The collision of global markets and social mood

Wednesday, December 23, 2015

Wednesday -- Santa Rally & Merry Christmas

S&P E-mini Futures:
Classic Santa rally past couple days. Ho ho ho.

Last post until after Christmas.

Very little news flow. Even less socionomic stuff lately.

News flow from Brazil is rather dire and may be getting to a point of max pessimism, which has me leaning toward adding long-term holdings in PBR, VALE, and ITUB.

ITUB is a financial while Petrobras and Vale would be commodity plays as the CRB index may be setting up soon.

Sentiment on these is beyond bearish. It's so bad that these companies are dismissed as never coming back. Perfect.

Asia was mixed last night, while Europe is in full Santa mode.

GBP is the big mover as it ricochets off recent lows. Still in a wide range since 2009 though.

These are still trading like punks, with the short end looking worse than the long end, which continues the trend toward yield inversion.

WTI crude bouncing where it should if the wedge is the correct pattern. NG needs another rip or two higher if it wants to convince.

Gold, silver, copper -- down, down, up.

S&P Outlook:
Door #3 continues to play out. The 2041.89 gap should be filled or in play at the open, and perhaps the volume shelf at the 2054 area is up for grabs too.

Volume is light, so not getting too excited, but a pattern is a pattern. And here it is, updated.

From La Isla Del Encanto

Source: Club Nautico De San Juan

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