The Market Is Flashing Signs Of ‘Deep Instability’ And Very Sensitive To Negative Surprises.. GOLDMAN: Brace Yourself For More ETF Selling Of Gold Holdings… More Liquidation Ahead?
April 17th, 2013
The Market Is Flashing Signs Of ‘Deep Instability’
The latest is the jitters in Germany.
Sebastien Galy of ScoGen sees this as a sign of rising jitters and instability.
It took only some speculation of a German downgrade to send the DAX plunging sharply lower, before it partially recovered. The sensitivity of different markets to negative surprises seems to have risen sharply recently, particularly in Europe and the broad EM spectrum. It suggests that the period of consolidation is continuing. Until now, sharp corrections were met by sharp recoveries as they were in 2006 and 2007 typical of liquidity fuelled rallies. This is the second period of deep instability this year, the last one was end of February (“instability cubed”).
Bank of America missed when it reported earnings of $0.20 per share, on expectations of $0.23 per share. Adjusted revenue came in at $23.85 billion, above expectations for $23.15 billion. Expects to begin capital plans in the second quarter. Gundlach tells bond bears they’re wrong >