Wednesday, 20 January 2016

Pre-Market Brief

Good morning. US equity futures are sharply lower, sp -37pts, we're set to open around 1844, decisively breaking the Friday low. Oil continues to implode, -3.4%, with an overnight low of $28.45. Gold is catching a renewed fear bid, +$10, almost at $1100.




*overnight low, sp -43pts... 1837.

This is a decisive 1% below the Friday low, and absolutely trashes any hopes of a short term floor.

Instead, the door is wide open to a straight move to the 1750/25 zone, here there are multiple aspects of support. Again, I'd refer anyone to the Jan'2008 candle on the 'Guppy' chart. A similar move right now would be to the 60 EMA, in the 1730s.

early movers...

AAPL -2% @ $94s
BAC -3.7% in the $13.70s.. as hopes of another rate hike vapourise.
DIS -1.9% @ $92s
SDRL -11.8% @ $1.87... also on the 'disappear list'.

GDX +2.2%.. as Gold catches a temporary fear bid.
NFLX +3% @ $111 on earnings, but well below the AH high of $123
TVIX +12% @ $11.88

Doomer chat - Hunter with Williams

As ever.. make of that, what you will, I sure don't agree with any of the 'dollar doom' comments. Williams is much like Schiff, very inflexible, both of whom have touted the collapse of the USD for over a decade. Ironically, the USD increasingly looks set to further strengthen, as the ECB and BoJ print to oblivion.

Overnight market action...

Japan: -3.7% in the 16400s
China: -1.0% @ 2976.
Germany:  currently -3.0% @ 9371

Have a good Wednesday

**awaiting CPI data...

..ohh, and IBM -5.0% in the $121s is not helping the market mood either. Maybe they should just buy back more shares, that will solve the underlying problem, right?

8.57am. .We're off the lows, but still, sp -29pts.. 1852.. and that certainly breaks the Friday low.

Mainstream are getting spooked.

Equity bears should look for VIX 31s to confirm that 1750/25 zone is coming BEFORE the FOMC.

9.04am... Ray Dalio, aka.. Mr QE4 (remember the Bloomberg interview?) is in Davos, touting some 'depression' doom.

Q. Will the Fed launch QE4 when sp'1600s?

9.37am.. and there goes the Friday low....  there is no real sig' support until 1750/25 zone.. which is clearly viable before end month.

VIX is a little lackluster.. +8% in the 28s... equity bears need 31s to confirm.