Stocks and Dollars

By EconMatters:

We at EconMatters expected the QE2 froth to come out of markets once the Fed experiment of artificially inflating asset prices was over, and for the most part this is exactly where we are today at the crossroads.

Are we going to just trudge along with a slow growth economy until the world finally works its way out of the housing inventory overhang, and the next building phase takes hold and there is a strong surge in the labor markets from the bottom up, or are we going to take the next leg down and head back into a recessionary environment?

Remember, the official definition for a recession is two consecutive quarters of negative GDP growth, and is determined after the fact. However, there are some market signs which in real time can give us a clue as to which course the economy seems to be taking.

Crude Oil

The

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September and the 3Q ended with many major markets closing around recent lows for the current decline. Perhaps most disheartening from a technical perspective is that most risk assets spent the early part of the week attempting to rebound, only to fail, leaving behind ominous price patterns. The CRB commodity

September and the 3Q ended with many major markets closing around recent lows for the current decline. Perhaps most disheartening from a technical perspective is that most risk assets spent the early part of the week attempting to rebound, only to fail, leaving behind ominous price patterns. The CRB commodity

Month-End/Quarter-End rebalancing flows led to moderate USD buying vs. the Euro today. However, the 1.3400/10 level could offer short-term support as it sees an hourly Bullish Divergence as well as wave c 1.618 x wave a. In the chart below you will see the Elliot wave count for bulls

Month-End/Quarter-End rebalancing flows led to moderate USD buying vs. the Euro today. However, the 1.3400/10 level could offer short-term support as it sees an hourly Bullish Divergence as well as wave c 1.618 x wave a. In the chart below you will see the Elliot wave count for bulls

The GBP/USD held its ground to end this week’s trading after rallying for the first half and flattening during the second half. Friday’s price action was about to form a double top, but the support at 1.5530 held again for the third time this week. Note that the RSI in

By Caroline Valetkevitch NEW YORK, Sept 30 (Reuters) – Small- and mid-capitalizationstocks posted their worst quarterly declines since 2008 onFriday, outpacing the losses of major indexes. On Friday, shares …