Morning Stock Market Report: Greeks and Bernankepalooza

On in this day in 1900 my paternal grandmother, Alta, was born in Renton, WA. She lived for 97 years. I still miss her. She was a wonderful woman of great character and with values that only a person with an upbringing from parents born in the 19th century could have. Where money is concerned, she really knew the value of a dollar and managed to provide for her children as a single mother during the Great Depression years by operating a small store (early entrepreneur!). Operating margins were tight, but she remembered how they never went hungry during that period.

  

Now on to less pleasant things.

  

No surprise that the present Greek government continues. Who else would want what Papandreou is up against? There will be more austerity cuts, more protests, more kicking the can down the road, etc.  But all of that is ‘ok’ with the markets so long as contagion is contained. One day that can being kicked down the road is going to kick back.

  

Merkel – No one knows who owns CDS and who will have to pay under a Greek credit event http://bit.ly/jn2wJ0. Angie baby, hate to break it to you, but US banks are behind this CDS mess and have sold them to a variety of ‘investors’ in your back yard.

  

Stock futures are weak but off the lows following two one day wonder 100+ gains in the Dow (rare these days). Yes, I am an ingrate as the gains have been accompanied by low volume. To make it a potential trifecta, the Bernank & Co will need to say just the right things in the FOMC statement at 215 p.m. More easy money needs to be hinted at in the Bernankepalooza this afternoon.

  

1295 is the mid point of the Bollinger bands, signaling break out potential. 1300, a previous support area would mark a potential key pivot point. 1263 and 1250 are key support areas.