Jerry Samet
03-18-2013, 07:04 PM
Markets around the world got hit on news that Cyprus wanted to tax bank accounts to pay it’s share of an EU-IMF bailout. I guess no one over there realized it would cause a run on the banks as they were reneging on deposit insurance promises. The market recovered almost all of it’s losses during the trading session before selling off a bit into the close. At the end the losses were not to great. The major averages declined between .78% on the NYA to .35% on the COMPQ. Volume was lower across the board, as would be expected after an expiration day, and well below average. This prevented a distribution day. This shows that there was no rush to the exits. Leading stocks were mixed as the leaders index closed flat and in the upper half of it’s trading range. Volume was lower and about average. The index tagged it’s 17dma but closed above it. The index must stay above this important moving average or it will be a very negative sign. Overall the market didn’t react to badly to this news considering that it was due for a pull back. We will have to see how things go in the next few days but so far the damage isn’t to bad. Jerry