Well, so much for my guesses this today. Averages started climbing right out of the stating gate and have risen almost 2.5% so far. Oil could be the main factor as WTI has risen 2 points pushing the markets upward as it goes. Nothing has changed in the last week so the rise in oil has become suspect of manipulation and I have become especially nervous of a 'snap-back' to occur at any moment.
WTI oil could rise to 45 before encountering resistance, so you are kind of on your own here. All guesses welcome.
Here is the current market situation from CNN Money
North and South American markets are sharply higher today with shares in Brazil leading the region. The Bovespa is up 4.07% while Mexico's IPC is up 2.58% and U.S.'s S&P 500 is up 2.37%.
$NYA200R chart below is the percentage of stocks above the 200 DMA and is always a good statistic to follow. It can depict a trend of declining equities which is always troubling, especially when it drops below 60% - 55%. Dropping below 40%-35% signals serious continuing weakness and falling averages.
BRUSSELS (Reuters) - Google , the world's most popular Internet search engine, rejected on Thursday European Union antitrust charges that it abused its market power, saying they lacked any economic or legal basis.
Wondering why the world's risk assets are all exploding higher... wonder no more. JPY - funding currency of choice for many leveraged traders - has been monkey-hammered 500 pips lower against the USD in the last few days with the last 24 hours, since Kuroda unleashed his comedy gold last night, seeing another 150 pips surge...
Interesting retracement levels... from the post-FOMC peak to Monday crash lows...
Over the years, Socgen's Albert Edwards has repeatedly expressed his skepticism of both the economy and the market (the longest US equity "bull market" since 1945) both propped up by generous central banks injecting liquidity by the tens of trillions (at this point nobody really knows the number now that the 'black box' that is China has entered the global "plunge protection" game) and yet never did he have as "conclusive" a call as he does today. As the following note reveals, when looking at one particular indicator, Edwards is now convinced: 'we are now in a bear market."
First, Edwards looks east, where he finds nothing short of China's central bank succumbing to the "wealth effect" preservation pressures of its western peers:
After holding firm last weekend and resisting pressure to give the market what it wanted namely a cut in interest rates and the reserve requirement ratio - the PBoC caved in, unable to endure the riot in the equity markets. In giving the markets what they want China is indeed acting like a fully paid up member of the international financial community. I am not thinking here about freeing up their capital account and allowing the renminbi to be more market determined. I?m thinking instead of China?s replicating the failed US policies of ramping up the equity market to boost economic growth, only to then open the monetary flood gates as equity investors turn nasty.
We disagree modestly with this assessment because as we described first on Tuesday, the RRR-cut had much more to do with unlocking $100 billion in much needed funding so that China could continue to intervene in the FX market by dumping a comparable amount of US Treasurys since its August 11 deva ...
WASHINGTON (Reuters) - The U.S. economy grew faster than initially thought in the second quarter on solid domestic demand, showing fairly strong momentum that could still allow the Federal Reserve to hike interest rates this year.
Presented with little comment, aside to ask why is Bloomberg "Consumer Comfort" for The NorthEast region at its highest in 8 years, when The Midwest region's "Comfort" is plunging to its lowest since Nove 2014?
(Reuters) - Luxury jeweler Tiffany & Co forecast an unexpected decline in full-year profit and said earnings fell about 16 percent again in the second quarter as higher costs, mainly on innovating new products, overshadowed a recovery in sales.
The last two times the Kansas City Fed survey was this low, the US was in recession.The KC Fed survey has missed expected for eight straight months, falling to -9 in August from -7 (missing the -4 estimate). Across the board, underlying components were ugly with Shipments collapsing, Order backlogs echoing earlier surveys in demise, New Orders tumbling, and Prices received crashing.
But still the mainstream sees "no recession imminent"
KIEV (Reuters) - Ukraine reached what its finance minister called a "win-win" deal with its largest group of creditors to ease repayments on its $18 billion debt, winning breathing space for an economy drained by the cost of fighting with pro-Russian separatists.
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