Yet another stock reversal pattern

–Mini-SP and Nasdaq futures made new highs for the move yesterday, had outside days and closed lower.  Classic reversal pattern (that hasn’t been much of a signal recently).  DJIA and Russell also posted outside days with lower closes, but yesterday’s highs weren’t quite through those of late Feb.  Yields softened with tens -3.3 bps to 2.72%.  The curve was modestly flatter.  This morning stocks have stabilized and are positive.  Oil is slightly lower after topping over the past week.

–Premier Li Keqiang gave his state of the union at the National People’s Congress and lowered the GDP target to a range of 6-6.5%, with CPI of 3% and a budget deficit of 2.8%.  He warned of tough economic challenges ahead and announced tax cuts.  According to Asia Times car sales were -5.8% last year and ZH notes that both car and housing prices are being slashed. 

–US news today includes Service ISM expected 37.4 and New Home Sales -8.7% at a rate of 600k  –Tens are giving back some of yesterday’s gains in a low volume environment. 

Posted on March 5, 2019 at 4:41 am by alexmanzara · Permalink
In: Eurodollar Options

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