1. Markets are about to make a short term bottom around Thanksgiving as we will have a short term positive astro aspect besides the oversold conditions and crucial chartpoints to be reached.
First 2180 area is good support for the NDX and Apple has dropped to a key support level as well as has the most expensive stock AMZN. Blackfriday will be very good for both – so do the stars say the overall shopping will kick off very well as Venus wll be in a trigon to Jupiter and both are in a good angle to native USA Venus and Jupiter. This is a vey short term boost 2-3 days and are rather creating opportunities to add shorts. One could try to profit by reducing shorts on Friday briefly – that is always a tricky operation though as short term timing is hard. Especially as the overall astro pattern moves towards its climax in 2-2 weeks and prices especially in Europe will drop more.
Euro is headed for a low around the 1.30 level and DAX will test again the 5000 level and SPX should be good for another dip to 1100. A more aggressive bounce up is to be expected from those levels before the next selling wave will push prices even lower.
For now the bad news keep pouring in as even Germany has failed auctions now, which is really bad news. The Euro area is in really big trouble and a bold decision needs to be made from Germany one way or the other. Even they exit the Euro or let the ECB print – none will be a smooth one and printing money is definetely the wrong path but buys time with no real purpose other than to help some privileged circles to exit positions and prepare for the war which will be the consequence. Since war is a very profitable enterprise for a few in power they may even opt for that but with todays weapon technology that can spin out of control easily.
The overnight news of worries over Dexia’s bailout deal and the weak Chinese PMI print did nothing to help the generally poor sentiment as the US closed on the stress test news. Equity and Treasury Futures (as cash was closed in Tokyo) were in risk off mode but stabilized with ES around 1170 (-1% from US close). With Europe opening and TSYs trading once again, CONTEXT shows that the sell-off is broad based and supports equity weakness for now. European sovereigns are opening generally higher in yield and spread across the board with Ireland the stand-out currently. France and Belgium are also weak performers (Dexia?) followed by Italy and Spain. European credit has gapped down on the open with senior and sub financials worst performers (+7bps and +14bps respectively) followed by XOver and Main (+11bps and +3.5bps) – in line with US underperformance for now. Bloomberg’s BE500 equity index just opened gap down around 1% but is outperforming credit for now as EURUSD touches 1.3440 again.