Monday, July 25, 2011

Is Market Yawning at Political Theatrics?

Watching the $SPY gyrate today and getting the feeling the market has already priced in a debt ceiling resolution.

The fear over the weekend was that the market would tank Monday (today!) if there wasn't a deal in place. Indeed, futures were down and the market fell early today. But since then things have kind of stabilized.

I believe a deal will get done. I think the market believes that. Since we are near the top of the trading range could that be the catalyst to surge above resistance? Or will there be a sell the news reaction?

Staying in low beta stuff, some cash and oil. No trading today!

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