Thursday, 5 May 2016

10am update - opening shaky gains

US equities open a little higher, but the gains are a little shaky, as underlying price pressure is still leaning to the downside. VIX remains broadly subdued, fractionally lower in the 15.90s. USD is notably higher, +0.5% in the DXY 93.60s. Oil +3.4% in the $45s.




*Fed official Bullard -the bane of the equity bears, is talking around lunch time, and Mr Market will be listening.

The opening minor gains have already almost faded... but price action remains pretty subdued. A break of yesterday's low of sp'2045 looks unlikely today.

Best guess... a fractionally higher/flat close... with another break lower - into the sp'2030s - with VIX 17/18s tomorrow.

Meanwhile... Cramer is a little twitchy that the BDI has fallen for the past four days.

Ironically, this is the same guy who has been interpreting the recent rally in the BDI as a super bullish sign for the world economy. Maybe someone needs to show him a 10yr chart for some perspective.

notable weakness... FIT, daily

Earnings were lousy, an ugly stock, almost one year old, FIT looks set to break the Feb' low of $11.91.. and eventually sub $10.

yours.. not wearing an electronic step counter.