Mid Day Trading Update – Cyprus Lingers
This morning investors were eager to shrug off the Cyprus bank deposit news that pushed the markets lower over the weekend. Around 10 AM, a report came out saying uncertainty was rising due to the fact that the modified plan wasn't enough to suffice international borrowing agreements. The vote has been delayed now several times but looks to be scheduled at some point later this afternoon around 4 PM EST. If this gets pushed back again you can bet the futures will react negatively.
Markets are all over the place in today's session unable to garner any kind of conviction towards a particular direction. Intraday traders would be wise to pull back the trading reigns and chalk this up as an inside day or just one that can't be quite understood from a risk perspective.
Bank of America (NASDAQ: BAC) looked to try the $13 level before the markets started selling aggressively and Apple (NASDAQ: AAPL) gave back much of its gain from the early morning session. Most sectors have gone well into red territory and it looks like we are now at the mercy of future events taking place in Cyprus. There have been some decent shorts to catch thus far in the session but they have taken place quickly on sweep downs in the broad indexes. Betting short here against a ruling out of Cyprus could be advantageous but may also yield some nasty consequences if the dip buyers come back.
A resolution of this tax bank deposit debacle will surely result in investors coming back in and buying dips on everything across the board but for now, it looks like we actually care about the outcome of this event. Be sure to watch this voting process despite how ridiculous it gets.
Stay tuned for further updates!
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