The collision of global markets and social mood

Thursday, January 28, 2016

Thursday -- The Facebook & Its Market Implications

S&P E-mini Futures:
Fighting over a 30-point overnight range.

News:
The Fed tried to sound dovish yet hawkish yet in control yet open to change yet sounded more confused than ever.

Asia seemed to feed on the confusion, ending mixed, and Europe is just red.

The Facebook proved that when your business is advertising, it helps to be able to sell some -- and do so in an insanely targeted way. It blew doors on earnings and most every other metric that works left-brainers & media buyers into a frenzy.

Apple looks like it wants a new low, while The FB looks primed for new all-time highs, having resolved what appears to be an ABC correction which could have broader market implications for the Dow, Nas, Rus, and S&P.

Bullish ones.

It remains to be seen, however, if Apple causes the market to slip on a banana peel one last time.

FX:
Quiet but for AUD, ripping.

Treasuries:
Hanging at highs, suggestive of lower yields.

Energy:
WTI crude appears to be a coiled spring. Volume is supportive. A breakout higher could support a larger Risk On move in global markets.

NG resting just in case.

Metals:
Gold still has a modest bid, yet silver, if the chart is correct (looks like a bad tick, but probably isn't), is a volatile mess. Copper not amused.

S&P Outlook:
Vol also "happened" in the S&P yesterday, but didn't break anything.

What was widely regarded as a dovish statement was not well received. It seems market confidence in Fed omnipotence is waning. That's never been an issue in these pages.

The S&P tested and closed above a volume shelf at the 1974 area. Would not want to see it below there again if it intends to follow The Facebook.

If it chooses to follow Apple, especially if 1859.86 breaks, there could eventually be a spike to new correction lows.

VIX printed a huge doji yesterday -- looking confused as hell. It broke the midline of its 2 standard deviation band and closed slightly above it, making Vixspotting difficult.




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