The collision of global markets and social mood

Friday, April 17, 2015

Friday -- Narratives, Bond Chats, Watch Insanity

ES Futures:
Sharply lower overnight, but no swing points broken yet. Hilarious narrative about the catalyst being an outage on Bloomberg terminals worldwide. Bonds traders not able to use chat to chat.

When markets go up on weak internals, they don't need a catalyst to come back down.

China may be trying to pop their stock bubble. China's Securities Regulatory Commission announced it will allow fund managers to lend shares for short-selling, and will also expand the number of stocks investors can short sell.

Europe is down hard, possibly on more Greek banking stress. Their bond yields aren't looking too clever, either.

The Fed may be backing off from a June rate hike. At some point (perhaps today?) the markets will get spooked when they realize none of the Fed's actions have done a thing for the economy other than make asset prices go up.

Speaking of Bloomberg, here's their contribution to the latest string of subconscious communication:

Remember that word insane when reading about used watches priced from $10,000 to over $200,000. It's a great social mood clue.

USDJPY broke 118.711 which is the wrong way for Shinzo Abe's Big Plans as well as the rest of the financial markets.

Yield curve looking a little stressed today without the Bloomberg chat room.

OK, so I'm mad. WTI crude and NG have had nice moves without me in them. NG getting ever closer to punching through 2.719.

Hovering at 1200 area.

S&P Outlook:
2083.24 needs to break if there is to be a rout. NY Composite printed a doji at its all-time highs, so not thinking the end of the world just yet. Still thinking the S&P 2154 area (or at least an attempt) or below 2039.69 are valid. Much else may be noise for the time being.

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