A month into this side way correction, China tightening and Europe trouble continued to hurt the bulls at open. It was followed by a boost from President Obama on hints of a tax deal and then weakness at the finish on a downgrade of Portuguese debt by Standard & Poor’s. In addition to the downgrade, someone supposedly unearthed a 2009 interview where WikiLeaks said it had acquired a BofA hard-drive. That led to a wild rush to buy BAC CDS at the end of day. Weakness in technology stocks is another negative. The S&P 500 is still in the trading range of 1175 to 1200 and 1175 held again. The good news is that we will finally have some positive beginning of the month seasonality. If we can get any good news out of the three headed monster (Korea, China, Europe) or any positive resolution on the tax deal, we may be able to put in a meaningful rally to close out the year.
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