Tuesday, May 18, 2010

Zero Liquidity…How Come??

This is a very uncertain environment keeping large pools of liquidity away; trading dominated w/short-term focus.  Larger long-onlys still not doing a whole lot (not really picking away on weakness but also not selling).  Technicals and macro are dominating (vs. co specific calls) – we bounced at 1117 today (we bottomed at 1114 yesterday); ~1113 and 1120 re seen as major support levels (below that 1110 is the May 7 close prior to the European bailout and 1100 is the 200day MA).  People continue to watch each tick on the euro as much as they are the intra-day volatility in the sp500. 

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