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anyone suffering from the blues? I am o k . surprisingly indeed
The EUR/USD gained a relief of sorts today as it crosses back to 1.3700+.
The S&P 500 gained some bullish momentum similarly.
Oil has dropped below $70 for now and i am monitoring it closely for signs of breakdown. I mentioned previously that oil can be an indicator of economic health and being under $70 may suggest further breakdown of the economy.
Gold is currently valued around $1066+. It is affected by the strengthening US Dollar as it is priced in US Dollar. However as gold may be a “safe asset” of choice when it comes to stormy weather, there may be demand behind the scene.
Two points i will like to talk about that may have caused sentiments to improve.
Firstly, in the G7 meetings over the weekend, ministers of the various countries agreed that economic stimulus measures should continue despite growing pressure on deficit issues. While this may bring about positive sentiments, let us not forget that growing pressure may hamper progress. For example Greece’s strike issues.
Next will be analysts recommendation lift of Google Inc., Amazon.com Inc. and Home Depot Inc. A lift among a majority of dampening outlook should be a great welcome. However the market does not revolve around a few companies and more remains to be seen.
There you have it, each “positive” sentiment can be matched with an equally “negative” one. Hence we can see this reflected in the charts now. Slow moving price action with no determined push in either directions. We have to understand the issues such as countries having problems with their deficits are far reaching and a few better than usual developments will probably not be enough to flip the sentiment switch to positive.
ECB President Trichet is due to spend a few hours later and hence do be on a look out for unexpected spikes. Investors will usually dissect the speech for possible clues and indications for future policies.
Bullish pressure may target 1.3740/1.3800.
A comeback of the bears may mean a visitation to 1.3680/00.
Arrggh! I am very late for my date with sleep. She is very petty and may throw a temper of migraine if i am too late. Sigh. Well at least i am not blue today. ( At least not blue enough to be “blue” ) Take care and i’ll see you soon koalas!
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