Posted by: jhamon | July 13, 2009

MysteryHedgie Notes Asian Market Weakness

MysteryHedgie notes market weakness in Asia and asks what it portends for U.S. equities.  His morning market commentary:

Despite star banking analyst’s Whitney’s market soothing comments on Goldman Sachs this morning, the risk aversion bias is set to continue this week…The break in the Chinese share market draws closer as Asia experienced significant weakness to begin the week, led down by the speculative small cap Japanese Mother’s index (below), down 10% on the day.  In the US, NDX has benefitted from similar speculative interest and reversion there should be expected in front of earnings. The low volatility low volume “water torture” declines in stocks and commodities, and the quiet bid to fixed income looks set to continue until Bernanke’s words, or asset price changes, cause  a reassessment around the Fed chief’s Congressional testimony on July 21.                                                   

 

Market Weakness in Asia: What Does It Mean For US?

Market Weakness in Asia: What Does It Mean For US?

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