Looking at the way this market is right now, you would have thought last week didn't mean anything. After crashing down Equities have crashed back up, with the ES posting 3 back to back 1% plus gains which is the first time since 2011 this has happened, and the VIX index has dropped over 10% in each of the past 3 days which has never happened in the history of the VIX.
So the buy the dippers are out in force, and it is safe to say this was the pullback everyone was waiting for and soon as support was found it has raced up super fast.
The FED and other Central Banks are still throwing around QE rhetoric, and with China growth sluggish, the PBOC are looking at further rate cuts, so as the economies around the world remain sluggish, this is the best conditions for the US markets as they continue their rapid accent to new highs. European Indexes are still way off their highs and are reliant on more from the ECB to push it higher.
When the day comes that central banks do have to unwind, it will be a real test to the market!
Bonds have come of their highs as the correlation with Equities seems to be the best its been in a while, Spreads have come back in Short Sterling and Eurodollar also and is now sitting mid range, which is making it a bit tougher to pick direction.
We have BoE minutes later today, as well as US CPI, so looking for that to bring some volatility to the mix.
Main event for the week is the UK GDP figures on friday, so hoping to get flat before that.
So the buy the dippers are out in force, and it is safe to say this was the pullback everyone was waiting for and soon as support was found it has raced up super fast.
The FED and other Central Banks are still throwing around QE rhetoric, and with China growth sluggish, the PBOC are looking at further rate cuts, so as the economies around the world remain sluggish, this is the best conditions for the US markets as they continue their rapid accent to new highs. European Indexes are still way off their highs and are reliant on more from the ECB to push it higher.
When the day comes that central banks do have to unwind, it will be a real test to the market!
Bonds have come of their highs as the correlation with Equities seems to be the best its been in a while, Spreads have come back in Short Sterling and Eurodollar also and is now sitting mid range, which is making it a bit tougher to pick direction.
We have BoE minutes later today, as well as US CPI, so looking for that to bring some volatility to the mix.
Main event for the week is the UK GDP figures on friday, so hoping to get flat before that.
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