Into the trading week, (July 9- )

Although the NFP# came in below consensus and was cited as the culprit behind the markets losses on Friday, it really wasn’t.  Only problem with the NFP# was it wasn’t bad enough to prompt QE3 speculation.  It’s hard to believe 80K isn’t bad enough to do something August 1, but that’s the impression market has right now of the FED’s timetable to act.  The report was really in no- man’s land.  Not bad enough to spur policy action and not good enough for recovery junkies.  The main driver behind the day was Europe.  A disappointing (no LTROS) ECB meeting from the previous day and cracks in the summit measures with some solutions coming into doubt overshadowed the NFP# report in this view. (see Sov’ yields climbing to critical levels).  All in, it seems market is losing faith in CB’s capabilities to really change things.  That’s quite the change, if it’s the case.  The running out of bullets idea in laymans terms may be creeping into the market.  Don't forget there was a co-ordinated action (incl. PBOC/China) of sorts on Thursday and market has seemingly blown it off.

  

‘Into the trading week’, market kick off with Q2 reports, but it’s the unscheduled companies and potential pre-announcements that will likely rule the week, if Friday is any indication.  A couple of pre-announcements from INFA, APKT did an incredible amount of damage to anything enterprise or cloud relating to end the week.  A slaughter in high beta tech land is the best way to describe it as market didn’t look at it as a company specific event.

This week’s Finance summit will likely produce nothing concrete and only cause intraday headline swings.