Although Asian markets were higher overnight, Europe opened lower this morning amid concern about new leadership in Greece in Italy and whether officials will be successful in dealing with the precarious fiscal and financial conditions in the region. Italy was able to hold another bond offering, but yields there are at record highs for the euro era.
The euro is also weak, which is boosting the dollar. That is weighing on commodities with oil prices down to $97.35 and gold prices easing back near $1778.
The 10-year yield is higher this morning near 2.08%. As for the VIX, it is +5.5% higher right now back above the 30 level to 31.70. But it has been consolidating below its 50-day and does appear that it could move to lower levels if the focus could move off of Europe for more than a couple of days.
Trading comment: There are individual stories that are working in terms of stocks. I still feel that there is somewhat of a bid under the market, that will be there on pullbacks. The market has been consolidating its recent runup and I think there is a good chance that it gets resolved to the upside into year end. The ongoing risk of headlines out of Europe is something that is too difficult for anyone to handicap accurately. If things stay the same over there for the time being, investors may look past it for now. But if another shoe drops we know that selling can pick up in a hearbeat, just like it did last Wednesday. Stay nimble.
Posting Komentar