Monday Morning Musings
The market is slightly higher in early trading, on very little in the way of news.
Eurozone officials failed to pass any new measures when it comes to Greece's financial position. The ongoing uncertainty continues to weigh on markets.
Last week I wrote an article about how bearish sentiment was again reaching extreme levels, which is often a precursor to a market rally. But sometimes bearish sentiment can become even more bearish. Also, you need some sort of catalyst to spark that initial rally, then you usually get some short covering that fuels the early move. We still don't have that.
Asian markets were mixed overnight, while Europe is lower this morning.
Commodities are mixed, with oil prices lower to $92.50 but gold prices firm at $1540.
The 10-year yield is holding steady at 2.95%; and the VIX briefly spiked higher at the open, but has since reversed and is breaking below the 21 level currently.
Trading comment: Markets remain oversold. The Nasdaq has been down for 7 straight weeks. And I already mentioned how bearish investor sentiment has become. So the stage remains set for a relief rally, but there has been no real news today to help spark any buying. If we get some positive news on Greece this week, I think that would help.