The collision of global markets and social mood

Friday, February 3, 2017

Friday -- BOJ Intervention, NFP, Snap

S&P E-mini Futures:
Gaining on NFP.

Japan's bond market imploded so much last night that it required BOJ intervention on the order of Draghi's "whatever it takes." BOJ pledged to buy unlimited amounts of 10-year JGBs. Not exactly a confidence-inspiring utterance when considering free markets.

All this because of investor disappointment that the BOJ didn't add more booze to the punch bowl.

Thinking there will be plenty other such disappointments to come from BOE, ECB, PBOC, and the Fed.

JP Morgan's quant team noted that mutual fund cash balances are near cycle lows. All in.

China back from New Year holiday. Seems like commodities could care less.

Snap, the parent company of Snapchat, is set to IPO for $20-25 billion after burning through $674 million last year -- more than its revenues.

It's also jobs Friday: NFP 227K vs 197K expected (Marketwatch). Markets seem to like it thus far (wage growth revised down).

Quiet thus far. USD rebounding though dented by NFP. CHF & JPY weakening.

Perking up on NFP after printing yet more topping tails yesterday.

WTI crude still floating while NG sinks (down over 3% currently).

Precious metals have followed copper's lead thus far -- down. Though perking up a bit on NFP.

S&P Outlook:
The Facebook tested its 135.43 multi-year Fib extension target, reaching 135.49, then promptly sold off. Big volume there, so maybe still some bull/bear battles to be fought.

The S&P stayed murky, however. Middle of the page. Middle of the range: specifically the 2294.50 area and the 2274 area.

Gaps remain at 2294.69, 2265.20, and 2238.83.

Markets seeming to focus on a surprise weakening in wage growth which takes pressure off interest rates and puts a floor under equities for the moment.

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