By Chris Becker
The near week long bounce in equity markets continues but is starting to look stretched as bonds remain cool and commodity watchers wait for Chinese markets and sentiment to re-open today. European stocks were flat while in the US, downbeaten biotech stocks soared lifting all boats. Emerging markets are getting relief too, as the weaker USD and higher oil prices provide some hope that combined current account crises can be put off as we await the Fed to do its thing. Or not.
Recapping Asia’s session, where the Shanghai Composite still remains closed for the Golden Week holiday so it was all eyes on the Nikkei 225. The Japanese market closed up another 0.75% yesterday but is still unable to breach selling resistance overhead as indicated by the ATR stop. However, this has the hallmarks of an “island” breakout with short term support holding, so the swing long play remains:
