There was a rip up in indices on the back of the Jobs number as the DOW spiked 200 ticks then faded it all within seconds. Haven't seen that type of wild move since 2008. I tried fading it was a good 100 ticks offside at one point, but it came back down for a manageable loss.
My take on the spike, clearly a big stop went off, but generally the market has resumed its upward trend. Now you would have though that given the likelihood for early taper with the Unemployment rate down to 7% you would have seen the opposite reaction. But its seems as though this is a good number, but not a good enough number to make the FED act which means more QE! so stocks go up, you know the drill...
Bonds are largely flat, as the initial fall has been pared, and the spreads are pretty much back in line as well, although we have slight pressure on the front end of the curve and steepening at the back end of the Euribor and Short Sterling Curve.
For this year it all boils down to the FED meeting in a couple of weeks, lets hope for fireworks!
My take on the spike, clearly a big stop went off, but generally the market has resumed its upward trend. Now you would have though that given the likelihood for early taper with the Unemployment rate down to 7% you would have seen the opposite reaction. But its seems as though this is a good number, but not a good enough number to make the FED act which means more QE! so stocks go up, you know the drill...
Bonds are largely flat, as the initial fall has been pared, and the spreads are pretty much back in line as well, although we have slight pressure on the front end of the curve and steepening at the back end of the Euribor and Short Sterling Curve.
For this year it all boils down to the FED meeting in a couple of weeks, lets hope for fireworks!
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