Futures are strong but off much higher levels. It will be most interesting to see just how long the market stays strong. After yesterday’s teeter totter there is no telling.
Oil is up and gold is down. Gold’s decline over the last three days is troubling. It is a speculators market to be sure but one wonders what happened to the safe haven approach. Could gold all of a sudden foretell an improving equity market or at least a bottom? Does it also suggest a willingness by traders to accept higher risk levels by going into equities?
Recent economic/employment/corporate earnings certainly doesn’t support more risk taking.
Yet another hedge fund is accused of fraud. This time customer funds were used for horses, $3 million for an ex-wife’s house, etc. Carnegie Mellon and Univ Pittsburgh appear to be biggest losers. Got money in a hedge fund? Give them notice and get your money.
Lets see how the day unfolds. Perhaps we can get a better handle on what the consensus is thinking by noon.
