7/13/11…waiting for

Bloomberg Top Stories:

 

*Emerging Stocks, U.S. Futures Rise on China; Euro, Italian Bonds Advance

*Italian Debt Risk Puts France’s BNP Paribas, Credit-Agricole on Frontline

*ECB’s Bond-Buying Pause Tested as Italy Prepares Debt Auction

*Defaulted Greece May Have to aid Trichet to Save Face as ECB Stands Firm

*Stress Test Near-Failures Face Scrutiny by Investors, Morgan Stanley Says

*Murdoch Faces Six Probes Into Phone Hacking, News Corps BSkyB Purchase

*McConnell Offers ‘Last Choice,’ Three-Stage Option for Raising Debt Limit

*Egypt Gas Pipeline Blast Pushes Israel Toward Dirtier Energy Alternatives

 

Volume rose to 3.76B shares and produced another selloff. Big Board volume rose to 924M from 829M, highest since 6/30 and higher volume on a down day is not desirable…but we are approaching options expiry rapidly!  So we had several solid rally days on low volume followed by a huge selloff on only slightly more volume…what does this say about liquidity? Finally the VIX rose agqain to 19.87 after topping out at 20.13.

 

Dow Transports fell 1.1% vs 1.8% following Friday’s 1.2% decline while the Dow was off 0.5%. S&P 500 -0.4%, Nasdaq Composite -0.7%, Nasdaq 100 -1.8% and the Russell 2000 -0.5%. Advance/Declines ran -1.4x vs -6x on the NYSE and -1.5x vs -5x on Nasdaq, while Breadth was -2.4:1 vs -26:1 on NYSE and -3:1 vs -11:1 on Nasdaq.

 

Overnight global stocks are up for the first time in three sessions. Nikkei +0.4%, Hang Seng +1.2% vs -3.1%, Korean KOSPI +0.9% vs -2.2% and Indian SENSEX +1% vs -1.7%. U.S. futures are also up: DOW +58; SPX +7.20; NDQ +15.75. Gold hit a new record overnight of $15.75.90 and is now $1574.60 +$12.30 while Crude is $97.41 -.02. Bonds slumping again after two good sessions. The 10 year -9/16 to 2.94! The 30 year is -1 point to 4.23%….let the auctions continue.

 

…something to happen and continuing to see-saw with a downward bias on European credit concerns and the debt ceiling. We are closing in on the August 2nd deadline for an agreement. Something will happen because it is in everyone’s interest to make it happen but without ceding what they want…revenue and its definition is the big stumbling block. We are in a horrible situation with the presidential election more than a year away yet both sides trying to gain support.

 

How long can the economy continue to grow without meaningful jobs creation? …and without jobs how can consumption grow and the stock market continue to rally, even as the housing market wanes?

 

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Hope today is a good one for you!

TB

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