Sunday, January 22, 2012

Football night

Its going to be a quick blogpost tonight because of football. I can't decide who I'm rooting for but I'm thinking the giants. I base that solely on remembering Jim harbough,fairy prancing across the lions field ,lifting his shirt up ,to go push that Schwartz guy...Anyway.. Equity markets are lower tonight and I think it's mostly on the back on euro weakness due to he lack of resolution in Greece. A secondary reason is the Gingrich victory in SC. The market is a little smarter than the the south Carolina conservatives ,and it realizes that ,although newt is the better conservative candidate, he doesn't have as good a shot in the general.If Gingrich is the GOP candidate, the odds of 4 more years of regulation and oppressive corporate tax rates becomes much greater. I do ,however ,still believe that the euro has more room to correct to the upside despite tonight's weakness. I'm planning on resetting euro shorts at around 131. The s+p is still in an uptrend, and although that pattern is looking precarious, it hasn't broken any levels that would cause me to liquidate some longs.I will be watching closely tomorrow for a tech sell signal and will keep posted through twitter. The bond market still bothers me as I understand it's value as a safe haven but I also know that I wouldn't invest my ten year money to get a 2% yield. I think yields should back up to 2.4% over the next 2 weeks.I suppose for the 3 previously stated things to happen, we have to get some good news out of Europe..I guess that's what I'm hopeing for and expecting. Have a great night and enjoy the games...jim

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