by Chris Becker
Stocks rallied on a lower US dollar last night as a series of Fed official talks, a surprisingly higher CPI print in the UK and most importantly a surge in oil, which dragged up US energy stocks. WTI closed above $42USD per barrel with many pundits calling “the worst is over” as it appears Russia and the Saudi’s may freeze oil production, although this won’t be confirmed until the Doha meeting this time next week. US Treasuries lost 5 points and set the stage for a bid back into risk assets, with most stock markets up 1% or so, with the Yen finally weakening against USD which should set the stage for a bullish Asian session.
Recapping China’s markets first, where the Shanghai Composite slipped a little yesterday, but remains above 3000 points showing significant buying support still exists. I still contend this is setting up for a second stage surge up to 3200 or even 3400 points but be wary of the bear market jaw:
