Around the Globe
Europe as of 8:15am EDT
Today’s Economic News:
Now that is a small economic calendar for the day. Not much there to watch.
Quote of the Day:
Pessimist: One who, when he has the choice of two evils, chooses both.
–Oscar Fingall O’Flahertie Wills Wilde
Current Breadth Readings: (click here to see all our breadth charts)
There are a couple of charts to cheer up the bulls today. The one chart above is the New Highs / New Lows ratio and the fact that we actually ticked despite the Friday sell-off. This indicator has remained strong indicating a strong underpinning remains in the market, for now.
ES SP500 Futures Comments:
We like the 1380/78 area for a hold, but once again this is a news driven market and while most people are holding, those selling are not finding any buyers, even at these low volumes, so price continues to look for a floor. The Europeans seem extremely pessimistic and I can’t imagine what the rest of the world thinks when we here in our own culture can’t believe both the hype and the dysfunctional form of government we have voted in for ourselves.
If you can’t swing for the long-term fences, then this is not a market for you. The trends are neutral with a bullish bias which means if you have been long for a while, you should start to get protective. If you already sold some, you might want to think about getting longer; if you want to short, wait for a bounce.
Wednesday will be a much cleaner market as the phantom deadline of 12/31 flies by and we realize that on the other side is much of the same. Our government has never done anything on time and these deadlines are only good for scaring the public and getting a few of the weaker dogmatics to compromise on their positions.
I wish everyone a Happy New Year (except if you are the person that coined the phrase “fiscal cliff”, I hope your New Year is just mediocre).
US Dollar DX Futures Comments:
The Dollar is doing it just right. We love the hold at 80 here. 80.50/79.50 is our range and looking for 79.50 to snap and a move to 77.
TLT Twenty Year Bond ETF Comments:
Watch 123.55. We need to stay below:
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