Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Monday, the 11th of March.
PROBLEMS IN EUROPE RAISE THE SPECTER OF GLOBAL UNCERTAINTY
Riots in Spain over the weekend led to general uncertainty in Europe. With its 26% unemployment rate, Spain is facing political and citizen unrest which could be a major problem for the rest of Europe.
If the problems in Spain were not bad enough, Fitch came out on Friday and downgraded the debt for Italy to BBB with a negative outlook. The downgrade reflects inconclusive election results for that country in February, which has led to a political vacuum. We are certainly concerned about Italy as it is third in line behind the US as the most indebted country in the world. If Italy were to see its borrowing costs increase significantly, it could spiral out of control and have a domino effect that would be felt across all the world's equity markets.
We will be watching the equity markets closely for any technical changes that reflect our growing concern over Europe.
Remember, no one rings a bell at the top of the market.
We are going to be looking at 4 stocks that jumped on the bull band wagon this morning, they are:
March 27th - Budget resolution expires
May 19th - Debt ceiling suspension expires
Have a great trading day,