This is "the short-term memory market" and may be a suitable alternative headline. But, HFTs (High Frequency Traders) have programmed their HAL 9000s to search for terms like "Greece" and "approved" to launch buy programs. And, yes, there was some news regarding both items late in the trading day. Nevertheless, there will be more votes ahead for any deal which will come with accompanied tension.
Forgotten was early in the day news that continues to be poor. There was weak economic data from China and Europe overnight which also weighed on markets in the U.S. Jobless Claims missed and came in higher while Home Sales were still lower. News from White House negotiations over the budget disappointed as Congressman Cantor walked out of talks wanting the president to come to the table.
Wednesday's Fed report showed Fed Chief Bernanke mystified over the lack of positive results from his policies. If he isn't confident, why should we be? In another coordinated interventionist action, the U.S. ordered 30M barrels of oil from the U.S. Strategic Reserve released to supposedly fix supply shortages from the Libyan oil facilities we're bombing. But, really, it's a political move and no, you can't make this stuff up.Given short-term memories the machines only respond to the latest news and not the totality of bad news. Therefore, markets rallied sharply off their lows with the NASDAQ closing green on the day while the DJIA made up over 150 points to close down .50%. Color the markets messy. After the close both Oracle (ORCL) and Micron (MU) missed badly on their reports and both stocks were sold hard. Volume was very heavy especially on the last hour short-squeeze ramp on news from Europe. Breadth per the WSJ was still mixed to negative. You can follow our pithy comments on twitter and join the conversation with me on facebook. Continue to U.S. Sector, Stocks & Bond ETFs
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