A VIt was pointed out earlier in the week: S&P came up toward critical 1292.00 technical resistance. Now, with two sessions to go in the week the world is holding its collective breath, and everyone says: "the proof is in the pudding: will the breakout materialize?" SP futures were hit by onslaught of negative news overnight: AIG, European Central Banks, a jump in Oil on Turkey pipeline force majeure, Target, Jobless Claims.. down 15 handles! A fake-out of historic proportions?

In the meantime, each of the major European currencies has declined over 6% on straight-line three-week spiral. This put them within spitting distance of 2008 water-marks: 1.0622 USD/CHF, 1.9338 GBP/USD and 1.5305 on flagship EUR/USD!

So, as the starting pistols are about to go off in Bejing, the no less interesting games are about to unfold on global electronic arenas. Each of those contracts could potentially pace one another, and make the crowds scream!





Speak your mind

4 Comments so far

  1. Prudence Gently on August 7, 2008 6:44 pm

    I wonder to what extent the results of the games themselves could effect world markets. Hasn’t there been shown a correlation between Olympic gold medals and a country’s GDP? What if the Chinese way out(or-under)perform expectations? Will the development of its economy be re-evaluated? Could this effect commodity prices? What if the U.S. underperforms? Would stocks and dollars tumble?

  2. Stuart Miller on August 7, 2008 7:49 pm

    The proof is not in the pudding, but in the eating!

    A perfect illustration of "nini," nonsense in, nonsense out!

  3. Anatoly Veltman on August 8, 2008 3:36 am

    Classic headline:

    Aug. 8 (Bloomberg) — Chinese equities plunged nearly 5% on concern security breaches could disrupt the Olympic Games set to open in Beijing tonight.

    The chart illustrating two-year rally, followed by 2008 plunge is open to comments…

  4. Anatoly Veltman on August 11, 2008 4:05 pm

    I must say, that was easy: with the dollar explosion and subsequent SP rally! However, I'm turning cautious now. The same reasons, making everyone look one way make me consider the possibility of reaction now.

    Classically, it may have taken not just the currency collapse of the decade, but also "confirmation" from the $40 rout in Gold Monday to exhaust the Energy correction.


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