Beware Wicked Wednesday
Yesterday's shellacking in the major indices didn't come in a vacuum. The Dow and S&P 500 hit those overhead resistance levels that I talked about in earlier posts, but there was a twist. I thought the overhead resistance of the S&P 500 would be the line in the sand. It turned out that the Dow hitting its downtrend was enough to send the market swooning lower ...
The futures are up this morning, but we're probably at the place where bounces should be shorted. I'm talking about the US market. Overseas, particularly in Asia, markets are much stronger. For example, Australia sold off hard today, then started its recovery at the end of the day (it still ended down for the day). Korea did even better, ending nearly flat.
In short, investors perceive that there is less risk in foreign markets. That is topsy-turvy of the way things used to be. The old saying went: "When the US catches cold, the rest of the world catches pneumonia." Maybe not so much anymore.
Here is some news of interest ...
China Sells $79 Billion of Bonds to Set Up State-Owned Investment Company China sold 600 billion yuan ($79 billion) of bonds, the most ever, to fund a company that will help invest the world's biggest foreign-exchange reserves.
Persian Gulf Oil-Tanker Rates May Extend Drop as Demand for Ships Stalls The cost of shipping Middle East crude oil to Asia, the biggest market for supertankers, may fall for a second consecutive day as demand stalls amid a glut of vessels.
Natural Gas Futures Jump 4% Natural-gas futures settled sharply higher on the emergence of another tropical weather disturbance in the Atlantic basin. Traders began bidding up prices after weather forecasters predicted that storms off the western coast of Africa might strengthen. Underlying these jitters is the potential for a strong storm or hurricane to enter the U.S. Gulf of Mexico, home to 13% of domestic natural-gas output, and damage energy equipment there. The U.S. is two weeks from the peak hurricane season, which starts around Sept. 10, according to the National Oceanic & Atmospheric Administration.
High sea-surface temperatures and low winds could cause the tropical disturbance to strengthen further.
COTs Like Silver A trading system based on the COTs data gives a renewed bullish signal for silver with last Friday’s report
The futures are up this morning, but we're probably at the place where bounces should be shorted. I'm talking about the US market. Overseas, particularly in Asia, markets are much stronger. For example, Australia sold off hard today, then started its recovery at the end of the day (it still ended down for the day). Korea did even better, ending nearly flat.In short, investors perceive that there is less risk in foreign markets. That is topsy-turvy of the way things used to be. The old saying went: "When the US catches cold, the rest of the world catches pneumonia." Maybe not so much anymore.
Here is some news of interest ...
China Sells $79 Billion of Bonds to Set Up State-Owned Investment Company China sold 600 billion yuan ($79 billion) of bonds, the most ever, to fund a company that will help invest the world's biggest foreign-exchange reserves.
Persian Gulf Oil-Tanker Rates May Extend Drop as Demand for Ships Stalls The cost of shipping Middle East crude oil to Asia, the biggest market for supertankers, may fall for a second consecutive day as demand stalls amid a glut of vessels.
Natural Gas Futures Jump 4% Natural-gas futures settled sharply higher on the emergence of another tropical weather disturbance in the Atlantic basin. Traders began bidding up prices after weather forecasters predicted that storms off the western coast of Africa might strengthen. Underlying these jitters is the potential for a strong storm or hurricane to enter the U.S. Gulf of Mexico, home to 13% of domestic natural-gas output, and damage energy equipment there. The U.S. is two weeks from the peak hurricane season, which starts around Sept. 10, according to the National Oceanic & Atmospheric Administration.
High sea-surface temperatures and low winds could cause the tropical disturbance to strengthen further.
COTs Like Silver A trading system based on the COTs data gives a renewed bullish signal for silver with last Friday’s report
Check out my new gold and energy blog at MoneyAndMarkets.com
posted by Sean Brodrick @ 8:13 AM
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