Slovak Vote Weighs on World Markets

Scott Redler |

SlovakiaUS stock futures look to be digesting yesterday's gains on Tuesday morning after all major indices jumped around 3% to start the week. World markets are a bit jittery this morning as Slovakia is set to vote on plans to bolster the European Financial Stability Fund. The country's Freedom and Solidarity party is expected to abstain from the vote, leaving the government short of votes needed for approval.

Enthusiasm over hopes for a bank recapitalization plan were the catalyst for yesterday's gains, as investors seem convinced that this time European leaders will be able to get it right. European markets are currently lower this morning due to uncertainty over the Slovak vote, so traders will be paying attention to how the market reacts to that news.

Yesterday's surge came with participation from every sector and nearly every stock in the S&P 500. The one aspect that gives pause is the light holiday volume we saw on yesterday's move. Another strong day or shallow retracement today would give the bulls more credibility on this move.

Earnings season unofficially kicks off tonight with the release of Alcoa (AA) earnings. Later in the week on Thursday we have heavyweights JP Morgan (JPM) and Google (GOOG) set to report. For the last two years earnings season has provided a boost to the market as companies surpass Wall St estimates, even though it has been largely a jobless recovery.

Apple (AAPL) is once again resuming its stature as a market leader and is set to open higher this morning in a down market. News yesterday that the company had pre-sold 1 million iPhone 4S handsets provided a major boost for the stock. The phone had initially been met with disappointed reviews, but it appears the consumer has no such complaints. The previous pre-sale record was 600,000 for the iPhone 4. The interesting question is whether consumers are buying the phone to honor the late Steve Jobs or are they genuinely excited about the new features?

Yesterday the S&P reclaimed its 50-day moving average, a very bullish sign. Bulls will hope to protect the majority of yesterday's gains to maintain the composure of the rally, but given the very overbought nature of this market we could see some type of temporary pullback or pause. We are more than 100 handles off last week's lows in the S&P, just to provide some perspective.

*Disclosures: Scott Redler is long SINA, JPM, XOM, SNDK, AAPL, Short SPY.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to:


Symbol Name Price Change % Volume
BMO:CA Bank of Montreal 101.60 0.18 0.18 2,138,585
AA Alcoa Inc. 36.60 -0.11 -0.30 2,587,865
AAPL Apple Inc. 137.11 0.41 0.30 20,836,932
SINA Sina Corporation 79.56 0.57 0.72 1,049,602
JPM JP Morgan Chase 91.06 0.05 0.05 11,838,980
SNDK SanDisk Corp. n/a n/a n/a 0
GOOG Alphabet Inc. 830.76 -0.90 -0.11 987,248
XOM Exxon Mobil Corporation 80.93 -0.96 -1.17 12,917,374


Emerging Growth

PixarBio Corp

PixarBio Corp is a specialty pharmaceutical/biotechnology company focused on pre-clinical and commercial development of novel neurological drug delivery systems for post-operative pain.

Private Markets

Almond Smart Home Router by Securifi

Securifi sells user friendly touch screen routers that also have support for IoT/home automation.Securifi’s Almond revolutionized wireless router setup with its easy to use Touchscreen Interface in 2012. Now our…


D-Wave Systems is the first quantum computing company. Its mission is to integrate new discoveries in physics, engineering, manufacturing, and computer science into breakthrough approaches to computation to help solve…