..feelin' comfy

Just as sentiment turns positive due to ‘overhangs’ removal,…”Here we go again” was the likely frustration echo heard in the afternoon as Moody’s D-G'd Portugal.  Instead of acting upon this fresh news by taking profits in already overbought conditions, the market decided to ignore and keep the rally intact.  Even before this negative wire hit, the market expectation was for a pullback to begin today as was the case the late last week, but as noted yesterday, “…we won’t talk ‘R” now as you just don’t know what will occur with market feeling ‘comfortable’ with overhangs removed for the short term.”.  This Portugal 'shrug off ‘ is an example of markets being comfortable right now as it’s believing sovereign issues will be resolved one way or another.  How long this ‘comfort zone’ lasts is an unknown in respect to Europe.   Also, we need to see how Europe reacts tomorrow as this came after their markets closed.  A shallow pullback is still in the cards, but it’s not a concern due to action in individual stocks (below) and with earnings on deck. (no major pre-announcements today)

Despite the choppy and meandering action on the major indices,  as many as 15 Shadowlist stocks were hitting fresh highs intraday.  ie.   It’s no coincidence these were all listed here due to earnings  at one point.