Sleep well traders in North America. It looks like good news in Ukraine and the strong potential for a very small CPI reading on Tuesday (due to energy price weakness) will influence valuations into this week. The equity market rally (bear-market rally) looks to continue for another day.
We have our model set to a ever-so-slightly more optimistic position of 7.25% expected return and 3% riskfree rate. It caused us to cover some of our shorts (our hedge of the $SPY) on Friday morning and buy higher-BETA stocks.
We stand by our slightly more optimistic settings for today's market. The Futures and Asian Markets look to validate this decision. Let's see where the week goes. Good luck to all.