The wall of worry continues to get taller with Fitch’s downgrade of Portugal yesterday. The market loves to climb this wall, so I will not count this market out. Greece still has problems, Spain too, hell Italy and the UK and most of Southern Europe have problems.
The good old USA has huge problems and it was headlined last night that Iraq’s debt is just about on par with the state of California. New home sales were lousy yesterday, as a matter a fact, it was as bad as it ever was, at least since they have been keeping records.
Yet Mr. Market drives higher, the dollar exploded higher yesterday but commodities weren’t in bad shape at all.
The financials hung in there yesterday, and BAC and JPM acted very well.
Futures are slightly higher this morning ahead of data on jobless claims and overseas attention turns to a two-day gathering of European leaders amid disputes throughout the euro zone on what type of support, if at all, to offer Greece. The European Central Bank relaxed collateral rules that will make it easier for Greek lenders who seek funding next year.
Still higher for now.
Thursday, March 25, 2010