ANOTHER CAN KICKING!
I happened to find this randomly last night and it is really worth watching. Like her or not Mrs Thatcher nailed it oh so many years ago.
The only thing decisive that came out of last night's end to the latest version of coffee at the espresso bar is that Britian has had enough and pulled out before the check came. As for the meeting itself it was another example of kicking the can down the road. Instead of a bazooka to solve euro woes we got (as wonderfully stated by Rick Santelli on CNBC) one of those pistols that blows bubbles. Market reaction has been much more muted this time around and European markets have been slowly eroding this morning. The euro hit 1.34 and has gotten turned back and we are almost flat there as well. Add to that warnings from Dupont, Texas Instruments, and others and we have the makings of a weak bounce at the open and then probably an attempt to take them down to very important support.
Moving averages on the down are around 11,800. On the S&P it all clusters around 1225. If we get there later today, a break there would be very bearish in my view.
MLPS lost 4 yesterday and has been fighting 375 on the index which is wall it can't get through. Enterprise (EPD) weighed on the index yesterday due to its equity offering. We are still an area of relative safety. I noticed yesterday that Sunoco Logistics (SXL) which is probably the best performer in the group was among the bigger percentage loser here. There is probably some year end action going on here with post split profit taking. Be advised that now that we have all sorts of ETN's and ETF's out there in MLP land, this sort of thing is going to happen. My worry is what happens here if the market really gets in trouble. With all the leverage out there there is the potential for things to get ugly. Another negative sign btw is crude oil which move further away from 100 on WTI and 110 on Brent. Its another sign that the economy is slowing down.
This morning corporate wise we have no news and no upgrades or downgrades. Markets were higher earlier but continue to slowly fade. The Euro as i post has now turned down. Crude is lower. And the best measure of what is happening is the 10 year which is at 1.98%. The bond market is telling us with a sub 2% yield is telling us that Europe solved absolutely nothing.