Well yesterday we saw a large drop in equity prices, based on little new news–some say caused by the unwinding of the carry trade in Japan (i.e. borrow in Japan and invest in the U.S.) Well who knows for certain. Today we have gotten most of the losses back–again based on nothing really.
We have 2 hours left to trade and we could well see equities drop like a rock going into the close–once again who knows and certainly it isn’t our focus, but there is no doubt that moves of a less magnitude are more desirable than 2-3% moves. Let’s have a bit or sanity tomorrow!!
To go with the swings in the equity markets we have the 10 year treasury up 12 basis points to trade around 3.90%–don’t want to see this back up to the 4.20% area where it started it’s drop a week ago, but who knows what will happen.
The bottom line is that we have big moves with little fundamental data backing the moves–just talk. We had the weak employment numbers last week, but we have seen how often these have big revisions–all the time, but other data shows growth, although maybe not as robust as it had been.
So if we can get a bit of sanity on the close and on the open tomorrow I am likely to nibble something–likely a small add to a current holding. We’ll see.
We ended the day with only a 1% bounce in the S&P and Nasdaq.
That doesn’t bode well.
I agree completely. The late day fade out points to a total give back and then some tomorrow.
Hi, can you post pricing table of MS-Q? It got lost in the markets chaos I guess. Thank you!