DJIM #9 2011

Entering last week’s shortened trading calendar, DJIM noted Libya  vs. Egypt..” This time we are dealing with tensions hitting the first ‘oil’ producing country and so it might be a little different this time due to 'inflation' links”.   Despite a global overnight sell off leading into the US market open, the SPX managed to open at 1338, but soon after almost 3 full days/3.7% of selling ensued.   As discussed, investors/traders would not be willing to step up until things settle down.  That’s what occurred as S. Arabia stepped in late the week with a social $blns program + to meet crude demand to ease jitters.  Coming into this week, the consequences of this Oily patch are not going to go away overnight and the markets will also have some of the first February Eco’ data on it’s way.   Add some ECB events to monitor and the belief is this bounce will peter out and we will have November (see last weeks Jrnls) like action.  

Despite the ruckus last week,  we know that whatever is left of earnings reports this season, the reactions to good reports is still in the market and so individual trading oppy’s should still exist.  Just click the earning link here and see if any DJIM’s are reporting as a start.