S&P E-mini Futures:
Strong rally overnight yet off its best levels.
The way sentiment looked at yesterday's close:
The party lasted into the night. Asia and Europe continued the giddy sentiment.
“The market is a lot more sure of itself now,” said Heinz-Gerd Sonnenschein, an equity strategist at Deutsche Postbank AG in Bonn, Germany. “We can move on to pricing in the improving outlook.”
Deutsche Bank’s chief equity strategist David Bianco noted they are “more confident now.”
So are Chinese developers.
$100 Billion Chinese-Made City Near Singapore 'Scares the Hell Out of Everybody'
Juicy quotes galore:
“God only knows who is going to buy all these units, and when it’s completed, the bigger question is, who is going to stay in them?”
“If the developers stop building today, I think it would take 10 years for the condos to fill up the current supply. But they won’t stop.”
-- Siva Shanker, head of investments at Axis-REIT Managers Bhd. and a former president of the Malaysian Institute of Estate Agents.
The article is about just one -- the biggest -- of about 60 projects in the Iskandar Malaysia zone around Johor Bahru, known as JB, which have contributed to a drop of almost one-third in the value of residential sales in the state last year. Meanwhile:
-- Malaysian investment growth is slowing
-- Profit margins on real estate projects are falling
-- Developers are offering discounts of 20 percent or more
-- Average resale prices per square foot for high-rise flats in JB fell 10 percent last year
-- The value of residential sales in Malaysia fell almost 11 percent last year, while in Johor the drop was 32 percent, according to government data
Seems the entire globe is peaking together . . . on acid.
Quiet, mixed day thus far. GBP hit.
Bottoming tails turned to dojis (indecision). Look for any follow through upside.
WTI crude and NG off their best overnight rally levels.
Modest rally in gold overshadowed by stronger rallies in silver, platinum, palladium, and copper.
The 2200 area is target rich. Multiple Fib projections. A strong close above 2222.37 would shift the odds from a B-wave scenario back to the previously-proposed ending diagonal pattern (and we'd be somewhere in wave 3).
The way the current wave is subdividing it already seems that could be the case, but confirmation is key.
Those SPY 218 puts are more than fully paid for but will likely expire worthless barring an extreme event. Closing below the 2182 area would likely be the early warning.
It is up to the market to give the next signal. Bulls are on parade -- the same bulls that were bears pre-election based on the current outcome. Now they're wild-eyed bullish.
Not very stable.