After months of insane intraday price action dealers don’t know what to make of the relative stability on offer so far this week. Is it safe to resume traditional short-term scalping activities are are markets just too thin to take the chance? The latter in my opinion. Give the markets a few days to settle down before assuming we are back to the future.
PPI is set to plunge in October as oil prices dropped like a stone last month. a monumental 1.8% drop is the consensus forecast.
TIC data is out at 9:00 AM New York time for September. Markets were nearly paralyzed for the last two weeks of September after Lehman collapsed and the TARP was very publicly negotiated. US Treasuries traded near record low yields during September and and through October, so capital flows will not be a prime focus near-term, though they will be key going forward as the US funds its massive bailout/stimulus spending commitments.
