Into the trading week, Feb.(21- )

Heading into a shortened trading week, market finally has a second Greek aid package in hand and a sell the news effect was the widely expected outcome on Friday.  In this view, an agreement may be discounted, but a sell off as every time before is unlikely as the market has drastically changed since those days.  The details are pretty well in line with what was talked about.  What’s likely more important over the weekend is the news China finally has made an RRR cut in 2012 and now is the lastest country to join the Global easing craze.

After more upbeat US data last week, the focus here will be the mid- week Global ‘Flash’ PMI’s to gauge the health of the ‘Global’ economy. There is no tier 1 eco’ data out of the US, except the next Initial claims number after last week’s # hitting a new cycle low.

In all, market returned to it’s recent buy the dip mentality as of late last week with SP 1370 once again in sight. The only thing to keep in mind is additional gains are limited up to 1370 and beyond heading into back end of the month.  Window dressing will likely also become a factor soon and keep market steady.  Eyes will turn to the 2/29 LTRO and what ECB says or does afterwards.  If anything, a sell on the news will occur after this event to greet the new month, but for now the coast is clear.