Well,
The Euro has stabilized above 125, it appears that it is being defended there, and at 1:00 central time the Euro has been bought up so shorts are on notice, we had two such "odd moves" in the Euro so shorts are not going to get too bold next couple of weaks, I think Euro hits 128 next week for sure.
I think Monday will be Mutual Fund Monday as well, where they come in and buy the stuff they have been chasing for awhile at a discount, especially since it appears that stocks tested the flash bottom lows, and held, it was a friday so mutual funds don`t really get too involved, expect Monday to be a 200 point up day, s&p probably trades bavk above 1100 pretty quick next week.
Oil will retrace next week, their will be demand for the products as well, first big day for the new contract on monday where people will initiate new positions, expect crude to open higher on sunday night, and have a $2.50 plus day on Monday, probably hit at least 74.70 next week on a rebound, and if there are as many shorts as I think who are poorly expecting crude to move to the low 60`s in the middle of the summer driving season, we could expload as high as 76 on a short covering rally. We may trade in the low 60`s sometime, but it isn`t coming now unless markets totally freeze up, I think bears are expecting this scenario.
With Guitner visiting Europe, I think next week cooler heads prevail, and buyers start buying european assets once again next week, which will help market confidence in all markets.
Copper appears to have bottomed this past week, so I expect all commodities to have retracement bounces next week.
All in all money should come out of treasuries and back into riskier assets next week as bargain hunting takes hold, remember the fed is still at zero percent interest rates, until they raise, all risk assets are cheap as hell right now, especially after the over-hyped eurpean end of the world collapse. The shorts made some money, but as you saw futures were down big, and i know it was options friday, but buyers came in so quickly at the open, they were salivating at those prices, on a friday....we had our near-term test, next week will be a nice bounce from oversold conditions.
The Euro has stabilized above 125, it appears that it is being defended there, and at 1:00 central time the Euro has been bought up so shorts are on notice, we had two such "odd moves" in the Euro so shorts are not going to get too bold next couple of weaks, I think Euro hits 128 next week for sure.
I think Monday will be Mutual Fund Monday as well, where they come in and buy the stuff they have been chasing for awhile at a discount, especially since it appears that stocks tested the flash bottom lows, and held, it was a friday so mutual funds don`t really get too involved, expect Monday to be a 200 point up day, s&p probably trades bavk above 1100 pretty quick next week.
Oil will retrace next week, their will be demand for the products as well, first big day for the new contract on monday where people will initiate new positions, expect crude to open higher on sunday night, and have a $2.50 plus day on Monday, probably hit at least 74.70 next week on a rebound, and if there are as many shorts as I think who are poorly expecting crude to move to the low 60`s in the middle of the summer driving season, we could expload as high as 76 on a short covering rally. We may trade in the low 60`s sometime, but it isn`t coming now unless markets totally freeze up, I think bears are expecting this scenario.
With Guitner visiting Europe, I think next week cooler heads prevail, and buyers start buying european assets once again next week, which will help market confidence in all markets.
Copper appears to have bottomed this past week, so I expect all commodities to have retracement bounces next week.
All in all money should come out of treasuries and back into riskier assets next week as bargain hunting takes hold, remember the fed is still at zero percent interest rates, until they raise, all risk assets are cheap as hell right now, especially after the over-hyped eurpean end of the world collapse. The shorts made some money, but as you saw futures were down big, and i know it was options friday, but buyers came in so quickly at the open, they were salivating at those prices, on a friday....we had our near-term test, next week will be a nice bounce from oversold conditions.
