I’m Back: It’s As If I Never Left

I took a long three week vacation visiting four countries and taking a dozen or so flights and boat rides.  As my trip comes to a close I’m taking some time to get caught up on the news after being unplugged for nearly a month.  As always, Twitter is the best source for what people are talking about.  I can already feel my attention span shrinking — 140 characters at a time.

Front burner issues are much the same as when I left.

Headlines around July 1:

White House steps up pressure on debt ceiling (CBS News)

Senate to scrap July 4 recess to work on debt-limit deal (LA Times)

Treasury Secretary Timothy Geithner confident of debt-ceiling increase (Chicago Tribune)

Headlines July 27:

US Stocks Sink On Signs Of Economic Softness, Debt Impasse (WSJ)

Boehner to GOP on debt ceiling plan: ‘Get your ass in line’ (Politico)

Dollar hits new lows on U.S. debt drama (Marketwatch)

The market is at a true crossroads.  On the one hand I can’t imagine how sick people are of the coverage of this debt ceiling issue.  On the other hand it’s a pretty BFD.  The way the market trades around this issue will determine bull or bear market for the foreseeable future.

The last month has seen the S&P 500 ($SPX) trade in a large 50 point range, and until today we were almost unchanged.  It looks like the market will try and force the government’s hand by selling off until they say “Uncle.”  A daily close below 1300 in the cash market is a good line in the sand.  Let’s hope for some resolution before we hit 1200.

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