The chase by Frances Horodelski:
Has the clock struck 13 and are there Eastern Promises? That is where we start today, stealing from two market pundits who are much more eloquent than me.
First, has the clock struck 13. This refers to all things insane which could refer to markets generally - but specifically for me to the intra-dayreversals that we have seen of late. You just think you're going down the right highway - and whack the hairpin turn in the road makes your head spin. Abroadening top? Or a "knock, knock, knocking" on heaven's door before the big run to even bigger highs? Even bullish sentiment indicators are insane withthe Investors Intelligence bulls at a worrisome 55.8% level while the American Association of Individual Investors are at sub-30% levels. Crazy.
Second, Eastern Promises can refer to Mario Draghi who has promised more than he has given and the market still slathers at his words. Arate cut seems more than promise from his words yesterday but the promise of bond buying remains out there (although legal and other hurdles need to besurpassed first). Or another eastern promise (further east of course) is Mr. Putin's promise to be conciliatory but troops don't back downand the referendum goes ahead. Be careful out there.
But let's head back to the news. Economically, we had Chinese inflation numbers coming in well below expectations (it used to be theChinese were worried about runaway inflation - today's number came in sub-2%, a developed market level). The street is focused on the low levels of ironore as delivered into China which is at the lowest level since September 2013 and down 23% in the past year. A negative signal for global growth? Manufacturing in the UKhowever showing strength. The big story for us is Canada's jobs number. The estimate was quite healthy given thebig leap in jobs we saw in March – but it didn’t turn out that way as the economy actually shed 28,900 jobs according to Statistics Canada.
http://www.bnn.ca/Blogs/2014/05/9/The-clock-strikes-13.aspx
Posts
