By Chris Becker
Bonds remain the market to watch going into the end of the year, with selloffs deepening overnight as UK GDP data came in stronger than expected. The tide of losing money in the uber bullish bond positions may wash over stocks, with earnings reports not helping as US stocks continued to melt sideways as the USD glides higher and higher.
Looking at Asian stocks first, where the Shanghai Composite continues to retrace slightly from its recent breakout, falling a few points yesterday to 3112 points. Price remains above the closely watched 200 day moving average but resistance and my target at the former high at 3140 needs to be breached for this move to turn into a proper rally:
