Ramped to a new high overnight. Move from lows looks impulsive.
News:
Be afraid when you hear central bankers mention "contagion" and "contained" together.
Reuters has reported that ECB policymaker Jens Weidmann, "the hawkish chief of Germany's Bundesbank," said in a speech in London that regarding a Greek default and exit from the euro zone, "The contagion effects of such a scenario are certainly better contained than they were in the past, though they should not be underestimated," he said.
At least he added the qualifier at the end.
Marketwatch is really on a roll this week. China. Again.
FX:
EUR, JPY weaker, USD stronger. NZD suffered at the hands of a surprise rate cut.
Treasuries:
At least volume is shrinking as 2s-30s continued to act weak. Rally mode today thus far.
Energy:
Demand forecast higher but supply forecast higher. WTI crude & NG digesting moves.
Metals:
Gold 1181s.
S&P Outlook:
Yesterday was a strong day. It had volume, A/Ds, ticks, price . . . and was followed through overnight in the futures. It looks like the Bradley Model scored another direct hit, therefore it should be watched closely for the rest of the year. Note October/November time frame.
The rally could be massive short covering. The best antidote for that would be anything above 2121.92. Until then, things may look great, but bad things can still come out of nowhere. Added VIX and UVXY yesterday, and retired some SPY calls.
Intraday TRIN is in the sell zone which can be expected but should be watched. Also, credit decoupled from the rally in equities.
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