EURUSD was able to shake off yesterday’s Moody downgrade of Ireland and the speculation that a German Bank would fail the stress test to rally to 1.3028. The Hungarian decision to halt talks with the IMF/EU remains risk negative but was not able to weigh on the Euro. While none of the events are on-their-own monumental or unexpected for the Euro, we still believe that the there is a growing…

IBM’s disappointing second quarter results will compete with a barrage of corporate earnings reports ahead of Tuesday’s opening bell.

Believe it or not, the Technology SPDR (XLK) is outperforming the S&P 500 ETF (SPY) in July. The chart below shows four price relatives comparing the performance of the Technology SPDR (XLK), Industrials SPDR (XLI), Financials SPDR (XLF) and Consumer Discretionary SPDR (XLY) to the S&P 500 ETF (SPY). The XLK:SPY ratio (pink) moved sharply higher in July, but the other three moved lower. Techs cannot do it alone.

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