It has been a seesion of violent, volatile gaps, starting with sharp gap up in S&P futures on Wednesday night, just around 10pm, which saw ES spike and rally to new all time highs on no news...
Not even last night's Moody's credit downgrade of China - the first since 1989 - could dent the global stock rally which has pushed global stock prices to all time highs. After initially sliding, regional stocks and emerging Asian currencies pared early losses following the unexpected downgrade of China, taking their cue from the "sudden reversal" of the Shanghai Composite Index, which some speculated saw the latest intervention of the "national team."
S&P futures rose alongside European stocks as Asian shares posted modest declines. The euro set a new six-month high and European bourses rose as PMI data from Germany and France signaled that the ECB will have to tighten soon as Europe's recovery remains on track, with the German Ifo business confidence printing at the highest level on record, and hinting at a GDP print in the 5% range. Oil declined after the Trump budget proposal suggested selling half the crude held in the US strategic petroleum reserve.
As President Trump jets towards The Middle East leaving behind him a wake of headlines from the mainstream media, we suspect this will help him sleep...
Let's start with this...
Authored by MN Gordon via EconomicPrism.com,
“Injustice, swift, erect, and unconfin’d,Sweeps the wide earth, and tramples o’er mankind”
– Homer, The Iliad
When Mount Vesuvius Blew
Everything was just the way it was supposed to be in Pompeii on August 24, 79 A.D. The gods had bestowed wealth and abundance upon the inhabitants of this Roman trading town. Things were near perfect.