Unemployment Sends Risk Assets Up on QE Expectations
The equity markets are all in levitation mode now that all of the U.S. economic data for the week came in decidedly bearish.Â Bearish data should not be bullish for stocks and commodities, but it is when the markets only function because of non-economic money printing by central banks.Â This is known in common parlance now as QE.Â So, to begin February we have nothing but high probability setups of higher prices across all asset classes for the month except Gold and long-maturity Treasury bonds.Â Bonds are in a highly bearish posture while Gold is very neutral thanks to a market unconvinced of its role during these Bizzaro times where inflation adjustments to prices have to be approved by the Federal Reserve.
There is a narrative to maintain, after all.
Silver is still trading just short of a breakout level but record physical demand has the price suppressors on the COMEX on the run.Â They will have to let the price rise or risk losing control of the market when too many longs stand for delivery.Â Gold prices will be in the same position before too long.Â The weak opening to 10 and 30 year Treasury bonds today nearly guarantee higher yields by month’s end.Â There is now a very strong probability of a challenge to the all-time high on the S&P 500 this month.Â Only at that point would I consider shorting equities.Â Given how much money is flowing towards them right now regardless of the economic data, I would keep my stops very tight.
Most Popular Content
- All Eyes On GDP Data as Pound Holds Support
- Outlook for the Pound and Dollar
- Pound Still in Downwards Trend Fuelled by Economic Outlook
- Dollar Gains Ground into Veterans Day
- Rebound in EURUSD Makes a Sharp Retrace
- Dollar at Highs as Pound Forms a Base
- Concerns Over Economy Sees Mixed Sentiment On Pound
- Gold Price – To Buy Or Not To Buy?
Currency Articles - Nov 25, 2014 10:33 - 0 Comments
More In Currency Articles
Gold and Oil News - Oct 7, 2014 17:44 - 0 Comments
More In Gold and Oil News
- Gold Falls But Higher Prices May Be On The Horizon
- Gold Prices Spike Higher On Increased Israel Tension
Shares and Markets - May 1, 2014 10:50 - 0 Comments
More In Shares and Markets
- Glaxosmithkline Share Price Rebound Halts On Slower Sales
- Royal Mail Share Price Will Not Be Investigated