Friends
Stocks enjoyed another day of gains as news of the Fed, along with the Bank of England and others are attempting to stabilize U. S. dollar funding for European banks. It seems there has been somewhat of a “run” on several large European banks funding, triggered by the reluctance of money market funds wanting to hold European bank debt. It is designed to provide liquidity for the balance of the year. Hmmm.
Anyway, as the Europeans continue to refuse to take their medicine, stocks are enjoying the benefit of a calmer Eurozone. With the dollar and gold down for the day, stocks enjoyed another nice up day as the Dow Jones Industrial Average was up 186 points for the day. The S&P 500 was up 20 points to finish the day at 1209. On a technical basis, the bulls were able to push above resistance of 1204 on the S&P by early afternoon, and impressively held the gains late in the day. The next major area of resistance is around 1225. If the bulls can take that out, we may really have something to talk about to the upside.
On the economic front here at home, the weekly jobless claims continue to be disturbing and the Philly Fed report, which was disastrous last month, was better this month, but not by much. The market’s reaction to the domestic news illustrates that traders are squarely focused on Europe.
It’s been a good week for stocks so far. We will see if we can hold the gains for the week tomorrow as options expire.
Have a nice evening everyone.
