posted at 05:50
Author Name: Sam Ro
Trader Chatter, Nov. 12, 2014
Weakness being driven by several factors: Banks weak as Regulators hit them with $3.2bn of fines related to forex trading / German Panel of Eco Advisors were bearish on recovery / NATO saying convoy of Russian Tanks entered Ukraine. Transitioning into Asia - While the MICEX is unchanged, the Ruble is getting whacked again. Shanghai added 1% led by brokers on anticipation of the HK Link starting next week, while Japan hits 7Y highs on hopes Abe will postpone a looming tax increase and shore up support for economic reforms with snap elections. The worst market was down under - Aussie was hit for 1%, with heavy losses in the mining sector, and 3 of the 4 big banks trading ex-divvy. The DXY has regained its footing, but mostly against Euro as $/Y off small, nearing a Y115 test. Metals are mixed, with Copper showing some life, up small - while Gold and Silver are both red - Gold nearing a $1160 test as BOE slashes inflation estimates. API data for Crude hits after the bell, ahead of DOE tomorrow. Some trades I am watching today - Big Bank deal on the tape, with BBT taking SUSQ for $2.5B - Regionals may outperform the money centers on headlines / ITB had a nice move thru 6M resistance, if it continues, Momentum plyers will follow / REITS outperforming again - Japan's Property Index climbed 3%, while UK REITS are around unch despite FTSE weakness / Gold Miners as a massive short covered yesterday, dislocating higher / A reversal lower in the dollar should be very commodity supportive, as we saw late yesterday - especially in the crowded shorts.

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