Q2 US GDP estimates were revised up to 1.3% beating expectations of 1%, and the Dow rallied to touch 11206 as initial jobless claims also came in better than expected . It later sold off reportedly as Netflix made big declines and brought down a lot of big tech names with it, and the Dow revisiting the 11,000 zone, before bouncing back to 11190 at present.
11th October will kick off earnings season for Q3, I am reluctant to make a medium term (1-2 week, 300 pip stop) type of trade until further clarity over the Euro Zone solution comes available in the coming days. However regardless I see good odds of an earnings beating estimates trend in results over the coming weeks to be a catalyst to take equities higher.
Technically looking at charts, yet again, I reiterate, trend line support from March 2009 lows seem broken. However this was also the case in August 2010, however when bernanke implied QE2 markets had to move higher, and if Merkel shows complete determination to support Greece, and the plan is credible enough, then market will rally.
Name Price Chg %Chg
FTSE 100 5196.84 -20.79 -0.40%
Dow Jones IA 11153.98 143.08 1.30%
NASDAQ 2480.76 -10.82 -0.43%
DAX 30 5639.58 61.16 1.10%
CAC 40 3027.65 32.03 1.07%
AEX 473.62 6.03 1.29%
GBP/USD 1.560 92/13 0.01 0.38%
GBP/EUR 1.14 85/92 -0.00 -0.08%
EUR/USD 1.35 87/89 0.01 0.48%
USD/CHF 0.89 74/78 -0.00 -0.51%
USD/JPY 76.7 92/99 0.27 0.36%
GBP/JPY 119.8 55/05 0.89 0.74%
WTI $/barrel 83.11 2.50 3.10%
Gold $/oz 1618.95 30.40 1.91%
Silver $/oz 30.635 1.46
COUPON MATURITY PRICE/YIELD PRICE/YIELD CHANGE TIME
US 10-Year 2.125 08/15/2021 101-04+ / 2.00 -0-04¾ / 0.016
2-Year 0.125 09/30/2013 99-23½ / 0.26 -0-00¾ / 0.012 16:59
What now?
Wait and see. No change. However long dow short dollar looks on for the coming weeks.
No comments:
Post a Comment