10:00 am 2 Chronicles 7:14
“If my people, which are called by my name, shall humble themselves, and pray, and seek face, and turn from their wicked ways; then will I hear from heaven, and will forgive their sins, and will heal their land.”
Good Morning! I have been having difficulty with the website. Postings may be limited.
SPX futures have crossed above the 100-day Moving Average, creating a potential buy signal. I had mentioned previously that the 1987 trendline was a very critical support. It held. Although the Master Cycle may have come early, it arrived at an acceptable time, day 248. If correct, the Cycles Model suggests a rally to the week of September 16. A move back beneath 5300 may reactivate short gamma and cause a further decline.
Today’s options chain shows Long gamma starting at 5300.00. Short gamma lies directly beneath it, so SPX is at a crucial testing point in the options market.
ZeroHedge reports, “And just like that, the great carry trade freak out – which started exactly one week ago when the BOJ hiked rates by a huge 0.15% – is over, because as we had expected, the BOJ got cold feet and capitulated on its rate hiking cycle on Wednesday morning when BOJ deputy governor Shinichi Uchida sent dovish U-turn signal in the wake of historic financial market volatility by pledging to refrain from hiking interest rates when the markets are unstable. In kneejerk reaction to his comments – which were the first public remarks by a BOJ board member since the bank raised rates on July 31 – the yen, which had strengthened by a record amount in the past week as the carry trade careened sending deflationary shockwaves around the globe, weakened by more than 2%, bond yields rose and stocks soared. As of 7:30am ET, S&P 500 jumped by 1.2% with both Tech and small-caps outperforming as the BOJ capitulation relief rally continues;’ Nasdaq 100 futures gained more than 1.5% after the underlying indexes rebounded more than 1% on Tuesday following a wave of dip buying. The Stoxx Europe 600 index climbed more than 1%, with mixed earnings reports from some of the region’s biggest companies doing little to dampen the risk-on mood. Japanese stocks led a broad rally in Asia. Bond yields are higher by 4-5bps, and the USD is higher, looking to erase its weekly loss. Commodities have also caught a bid as the carry trade is reestablished with WTI, base metals, and Ags all seeing strength. Mtge Applications and 10Y bond auction are the major macro data pts. Is the panic unwind finished? Are detailed thoughts are below.”
