Tuesday, August 30, 2011

Market Update @ 10:30

It is 10:30 am edt in US, and it already seems like we have had a full day of trading. We got so much news that I have to stop for a minute and take a deep breath.

It all started in Europe (of course). S&P says double dip is in order in Europe. Haha, are we going to listen to them this time? These are the same guys who downgraded US debt.
Then BOI came out and said that growth in Italy is going to be below 1% for 2011 and 2012. Bummer! Who would have thunk? This was followed by a very poorly received Italian bond auction. Can you folks imagine what would be the outcome had ECB not been buying their bonds for the last few weeks?
Then US was awaken at 8:05 am by central bank earthquake from Evans. This gentleman must be the most dovish person walking the planet earth. He said that employment numbers point to recession. Chomping at the bit, he plain out wants to do QE3 yesterday. He denies anything to do with commodity inflation, and as the matter of fact, wants Fed to target inflation @ 3%. Say what??? Gold is up $40 now.
If this was not enough, @ 10 am we got the worst consumer confidence survey in two years.

Do you want to end the day here? Or take a break until 2 pm, when FOMC minutes will be released??

Watch SPX @ 1208. We breach decisively, we fly up to 1220. We get rejected, and especially if close below 1200, we dive. 1190 support is important in that scenario.

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