By Chris Becker
The message is step out of the way of risk as money chased all assets overnight in the wake of the Fed’s non-decision, as easy money remains key to market survival. The USD firmed a little in the last moments of last night but remains under pressure as stocks and bonds begin to reach their former highs on the reflation trade. Commodities were well bid as well, with oil and gold breaking higher as emerging market assets are swooped up as well. Don’t rock the boat and buy the dip!
Recapping Asia’s session yesterday first, where the Shanghai Composite is finally breaking free, up 0.5% yesterday to 3041 points, clawing its way back above terminal support at 3000 points. This is getting there but momentum remains negative, and price remains below the 200 day moving average so I’m cautious:
