Caution

As I been writing stay out this market till this debt issue is done- S&P getting hit hard here in the early going

Market

Market looks like it wants to close the gap and go positive- Still far off but setting up

Monday

Starting the week premarket looking very negative. Thursday and Friday volume was extremely light with all the debt ceiling talks and the futures are down on the news that there is no deal yet. I don't expect much to happen in terms of volume or move till Washington gets a deal done but know Washington this is going to go to the wire as both parties are trying to score political points.
When announced I suspect the initial reaction to be up and due to the light volume it wont take but a few big traders to up the market significantly higher initially, what will be the true test is how we trade a week after the announcement. Till then most managers and funds will be on the sidelines.

Problems

Why are we down didn't AAPLE save the economy??????
where are the bulls?

APPLE to save the markets

Markets anticipating a banger of a earnings from AAPL and we are on to new highs for the days.

Interesting FACT

The S&P is up a whopping 8% over the last 10 years.

!!!!!!!

What is the Surprise

Weak earnings from BAC and GS and the street it is acting like it is a surprise, REALLY!
Too optimistic folks are about the banks when they are stuck in a dirt for awhile. There is a reason why the banks are not lending money and it is not credit related it is because revenue streams are drying up. I believe we will go through another period of bank consolidation because they are just not solid enough to survive wall street expectation in this weaker economic climate.
GS expenses fell over 23% and they still missed revenue targets because trading revenues were down 50%. Cut in half why? it is harder to trade and they doing what they should DON'T trade in this type of market, I have been saying this for awhile on this blog.
Lets see if they can hold the 1300 level today. that is a Value area to look at.