My below Market Thought post I highlighted what I was looking for before I make a power play into equities and got heavy. This morning's chatter, I think, gets us closer to the desired out come:
- Greek debt swap has about 75% of participants involved. (IMO, that is good, especially early in the process. And the market is now pricing in a 100% default. So default is fully expected.)
- Spanish gov are looking to unload and merge CAM with other banks. (I would like to see banks not yet nationalized merge, but this is a good step forward none-the-less.)
- Germany is blocking lawsuits to the EFSF. (Step one complete, the parliament vote remains on Sept 29th. But it is expected to pass.)
- As an added bonus, to quiet the negativity of the 'top-down' economists, Germany produced some nice production numbers this morning.
Then we have other positive data coming through with the $300B Jobs package. (I just hope there is a lot of infrastructure build/repair spending and tax cuts in it. 'Shovel Ready' products did not work last time, so I do not want to see 'shovel ready' BS in this package.)
Side note: I view Nvidia's good results and guidance a prelude to QCOM. With positive sentiment QCOM will re-test the 53 level, and if NVDA is correlated to QCOM, the 53 resistance level will be breached.