The Bank of Japan joins the central banks surprise stimulus club, chatter was possible action next month. The BOJ action lead Greg to note: in the very near term, the possible 2000lb Gorilla in the room is still China easing. Xi JinPing is not gonna be standing on the sidelines – is he? Interesting central banks moves to say the least. Although, the crude price action, plummet actually continues to lead this week’s headlines. FT ran an article on Sunday: Saudis offer extra oil to offset price rises – Largest exporter worried about impact of high crude prices. This morning OPEC Head: No Shortage Of Oil Anywhere On Earth. Stanton_Analytics Crude: Margin selling and the big build in crude numbers is due to two reasons: The Saudis are pumping above 10 MM b/d and the shut ins from the Hurricane are back fully. Oh, the surprise build crude +8.5M in inventories added additional pressure. The 8% drop this week will be a welcome relief at the pump in the coming week(s) when the consumers may see it at the pump, assuming nothing happens between now and then…
Midmorning observation: Is there a bump in the road? (Reuters) – The head of the European Central Bank, Mario Draghi, will discuss the state of economic and currency union in the euro zone with German Chancellor Angela Merkel in Berlin next Tuesday, a senior German source said on Wednesday. Also, Moody’s rating agency reiterates the outlook for the US remains negative, reflecting ongoing macroeconomic risks and persistent budgetary challenges.
Wednesday started with 335k ESZ and 2k SPZ traded on Globex, trading range 1459.25 – 1453.00 / Tuesday’s pit range 1455.20 – 1449.70, settled at 1452.90 down 1.1 handles. Today’s RTH’s gapped 2 handles higher at 1455.00 – 1454.50 marking the early high. Early, continued weakness in crude, testing $93.00 post open and the DJT were down nearly 50 points as the spoos were trading 1451.70 morning low. At 9:00 another firm housing report offset the disappointing permits number premarket. The existing home sales, 4.82 vs 4.55 gave the spoos a push to print new highs of 1456.80. After a small pullback another buy program pushed the spoos to 1458.00 as the DJT were up 25 points. The sideways to slightly higher grind produced a 1459.20 print by 12:13 followed by sideways trade in the upper end of the range going into the cash close. Going into the 2:45 cash close the SPZ was trading around the 1457.50, at 2:45 24 of the DOW 30 were to buy and the broader market moc showed buy 450mil. On the 3:00 cash close the SPZ traded 1454.65 before settling at 1452.90, up .20 handles on the day. UNCH’D on the day & a DOJI.
MTS video: Top Notch http://www.mrtopstep.com/9-19-2012-tim-haefke/