Precious metals are higher while industrial metals like copper are lower. Interest rates are falling and stocks are consolidating big losses of prior sessions. The dollar is strong, but off its best levels.
What are we to conclude from this set of observations? That the double-dip scenario remains alive and well.
I guess that puts us in a scenario in which the market becomes vulnerable to good news. We saw a bit of that this morning as German industrial orders held up much better than expected.
But spin-meisters like myself can turn that into a negative, pointing out that a resilient Germany only widens the competitiveness gap between Germany and the less-competitive bulk of the euro zone.
The is not a lot of economic data on the docket this week, so minutiae like the details of the euro SPV will vie for the market’s attention.
Be careful not to trade out of boredom. Use rebounds in risk-assets to set shorts and don’t get caught in no man’s land.
