2015/08/28 TrendView VIDEO: Concise Highlights (early)
© 2015 ROHR International, Inc. All International rights reserved.
The analysis videos are reserved for Gold and Platinum Subscribers
TrendView VIDEO ANALYSIS & OUTLOOK: Friday, August 28, 2015 (early)
While the markets have been wild, they have now both reflected the concerns we have been expressing for some time and also reacted back to a more nominally stabilized condition. That is on the degree to which the cumulative effect of weaker activity in key centers was going to catch up with extensive overly optimistic assessments of global economy and equities prospects. This was also more radically reflected in the Chinese equities of late, and their recovery (government influenced or not) over the past couple of days has likely contributed to the ability of the other equities to continue their recovery from much lower supports hit during Monday’s capitulation.
And after equities exhibited that capitulation on Monday’s very sharp selloff into, the govvies have also been reacting down as expected from predictable major resistances as the ‘haven’ bid has lapsed in the near term. The same is true for US Dollar Index pressure abating after the possible euro currency ‘carry trade’ liquidation extreme strength earlier this week. And with the US equities obviously also at least partially delinking from the further Chinese equities swings, things seem to be normalizing. Along with Thursday’s overt strength in US equities, back above Monday’s gap lower openings signals the ability to recover further. Yet that does not necessarily make them bullish again overall. There is still quite a bit of higher resistance, and that goes for the US dollar strength as well. This also remains somewhat constructive for govvies, even if from lower levels once again.
Video Timeline: It begins with macro (i.e. fundamental influences) mention of the stronger nature of recent data, which has been reinforced by US Durable Goods Orders and the Q2 GDP upward revision exceeding expectations. That was after the upbeat German IFO and exports Tuesday and UK CBI Reported Sales. This morning’s UK Consumer Confidence and Exports along with Japanese CPI were higher than expected, with solid Euro-zone confidence figures. Us Income and Spending came in as expected, and we now await communication from the KC Fed Jackson Hole Symposium into Monday’s UK Holiday.
It moves on to the S&P 500 FUTURE short-term view at 03:00 and intermediate term at 07:00 with only mention of OTHER EQUITIES from 09:00 and GOVVIES from 10:00 (with BUND comments at 11:15.) Foreign exchange is also only mentioned, beginning with the US DOLLAR INDEX at 11:45, Europe at 12:45, ASIA at 13:45 and the only change in CROSS RATES being the EUR/AUD strength (as expected) mentioned at 14:30 prior to returning to the S&P 500 FUTURE short term view at 15:30 for a final look.
Authorized Gold and Platinum Subscribers click ‘Read more…’ (below) to access the balance of the opening discussion and TrendView Video Analysis and General Update. Silver and Sterling Subscribers click ‘Read more…’ (below) to access the balance of the opening discussion.