September 23rd 2011
Market Commentary for Wed. 9/14
Hello All, It turns out the rumor of China buying Italian bonds was nothing more than just a rumor. No new developments out of Europe, and positive corporate earnings allowed stocks to post another day of gains. Nothing more than consolidation until we find out what Europe’s fate is, and we await a skewed reaction to option ex on Friday. The choppy action in the Eurocurrency is evidence of the rapid change in sentiment, as the larger pattern still remains bearish. With Gold ticking back up after holding support around $1800, another wedge pattern is evident where we can get a larger break to the upside if there is no resolve with Europe. Treasury yields are not necessarily correcting in a dramatic fashion which leads me to believe that there is still room for further deterioration as investors flock to safety in light of the SNB’s currency intervention. The Fed stated today that it would buy about $16 billion over the next month as part of its reinvestment of maturing assets, as the central bank may decide to swap short term treasuries with long term securities to cut borrowing costs. We also Full Article…
