The collision of global markets and social mood

Friday, August 28, 2015

Friday -- Dodging Storms and Central Bankers

S&P E-mini Futures:
Down but firming.

News:
Bloomberg -- "...tumbling energy prices counter [BOJ] Governor Haruhiko Kuroda’s effort to reflate the world’s third-biggest economy."

Reuters -- "...a broader risk that the U.S. central bank may struggle to meet its inflation target until the rest of the world plays along."

We are being conned. The keywords highlighted show that without inflation, central banks lose power. Without inflation, they can't steal as much of our money.

What does this mean for the market? Continued volatility unless there is another installment of QE.

They're in Jackson Hole right now, possibly planning for one.

Elsewhere, incredibly we may have dodged yet another storm. Erika seems to have passed by without much of anything. Perhaps there is some truth to the stories of El Yunque protecting the island.

FX:
USD stronger. JPY stronger. AUD & CAD weaker.

Treasuries:
2s & 10s broke minor swingpoints yesterday on higher volume while 5s & 30s did not. Watching closely for more clues.

Energy:
Did WTI crude rally 10% yesterday after I said its chart was still a bit suspect? Ha. well it still is.

Metals:
Gold and silver back in the dog house currently.

S&P Outlook:
Hopefully this is a better looking version of the chart I posted yesterday on Stocktwits & Twitter. It most likely needs above 2044.02 to work. Volume is lagging but ticks and A/Ds are strong, so we may not be "there" yet.

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