There was positive news from Consumer Confidence data (56 vs consensus of 45 and previous 39.8) which carried stocks higher overall Tuesday. And, bulls still liked the news from Monday's cyber-shopping results even if profits on sales may be weak. Other news from the Case-Shiller Home Price data wasn't so hot with prices down .6%. One positive may be is median income and home price data is also normalizing at least for those working. On the eurozone front there's much movement but little in the way of decisive results. Humorously, the ECB gave the Greeks $8 billion which they'll use to pay back the ECB--yeah, that's the ticket!
It's odd that companies like American Airlines (AMR) and MF Global (MF) become large bankruptcies (with the latter still a serious controversy) and bulls shrug them off. And, former hedge fund phenom, John Paulson's Advantage Plus Fund clocked-in a -45.40% return YTD which might set records in some category.
But still, even as stocks overall rose, financials (XLF), Bank of America (BAC) and Morgan Stanley (MS) remain serious drags on stock performance as the eurozone issues and exposure to them remain a concern.
By day's end markets limped to the finish line making little progress. The NASDAQ closed lower mostly on profit-taking from the previous day's large move. The dollar was basically flat, oil was higher on Iranian issues no doubt and gold was steady as were most commodities.
FROM THE EUROZONE: LEVERAGING THE EFSF, ECB AND IMF RESOURCES RESULTS.
Volume was light once again and the follow-through rally was timid. Breadth per the WSJ was mixed to negative.
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is a market breadth indicator that is based on the difference between the number of advancing and declining issues on the NYSE. When readings are +60/-60 markets are extended short-term.
McClellan Summation Index
is a long-term version of the McClellan Oscillator. It is a market breadth indicator, and interpretation is similar to that of the McClellan Oscillator, except that it is more suited to major trends. I believe readings of +1000/-1000 reveal markets as much extended.
is a widely used measure of market risk and is often referred to as the "investor fear gauge". Our own interpretation is highlighted in the chart above. The VIX measures the level of put option activity over a 30-day period. Greater buying of put options (protection) causes the index to rise.
Continue to Concluding Remarks
There are more highlights from the Euro Zone meeting
. And then there's this from the most influential
who states the rescue package won't be enough to stem the crisis.
More economic data will be released Wednesday with ADP Employment Report, Chicago PMI, Productivity & Costs and Pending Home Sales.
All this will come atop the S&P announcement detailing credit rating downgrades for banks globally dueling with eurozone press releases.
Let's see what happens.
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