Aside from the G8 meetings (that sound like a repeat of most) and the marriage of Mark Zuckerberg (and this is such pertinent financial market news) there was not a lot to report this weekend. I found a few pieces of interesting news, and here they are:
In the NYT, Paul Krugman looks at the parallels of current state and post WW1 Germany, US and Eurozone periphery.
The FT has an article on the resource stocks and remind us that $FB was a nice distraction, but let’s focus on what is really important.
Pragmatic Capitalism has an article about Japan’s deleveraging cycle via Credit Suisse.
This week for economic data is fairly light, starting off with Monday eve from NZD inflation expectations, Tuesday UK CPI and Inflation Letter, Existing home sales in the US, and Japan will have its Monetary Policy Statement later that evening. Wednesday early morning the UK will have retail sales and MPC meeting minutes, CAD will have retail sales, and we will have new home sales in the US. Later that night will be China’s flash manufacturing PMI. Thursday EUR will have German IFO, UK will have revised GDP and then US will have durable goods and weekly unemployment claims. No major economic data on Friday.
There are some companies posting earnings this week. Monday is URBN and LOW, Tuesday is DELL, MDT, NTAP and BBY. Wednesday we have HPQ, BIG and AEO. Thursday is COST, HNZ and TIF.
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Here are some charts which I think will matter for the markets this week:
The 3 charts above are the USD index. Obviously the USD is up against some major weekly resistance. More than likely, with the trend line giving way on Friday (4 hour chart) we will need a little pullback before charging the weekly resistance, which on a breakout, could target 90 (not a typo) later this year.
Gold has broken a multi year trend line, but looks to back test it around the 1615 level.
Copper looks very bearish, and also closed on its lows.
Crude looks bearish as well, and as long as we trade sub 92.50, expect downside pressure.
E-mini SPX closing in on its 38.2% daily Fibonacci level, which should provide at least an area to bounce.
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