by Chris Becker
A strong recovery in stocks last week after the terrorist attacks in Paris, with the Monday morning gap down filled and then some across most bourses. On Friday, US stocks rallied while European stocks finished flat even as Mario Draghi pulled out his “whatever it takes” card that should put a bid under German banks. Australian stocks are getting pulled along while the Aussie dollar is finding a bid because…well there’s really no justification long term, but short term its getting the “She’ll be right mate” crowd excited. Commodities show the real way with all the industrial metals falling, crude seeing a very small bounce and gold going nowhere again. Bond markets were flat with only peripherals seeing a bid on the ECB magic button strokes.
Recapping Asia’s Friday where the Shanghai Composite has a flat session, finishing slightly in the green and just above 3600 points. The weekly chart below shows how the well-controlled bourse halted its decline at 3000 points, built up some steam and has now rallied quite strongly and could move up to prior resistance at 4000 points in the weeks ahead if
