Thursday, July 21, 2011

US Debt Deal Or No Deal - Stock Market Outlook

Market is having a Howie Mandel moment. This Deal Or No Deal game is getting a bit old. I was never a big fan of the original show, as it lacks substance and real meaning. But one stunning similarity can be drawn between it and debt negotiations deal - gambling. You just never know what is in the case. Market is gambling on the assumption there will be a deal. Some traders are anticipating a deal this weekend. Folks, I will say it again - there will be a deal before Aug 2, the question is what kind of deal? The deal is already priced in the market, why do you think we are only 25 SPX points off the year high? If the market was worried about no deal we would be way below 1300 and perhaps even below 1200 now. Words like Armageddon and Calamity have been used to describe the situation, yet the market is ignorant and complacent at the moment.
I never doubted the deal, I just want to see it already - the devil is in the details. I think that Moody's, S&P, and Fitch will chart the way stock market goes, based on those details.

This was just reported across the wires
Stock Futures did not even blink...

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