Market News

S&P 500 divided by Gold…hmmm…it at least tells us the relative value of gold has risen dramatically compared to stocks, as we switched from the up with paper stock rally to the in with stuff commodities rally in 2000.

We saw some ranging yesterday, as the USD gains and losses were mixed across the board. Where will traders turn to as we end the week?

So in the last two and a half months – the last 75 days – the major currencies are little changed. I mean, these pairs move greater distances over the course of a single day, they’ve just been so noncommittal this summer that it almost frustrating.

Get this: The IMF officially declared that the Recession is O-V-E-R. We all know what this means… Poor USD and JPY, sold off against the other majors yesterday. Rally sustainable? Let’s see!

If you’ve been watching the bonds, you likely know they have been in a tight embrace with the US stock market–stocks up in price, bond down in price (up in yield), and vice versa.

After a very slow start, the ‘high yielders’ made a last push to close yesterday in the positive territory. Will they be able to keep this momentum going? Or will they falter?

Remember the latest BOE statement when the pound took a great fall like Humpty Dumpty did when he sat on that wretched wall? That was when BOE Governor Mervyn King decided to

Ok – quick recap of yesterday … A bunch of noise out of UK hits the British pound hard … ECB Axel Weber warns of “Financial Crisis: Round 2” heading for Europe …

Risk aversion seems to be enjoying its stay in the currency market. Would the economic reports due today drive risk aversion away or convince it to extend its stay?

The old “risk aversion” is back so far this morning, as stocks get hit. And in lock‐step the US dollar, US Treasuries, and Japanese yen are bidding higher. Other losers are gold, oil, and the rest of the currency pack.

Looks like US consumers aren’t as confident as some thought they would be! Check out what else happened last Friday and what’s coming up this week in today’s economic roundup!

We didn’t publish CC yesterday, as it was a day of trying to get the head right. To do that, I usually re‐read some of my favorite books about trading. One I particularly like is Zen in the Markets, by Edward Toppel.

Looks like the upbeat tone from the FOMC statement really spurred risk taking yesterday. If this kind of optimism persists, we might see another set of yearly highs soon… In any case, let’s take a look on what’s in today’s economic cupboard!

A couple of days back, I wrote about the aftermath of the NFP report from last Friday. I mentioned that the way currency markets reacted to the event hinted that the inverse correlation between equity markets and the

Yesterday was like a New Year in August due to the fireworks that were lit upon the release of the FOMC rate decision. Today, another set of high impact reports is due in the US. Keep you guards up! Another round of volatility might be coming our way again.

Interesting! The global economic news this morning sure doesn’t seem to bode well for “the recession is over” crowd.

Traders are sitting on the edge of their seats awaiting today’s set of market-moving events. Get the latest scoop on today’s economic roundup!

By now, I’m sure you have all heard that the NFP report came out better than expected, printing job losses of 247,000, bringing the to down to 9.4% from 9.5%. Actually, it seems fishy – a quarter million jobs were lost and yet the unemployment rate went down?

Let’s reminisce on the credit crunch, shall we? Liquidity dried up; demand went missing; the global economy’s gears all but stopped turning; national and international regimes went into savior mode.

And the dollar continues to gain although higher yielding currencies like the AUD and NZD remain resilient! Is this a signal of a new trend in the making?