Headline Risk Absorbed Well

U.S. stocks drifted today, as a selloff in utilities and energy shares capped off earlier gains.  We saw some inflationary data today as the CPI rose and that will put more pressure on the fed to raise in December.  You have to wonder though if Yellen wont kick things into next year based on what is happening in Europe right now.  Any good financial engineer worth his or her salt relishes the idea of delaying the inevitable.

The latest developments after the terror attacks in Paris will strengthen the political support for ECB actions at its meeting on December 3. Translation, dovish policy and more stimulus.   Anticipation for more accommodative monetary policy from the ECB may lead to even more optimism for stocks.  The euro dropped to its lowest level against the greenback in seven months.  Let the good time roll.

Today we saw a major German football stadium evacuated because an ambulance full of explosives was discovered outside. Later in the day, in the south of France, a raid produced 100 police uniforms and rocket launchers. This is the new normal, and expect more headlines like this, but all in, the market absorbed it well today.

I love the week before and during Thanksgiving for the market. Usually a good couple of weeks to be long.  The last couple of November’s have seen decent moves in the S&P. Usually light volume but great trading.

Stay safe out there.

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