Yesterdays rally was quite a big and aggressive one. Before the US market open, all European indices were well under water and the S&P futures were down 6 points, before we ended up 18 points, a 24 point turnaround. Now is this a part of a turnaround, or a breather for the bulls before we continue downwards. Well one notable fact was that the volume was still light.
Another thing is the disconnect between bonds and stocks still exists, as we were racing to new highs in stocks Bonds were trading at highs too.
Bunds are trading at 120.57 now as we continue to go higher aproaching our 121.50 target. We have rallied 300 points off the low reached at the begining of june and more is expected before we pull back.
Its the same story for the Euribor spreads as they continue higher as does short sterling spreads. It is hard to determine how high these may go, but while they continue there pursuit upwards its best to trade it with caution.
Looking ahead its a quite day on the news front, with Michigan confidence at 3 pm GMT the main piece of news.
Subscribe to:
Post Comments (Atom)
Front month WTI Futures plunges to negative $37 as storage costs rocket
It was a move of epic proportions in the front month WTI Crude futures, the significance of which is not really known of yet, but was incre...
-
Much has been said about the new phone and the response on the surface seems exactly how you would expect it to be. Regardless of what Appl...
-
In the previous ECB meeting we had a split decision on whether to cut rates further or not but today Mario Draghi said the council decided ...
-
With the raft of poor data out this morning, we got some strong selling pressure in all parts of the curve. The 2s-10s spread hit an all tim...
No comments:
Post a Comment