If markets can hold their head above water today and if there are no nasty surprises out of Europe or Asia, markets should lean green the rest of the week, IMO. If Brazil cuts rates more than expected in that environment, we could see a nice little PPS jump in GFA.
I found it on wiki. As of Apr 2012 Brazil has $374,272 billion in reserves. Brazil had during the Armageddon period late 2008 beginning 2009 $208 billion in reserves. So there’s plenty of room for stimuli.
Banging my head into the wall about not selling on Monday or last Friday.
Now the question is if this is going even lower and I have to admit that i give 60% chance to go lower, 20% to stabilize here and 20% to go higher.
The only positive thing I can say is the relatively light volume. Otherwise the whole market is a mess. I am still holding a big gain from my ARNA trade and a little hesitant to sell at this level but who knows maybe I throw in the towel and have a pause for this year with my yearly gain of more than 200%... (sellers drying up ?)
Agree for the most part. I am talking about an outlook for the next two weeks though. The fact that so few bond sales are slated will allow money to dribble back into risk assets under the right conditions.
Don't forget about early month fund buying and there is always the possibility of intervention rumors from China, the US, and Europe.