Greece: German and French leaders expressed support for Greece to remain in the Euro Monetary Union. Additionally, there was continued speculation that China might step in and help Europe’s most debt ridden countries. Not surprisingly, this had a positive effect on the markets.
No Lehman: Tim Geithner said today that “there is no chance that the major countries of Europe will let one of their major institutions fail.” Additionally, the Chancellor of Germany has also said there will be no Lehman Brothers situation in Europe.
Bearishness: Investor’s Intelligence analyzes investment newsletters in an effort to ascertain sentiment among investment professionals. The latest analysis shows there are now more bearish newsletters than there are bullish newsletters. This is a rare condition and was last seen at the bottom in March 2009. Additionally, another study showed that hedge fund bearishness has recently jumped.
Market: The market was very strong today on the marginally better news out of Europe. Today’s intraday range on the S&P 500 was 3.4%, illustrative of yet another volatile day. It has still held the lows set on August eighth, although it has hardly been a smooth ride. As bad as some of the recent news has been, it is interesting the market is holding its newly found (albeit short-term and fragile) uptrend.
S&P 500 (One Year)
Have a good day! Brent
