• 1 day Analyst Predicts Tesla Stock Will Soar To $500
  • 2 days Australian Billionaire To Invest In $88 Million Struggling Solar Project
  • 3 days Twitter-Shaming: The Biggest Threat To Any Business
  • 3 days Canada Looks To Become A Major Source For Critical Minerals
  • 3 days Hedge Funds Are Piling Into This Key Commodity
  • 5 days Trade Deal Not Likely Before Christmas 2020
  • 5 days America's $16 Trillion Debt Bubble Is About To Burst
  • 6 days Black Friday Breaks Online Shopping Records
  • 6 days Tesla's Biggest Competitor Is Hiding In Plain Sight
  • 7 days Are Celebrities Good Or Bad For Cannabis Stocks?
  • 8 days Venezuela’s Crisis Continues As Maduro Spends $5 Billion On Oil Deals
  • 9 days Elon Musk Claims 250,000 Orders For Cybertruck
  • 10 days How To Survive Thanksgiving Politics With Cannabis Gravy
  • 11 days The Fragility Of Monetary Policy
  • 12 days 5 Oligopoly Stock Picks For Your 2020 Portfolio
  • 12 days $7 Trillion In Unfunded U.S. Pensions As Domestic Debt Hits A Record High
  • 13 days Retail Is Alive And Well, But Only For The Rich
  • 13 days New Tech Could Unchain The Solar Revolution
  • 13 days China's Boldest Move Yet To Ditch The U.S. Dollar
  • 14 days 5 Stocks That Surpassed Earnings Expectations
Zombie Foreclosures On The Rise In The U.S.

Zombie Foreclosures On The Rise In The U.S.

During the quarter there were…

Is The Bull Market On Its Last Legs?

Is The Bull Market On Its Last Legs?

This aging bull market may…

Another Retail Giant Bites The Dust

Another Retail Giant Bites The Dust

Forever 21 filed for Chapter…

  1. Home
  2. Markets
  3. Other

Change in Banking Regulations, Chinese Economy Help Boost Equities

U.S. Equity markets are expected to open sharply higher after an agreement by global regulators on the size of bank capital reserves and strong Chinese economic data encouraged traders to demand higher yielding assets.

Over the week-end, global banking regulators agreed to close to triple the size of capital reserves that banks must hold against losses.

On Saturday, China posted a report which showed industrial production was stronger-stronger than expected. Chinese retail sales also rose while August inflation of 3.5% was reported at the pre-report estimate. This helped squelch rumors of another round of monetary policy tightening by the Chinese central bank.

The money which left the Treasury and Gold markets last week is being put to work this morning in the global equity markets.

The September E-mini S&P is trading sharply higher having come close to gapping last week's high. Upside momentum is building which could mean a test of the August top at 1127.75. The question this morning which must be answered is whether U.S. investors will chase this market higher from the get-go or wait for an early session pull-back.

The liquidation break continued in the December Treasury Bonds this morning with this market trading down to the Fibonacci retracement level at 129'11. The daily swing chart indicates that 128'05 is a potential downside target by September 17. Short-term oscillators are indicating slightly oversold conditions which may trigger a short-covering rally especially since the Fib level objective was reached. The 50% level at 130'17 is a potential upside target.

November Crude Oil popped to the upside overnight as demand for higher yielding assets soared on the Chinese news. This market regained a 50% level at 77.70 but has since backed off. Support is being provided by an uptrending Gann angle at 77.49, but the market may weaken if this level is violated. The short-term chart indicates that 79.17 is a potential upside target by September 16 or 17.

Overall the theme today is bullish, but U.S. investors will be the key to sustaining the overall bullishness. There is plenty of cash available to invest but the tendency of U.S. equity traders is to buy pullbacks. This may indicate that an early break may be necessary to attract fresh buying.

Before the opening the bulls are clearly in control, it's just a matter of when and where U.S. investors will show an interest on the long side.

 

Back to homepage

Leave a comment

Leave a comment