Thursday, February 09, 2012
Stock Market Commentary:
Greece Agrees To Bailout Terms, ECB and BOE Meetings Barely Move Markets:
Investors digested a lot of earnings and economic data on Thursday. The big news was that Greece agreed to to the demanding terms of its second bailout package from the EU and the IMF. Separately, the Bank of England (BOE) and the European Central Bank (ECB) both concluded their latest meetings. The BOE injected (printed more money) $79.3 billion to boost their struggling economy. Meanwhile, the ECB held rates steady at 1% and made it clear that they are willing to take additional (and aggressive) steps to save the Euro, if needed. Finally, the Labor Department said jobless claims fell by 15,000 to a seasonally adjusted 358,000.
Market Outlook- New Rally Confirmed
Risk assets (stocks, FX, and commodities) have been acting better since the latter half of December. Now that the major U.S. averages scored a proper follow-through day the path of least resistance is higher. Looking forward, one can err on the long side as long as the benchmark S&P 500 remains above support (1292). Leadership is beginning to improve which is another healthy sign. Now that the 200 DMA line was taken out it will be important to see how long the market can stay above this important level. If you are looking for specific help navigating this market, feel free to contact us for more information. That’s what we are here for!