Contagion or Hangover

  • The financials are stronger today signaling that today might be more about a post Thanksgiving hangover than about a credit contagion.
  • There is a lot of put buying today. That is a step in the right direction as investors have become complacent recently.
  • Market breadth is bad but not terrible.
  • The dollar is getting stronger throughout the day. An unwinding of the anti dollar trade is likely the largest short term risk for the market.
  • The powers that be will likely not let the market fall out of bed on the last day of the month.

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