Crazy as it is, markets don’t care very much for the Fed rate hike. Bull market continues as the risk free rate is coming to an end.
Yellen and the Fed has lost all credibility, and received the middle finger from the market bulls because no one believes the rate hike is happening.
Market expectations were for a rally after Black Friday, instead Monday faced a market pullback from 2095 highs to 2079 lows.
China’s investigation into short sellers and derivative products spooked the China markets with an aim to end speculation.
If no one is allowed to speculate in China, does that mean its markets will contract 50% before reflecting real value?
What if the same thing happens in the US? Is AMZN’s 900 P/E ratio sustainable? It could probably destroy the US markets if the US took similar measures.
Markets are marred by negative market sentiment as retailers miss their numbers, and guided lower for 2016.
DX continues to be strong, and hurting commodities that are priced in dollars.
The strong dollar DX @ 99.40 continues to crush all the traded commodities. Will step in when DX shows any signs of reversing.
DX at 98 may be the spot where the indexes pause and realize how the strong dollar continues to be bad for businesses with international revenue. Looking for a market reversal or sideways action as DX continues to remain at the high range.
VIX at all time lows 14.15 with no worries of market volatility.
Indexes rallied 10%+ in the month of October.
ZBs maintaining a high range where the risk free rate is going to be the norm.
Crude oil holding steady.
Euro, Yen off its highs.
Gold, silver trading lower in anticipation of rate increase.
Copper trading near lows. Global demand is weak, but that does not change the trading sentiment which is rally mode until the market reverses.
If news headlines are any indication for a lower open tomorrow, it is time to put on a short once market internals confirm a down move.
Mkts reacted positively after Yellen’s speech of raising rates in 2015. This is a reversal of spooking the mkts after last Thursday’s directionless FMOC show.
Nikkei +1.7%, Shanghai -1.6% (divergent), Hang Seng +0.4%
FTSE +2.5%, DAX +3.0% VW drag on German mkts are over.
ZBs deflated from 157’16 to 155’16. Flight to safety is over.
VX deflated from 23.35 to 20.75, risk on.
NKE crushed earnings. AAPL launching 6S sales.
VLKAY cheated on their diesel emissions. There should be a government mandate to help Volkswagen avoid jail time plus heavy punishments and push electric vehicles forward by converting all sold and unsold diesel VW cars to full electric. A win/win for clear air and the image of VW as they would be forced to put in resources to unseat TSLA as the current king of electric cars.