Archived IMT (2008.11.13)

As explosive as was todays 7% rally in the major Wall Street indices, it remains a typical example of bear market advances, similar to what we saw on Friday, albeit with greater magnitude. Similar to last Friday. todays gains extended despite the biggest increase in weekly jobless claims in 7 years and a 17-year high in the 4-week moving average. This was a case of bargain hunting, which remains panic buying with the objective of pocketing short term gains. Traders will always find a market for their short term profits and today was an appropriate example. The reaction in FX markets favored higher yielding currencies against USD and JPY. Whether risk appetite will extend its gains based on a smaller than expected decline in tomorrow's sales or reverse on a worse than expected drop is the next question. Resistance for GBPUSD, USDJPY and AUDUSD stands at $1.4920, 98.50 yen and $ 0.6710 respectively.