Ahead of the open, (30-03)
Friday, March 30, 2012 at 07:17AM If you missed Wednesday's action, you got a live replay today. Shang’ fell another 1.4% overnight, US markets weakened in the morning, only to stem losses post Europe’s close...1-2-3... Only difference is yesterday’s losses were halved while todays spill to SP 1391 was almost fully erased back to a 1403SP close. In the last 11 trading days, SP has closed 5x between 1403-1409, takeaway the squeeze on Monday and the market has really not done much since mid -March. The same caution exhibited in the past few weeks is on show the past few days. This is due to the same ‘China’ worries rehashed over and over again, only difference this week is Europe (Spain) sovereigns are being looped in.
To put this week into perspective, we entered the week saying,…”This on the back of each major zones own headline noise: US...‘5 days of housing data adds to global growth concerns’, ‘China demand fears weigh on recovery’(Shang' off >2%), ‘Europe slides 4 days on sovereign concerns as yields rise’ (Europe off >3%). You’d think the, ‘Hunger Games’ hoopla was stock market related this weekend until you check previous week’s closing prices and see only a 5 handle drop since”. Almost a week later, we can almost repeat those words identically, except we see a 5 handle rise with 1 trading left to close Q on a positive note.
All in, the last 2 weeks seems like investors are anticipating a sell -off in April by doing some rebalancing, some profit taking, but US markets refuse to follow the Shang and/ or European bourses. The Bears are doing a hearty job of trying to instill fear, but it’s a lousy job at the end of day judging by the market boxscore.