- Strong reports good for corporate profits, a lot of selling but only to create opportunity. That is what market is all about.
I think AG must be looking at this report very closely, however it is this oil prices breaking down from 19$, stronger $ i.e imported price stability continues.
Weak Europe recovery, also weakening Euro, CRB index just above contract low, gold prices in the dust, all this in no way points out to any kind of inflation, in percentage terms from falling prices we are now looking at commodities stabilizing, if even asset price inflation was what Mr. AG was worried about the busting of internet bubble and amazon.bomb kind of articles must have bemused him.
As if other problems were not enough the new houses have hit the market the markets long term rates have moved up, for me bonds are long here and I look at a contrary trade at supports. I think we will see these important supports hold well like 1980 and 2360 area, but market does like excesses and would like may be more selling but intelligent people know strong new houses and strong growth with low inflation has led this market to this level, the market is adjusting to changes fast as such a test of 1250 or 1230 is on cards but this is just a healthy correction. A market going up comes down too, may be a single rise is on cards to rattle the asset inflation however on fundamentals my trades are cautiously short within break of supports and covering at 1980 on NDX sold NDX calls at 2115 break and would look to cover, if 1282 is out I will be shorting SPM to 1250 area... |
