Market Anticipating Quick Greece Deal

US stock futures continued their climb overnight and are set for a slightly higher open. Investors are still expecting an imminent deal in the Greek debt saga that will pave the way for a new bailout package. Greek Prime Minister Lucas Papademos is expected to meet with his coalition government today to sign off on a proposed deal. Some European finance ministers have issued some tough talk about the Euro zone’s ability to move on without Greece, but would like to avoid such a messy scenario if possible.

Also helping to buoy the market in 2012 has been strong employment data in the US and more dovish talk from the Federal Reserve. Yesterday Fed Chairman Bernanke testified before Congress that Friday’s strong jobs report would not alter the FOMC’s plan to keep rates ultra low until at least 2014.

Earnings season continue on this week and we had a few big name reports in the last 24 hours. Time Warner (TWX) is up more than 3% in the pre-market after topping both EPS and revenue estimates for the fourth quarter. In contrast, Walt Disney (DIS) is down about 1% after falling short of revenue estimates. CVS Pharmacy (CVS) is up about 2% after also surpassing expectations.

TECHNICAL TAKE

Overseas markets were mostly up as this rally continues. The bull move that started on December 20th is now 33 sessions old. As it continues some grow skeptical, as some market participants overthink or overtrade” in these elevated levels. I was guilty of that a little bit yesterday.

Being prudent/disciplined is one thing, being stubborn and opinionated is another. If this rally goes another 30 handles to take us to last year’s high of 1370 in the S&P, there will be a lot of traders in the “Pain Trade”.

If you have short on the brain make sure to do it with a plan. The rotation continues and sectors have been pausing vs. correcting. Lots of stocks continue to set up well. We will see when this changes, because this is what I do!

The S&P hit 1349 yesterday, which is now a pivot to trade against, and is starting to enter another zone around S&P 1347-1356. Last year’s high is 1370.

Disclosures: Scott Redler is long SPY, OIH, SLB, AIG, JPM, DRYS, DNDN, QCOM, VMW, LULU, WMT, DRYS, MCP, DNDN calls, Long VXX. Short DIA, QQQ.

About Scott Redler 367 Articles

Scott Redler is the Chief Strategic Officer of T3 Live. He develops all trading strategies for the service and acts as the face of T3 Live. Mr. Redler focuses on thorough preparation and discipline as a trader.

Mr. Redler has been trading equities for more than 10 years and has more recently received widespread recognition from the financial community for his insightful, pragmatic approach. He began his career as a broker and venture capitalist where he was able to facilitate relationships that led him into trading. Beginning his trading career at Broadway Trading in 1999, Mr. Redler moved on with Marc Sperling to Sperling Enterprises, LLC after establishing himself as one of the best young traders in the firm. As a manager at Sperling Enterprises, continued to trade actively while working closely with all traders in the firm to dramatically increase performance.

Mr. Redler has participated in more than 30 triathlons and one IronMan, exhibiting a work ethic that also defines his trading. His vast knowledge and meticulous attention to detail has led to regular appearances on CNBC, Fox Business, Bloomberg, and he is a regular contributor to Minyanville and Forbes’ Intelligent Investing blog. He has been quoted in the Wall Street Journal and Investor's Business Daily, among other publications.

Scott received a B.B.A. in Marketing/Finance from the State University of New York at Albany, graduating Magna Cum Laude from Albany's School of Business.

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