The collision of global markets and social mood

Tuesday, October 13, 2015

Tuesday -- Possible Hedge Time

S&P E-Mini Futures:
Down but off their worst overnight levels.

Blame it on last night's New Moon, Turnaround Tuesday, or a slew of bad economic reports around the globe, but things are looking a bit different today.

Imports collapsed in China.

The UK posted a deflationary CPI.

And Germany's ZEW survey fell an incredible 84%.

Elsewhere, Dow Jones reported on a troubling rise in downgrades and an increase in U.S corporate defaults. So far this year, Standard & Poor's Ratings Services has downgraded U.S. companies the most since 2009.

Not good and should be watched.

There is action in FX today. AUD is down hard on China fears. GBP down hard on deflationary fears. CHF & JPY stronger on safe haven flows.

Still hinting toward higher prices, lower rates.

WTI crude had a rough day yesterday and is trying to gather itself. NG down.

Gold & silver showing some sympathy for copper which is down almost 1% currently.

S&P Outlook:
Three days in a row, the S&P has not been able to crest 2020.86. Not great.

Retracements since the most recent lows have been almost non-existent, so perhaps we could finally get a good one and I can put on a hedge against TVIX. Added more yesterday.

Upside targets remain the same: the 2131.28 -- 2035.73 zone, and the 2050 area.

Below I will be watching the 1980 area and the 1945 area.

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