The current summer rally is appearing like it may not end just yet. On Monday's "Halftime Report" I had another opportunity to discuss the latest VIX analysis. As I state on the show, last Friday, we saw a big bullish play on the August 1000 calls on the S&P. With the VIX remaining elevated, we are seeing investors continue to buy options as means of protection against a downside move, limiting their downside risk. What this all means is that we should see some steady gains until the 1050 mark. In other topics on the show, I remained strong in my Ford play as I see some upside potential in the stock.
ECB officials said last night that ECB President Mario Draghi will likely wait to hear Germany’s Constitutional Court’s ruling on the EFSM before publicly unveiling his plans. Many were hoping Draghi would unveil his plan after the ECB’s September 6th meeting, but this is becoming increasingly unlikely. Today Reuters is reporting that Germany is the latest European nation to begin studying the possible impact of a Greek exit from the Euro. This comes ahead of Chancellor Merkel’s meeting with Greece’s Prime Minister today. Merkel has repeatedly said that she would like Greece to remain in the common currency, though clearly someone in Germany believes a Greek exit is possible outcome worth preparing for. This morning US new durable goods orders numbers we released for July, coming in at a gain of 4.2% M/M. Though this was strong than expected, it was primarily driven by strong aircraft sales. Non-defense orders excluding aircraft were down a sharp 3.4% M/M versus a 0.2% decline expecte...
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