now the hard part....
Wednesday, June 22, 2011 at 08:03AM Finally…a bid prevailed throughout the day on the market as players decided to have some hope for a day, but now the hard part...holding it!
…” If market gets through Greek ‘vote’ safely (optimism grew today/ PM securing support)… As noted this weekend, “market will act upon outcome". Clearly, the market players grasped the ‘vote’ outcome by the positive morning headlines and proceeded to ‘risk on’ into the 5pm event with a rally. Market as always anticipates and doesn’t wait for the inevitable to make its move. As traders we just need to know what a likely catalyst for any move might be, instead of being surprised when a move does occur.
So…what’s the next hurdle to coming out of Europe??. Surely a fresh one will be on the agenda shortly after the Greek PM /gov’t survived. In other words, we’re hardly out of the woods.
As far as the actual trading environment….it was just yesterday we complained it’s always something (sector) that keeps a broad rally away. Well, today...a rally ensued because all the right cyclical groups were moving in tandem…tech, materials etc. and that is the best market takeaway along with high beta/ momo / small caps types leading the trade.
Wednesday trade is quite critical because the last 2 (1-day rallies) have been wiped out completely the following day and this definitely kept some fresh buying away by market closing time. We’ll see if the ‘broad’ rally is a truly a positive bias indicator as it should be. Bernanke’s press conference late afternoon should soothe the market some more and market can use this and today’s action into Q end. The fact it’s Q end with a holiday weekend coming up should keep the market from faltering till June PMI’s/ corporate earnings start deciding market’s fate.