Macro Morning: BTFD

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By Chris Becker Rallies across the board in US stocks with the benchmark S&P500 up over 1.2% at 1985 points continuing its sharp rebound and reinforcing the algo “buy the dip” which has worked for nearly 5 years now: Chart SP500, H4, 2014.10.28 20:51 UTC, VantageFX Pty Ltd., MetaTrader 4, Real Other bourses were up even higher, with the Russell 2000 up nearly 3% and the Nasdaq 1.7% even though Facebook impressive earnings saw the stock fall and Twitter fell 10% even as earnings expectations were bang on the money. The thing is, the very closely watched US durable goods orders undershot expectations on the headline print and internals, falling 1.3% and the August Case-Shiller house price index printed falls for the month but consumer confidence was up to its highest level since 2007 – mixed to say the least. Markets didn’t care about the upcoming FOMC meeting either although expectations are firming that rate rises are off the agenda for a very long time indeed. In Europe its was a sea of green too as the DAX climbed almost 2% and the FTSE dragging only up 0.6% but rallied strongly in post-close futures trading: Chart FTSE100, H4, 2014.10.28 21:07 UTC, VantageFX Pty Ltd., MetaTrader 4, Real The FTSE is the weakest of the bunch in my opinion and still shows signs of weakness on the daily chart, but don’t fight the trend! SPI futures for the ASX200 suggest at least a 30 point gain on the open although falls in iron ore may drag materials down again although the index is following the S&P500 in lockstep.

In currency land, it looks like Aussie is finally breaking out after its tight trading range, as it rallied above the 88 handle to finish at 8850 this morning:

Chart AUDUSD, H1, 2014.10.28 21:10 UTC, VantageFX Pty Ltd., MetaTrader 4, Real

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