by Chris Becker
Risk markets are being driven by sentiment and changes in currency bets, as stocks slumped overnight with safe haven money moving to sovereign bonds and the currencies that in a normal world would be near worthless given an almost endless stream of quantitative easing. Euro and Yen continue to firm against the USD, increasing risks of lower profits from their mercantile system while lower bond yields are squeezing bank profits on Wall Street. Gold has been the benefactor of this confusion, rising overnight as oil steadied ahead of a possible Russian/OPEC juncture.
Recapping Asia’s session yesterday where the Shanghai Composite snapped back its recent rally, falling 1.5% to be just above 3000 points once. Price action is still pointing to the 200 day moving average at 3200 points but I’m watching the lower daily moving average closely for signs of a reversal:
