AUD up mildly
DOW up mildly
Gold flat
US Basic Materials up 1.3%
US Financials up 0.62%
Hong Kong Futures Down 0.5%
Japan Futures Down 0.2%
Overview
With the bounce from hell late yesterday the technicals look ready for the start of an upswing. If it wasn't an unusual event that caused it I would say good, but because it was another Dubai reaction it makes it hard to say whether the market really is tired of the recent bearishness. So caution.
No noticeable change with the LME warehouse levels - Aluminium still is putting on it's make up and wiggling its hips, Taking her time about it...... Still hasn't really started going anywhere, but might be worth keeping an eye on.
The weekly and daily charts are now both in "Bounce or Collapse" territory. Watch out for the 4692 daily mid bollinger which will provide resistance if the market is still bearish
My gut feel without seeing the preopen is that the "On Open" and "10:30 guys will be seeing optimism today.
With the Hong Kong and Japanese futures in the red an Asian Fade after 11:00 is on the cards. Remember that Shanghai was getting slaughtered yesterday. Was down 2% before the Dubai spike.
Whether the conditions that caused that have changed is anybodies guess.
Putting these together I am thinking another "Deceptive Day" that opens optimistically and fades in the afternoon looks possible.
USD Spot Price
5 Year Warehouse Levels
