This is a post-CNY update with a look at CME odds of a March rate hike (83%). Additionally I take a closer look at JP225 and SG30. JP225 is clearly the weaker leg in the correction and their relative performance suggests JP225 has more to lose. For SG30, recall that 399 is a strong level to test.
4 charts describing markets’ reaction to Kim’s hydrogen bomb test. Gold appreciates. AUDJPY and N225 falls. EWY has elements of a reversal trade.
Despite the severe bearish action around the globe yesterday following Kim’s missile flying over Japan and a sharp, not-unexpected u-turn during US trading hours, stock indices really did not make any significant move. Major indices are still trapped between last week’s (Jackson Hole) range except for DAX. It is a loss leader…
Stock indices continue to be bullish. DAX 30 is correcting, Nikkei 225 could be correcting soon. Until 13-week ema is broken, no reason for alarm.
High volatility, fireworks accompanying BOJ policy statements these days must be a new trend. Calm and efficient are not words to describe.