Lot of noise this morning with a little something for the bull, the bear and the indifferent….
As for the Good, there ain’t much of it, but JPM beat Q2 earnings and revenue estimates. Expectations were not particularly high, but with the stock trading up 3% in the pre-market this can only go from Good to Bad if the stock gives backs the gains and makes new lows…..Keep an eye on this today….this will be the “tell” in my opinion.
The Bad and the Ugly are a little easier to come by……Retail sales were sluggish, Euro credit keeps getting wider, and our Politicians’ inability to show any progress on a budget deal have caused the ratings agencies to further warn of a downgrade……Jawboning by rating agencies will continue to cause downward pressure and any deal will likely come in the 11th hour….
Crude oil is back up towards $100, the dollar has reversed it’s recent gains and Gold is making new highs….I have a hard time understanding why the S&P futures are up 35bps as Europe is down across the board while Asia was mixed.
I want to sell into any strength here and play for a move below 1300 in the SPX…..Earnings tonight from GOOG and Citi tomo morning won’t change my thinking much, but they could clearly set the tone for whats to come next week.