Wednesday August 15 2012
The markets continue to mark time as various indexes flirt with 50 bar moving averages.
Market tops and bottoms are typically marked by articles declaring the 'The End of _______' Bill Gross made such a remark last week declaring that stocks were dead.
This article declares tha the Euro is a Zombie.
Ramki pegs 1.2596 as the next Euro target. Which after all will be impressive for a zombie currency. Our take is that the Euro will climb the wall of worry higher than that by this fall.
The Oil and Gas Chronicle notes that a more cautious approach is underway in the oil field, this time. Recall I recommended XES Energy Services.
Yesterday we speculated that a close under 124 would take TLT further south. In fact it closed at 123.79, that's not decisive enough though.
Is is support or the edge of a break. The daily indicators are oversold. I extended the time back to a look at March April when the market was in similar condition. It has been about six months since a test of the 200 day MA. With the low volume and general lack of interest on Wall Street, hard to say what will happen today. Our longer term view that Bond prices come down and commodities rally is unchanged.
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