Liquidity & Easy Money

Good morning. Premarket futures are lower following weakness in Asian and European markets. Concerns that China will need to raise interest rates and therefore cause an unwinding of the yen carry trade is once again back in the headlines. Given the market's appetite for risk on credit this is an important concern as liquidity and easy money have been the most positive catalysts for the equity markets.

Amid more positive earnings surprises, stocks trading up in premarket are: IVAN, AVNR, LMRA, IDEV, SUPG, TRMS, GERN, BRLC, EBAY, RYAAY, ACGY, and VRTX. Stocks trading lower are AVCI, SPSN, SONE, LOGI, ETFC, CPWR, NVLS, SMSI, LEND, ARNA, GROW, CHINA, NRMX, JSDA, ALDN, and DYAX.

With no economic reports and options expiration scheduled for tomorrow, we have only more earnings, the Leading Indicators Report at 10:AM and the Philly Fed Survey at noon. We've reached the point in this rally that almost everyone now expects the negative open to provide yet another opportunity to buy stocks. Only a complete failure of any attempt to rally this market AND a series of very surprisingly harsh declines will shake the bulls from their "can't lose" perception. As I told members yesterday, the bulls don’t have a lot to worry about at the moment and that alone should keep us on our toes.

Have a good day out there!