Down hard.
News:
Hilarious headline of the day from Reuters: "Weak China data, stronger dollar send global stocks skidding."
Both China and a weak dollar are crutches: Hope that China will save the world. Hope that the dollar will crash will keep the Keynesian Party going. Both are myths.
More color on Sprint from Bloomberg: Sprint has "won raves from Wall Street by mortgaging Sprint’s most valuable assets to buy time to pay off creditors." Floating debt to pay off debt.
It was ugly in Asia last night, and Europe is looking ugly thus far. Not seeing true carnage yet here.
FX:
Red JPY and CHF mirroring broad Risk Off sentiment.
Treasuries:
Not yet seeing the escape velocity needed for price to fully reverse.
Energy:
WTI crude and NG continue to back and fill from recent highs. Big day for DOE and EIA reports, so things could change fast.
Metals:
Surprising weakness this morning in palladium and copper could dent enthusiasm for gold and silver bounce for a day or two.
S&P Outlook:
The tip off yesterday was the short lived rally at the open which got people excited but had only 27 ticks. It was promptly sold. Then the market made a dubious recovery back to the prior trend line and a 38.2% retracement -- on very low volume.
Bigger picture wave count still on track. Still want to buy.
No comments:
Post a Comment