Ashraf Laidi talks FOMC, Euro to AlArabiya Jan 28, 2012

Jan 30, 2012 19:22

Ashraf Laidi tells Arabiya that the Fed's downgrade of its economic outlook and the extension of zero rate policy will raise expectations (& speculation) for a 3rd round of asset purchases. The result would be prolonged renewed buying in equities at each dip, and choppy trading in EURUSD. Ultimately, however, the Fed will likely fall short of delivering a 3rd round of QE and disappoint the overall risk trade.

Latest IMT - Mar 31

10 Pct Limit

The S&P500 index, the most widely followed index in the world (in terms of benchmarks) has now fallen exactly 10% from its record high. Major markets such as S&P500, EURUSD, XAUUSD, oil etc are widely scrutinized when their drawdowns reach high profile figures such as 10%,15% and 20%. At these points, algos and automated buy programs are alerted and even triggered. Similar action when these markets reach high profile moving averages such as 55, 100 and 200. In today's case, today's SPX 10% decline coincides with the 55-DMA. Note in the drawdown charts below, what happened when SPX drawdown reached the 10% level. The most likely scenario (according to multi-year cycle averages), indices will have a positive April before resuming fresh downside ahead.

Click To Enlarge

Latest Hot-Chart - Mar 30

Patterns on Fridays & Mondays Since the start of the war on Iran, the pattern of falling Fridays in US equity indices has become obvious. Will the pattern ends this week. View Hot-Chart..

Intermarket Analytics

21-yr Intermarket Charts - 7 indices 11 currencies 14 commodities Chart

21-yr Intermarket Charts - 7 indices 11 currencies 14 commodities Interactive charting by instrument, chronological and alphabetical order. This enables organizing each individual commodity, currency or equity index' performance by magnitude or chronological order. View..