Greece cut to selective default ? One more day of ECB fine tuning operation.

Greece rating was cut to selective default by S&P but does it matter today ? The answer is NO.  This days a bad news in stock market is considered good news and a good news is definitely a good news. ECB is again conducting its Fine tuning operation today followed by massive LTRO operation tomorrow. The market is atleast expected to open higher today. http://www.freefdawatchlist.com/2012/02/how-to-take-advantage-of-ecb-operation.html 

http://www.freefdawatchlist.com/2012/01/ecb-fine-tuning-operation-is-causing.html

As long as ECB is conducting some kind of operation market is likely to remain in overbought zone. As soon as the operation is stopped the market is likely to come to reality. This has been longest run of stock market in overbought zone. There were 100 of bad news which could have triggered big sell off in last 3 month. But there was not a single day when market closed below 100 point. 

Invest only if your day trader, this market is not safe by any standard or target individual stocks rather then complete sector. If your bullish then use stop loss to maximise your profit and if your bearish then just wait till market comes to reality. 

Some of the overbought stocks are PCS, CERN,V, LO, SHLD, PM, ICE, FAST, MA, TGT, CPB, GT, PG, LMT which you can buy April puts. 

The technical level to watch on 

Dow : 12985, 12893 for downside breakout, 13058 for upside breakout.

S&P500: 1366, 1353 for downside breakout, 1375 for upside breakout.

Economic Calendar to watchout for today are

ICSC-Goldman Store Sales
7:45 AM ET

Durable Goods Orders -0.7% is expected, negative will be bearish, while positive or zero will be bullish sign.
8:30 AM ET

Redbook
8:55 AM ET

S&P Case-Shiller HPI
9:00 AM ET

Consumer Confidence 64 is expected lower will be bearish sign, higher will be bullish sign.
10:00 AM ET

Target individual stocks rather then whole sector.