The collision of global markets and social mood

Monday, March 6, 2017

Monday -- Deutsche, MMMBop, Noah's Ark

S&P E-mini Futures:
Down again but still looking choppy.

Social Mood:
The smoke continues from Deutsche Bank which announced it was scrapping an overhaul (which takes time) in order to raise 8 billion euros of capital, like right away. Shares were down 6% earlier.

Bernstein Research framed it this way:

"The biggest bank in Germany, the country that’s the biggest subsidizer of the European project, the home of the European regulator, is raising equity."

Not good when the market doesn't know if Germany's biggest lender will need even more capital soon.

Truth: heard Hanson Brothers "MMMBop" on the radio this weekend. Aghast.

That's pure 1998 (when they were nominated for two Grammys).

Also on heavy rotation lately (but it seems to have always been a big hit here) is "Two By Two" by Chris (real name Cristiana Cucchi) from 1988. The euro pop tune has an ironic Noah's Ark theme. Hmmm.

None of this really matters, however, until a new boy or girl band appears with a catchy feel-good hit.

Quiet day thus far. USD & EUR lower, JPY stronger. NOK notably weaker.

Prices trying to bounce but those December 2016 swing points look ripe.

WTI crude continues its tight range since December. NG up a nice 3+%.

Gold and silver getting some play possibly from geopolitical (N Korea missile firings) and liquidity fears (Deutsche Bank), but platinum and copper heading lower.

S&P Outlook:
With futures down, perhaps the gap at 2363.64 on the S&P cash will be of interest. There is also a juicy volume shelf there and a 23.6% Fib level at 2369.41 just above. Not seeing much edge until then.

If marginal new highs occur, maybe a better short opportunity appears then.

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