The collision of global markets and social mood

Monday, May 22, 2017

Monday -- Fed Damage Control?

S&P E-mini Futures:
Flat in chop.

Mixed in Asia and Europe. Higher rates around the world thus far.

The latest Federal Reserve data noted a worsening of C&I loan growth contraction, with another 50% decline over the past two months.

Commercial and industrial loans are kind of a big deal for the economy, and we're back to the lowest growth rate since May 2011.

Each time C&I loan has peaked, a recession has followed.

A sharp rebound is needed. Perhaps that's why there are four Fed speakers today:
Harker, Kashkari, Brainard, and Evans.

Damage control?

Someone please locate the massive pent-up demand for self-driving cars. Otherwise it's yet another symbol of mood gone mad. Seeing a lot of ink about how inevitable it is.

Speaking of mad, Bitcoin blew the top off 2000, up another 5% and closing in on 2200.

Madness in da House, too:

H.R.2366 - Discharge Student Loans in Bankruptcy Act of 2017

$1.4 trillion. Poof.

USD could be close to firming. JPY weakening. USDCAD still taking its time.

EUR ripfest higher continues.

Starting the new week with declining prices, except 30s.

WTI crude and NG higher together once again, though crude may have reversed from 51.43.

Gold and silver higher. Platinum, palladium, and copper red.

S&P Outlook:
Thursday the S&P was repelled from its 38% retracement. Friday it recovered but was eventually repelled by the 61.8% retracement later in the day.

Thus we're at an important juncture. If the S&P can rally a bit higher, it would raise the odds of a triangle or perhaps even an impulse to new highs.

If it rolls over, the 2335 area could be an ABC target. Would be a buyer there.

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