Monday, 16 May 2016

1pm update - mainstream confidence

US equities are holding broad gains, as the mainstream remain very confident that the market will not be breaking the Jan/Feb' lows at any point this year. USD remains a little weak, -0.1% in the DXY 94.40s. Metals are leaning higher, Gold +$2, with Silver +0.4%. Oil is powerfully higher by 3.1% in the $47s.



*a notable fourth blue candle on the weekly chart... but yes.. a long week ahead.

Clown finance TV had a guest from Bank of America touting a year end target of 2K.

Broadly speaking, we still have a mainstream that has zero concern of a possible break under sp'1810. Indeed, its pretty amusing how they get a little twitchy at the thought of a mere 5-10% retrace this summer.

re: the 4 shorts....   the debt market is certainly warning of a problem. Buy backs continue of course.. and that will help to negate some of the sell side.

Oil is trading bizarrely strong... a sustained move >$50 still looks out of range.

.. and as for fed tightening.. err.. no.    The Fed balance sheet ain't being run down.. and another rate increase is off the menu until at least Q4.

time for some sun...