The SPASX200 begins trading marginally higher. BOK (Bank of
Korea) and BI (Bank of Indonesia) are providing rate decisions today.
US futures are higher and gaining upside on the Jon
Hilsenrath article in the WSJ that concludes that the Fed will wait until 2016
to hike rates. Hilsenrath is considered to have the inside track on Fed
thinking so traders are bidding up the stock and futures markets since easy
money will continue for the next few months. S&P +4. Dow +17. Nasdaq +31.
Euro 1.1477. ECB President Draghi has to be losing sleep
over the higher euro. Dollar/yen 118.71 under the 119 level. Pound 1.5475. Aussie
dollar 0.7320. USD 93.98.
WTIC oil 46.27. Brent oil 49.15. Natural gas 2.54. Gold
1186. Silver 16.18. Copper 2.4175.
US Treasury yields are; 2-year 0.56%, 5-year 1.28%, 10-year 1.98%,
30-year 2.84%. The 2-10 spread is 142 bips. German bund 0.546%. Japan 10-year
bond 0.308%.
The NIKK is up +0.8% in the early going. The KOSPI gains
+0.8% and Aussie stocks build on earlier gains. ASX 200 +0.5%. Euro 1.1467.
Dollar/yen 119.07. WTIC oil 46.43. Gold 1184. US 10-year yield 1.99%.
Chinese and Hong Kong indexes begin the session moving
higher and Asia stocks develop an optimistic tone. The weak data in China and
the US hints that the PBOC will have to provide more stimulus. Bad news is good
news and the central banker easy money will pump stock markets higher. China
says money supply has
[Text is Redacted: Purchase October 2015-10 to Read the Complete Chronology]
Fed’s Mester, a hawk, continues to state the case for a rate
hike. Market participants, however, have already written off a hike until 2016
and this is evidenced by the robust global stock market rally the last couple
days. She says delaying the first rate hike may create risks to the economy and
markets. Mester’s hawkish comments fall on deaf ears.
Notable market technician Louise Yamada says stock market
rallies should be sold going forward. Market leaders are underperforming during
the recent relief rally. Yamada says evidence is mounting that a long term top
is in place and other indicators are on a classic sell signal. Yamada is a very
talented technician but failed to warn of the market top resulting in a -10% to
-60% initial haircut in stocks.
The Keystone Speculator is the only Wall Street
analyst that accurately described the market top forming this year using chart
divergence techniques. Loyal followers of the KE Stone family of blogs and this
daily chronology were fully prepared and ready for the rollover. Keystone
warned of the market top during the spring and summer since the monthly charts
for the major indexes have printed negative divergence with overbot conditions
and rising wedge patterns. This is a key piece of evidence that easily foretold
the top in the stock market.
