The collision of global markets and social mood

Wednesday, February 11, 2015

Wednesday Market Update -- Letdown Possible At Big Eurogroup Meeting

News:
Eurogroup meeting today at 10:30 EST to talk. Zzzzzzz.

Asia was mixed last night. Europe is decidedly red going into the meeting. However today feels like a non-event already.

Swedish bond yields went negative for the first time ever today.

ES Futures:
Shallow pullback thus far, echoing Europe.

FX:
Quiet. USD edging ever closer to breaking above 95.01, hitting 94.96 overnight. The sleeper rally continues to be in GBPAUD , which has been on a rip since 2013 and is a standout performer today. This is generally thought of as a Risk Off currency. Take a look at 2008 and you'll see why.

Bonds:
5s, 10s, and 30s may regain their footing today. Will be watching to see how much volume occurs if they do.

Energy:
Crude still has bullish targets if 47.36 holds. NG ripped yesterday and is ripping today with fierce follow through. Juicy gap at 3.446 on the continuous contract.

Metals:
Gold continues to languish, and doing so below 1239.

S&P Outlook:
Yesterday's rally was rather pathetic internally with A/Ds negative almost the entire day until they finally broke out and ended at a tepid 1.28:1. It felt like front running before today's Eurogroup meeting. More wishful thinking perhaps that could easily be dashed.

Once again the S&P got above the 78.6% level at 2069.44 and closed below it. So it knows it's there. There is a small volume shelf at the 2083 area that the market may have its eye on. Hard to tell. Not a buyer at current levels though.

An ideal set up, for me, would be a poke above 2072.40 and a failure with a decline back into the 2015-2020 area. I'd hit that.

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