPX on Dec, 1, 2010 are still in effect, and have moved back into Bullish, away from the concerns earlier this week.
Best to Your Trading!
Bill
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