Monday Morning Musings
The market is opening under some selling pressure this morning after several downgrades in the financial sector are weighing on the banks and brokers.
But the ARMS Index, CBOE put/call ratio, and ISEE Sentiment Index are all at elevated levels early on, which could lend a bid to stocks at some point today.
Last week was a big week in the market, so some selling should not be surprising. But on the flip side, a lot of managers are likely underinvested if the market continues to rally, myself included.
I said on Friday that Asia would probably be up over the weekend, but that was an understatement. China surged +8.1%, which is the equivalent of the Dow spiking +1000 points. Quite a move. The ETFs are not up as much this morning, but still higher.
GOOG has reached out to YHOO and offered their support to help thwart Microsoft's bid. If I were YHOO, I'm not so sure that I would want to thwart the bid. I would probably sell.
Oil is a bit higher, but still under $90. Most of the energy stocks are up nonetheless. The 10-year yield is up a bit also, at 3.65%. But the Yen is still lurking near its old highs, making me worried that another upside breakout could be coming. Keep an eye on that one.