Date: Mon, 20 May 2013 02:41:26 +0200
- Trader Mike
STTG Market Recap May 10, 2013
Thursday's mild losses were made up Friday as any type of selling, however minor, brings in buyers. Friday's session was very quiet until the last 15 minutes when most of the gains were made. The S&P 500 gained 0.43% and the NASDAQ 0.8%. There were a lot of strange moves in the currency markets the past 48 hours as the Japanese yen continues to be the story of the year; with the Bank of Japan doing an easing policy 3x the size of the Federal Reserve's in relation to the size of their economy it has devastated their currency and hence pushed everything priced in yen (including their market) to the sky. A lot of other central banks have been forced to respond - this week alone Australia, South Korea, Poland - among others eased as we are in all out global currency war. Each country is trying to devalue their currency to support exports.
As for U.S. markets we continue to grind up almost every day - both the S&P 500 and NASDAQ are near/at the top of an ascending channel.
Here is the yen situation which many have their eyes on...
In return, Japan's market has been on absolute fire.
We are seeing far better internals than in late February through late April when defensives led the market. Now we have small caps regaining leadership along with a host of cyclical sectors.
Further bonds have been hit very hard this week - for a while there they were rallying with stocks which has not been a common situation in the past few years.
Gold and silver continue to be poor areas to be even with all the quantitative easing going on. Until something changes in their charts these are not areas to be exposed to.
Original post: STTG Market Recap May 10, 2013