The market has grinded higher Thursday, finding some footing after yesterday’s big down move. The sell-off yesterday was triggered by worries about Greece, which needs another bailout package urgently. There have been riots and demonstrations in the streets as the people don’t want to accept the austerity measures that would accompany further bailout funds. Precious metals jumped as a result of possible default fears.
The downside momentum has steadied though today after comments from the IMF that they will continue to stand behind Greece. The bounce still has been weak though and as this article is being written the futures are ticking lower once more. For now, traders remain hands off for swing trades before the market perhaps makes a more violent bottom.
This morning Goldman Sachs Group Inc. (GS) made a very ‘curious’ upgrade of Youku.com Inc (YOKU), but despite a big gap up investors were not buying it. After a recent upgrades of SINA Corporation (SINA) before the Chinese Internet sector started to deflate, it seems the once revered firm is starting to lose some of its sway with the public. Other Chinese internet stocks boosted by the news have also sold off hard, especially Ecommerce China DangDang Inc (DANG), which is down 6.7%.
Agricultural stocks have continued to be weak as corn has come off in the last couple days. CF Industries Holdings, Inc. (CF) shows the most relative strength in the group, but will need to hold this $144-145 breakout level to be still considered healthy in the short term.
By John Darsie
Disclosure: Scott Redler has no positions