Greece Reverses Losses: Dave's Daily

How many scenes and acts will there be for this Greek play? Answer: more than Wagner's Ring Cycle. That said, stocks rallied modestly on the news of another "deal". The current deal will be dissected many times before the EU will really know what's in it probably. The citizens of Athens won't like anything being done by the politicians or their EU overlords. So we move on to the next deadline on the roadmap to eurozone serfdom.

Gold prices were flat on the day and copper prices fell which didn't seem bullish given the rather flat dollar and bullish stock market tone. There were some strange occurrences in trading in crude oil futures which were up sharply on the day. The CME needed to halt trading and perhaps there was some HFT algo issues negatively overwhelming USO, UCO and crude oil trading. The market shut for a bit while exchange officials tried to determine what was going on.  HFT algos are accidents waiting to happen.

Leading stocks higher were previously lagging small caps (IWM) and transportation (IYT) sectors. Banks (BAC, KBE) and financials (KRE) were also higher. Meanwhile, the solar sector continues to suffer (TAN) and companies like First Solar (FSLR) struggle especially against cheaper Chinese manufacturers. A good earnings report from Diebold (DBD) helped dividend ETFs like SDY. 

LATE BREAKING: Moody's downgrades Portugal, Spain, Italy; France, Austria, UK AAA Ratings Negative. (Of course the market is closed, they're late to this anyway and these agencies have been thoroughly discredited.) Also late, the Finance Minister of Luxembourg Finance Minister states: "Athens's European creditors can't bring much more money to the table; and, the US must lead In building a bigger IMF firewall -DJ". Right and thanks! You give Greece an ultimatum and as far as we know, they accept and then you renig on your part? Take a hike! That said, maybe Ben will print them some fresh greenbacks. But as I recall the congress must approve more funds for the IMF.

Volume remains quite light as many investors continue to sit on their hands. The level of trust in markets by individuals is still not tempted by a rising tape. Monday's volume was the lowest for a non-holiday period in 16 years. Will the animal spirits return soon? Or, is this the new normal?


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SPY - The SPDR® S&P 500® ETF is a fund that, before expenses, generally corresponds to the price and yield performance of the S&P 500 Index. Our approach is designed to provide portfolios with low portfolio turnover, accurate tracking, and lower costs.
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IWM - The iShares Russell 2000 Index Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the small capitalization sector of the U.S. equity market as represented by the Russell 2000 Index. The index represents the approximately 2,000 smallest companies in the Russell 3000 Index.
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QQQ - PowerShares Capital Management LLC is passionate about our goal of delivering the highest quality investment management available through one of the more benefit-rich investment vehicles ever created, the exchange-traded fund.PowerShares QQQ¿, formerly known as "QQQ" or the "NASDAQ- 100 Index Tracking Stock®", is an exchange-traded fund based on the Nasdaq-100 Index®. The Fund will, under most circumstances, consists of all of stocks in the Index. The Index includes 100 of the largest domestic and international nonfinancial companies listed on the Nasdaq Stock Market based on market capitalization. The portfolio is rebalanced quarterly and reconstituted annually.
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