The collision of global markets and social mood

Tuesday, December 8, 2015

Tuesday -- China Spooks

S&P E-mini Futures:
Down hard, yet have not broken a swing point, so still range bound.

China is flipping people out. Yesterday China's November Reserve Outflow figures were the third highest ever -- money still flooding out of the country.

Then China's November Exports fell 6.8% year over year. This coupled with declining imports for over a year, and investors had a full-on fear session.

(Btw, over Thanksgiving I heard, according to an in-law of an in-law -- a South African steel magnate -- that he views China's steel industry to be weak for the next five years)

AUD & CAD crushed for another day. JPY & CHF showing safe harbor strength, rarely a good sign. EUR up, USD slightly down.

Trying to bounce but not looking too clever.


Good headline timing. WTI crude is finally getting to an area where I like it again. NG still looking for a new low.

Gold and copper green, yet silver red (which may hold the risk clues).

S&P Outlook:
Right in the middle of the 2116.48 and 2019.39 range. Not a good area of the sandbox to play.

TRIN in the middle, too. Best to let things settle.

Meanwhile, credit pros keep saying everything is fine. This chart argues otherwise.

SPY and IYG (financials) think everything is rosy. Credit (HYG & JNK) plumbing new lows. IYR (real estate) stuck in the middle. Not a good picture.

But The Middle is a great tune.

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