Italy auctions are on tap; short term debt.
10-Year Bond Yields:
Greece 18.65%
Portugal 13.71%
Hungary 8.66%
Spain 5.17%
Italy 4.90%
Belgium 3.39%
France 2.93%
Netherlands 2.39%
U.K. 2.26%
U.S. 2.18%
Germany 1.89%
Banks are strong in Europe this morning following along from the positive bank stress test results in the States. The U.S. yield is at multi-month highs from three months ago as traders become even more fearless about throwing money into the stock market and less concerned about safety (a potentially contrarian indication when considering the low volume, low volatility and low put/call action). Greece yield is at 18.65% after the restructuring, that is laughable. Portugal remains elevated but under the 14% level. Spain, Italy and France all moved higher. Spain moved upwards 21 basis points in the last 24 hours to now print 5.17%.
I believe that the SPXA150R moved up further to 89.58 yesterday. What does that say? Should we hang onto our shorts?
ReplyDeleteHello Weaver, you will have to make the decisions for yourself. The SPXA150R is at 899.58, the move up over the last few days for this simply indicates that the bulls are running, over 90 would continue this trend.
ReplyDeleteIt will only be important to bears if the SPXA150R reverses and moves under 85, or, if it does move above 90, then moves back below 90. The moves below wither the 85, or potentially the 90 level, will signal the bears pushing back.
The broad indexes and Apple daily charts remain negatively diverged. After big pops like yesterday markets sometimes like to move flat for a day or two to regroup. Very interesting markets, price moves ever higher, but charts and sentiment and complacency indicators are bearish. Large moves are very easy in low volume trading. The traders that are placing short moves are covering to provide some extra oomph on the recovery moves. Markets appear to be continuing along in a topping pattern and should roll over, but, the Energizer Bunny keeps creeping higher. Perhaps some wild unexpected event will come out of left field. The seasonality set up for a bullish week so this buoyancy must be having a positive effect.