Monday, May 14, 2012

Weekend News

- China cuts rates 50bps - this is a great signal towards a tilt towards a growth mandate as opposed to pure inflationary controls.
- In Europe 100k people took to streets in Spain in protest of austerity.  Greece is still at an impasse and this may be the reason why sp500 futures are off 3 points.

- JP morgan's 2bn trading loss last week was a huge blow to a possible comeback to the green for the week.
- Continued liquidity may be on the cards as PIMCO boss Gross expects QE3 post June - when the bond repurchase plan is complete.  This will be very bullish for Gold and commodities.  I plan to position my portfolio around this thesis during the last week of May.

- A positive to trading on Friday was the 4 year high in consumer sentiment 77.8 above the expected 76.4.

A key level this week is the 1240 level.