The Dow and S&P 500 indexes extended their slumps to a fifth straight day on Wednesday as the Fed offered markets minimal hope (or “Hopeium” as traders like to call it) for more stimulus. The Bears appears firmly in control.
Or do they?
Technical strategist Richard Ross of Auerbach Grayson thinks that risky assets remain in a bullish pattern, and that commodities can lead the market out of the doldrums.
Herein lies today’s dose of hopeium:
“Our macro technical analysis continues to suggest that the summer advance in risky assets which commenced in June remains broadly intact, and we continue to be tactical buyers of; Commodities, Global Equities, and non-dollar currencies (including the Euro). Crude Oil, perhaps the most prescient predictor of prices over the past 5 years, is in all out Bull mode; commodity currencies are firming; Sovereign yields have eased; and Global Equities display a quiet confidence and understated strength which belies the action in the Euro (which has near term upside to 1.30).”
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