Stocks Hand On To Yesterday's Gains
The market is slightly higher in early trading, a good sign that so far we are not giving back yesterday's solid gains. The action in the market was good yesterday, with volume rising nicely and the Nazz scoring a 90% upside day (90% up volume).
Today we have the FOMC meeting and statement coming out later this afternoon. While few expect any surprises, it will be interesting to hear what Bernanke has to say about the end of QE2, the current softpatch in the economy, etc.
The euro is higher vs. the dollar this morning after the Greek PM was able to secure the votes needed to pass their measure yesterday. That should put them in shape to get the near-term loan they need from the IMF to make their interest payments, but they still have a long way to go until they can get their fiscal house in any sort of sustainable shape.
There were a handful of earnings reports last night. Fedex (FDX), Jabil (JBL), and CarMax (KMX) are all higher after reporting, while Adobe (ADBE) is trading down.
Asian markets were mostly higher overnight, although China and India are struggling to bounce along with most of the other markets.
Commodities are mostly higher, with oil prices up to $94.75 and gold higher near $1558.
The 10-year yield has drifted back down to 2.95%; and the VIX is down another -5% to 17.85.
Trading comment: As the buildup in bearish sentiment continues to unwind, the market should be able to lift a little more from current levels. The first big test would be at the overhead 50-day average, currently near 1319 (if and when). I continue to look to raise a bit of cash as things lift, and add some hedges to help get through what could be a long summer of volatility. While Greece has calmed down for the moment, I don't feel they will be out of the headlines for long.