Ahead of the open, (30-05)

Last week the market tacked on most of its weekly gain in one day (Monday), today on the first trading of the week, it possibly did the same thing.  Simply with correlations high, individual stock picking is almost out the door, you basically have to find a place to go ‘long some ‘ SPY/ETF’s as here late last week and hope for a mini rally day.   Unfortunately, today’s morning ramp close to 1340~ (1334 SP high) was sold into as speculated.   Although, the market crept back to close at 1332, you clearly see this is going to be a problem and so you almost have to mimic the actions of others and sell.  One day rallies and days of sew saw trading in between may be the norm for a while.

 

All in, not a lot of real things (positive drivers) occurring.  Instead with thin liquidity, market rallies on pure speculation (Greek polls will hold, Spain bank reforms, China stimuli chatter).  The idea of another LTRO like policy is keeping U.S markets from fearing Spanish yields creeping to 7%, while fresh China rumors of big stimulus round out the ‘hope’ play.  Unfortunately, that’s not going to get real money chasing the market aggressively.