"Euro to test 1.28?", "UUP, FXE, EWA, FXY, EWC, UGL, UCO, CEF, AGQ"
Fed's discount window is 0.75% for US banks, but the Fed is offering 0.5% for European banks . The cheaper US dollar for European banks should help with liquidity problems ..
Technically, US dollar might be seeing double top in the intermediate term and this drop in dollar is fueling the equities and the gold. Besides, the not so gloomy economic reports are indicating that the economy might be bottoming ... Unemployment report improved marginally to 8.6% ..
With very few US economic reports this week the markets might be inclined to head higher, but watch the developments in Europe closely though ..
Last week's (week over week) market Sectors Returns and Internals:
- SP 500: 7.39%
- Volatility Index % change, VIX = -20.16%
- Short term bond rate (average of 3 year and 5 year) = 0.655%
- 10 year Treasury yield = 2.05%
- Small Cap (IWM): 10.33%
- Latin America (ILF): 10.05%
- Europe (IEV): 10.42%
- Emerging Markets (EEM): 10.17%
- Commodities (DBC): 4.28%
- Long term Bonds (TLT): -1.54%
- US Dollar Index, 8 DMA: 78.61
- Gold, (GLD) change: 3.93%
- Put/Call Ratio, total of equity/Index = 0.98
- Bull/Bear Ratio, Investors Intelligence survey =
- NYSE (New Highs - New lows), 8 DMA = -51.13
Next Week's economic calendar:
- ISM services - 12/5
- Wholesale Inventories - 12/8
- Trade Balance - 12/9
