Scalper1 News
Major averages bounced on unimpressive volume despite triple witching options expiration which normally should significantly boost volume. This was the third time since December that the NASDAQ Composite and S&P 500 bounced off logical support areas. US Treasury yields continue to fall despite no quantitative easing in the US because US Treasury bonds are more attractive at present than foreign Treasurys which currently offer a negative rate of return. US Treasurys also represent a flight to quality fear trade. Thus all the buying of US Treasurys pushes the price higher and the yield lower. Chinese stocks had their worst day in over six years on Monday with the Shanghai falling more than 7% as Chinese regulators moved to crackdown on excessive margin trading. European markets resisted the Chinese slide and rallied. Futures are up sharply this morning as the promise of more stimulus from China and the European Central Banks pending announcement of expanding QE bond-buying later this week. With all the rip-tide action in the markets as of late, it is even more essential to keep your stops tight and take your gains when you have them, whether on the long or short side. Scalper1 News
Scalper1 News