Yawner of a week
Thursday, May 26, 2011 at 07:08AM Going into Tuesday’s trade, we talked of ‘Footing Zone’ for SP/Currency and now 48 hrs the area has held as CDS(Italy, Spain) spreads have tightened in Europe being the only change. Despite, the markets seemingly finding its technical footing here, it’s a disappointment the contagion fears that have abated the last couple of sessions haven’t pushed the market any higher. The likely culprit overhang is the slower growth data that keeps rolling in, like today’s Durable Goods #. The only risk asset beneficiary has been the commodities, but that is a function more of the previous exhaustive selling and a GS crude upgrade before Tuesday’s trade. Aside, it’s a ES trade as last hour shenanigans demonstrated today with a lack of corporate news leaving individual stock action hard to find.
All in, it’s very quiet from both the Bull and Bear dugouts as far as any conviction goes and it looks like the SP is on to track for another losing week (#4) in May unless SP1331 ‘R” gets busted ahead of the long weekend. As desks empty, don’t put much into any move unless a worthy catalyst hits the wires. Market will likely wait for plethora of eco’ data next week before doing anything.
Demi/ YourPersonalTrader
EBS deal is much longer in duration than expected by street===$$$, Co' covered for years to come!