Here’s what to watch during the trading day.
The markets this year have been a version of the old playground game “two for flinching.” That’s where one kid fakes punching your arm, and if you flinch he gets two free shots as punishment.
There have been so many plausible excuses for the stock market to suffer a more stinging setback than it has – earnings on the slide, Greece flirting again with insolvency, the Fed looking for a chance to play bad cop.
Yet anyone who flinched too soon and sold quickly was forced to watch the big indexes gain their footing again and return to the cusp of all-time highs. Global money printing, firming economies in Europe and a sturdy credit-market backdrop have lent support.
This is the pattern that has driven the percentage of small investors saying have a “neutral” outlook on stocks to a 12-year high last week.
So maybe today’s run of news will serve as still more feigned punches thrown at the cautious investor. But for those watching, we gotRead More »from Traders flinch in global selloff. GE tests the bulls: What to watch