Equity markets have held up well this week when one considers the weakness of the dollar. Excessive currency weakness spooks investors and drives out foreign money as potential asset gains are wiped out by the currency depreciation, a fact that certain whitehall treasury mandarins have yet to grasp when they suggest that a weak pound is good for foreign investment. The strength of the US indices can probably be attributed to home grown buying and when the only other option is about 0.75% in a money market account but hey thats still 50% more than I get from Barclays.
1040 in the S&P remains the focus for many traders and there are a range of stop losses in the market just above though 1048/50 is also an important resistance level and I would not be surprised to see a break of 1040 and then a failure. It may be mean but the prospect of all those Elliot Wavists getting squeezed and then stuffed fills me with a warm glow. Though todays jobs figure out of the US will be watched I will be more interested in tomorrows PPI figure and GE's Q3 results.
According to a study of 15,000 women, conducted by North Carolina State University, women who perform the act of fellatio on a regular basis, one to two times a week, may reduce their risk of breast cancer by up to 40%. This is really a true story, honest, but I think the "Handbrake" (girlfriend) may find it hard to swallow.
http://www4.ncsu.edu/~brwilli2/cnn.html
Harry
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