Market Update 31/5:WTI,VIX &BDI

Wall Street counted significant loses across the board today,though Dow remains 1,9% up for the month of May.Whether the major correction,predicted by various bears,is ante portas,is the million dollar question right now,but in our view the markets still can sustain more loses before the macro trend is reversed.

That said,VIX can give more than a few hints on where we are heading,and today it surged by 12.18%,breaking slightly above a macro bearish trendline,ending above the 15 mark,at 16.3.

VIX_31_5

Oil had-unsurprisingly-another bad day,finishing at 91.7$,falling more than 2%.It is now trading below both its 50 and 200 day MAs’,just over the 50% fibo level as seen on the chart.MACD is at the zero reading,with a negative trend,while the RSI is at 40,also with a negative trend.Should the 91.5$ support brake,we look at the 90$ level for further support and below that at 88$.

WTI_31_5

Finally,we take a look at the Baltic Dry Index,a bellweather for the global economy,that after recovering from the lows of 2012,has recently portrayed a negative dynamic.

BDI

(Chart courtesy of StockCharts.com)

Friday 31/5 Reads

Thousands blockade European Central Bank in Frankfurt (RT)

Gold Long Wait is Almost Over (The Market Oracle)

The Tarnished American Golden Years (Daily Reckoning)

Iraq sees deadliest month in 5 years (CSMonitor)

The ‘Canaries In The Bond-Mine’ Look Terrible (Business Insider)

Obama’s new FBI chief approved Bush’s NSA warrantless wiretapping scheme (Guardian)

Banks Are Thriving Despite Regulations Thanks to Economic Growth (The Daily Beast)

Thursday 30/5 Reads

What Happens After a 70% Stock Market Rally In 6 Months? (Zerohedge)

The US Can Artificially Depress Gold Prices. And confiscate yours too, says Marc Faber (LewRockwell)

Half a Billion: China’s Middle-Class Consumers (The Diplomat)

Israel prepares to build 1,000 new homes in occupied East Jerusalem (RT)

Next Shoe To Drop: Shoddy Solar Panels From China (Testosterone Pit)

Syria ‘receives’ Russian S-300 air defense system (DW)

Detroit’s Davos (NYT)

EU Requires Spain to Raise Vat (Mish’s Global Economic Trend Analysis)

 

 

Natural Gas In A Cup With Handle Formation?

 

natgas_cup

(Chart courtesy of StockCharts.com)

 

Natural Gas seems to have formed a “cup with a handle” pattern over the last few months,though it is still early to tell.If this is indeed the case and we do see a breakdown,it could signal a bullish trend that will drive the price to the 5.7-5.8$ mark.RSI is at 58, while MACD is again turning positive,potentially supporting such a scenario.

Monday 27/5 Reads

Britain is a lab rat for George Osborne’s austerity programme experiment (Guardian)

Apple’s Tax Dodge Should Prompt Rethink in Ireland (Bloomberg)

Wave of Baghdad bombings kills more than 50 (Reuters)

Japanese Stocks Extend Overnight Plunge – Down Over 14% From Highs (Zerohedge)

Russia, Greece, Turkey, Other Central Banks Buy Gold; China’s PBOC Buying? (GoldCore)

The Spiritual Crisis of the Bourgeois Bohemians (The American Conservative)