Business

Every market participant has pondered the shenanigans occurring in many commodities in recent weeks as Iron ore, Rebar, Copper, and Steel prices have all gone parabolic. We warned that this was not real demand-driven but purely credit-fuleed malinvestment here, and today, as Credit Suisse notes, we seem to have got confirmation as these metals are tumbling after China raises margins/commission on metal futures.

Credit Suisse explains:

It appears Bank of America's high net worth private clients (who together with hedge funds and institutional make up the so-called "smart money" investor category) are not the only ones who have been quietly offloading stocks.

The tax affairs of British Prime Minister David Cameron will not be investigated by the parliamentary standards watchdog, after it emerged he had profited from an offshore trust. The Parliamentary Commissioner for Standards, Kathryn Hudson, announced she has decided not to investigate the matter but her office refused to give a reason why. ‘Dodgy Daves’ tax affairs came under scrutiny after the Panama Papers leak revealed his late father ran an offshore investment fund.

Judge Charles Breyer has confirmed that Volkswagen's $10 billion-plus plan to resolve claims by the U.S. government and lawsuits by American car owners over its pollution-cheating debacle has been 'agreed in principle' by the Justice Department and various other US agencies. The plan covers at least 480,000 cars in the US and over 600 lawsuits offering consumers flexibility including buybacks and "substantial compensation."

In January and in early February UBS' technical analysts said that while they do not believe in a 2008 event, 2016 should be a highly volatile and a trading oriented year for equities... and so far it has. But now Michael Riesner and Marc Muller see a high likelihood to move into our suggested early Q2 cycle top this week.

With last week’s higher low at 2033, we have a new pivotal support in place in the SPX, which makes 2033 to a tactical key support.