Morning Note

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There wasn’t necessarily and big news yesterday other than a Spanish bond auction that went well. The market exploded higher at the open, then coiled bullishly for most of the day.

In early morning trade today the ECB announced that they will open up some liquidity to the European banks. The euro (and our futures) exploded higher on this news, but has given back the entire move. Actually the euro has come down pretty hard. Markets are about flat right here.

My view from the charts is that more stocks are broken then not. Trend lines have been taken violated moving averages have been broken. From my perch, all that happened yesterday was move back up to moving average resistance.

The bulls will need a follow through day or at the very least a consolidation day today to make yesterday matter.

Yesterday was definitely a “risk off” day and the 10 year note rallied from about 1.80 to 1.92. Still well under the 2% level and unless I see yields move over that level of 2% rallies have a high probability of evaporating. We’ve seen this many times before. Yesterday was another short squeeze.

Unfortunately yesterday’s vicious bounce stopped me on FAZ, and LEN.  I will revisit them both soon if they bump a little higher.

CF gapped yesterday which mad the decision to cover a difficult one. I am leaving it on with the stop at yesterday’s high. I am also using yesterday’s high as a stop for MCP.  I covered a little and I am holding most of my position.

We have existing home starts at 10AM so stay on your toes. I will be looking for day trade opportunities today. See you in the chat room.

ORCL is down 10% right now and it is pulling down technology shares. RIMM is in the rumor mill as a takeover.

The P&L will be updated shortly.

I am getting ready for 2012.

 

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