By Gareth Soloway on June 16th, 2010 11:38am Eastern Time
The markets are continuing to shrug off negative data and negative news as the Dow Jones Industrial Average, Nasdaq and S&P 500 are all around the flat line. The markets have rallied approximately 7% in the last week. The SPDR S&P 500 ETF (NYSE:SPY) is trading just down a few pennies and is right at the highs of the day.
The negative keeps being thrown at the markets but right now, light volume and options expiration maneuvering by the institutions are not allowing the market to drop. BP plc (NYSE:BP) is taking another hit today after the President addressed the nation last night on the disaster. In addition, news that Freddie Mac (NYSE:FRE) and Fannie Mae (NYSE:FNM) are going to be delisted sent their shares into a tailspin. Most funds cannot hold stocks of delisted companies. Both stocks are down by more than 50% on the day. This is a bloodbath and not good for either company. Generally, this would have a very negative impact on the whole financial sector. However, it is being shrugged off.
The fact that the sharp drop in BP and the news from Feddie and Fannie is being shrugged off, shows the market again is either trading purely on options expiration and light volume manipulation, or wants to go higher in the near term.
Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.comBy Gareth Soloway on June 16th, 2010 11:38am Eastern Time
The markets are continuing to shrug off negative data and negative news as the Dow Jones Industrial Average, Nasdaq and S&P 500 are all around the flat line. The markets have rallied approximately 7% in the last week. The SPDR S&P 500 ETF (NYSE:SPY) is trading just down a few pennies and is right at the highs of the day.
The negative keeps being thrown at the markets but right now, light volume and options expiration maneuvering by the institutions are not allowing the market to drop. BP plc (NYSE:BP) is taking another hit today after the President addressed the nation last night on the disaster. In addition, news that Freddie Mac (NYSE:FRE) and Fannie Mae (NYSE:FNM) are going to be delisted sent their shares into a tailspin. Most funds cannot hold stocks of delisted companies. Both stocks are down by more than 50% on the day. This is a bloodbath and not good for either company. Generally, this would have a very negative impact on the whole financial sector. However, it is being shrugged off.
The fact that the sharp drop in BP and the news from Feddie and Fannie is being shrugged off, shows the market again is either trading purely on options expiration and light volume manipulation, or wants to go higher in the near term.
Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
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