16 Aralık 2010 Perşembe

The Song Remains The Same

Yesterday morning I commented that stocks were higher, but the pattern had been for them to fade late in the day. True to form, that formula played out again yesterday. Interestingly, stocks are up once again in morning trade, so we will have to see if traders press their bets once again in a bid to knock down stocks into the close.

In economic news, the Philly Fed report came in much better than expected, improving to 24.3 vs. 15 consensus. This has probably helped push bond yields higher again, with the 10-year yield now trading all the way up to 3.56%. That is the highest level since May 13th.

The euro is lower this morning after disappointing bond auctions in Spain, where yields were higher than previous auctions. That has buoyed the dollar, which is also weighing on commodities. Oil prices are down to $88, and gold has fallen back near $1364.

Asian markets were mostly lower overnight, save for India, which rose after it held its benchmark rate unchanged after six increases this year.

And the volatility index remains low near 17.64.

Trading comment: Leading stocks seem to be holding up after Tuesday's selloff, but I still want to watch them to make sure there aren't further breakdowns. Healthcare has been picking up the slack the last few days, so its nice to see the rotation in the market that keeps the major averages from giving back too much.

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