Yesterday’s key rally on stocks saw some major gains in the financial markets with Goldman Sachs and JP Morgan (as was predicted on my facebook page) with their share prices rising by over 8%. At the moment on the S&Ps (ES) we are over-extended and I see the temporary upside as being limited, although a test of 1300 is quite likely (see above video).
I am not looking to get too aggressively short here as that would be fighting the upward momentum, but a short-term pullback to key support zones such as the 21 EMA is likely where we could implement some long positions.
The AUDJPY carry trade has also broken through key resistance to the upside and the US 30 year Treasury bond market took a tanking yesterday, indicating that risk is being put back on by the hedge funds and the big players.
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