Pre-market notes
Despite speeches from both Obama and Bernanke, markets remained unconvinced and finished Thursday’s session lower. After reaching the head and shoulder topping pattern target, SPX seems like bear flagging for the last few weeks. A breakdown of the flag could bring us below 1100 for the first time in 2011 and back to September 2010 levels. During the summer sell-off, the dollar index remained unaffected in expectation for QE3. However, yesterday DXY broke out of the consolidation pattern...
Read MoreMarkets start sending some warning signals.
Wednesday saw markets close deep in the red with the SPX down 2% and COMPQX down 2.65%. More worryingly, the so-called “safe-haven” assets, namely US Treasuries, also showed weakness as yields finished higher all through the curve with emphasize put on the short-term bills. That is a rare outcome in the current risk-on-risk-off environment where a sell-off in equities translates in a strong bid for Treasuries, especially when the dollar index is up at the same time. We might just...
Read MoreMarket sentiment is getting way too bearish.
Another day, another sell-off. It is difficult to be optimistic these days if you follow the financial media with all those troubles in Europe and the ever-”productive” US congress. Still when everything is screaming sell it is usually a good time to take a long hard look at the market and pick some assets that look undervalued. Honestly I don’t see what all the fuss is about. Everyone knows that US politicians will raise the debt ceiling, and that despite all the tough talk...
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