by Chris Becker
Friday saw a follow through of the risk put given to markets by the ECB with stocks launching out of their ranges and firing up a proper bear market rally. Local stocks should benefit this morning as the DAX led European stocks, up nearly 4% while US bourses did about half that as Treasuries were sold off. Commodities were relatively quiet with some solid leads on oil prices as gold moderated. The big picture is we’re on the road to a bear market rally on the back of actual and presumed stimulus and one that could take prices back to their previous highs in short time, an interesting opportunity to say the least on the long and short side.
Recapping Asia’s week, the Shanghai Composite finished Friday with a scratch session and the week where it started. The daily chart shows resistance overhead at 3000 points just can’t be cleared:
