George, the ECB did a 25 bp. hike today and mentioned concern over the Euro's weakness at its press conference. the market promptly flipped them the bird, and the Euro continues its merry collapse.
if they really thought a wimpy 1/4 point would do the trick, well they have just been taught a lesson.
a very important development imo...perhaps an interest rate bidding war on the horizon?
as for the stock market, well, if it rallies in the face of the worst wage inflation data in over 10 years, that's pretty unequivocally bullish. of course we'll have to wait and see where we close, but that's the way i'd interpret the action at first blush.
of course i have to agree with Allan that this is not enough to prove the intermediate term trend has really changed. there is yet another high risk time segment coming up, between May 5 and May 15. the last time around it was resolved in a round of panic buying in old economy stocks (mid March). we'll see what it brings this time...another wild rally, or a selling panic? in any case, expect extremely high volatility during that period.
finally, several of the XAU component stocks have begun to give me technical buy signals. that seems not to jibe with the weakness in the PoG, but in any case, someone sure seems to think HM e.g. is a good buy. one of the oscillators i use to detect 'sneaky buying', the Williams%R has just given a buy signal on that stock. also it has had money flows moving in the opposite direction of its price action. that often precedes NEWS. i think we may be on the verge of a wave of consolidation...HM may well be a takeover target.
regards,
hb |
