It was again more of the same. As during the past couple of days we opened again lower, zigzagged around the unchanged number a couple of times and at the end of the day managed to close minus 8 points or -0.10 %.
It is somewhat striking that the stock market is capable of shrugging uncertainty and bad news off and just manages to stay in a narrow range.
Neither the developing Swine Flu nor the news that Citi and Bank of America will be required to raise more capital seems to be able to really shake the stock market.
The Fed is currently meeting and a decision on any change in its interest rate policy is due to be announced tomorrow afternoon. It would be a major surprise if the FED truly does announce any revisions to current interest rates. As such I do not expect the meeting to provide any impetus to markets.
Perhaps more interesting...the Yankees were forced to drop prices on some of their season seats as well as premium searing currently on sale. The price drops are averaging about 35 %...quite a discount in price for the strongest franchise in baseball.
I do not want to read to much into it but it just feels that there is less money to go around by now. When a major franchise like the Yankees has to drop ticket prices at a rate of 35 % ...then not everything is perfect in paradise.
May 4th is the date when the stress test results will be announced for the biggest 19 US banks. It seems that the market is already focusing on that date and lacks true conviction to push prices significantly higher or lower.
I still am short term neutral, longer term positive and expect prices to decline to the 7800 level at which I will reevaluate. An upside break above 8130 would signal that the bulls are back in control and we then should at least see 8300 in the Dow.
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