Onto the chart.
Since May 22 (the day Mr. and Mr$. Bonddad bought their house), the market has been moving between (roughly) 137 and 140. There is no clear trend in either direction. Simply put, traders are waiting for something to happen, but aren't sure what they are looking for.
The QQQQs rallied all last week, but dropped at the beginning of this week and have since rallied back a bit while also consolidating in a pennant formation.
The IWMs are looking for direction as well, much like the SPYs.
Simply put, there isn't enough news in either direction to push the market one way or the other right now.
1 comment:
"AMBAC and MBIA's ratings might be cut..."
I've never owned a bond insurer, and have no particular axe to grind, but it p..ses me off that the biggest reason MBI and ABK are in trouble is because they accepted Moody's and S&P's AAA ratings on the bonds they insured when setting their rates. The idea that the ratings agencies now get to downgrade them because of bad ratings they themselves perpetrated is something I'd sue over if I was MBIA. And I'll guarantee you, Moody's STILL has no adequate research backup behind this ratings change either. They are utterly worthless.
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