Sunday trading in the FX is fairly quiet with some small gapping higher of the commodity currencies like the AUD and NZD which should lead to a little risk on as equity futures open (they have just opened as I was preparing this blog, up 2 points). Keep in mind, as our analysis Friday suggests in the e-mini futures to come into some technical confluence around the 1410-14 area (chart below and we are basically there now).
Here is a roundup and some links to articles I have read over the weekend:
First off, if you missed all the AAPL news with the suit involving Samsung, it is huge. Huge win for AAPL and I can only imagine how high this stock is going to gap open tomorrow. Here is a link to the latest from Bloomberg.
“Open Ended” bond buying? Is that really what this has come too? If so, I would truly be concerned about the future of the USD and sustainability of the framework of our global capital markets.
China announces more stimulus to promote confidence. Wouldn’t you if you saw this chart of the Shanghai Composite?
Even the strongest of the Eurozone are feeling the “pinch” says the Financial Times.
I suggest that everyone read the latest from Megan Greene who follows the Eurozone crisis probably closer than anyone out there.
Let’s all give a salute to one of the “True American Heros” of our time, Mr. Neil Armstrong who passed away at the age of 82. God Bless you and rest in peace.
On the calendar this week we start off with Monday IFO Business Climate from Germany, Tuesday in the US is CB Consumer Confidence, Wednesday we have US Preliminary GDP and Pending Home Sales, NZD Business Confidence then AUD Building Approvals and Private Cap Ex. Thursday we have an Italian Bond Auction and then US weekly Unemployment Claims. Friday is a big day with CAD GDP and the kick off to the Jackson Hole Annual Symposium with the Fed Chairman scheduled to speak at 10AM ET.
There are still a couple companies still reporting earnings. Monday is TIF. Wednesday is HNZ and JOY. Thursday is CIEN.
Lastly, most of you know that my team and I broadcast daily from 7AM ET through the NY stock market close. To access our live webinars daily (which are free, and our live in the market analysis has been for nearly 10 years now) just click on this NEW link. (If you have signed up in the past, this is a new link as of a couple weeks ago which requires you to re-register with Citrix)
Here are some charts to kick off the week for you:
e-mini S&P, heads up overhead.
AUD/JPY key daily rejection, coming out of ascending wedge (correlation to SPX very strong here)
Tight range in copper only getting tighter on the dailies.
If the EUR/USD can scale the 38% Fib level, the 50% and inverted H&S targets are next target for longs.
You can clearly see the confluence that caused the bounce in the 10 year last week. This is key support now.
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