Good morning. Futures are a touch higher, sp +2pts , we're set to open around 1804. Metals are weak, Gold -$6, and remain stuck under old broken support. With the hourly charts looking floored, equity bears continue to have real problems, and the sp'1820s are viable before the weekend.
sp'60min
Summary
I'm not really expecting anything of note today, other than a general opportunity for the market to battle moderately upward. There is more chance of new highs tomorrow, when there is heavy QE-pomo.
I realise some are still seeking a C wave lower, but really, where is the downside power? Bears look weak.
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Notable early gains in all the momo stocks...
FB +35 cents..with 52/53 viable by the weekend.
Similarly, I'm looking for TSLA to battle into the 150s before the Friday close.
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Video update from Mr Carboni...
..who is surprisingly bearish, at least for a day or two.
9.44am.. a few pts lower to sp1800..but really, where is the downside power going to come from today?
There remains an incessantly annoying amount of taper talk again. Clown finance TV is doing the same thing they have been doing all year - get everyone hyped up for a minor reduction in QE, only for the Fed to hold off for another few months. Next week looks set to be no different.
I am sick of this nonsense talk, not least the manner in which the cheer leaders on clown finance TV discuss and present it. How can anyone expect - what would be a major change in Fed policy, a mere week before the Christmas holiday, and ahead of the Bernanke leaving?
Everyone seems to have lost their minds again, but worse, most seem to have forgotten that we went through all this nonsense just a few months ago. Just this morning on CNBC, Liesman was on air touting 'taper on'. Wasn't he the guy who read the same 'taper-on' script across August and early September...and then what? Ohh, thats right...no taper.
A $15bn cut still leaves a HUGE annual QE
Far more important to keep in mind, even if there is a reduction in QE - whether next week, or in the spring. At most, we're only talking about a cut of 10/15bn. Assume its 15bn, that still gives us $70bn a month..which would still amount to an annualised QE of $840bn !
On any basis, that would remain a HUGE prop to the US capital markets, and what downside pressure there is next year will...to a VERY significant extent be negated.
Looking ahead
There is nothing of significance due tomorrow, only the US Treasury budget, and the usual weekly EIA oil report.
*next sig' QE is not until Thursday.
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Goodnight from London
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Video from Denniger - a must watch for those interested in the bigger picture.
Regardless of other issues, Denniger is still one of the best when it comes to macro-economics, and as I have stated for some years...
'There is no recovery..there will be no recovery'.
Much of the official data of course would say otherwise, but for those who care to look..we are indeed in a rather difficult situation in most of the western economies. For many people, the past six years have been a deep depressionary phase..and so far..there is no sign of it genuinely ending.
The main indexes closed moderately lower, with the sp -5pts @ 1802. The two leaders - Trans/R2K, settled -0.7% and -0.9% respectively. Near term outlook remains bullish, with the 1820s viable this week, and the 1840s by year end.
sp'daily5
Dow
Summary
A pretty quiet day in market land. The only notable action was in the momo stocks, which all saw rather impressive gains.
Now that we're two days into the week, the notion of a C wave lower seems out of range - considering recent price action.
Equity bulls remain firmly in control, and the sp'1820s could easily be hit later this week, especially this Thursday, when there is very heavy QE-pomo.
