Thursday 21 April 2016

Pre-Market Brief

Good morning. US equity futures are a little higher, sp +3pts, we're set to open at 2105. USD is -0.4% in the DXY 94.10s. Metals continue to soar, Gold +$22, with Silver +4.2%. Oil is +1.6% in the $44s.


sp'60min


WTIC, weekly2


Summary

*ECB: rates u/c... the QE continues.. as they strive for inflation.
--

To break trend, equity bears only need a daily close <sp'2107.

The 2065/61 zone remains first target, and its notable that if 2061 is hit within a few days.. that'd be a swing of 50pts (2.4%) from yesterday's new cycle high.

--
Update from Oscar



Clearly, commodities and stocks have seen some very strong gains recently. Yet many in the mainstream are still saying rates will remain low and QE - BoJ/ECB, will continue.

We can't have both. If the supply of commodities - relative to demand, really has changed.. we have a major inflationary bubble that could get out of control real fast.

My outlook still leans on the deflationary side, but if WTIC oil >$50... along with new historic highs in stocks... watch out!
--

Overnight action

Japan: solid gains of 2.7% @ 17363
China:  weakness into the close, -0.7% @ 2952
Germany: currently -0.5% @ 10366
--

Have a good Thursday