***As I noted earlier, this is a close call. The Hold or Sell call will depend on the volume for the day. I realized that the actual volume may indeed push the system to sell. I will re-run some numbers later when I get the final volume.***
GREECE AGAIN
Greece Protests Turn Violent
ATHENS, Nov 7 (Reuters) - "Greek police fired teargas and water cannons to disperse thousands of protesters who flooded into the main square before parliament on Wednesday in a massive show of anger against lawmakers due to narrowly pass an austerity package...In all, nearly 100,000 protesters - some chanting "Fight! They're drinking our blood" - packed the square and side streets in one of the largest rallies seen in months, police said." Full story at
http://www.huffingtonpost.com/2012/11/07/greece-protests_n_2088775.html
Update: The
Greece parliament did vote in more austerity measures Wednesday.
EUROPE AGAIN (from BREAKOUT)
"David Lutz, managing director and head of ETF trading at Stifel Nicolaus, thinks investors better get used to negative news out of Europe. "We're really coming down to the end of the game right now to see if Greece is going to be staying in the eurozone and getting some capital," he says.
Greek unrest brings back the negative cycle that dominated 2011 --a U.S. recovery stymied by our main trading partner not just slumping economically but potentially ceasing to exist in current form. More discouraging still, Lutz says Greece is only 3/4 of the way through a process that has lasted years already." Full story at...
http://finance.yahoo.com/blogs/breakout/europe-back-spotlight-investors-run-cover-160911325.html
EURO ZONE SLOWING (from CNBC)
"The slowdown in the euro zone is now impacting Germany, European Central Bank President Mario Draghi said on Wednesday, warning that data shows that Europe's biggest economy is no longer shielded from the effects of the euro zone debt crisis."
The ECB has embarked on its on version of QE and Draghi said, "Our new program of Outright Monetary Transactions provides...(a)...backstop by allowing for unlimited interventions in government bond markets." Full story at...
http://www.cnbc.com/id/49724245
Europe is in recession – period. Will the US follow Europe into recession (are we already there?) or lead the world out of recession? The most likely course is that we follow them.
I caught the last few minutes of Fast Money on CNBC. Of the final picks by the 4-pundits, one was Caterpillar (the ultimate cyclical stock) and another was CSX, the railroad company, (a Dow-theory transportation company). They were buying the dip with cyclical stocks so they don’t believe the recession scenario.
MARKET
RECAP
Wednesday the S&P 500 fell
2.4% to 1395 (rounded) and VIX rose 8-1/2%
to 19.08.
Repeating yesterday’s
comment (it’s true for today too): Market internals (breadth and
new-highs/new-lows) are still neutral to negative. There was some selling late in the day – all negative
for the markets.
NTSM
I will post later as soon as I re-run the analysis with the final volume numbers for the S&P 500.
I will post later as soon as I re-run the analysis with the final volume numbers for the S&P 500.
