The collision of global markets and social mood

Wednesday, June 15, 2016

Wednesday -- MicroLink, More Ad Trubs At The Facebook, Gundlach, More Bounce

S&P E-mini Futures:
Modestly higher following yesterday's late day bounce.

Notice how the Fed and BOJ seem to be having their meetings at the same time lately?

The Fed concludes their two-day meeting today at 2pm with a statement and press conference, while the BOJ starts their two-day meeting today and releases a statement tomorrow.  All as the ECB commenced bond buying.

Feels like conditioning for a planned global central bank as envisioned by George Soros in The Alchemy Of Finance.

Still trying to understand Microsoft's purchase of LinkedIn.

Can't understand why a tech company would pay $26 billion to buy an online resume website that loses money, other than it feels a lot like AOL buying Time Warner in 2000.

Speaking of tech, seems The Facebook's ad problems are getting bigger.

DoubleLine CEO Jeffrey Gundlach is out with another presentation. Two things caught my eye:

1) Negative interest rates are bullish for sales of money safes in Japan, which have risen 20% since NIRP's inception.

2) WTI crude and copper have been tightly correlated for the past three years and copper leads. Crude oil has gotten ahead of itself and is primed for a correction as copper points lower.

Gundlach also presented DOE data showing crude oil is still in record over-supply territory.

Stay tuned for 2pm when probably none of this will matter.

Much more of a Risk On tone today.

Ominous bearish shooting star candlesticks printed from 2s-30s yesterday.

WTI crude hanging at lows, NG hanging at highs.

Flip flop: today gold is the loser while silver, platinum, palladium, and copper rally.

S&P Outlook:
Dumped all puts yesterday and declined to buy calls at such inflated volatility levels but instead bought a bunch of XIV short volatility ETN.

Feels like a third wave of a developing impulse wave down may have completed yesterday.

Way too soon to tell if it's tracing out an ABC correction, or if it's forming the 1st wave down of a major trend change. There are several divergences that make me think ABC for now. A/Ds and up-down volume difference are just two of them.

Since the waves are so clear, anything above 2090 at this point would strongly shift the odds toward an ABC correction.

No comments:

Post a Comment