The global markets were anxious by the action of the 200-day moving averages and their reference points to the global equity markets. As of writing, the DAX, SPOOS and CAC have joined the others that began the week below their 200-days. The NASDAQ 100 futures index is struggling to hold support on the vaunted moving average, currently at 4381.01 on the CQG daily continuation chart. While equity markets have swooned, gold and silver found buyers as investors have momentarily sought refuge from what has been the great haven of the last three years: Large cap, high dividend stocks combined with a growth piece have provided the consummate investment vehicle for investors leaving the REPRESSIVE returns from low-risk credit markets. While volume has been low in typical summer fashion, the breakdown in favored moving averages and strength indicators suggests there is definitely nervousness in global equity markets.
Bond markets are rallying as yields decline on the longer end of the curve and this is also a global phenomenon and not just a result of yesterday’s FOMC premature release. Flattening curves in conjunction with equity corrections is certainly a development to be closely watching. In Germany, the DAX is testing downsides level that synch with the important date of January 22, when President Draghi laid out the ECB’s QE program. (DAX futures closed at 10,307 on January 21.) The sudden resignation is a non-event for the next few weeks as it is a political maneuver by Prime Minister Tsipras to consolidate his power by ridding his coalition of the far-left and build a coalition of the sound and rational that will provide the support to placate Greece’s creditors. More to look at next week.
YRA HARRIS ANNOUNCEMENT: I will be on the new Wall Street Week with Anthony Scaramucci and Gary Kaminsky as a panelist with main guest, stock picker and bottom-up analyst Mario Gabelli. It airs on FOX-TV (that’s your local FOX station, not the cable channels) at 11 a.m. EST/10 a.m. CST on SUNDAY, AUGUST 23. Be sure to watch and support Anthony and Gary’s efforts to raise the standards of financial analysis and news to the high level established by the highly respected Louis Rukeyser. Please watch and become a regular viewer. If, you are like one of my progeny and don’t have TV, the show will simultaneously be streaming here: www.wallstreetweek.com.