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Tuesday, November 1, 2011

Market Thought... there is some strength

Although the market does not seem like there is strength today, there is relative strength.  The most obvious tell, the 10yr yield.  With the snap-of-the-finger uncertainty Greece caused today, the 10yr has collapsed.

In relation to the yield, the SP500 looks to what to trade at a higher trading range.

The SP500 is currently maintaining the 360 SMA support.

I find this to be interesting. This is most likely due to q3 earnings being absorbed into the market, and the decent (not great, but decent) economic data.

The one thing I do want to point out, the markets are not, NOT, projecting a credit freeze event. There are moves happening within the VIX and Dollar that would suggest market players are starting to position for the uncertainty, but not at extremes to suggest the market has priced it in yet. (No other currency, nor Gold, is being substituted for the dollar this go around.)

I still do not think we get a credit freeze, regardless of what Greece did.  But if the referendum vote is allowed to go through, no good will come of it. The level of uncertainty toward the EU and Euro front increases exponentially.

I am taking a serious look at names like POT, SU, DD, ATI and others. (If I can post charts on them later, I will.)

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