Day 10
They lit the candles in New York … and not only the X-mas tree at Rockefeller Center is sparkling …
Markets providing the fireworks …
Situation:
U.S. Markets: Squeezed higher on weak economic outlook, falling oil and FED hints, interest rate cuts near … Markets now see a 94% chance of Fed cut in December … Financials outperform on profittaking towards monthend and belief that now value is around in that sector … Chinese insurer takes 4% of Fortis, Australian Bank buys Great Western for 800mln$, China life is looking for an acquisition target in the West, even the Chinese sovereign wealth fund makes waves … even before becoming operational … saying it might invest in subprime
Asian Markets: Broadly higher on US squeeze, Hongkong leading the way …
Commodities/Currencies : Stabilization in the Yen after yesterdays sell off … oil with a 91 handle … off now close to 10% in total …
Events: US … GDP Q3(prel.), Core PCE, Personal consumption, jobless claims, New Home sales, House Price index
Ideas/Strategy: … After yesterday’s 12 positive hourly candles, the market has the right to consolidate a bit … even more as so far the move is a bear market rallye only … so I will try to play the short side in the morning … then take a backseat to watch what comes out of the US
supports: 7750 … 7720 … 7707 … 7660/70
resists: 7815 … 7825/30 … 7880 … 7911
Tags: China, daily outlook, FED, financials, Fortis
