The collision of global markets and social mood

Tuesday, May 23, 2017

Tuesday -- Mood Outa This World, Therein Lies The Risk

S&P E-mini Futures:
Filled 2397.50 gap. Firm.

Asia mostly red last night while Europe is all green thus far.

China's yield curve inverted several days ago. Now it's getting worse. The spread between 3s and 10s is the most negative ever. And there is inversion between 3s and 5s and 7s to 10s. Double the trouble.

This is causing considerable stress amid China's $4.2 trillion Wealth Management Product industry as China tries to reign in liquidity.

All in the name of making its markets less risky.

Therein lies the risk.

Peak positive mood . . . outa this world.

Jeff Bezos lays out his vision for city on the moon, complete with robots

'Nuff said.

EUR six month high. Slight sell off on stellar French and German PMI figures which raise the odds of an ECB hike.

USD still acting firmer than news would suggest. CHF & JPY warning once again, stronger.

Bitcoin almost hit 2300 overnight. Ethereum up over 9%.

Prices firm, digesting recent gains.

WTI crude's three-wave pullback from 51.43 thus far suggests higher prices. NG lower.

Sell half of the Strategic Petroleum Reserve? Why?

Gold and copper red. Silver, platinum, and palladium green.

S&P Outlook:
S&P stalled at yet another significant Fib level, the 78.6% retracement. Thus the odds of a high level triangle are much higher now.

Regardless whether a triangle or an ABC materialize, still leaning toward buying dips until new highs.

Big news day:

US Manufacturing PMI
New Home Sales
Richmond Fed Manufacturing Index

Three Fed speeches: Kashkari, Kashkari again, then Harker at 5pm.

Fed minutes tomorrow.

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