A resolution of the Euro-zone debt crisis stands to spark a big rally in global securities. US markets need help from the economic indicators, i.e. - no recession...
The Aug. - Sept. consolidation between DJIA 10,600 and 11,740 stands to be a base for a surge, or way station leading to a drop below DJIA 10,000 (S&P:1050).
Gold futures slid to their lowest levels in three weeks Thursday, as a global effort to boost the liquidity of European banks slashed demand for the precious metal as a haven.
European debt crisis plus the possibility of a U.S. recession are combining to produce a major buying opportunity at current levels, or a plunge below DJIA 10,000.
The reversal in the markets seemed inverse today as the stocks with the most exposure to current global challenged regained much of the previous day's losses and basic materials and other more distance investments hovered near lows.
Morgan Stanley's pessimistic note on the state of the global economy and the likelihood of a double dip sent shares of stocks across the financial sector into a hole today. The debt in Europe and weak U.S. home sales have been inescapable negative drivers for the sector.
The recent rally appears to be driven my invisible forces. Flat or pessimistic news regarding the global economy seems to inexplicably be driving the market upwards, but can it last?
Hong Kong blue chips opened higher with a global rally caused by German and French efforts to ease Europe's credit concerns. Profit-taking cut into gains, but Hong Kong still ended sharply higher.
The energy sector was broadly higher following a BP report that divided the blame over several major oil companies. The price of oil meanwhile, fell beneath $90 per gallon again today after reaching Tuesday highs in recent trading.
Oil and related equities began to bounce back today in the aftermath of the news that France and Germany would go to any means necessary in order to support the ongoing health of European banks through the Greek debt crisis.