Once again the markets overnight were at the mercy of the ‘Zombieland’ rumour mill ..’there were hints and allegations’…and in the end they held no currency ..’I don’t find this stuff amusing anymore!’ Dow down 200…
Below is a chart of the EUR/USD as seen through a tweet rumour and denial cycle on minute by minute basis..think that says it all!!
As some of you know of late, I have been a fan of twitter. One particular feed I follow, called zero hedge is well worth the price of admission…three things caught my eye last night
1.John Corzine from MF Global (Ex Goldman) who was ‘stunned’ to find that $1.2bn was missing form client accounts..this story will get bigger trust me.
2.The Euro Bank stress test showed that the banks needed more money especially the German Banks..really you don’t say!
3.That Fortress Hedge fund was abandoning its focus on fundamental analysis and concentrating on short term momentum trades!
The overriding impression is that no one has a clue what is going on..rumours and counter rumours swirled around ‘Zombieland’ and swayed the markets up then down then down again..The French and Germans are telling their Euro companions to lie back and think of the Euro zone..not sure that will work especially as the French and Germans don’t seem to be following that mantra and putting their interests first..so the upshot is it’s crunch time this weekend..The markets have grown weary and this dithering is definitely not amusing anymore…we stand on a precipice..its D-Day boys and Global markets expect!
Our market will come under pressure and the momentum traders will push it down 50/60 early when we may see some bargain hunters emerge..stick to banks and big resource stocks if you are optimistic about the outcome over the weekend. Personally I feel that its best to wait…yesterday TLS hit 3.29!!The dog of the market has emerged Cinderella like, as a swan..oops think I mixed up my fairy tales but you get the idea. Maybe time to ease out of some and look to re enter around 3.15!
The move by the ANZ to hold their own monthly meetings to set rates has effectively sidelined the RBA on this one…it does show the true reality of the banks funding positions and this transparency from ANZ should be welcomed..it’s not all about the RBA Cash rate dummy…
According to Phil Chronican ”There’s a fairly tenuous link between the Reserve Bank cash rate and the cost of funds of a variable rate mortgage, and yet we’re all stuck in the same routine of waiting for an RBA cash rate move before we move,”
Not sure what Glenn gets his million bucks for then..sure they must do more than that ..surely?anyone?
And news just in John(Shultz) Corzine knows nothing!
Have a good weekend..back on Sky Biz on Monday and hopefully the World will be sorted by ‘Teacozy’ and ‘Moaning Myrtle’…stay calm and carry on is my best advice!